The market size of low VOC adhesive is projected to grow from USD 41.58 Billion in 2017 to USD 55.29 Billion by 2022, at a CAGR of 5.9%. The low VOC adhesive market is driven by the increasing use of adhesives in several end-use industries such as paper & packaging, building & construction, woodworking, transportation, consumer, and others. The stringent government regulations pertaining to the VOC content in adhesive drives the low VOC adhesive market.
The polyurethane adhesives are projected to register the highest CAGR during the forecast period. The outstanding features of polyurethanes are flexibility, strength, and excellent adhesion that ensure good bonding to flexible plastics that are difficult to bond. These properties drive the use of polyurethane adhesives in transportation, wood working, and building & construction end-use industries.
Based on the end-use industry, the low VOC adhesive market has been segmented into paper & packaging, building & construction, woodworking, transportation, consumer, and others. Paper & packaging was the largest end-use industry in the low VOC adhesive market in 2016 and is also expected to dominate during the forecast period. The main reason due to wide acceptance of low VOC adhesive in this end-use industry is its easy clearance for food packaging from FDA and BGA agencies. Similarly, on a running speed line, the hot-melt technology helps in achieving and maintaining same performance in the high-speed packaging line.
The low VOC adhesive market in Asia-Pacific expected to register the highest CAGR during the forecast period. Emerging economies, such as China, India, South Korea, and various other Southeast Asian countries are attracting several global players to establish their manufacturing base in Asia-Pacific. These manufacturers are competing to reach an extensive customer base in countries, such as China and India to cater to the increasing demand for adhesives from the various end-use industries in these countries.
Though the low VOC adhesive market is witnessing growth across the globe, factors such as volatility in the prices of raw materials may restrain the growth of the market, globally.
H.B. Fuller (U.S.), 3M (U.S.), Henkel (Germany), Dow (U.S.), Bostik (France), Huntsman (U.S.), and Sika (Switzerland) are some of the key players in the low VOC adhesive market. Diverse product portfolios, strategically positioned R&D centers, continuous adoption of various growth strategies, and advancements in technologies for the development of new types of adhesives are the factors responsible for the strong position of these companies in the low VOC adhesive market.