Water Based Adhesive Market

Demand for Lightweight and Low Pollution to Fuel Water Based Adhesive Market Growth

The market for water-based adhesives is expanding due to consumer demand for lightweight and low-pollutant goods. Due to their increased effectiveness and less environmental impact, light effects are becoming more and more popular. Given that they are often lighter and less harmful than conventional solvents, water-based adhesives can aid manufacturers in achieving these objectives. Additionally, water-based adhesives are less difficult to apply and cure, making them a desirable option for producers trying to streamline their manufacturing methods. Market expansion for water-based adhesives is also fueled by rising consumer demand for low-pollution goods.

Consumers and manufacturers who care about the environment frequently choose water-based adhesives since they produce fewer VOCs and do not contain any dangerous compounds. Furthermore, employing water-based adhesives can lessen the impact of industrial processes on the environment because they are simpler to dispose of and do not present the same health hazards to humans as traditional solvents. As consumers and manufacturers look to lessen their environmental impact in the next years, the movement towards sustainability and eco-friendliness is anticipated to fuel demand for water-based adhesives.

The steady economic development anticipated in many developed and developing nations will help the adhesives market flourish.  real GDP growth is expected to be 3.7% in 2019 and 2020 and 3.6% in 2021 to 2023, according to the International Monetary Fund (IMF). Further predicted support for the market's growth is the recovery of commodity prices following a severe decrease in the previous period. Additionally anticipated for the foreseeable period is consistent growth in developed economies. Additionally, it is anticipated that emerging markets will expand a bit faster during the forecast period than developed markets.

The Asian Development Bank, a regional development bank, estimates that Asia's share of  GDP will rise to 40% by 2030 and to 52% by 2050.

Regulatory compliance plays a crucial role in shaping the Global Water-based Adhesive Market Industry. Governments worldwide are implementing stringent regulations to limit the use of harmful chemicals in adhesives, which has led to a shift towards water-based formulations. For instance, the European Union's REACH regulations have prompted manufacturers to reformulate their products to meet safety standards. This regulatory landscape not only encourages innovation but also expands the market for water-based adhesives, as companies seek compliant solutions. The anticipated growth to 37.5 USD Billion by 2035 underscores the importance of adhering to these regulations, as businesses adapt to evolving compliance requirements in the Global Water-based Adhesive Market Industry.

The Global Water-based Adhesive Market Industry is increasingly influenced by sustainability trends as consumers and manufacturers alike prioritize eco-friendly products. Water-based adhesives, being less harmful to the environment compared to solvent-based alternatives, are gaining traction. This shift is particularly evident in industries such as packaging and construction, where regulations are tightening around the use of volatile organic compounds. As a result, the market is projected to reach 20.4 USD Billion in 2024, reflecting a growing demand for sustainable solutions. Companies are investing in research and development to enhance the performance of these adhesives while maintaining their environmental benefits, thus driving growth in the Global Water-based Adhesive Market Industry.

Market diversification is a notable driver in the Global Water-based Adhesive Market Industry, as manufacturers explore new applications and markets for their products. The versatility of water-based adhesives allows for their use in various sectors, including automotive, construction, and consumer goods. This diversification not only mitigates risks associated with reliance on a single market but also opens up new revenue streams. As companies expand their product offerings and target different industries, the overall market is likely to benefit. The anticipated growth trajectory, reaching 37.5 USD Billion by 2035, suggests that diversification strategies will play a pivotal role in shaping the future of the Global Water-based Adhesive Market Industry.

The Global Water-based Adhesive Market Industry is poised for substantial growth, with projections indicating a market size of 20.4 USD Billion in 2024 and an anticipated increase to 37.5 USD Billion by 2035. This growth trajectory reflects a compound annual growth rate (CAGR) of 5.67% from 2025 to 2035, driven by factors such as sustainability trends, regulatory compliance, and technological advancements. The increasing awareness of environmental issues and the demand for safer adhesive solutions are likely to propel the market forward. As industries continue to adopt water-based adhesives, the Global Water-based Adhesive Market Industry is expected to evolve, presenting opportunities for innovation and expansion.

Technological advancements are significantly impacting the Global Water-based Adhesive Market Industry, as innovations in formulation and application techniques enhance product performance. The development of high-performance water-based adhesives that offer superior bonding strength and durability is attracting attention across various sectors, including automotive and electronics. These advancements enable manufacturers to meet the increasing demands for efficiency and reliability in adhesive applications. As a result, the market is expected to grow at a CAGR of 5.67% from 2025 to 2035, reflecting the positive influence of technology on the Global Water-based Adhesive Market Industry. Companies that invest in cutting-edge technologies are likely to gain a competitive edge in this evolving landscape.

The Global Water-based Adhesive Market Industry is experiencing robust growth driven by increasing demand from end-use industries such as packaging, woodworking, and textiles. The packaging sector, in particular, is witnessing a surge in the adoption of water-based adhesives due to their superior bonding properties and lower environmental impact. As consumer preferences shift towards sustainable packaging solutions, manufacturers are compelled to innovate and incorporate water-based adhesives into their products. This trend is expected to contribute significantly to the market's expansion, with projections indicating a rise to 20.4 USD Billion in 2024. The alignment of industry practices with consumer expectations is a key factor in the growth of the Global Water-based Adhesive Market Industry.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American water-based adhesive market area will dominate this market. The need for eco-friendly and sustainable products has increased throughout the region in several industries, including packaging, building, and automotive. It is also projected that the enforcement of various energy efficiency laws and regulations by the governments of the US and Canada will encourage industry growth. Additionally, several sizable businesses in the area are investing in R&D to launch cutting-edge products and increase their customer base.

The predicted drivers of this market's rise are the developing trend of e-commerce delivery services and the rising demand for packaged food & beverages.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  WATER-BASED ADHESIVE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe water-based adhesive market accounts for the second-largest market share. The region's well-established construction, packaging, and automotive sectors are predicted to drive the main demand for water-based adhesives. Along with the region's rigorous legislation governing the use of chemicals in various industries, it is also projected that rising consumer awareness of green and sustainable products will drive market growth. Additionally, the area is home to many significant businesses that invest in R&D initiatives to develop new goods and meet changing consumer demands.

Further, the German water-based adhesive market held the largest market share, and the UK water-based adhesive market was the fastest growing market in the European region

The Asia-Pacific Water-based adhesive Market is expected to grow at the fastest CAGR from 2023 to 2032 The region is likely to have a large rise in demand for water-based adhesives as a result of the presence of developing economies like China and India, where the construction and packaging sectors are both expanding swiftly. The region's major market rivals are increasing their funding for R&D initiatives in order to develop new products and grow their customer base. Additionally, the region's access to inexpensive labour and raw materials is projected to promote market expansion.

Moreover, China’s water-based adhesive market held the largest market share, and the Indian water-based adhesive market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the water-based adhesive market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, water-based adhesive industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  water-based adhesive industry to benefit clients and increase the market sector. In recent years, the water-based adhesive industry has offered some of the most significant advantages to market. Major players in the water-based adhesive market attempting to increase market demand by investing in research and development operations include Henkel, Sika, Bostik, RPM international, KCC, B.Fuller, 3M, Illinois tool works, Avery Dennison, Huntsman international, DowDuPont, Ashland, MAPEI, Akzo Nobel, Permabond, Dymax, LORD, Delo Industrie Klebstoffe and Franklin international.

Avery Dennison Corp. (Avery Dennison) supplies materials and services for labeling and packaging. Pressure-sensitive materials, labels, tickets, tags, and other transformed items are produced by it. Fasteners, RFID inlays and tags, imprinting equipment, tickets, tags,  related services, and other products are also manufactured and sold by Avery Dennison. The firm sells products under the trademarks Avery Dennison, Fasson, Yongle, Monarch, Freshmarx, JAC, and Mactac. It provides services to a number of industries, including building, retail, footwear and apparel, e-commerce, pharmaceuticals, logistics, food and grocery, the automotive industry, and the healthcare sector.

In 2020, the label and packaging industry had a new water-based adhesive from Avery Dennison. The S799 product is suitable with various substrates and has good tack and peel strength.

Illinois Tool Works Inc. (ITW) is a producer of a variety of industrial supplies and tools. The company's main offerings include fasteners and assemblies, consumables, refrigerators, freezers, hand wipes, fillers and putties, metal and plastic components, warehousing equipment, cooking equipment, adhesives, chemical fluids, and arc welding equipment. Other items offered by ITW include insulation goods, conveyor systems, anchors, fasteners, and ground support equipment for airports. These items are used in a variety of commercial and residential, and automotive applications.

3M and Avery Dennison announced that they had formed a strategic alliance focused on developing new labeling and packs utilizing water-based adhesives in September 2023. This collaboration aims at improving product performance without violating strict environmental standards. The proximity between them has been helpful at times whenever they want to come up with mechanisms that reduce waste.

BASF, which is an eminent chemical company, united with Mondi, the worldwide paper and packaging group, last November for the development of flexographic printing using waterborne glue products for flexible packaging. The goal behind this cooperation is the creation of eco-friendly recyclable compostable package solutions as per this circular economy approach. This association is an attestation to both firms’ commitment to the development of sustainable packaging solutions for their consumers.

H.B. Fuller, a reputable adhesive manufacturer, partnered with FlexPak Services, a flexible packaging solutions provider, in February 2024 to launch new water-based adhesive technologies. The company aims to improve the performance characteristics and environmental friendliness of flexible packaging due to increasing demand for environmentally friendly food and beverage packaging options.