Low VOC Adhesive Market Overview
Low VOC Adhesive
Market size is forecast to reach US$59.2 billion by 2026, after growing at a
CAGR of 6.1% during 2021-2026. Having been made aware of the potential
consequences of Volatile
Organic Compounds (VOC) consumers are demanding more eco-friendly
products. This is the main driving factor behind the growth of the low VOC
adhesive market. Once an adhesive is applied, it cures by evaporation of VOCs.
Commonly used VOCs include formaldehyde, toluene, mineral spirits and xylene. This is what gives off the characteristic odor.
Adhesives labelled low VOC strive to reduce the total VOC content. They meet
all the regulations and have the least negative impact on indoor air
quality. Low VOC adhesives are used
across almost all industries. Furniture assembly and upholstery, packaging,
carpeting, construction and automotive are some of the key industries where
they are extensively used. Another contributing factor to the growth of the
market is increasing government regulations. Adhesive manufacturers have to
strive to keep up with the changing regulations on the amount of permissible
VOC. Hence there is a high demand for low VOC adhesives.
COVID-19 Impact
When the
pandemic hit, in an effort to curb the spread of the virus, lockdowns, curfews
and travel restrictions were placed. This has had a major impact on most of industries especially the transportation sector. The movement was restricted with
advisories such as, ‘travel only if necessary’. In certain places public
transport came to a complete standstill and flights were grounded. When lockdown
was lifted it was of importance to maintain social distancing by limiting the
number of commuters and also keeping the transportation system operational with
a skeleton workforce to ensure that the workers risk of infection is
reduced. Measures in place such as online classes and work from home have also
been a contributing factor in reduced traveling. The freight segment has had a
mixed short-term effect in terms of transportation demand. There is a surge in
demand for truck drivers in the transportation of essential goods. According to the
Federal Motor Carrier Safety Administration, there was 40% to 60% increase in
products being moved into grocery stores and warehouses and in US since COVID
spread started. But travel restrictions, border closures and state of
emergencies have affected the supply chain demand allowing only items deemed
essential. This has impacted the low VOC adhesives market.
Report Coverage
The report: “Low VOC Adhesive Market – Forecast (2021-2026)”,
by IndustryARC, covers an in-depth analysis of the following segments of
the Low VOC adhesive Market.
By Adhesion Technology: Water-based,
Hot Melt, Reactive, and Others
By Chemistry: Polyvinyl
acetate (PVA), Vinyl Acetate Ethylene (VAE), Ethylene Vinyl Acetate (EVA),
Polyacrylic Ester (PAE), Polyurethane, Epoxy, and Others
By Form: Paste, Liquid,
Pellets, Tape, and Others
By Substrate:
Metal, Concrete, Stone, Wood, PVC, PU Foam, and
Others
By End-Use Industry:
Transportation (Aerospace- Commercial, Military, and Others; Automotive
Passenger Vehicles , Light Commercial Vehicles, Heavy Commercial Vehicles;
Locomotive; Marine- Passenger, Cargo and Others), Paper and Packaging (Paper
Bags, Cartons, Labels, Foils, Book Binding and Others), Building and Construction
(Residential- Private Dwellings, Row Houses and Apartments; Commercial-
Educational Institutes, Hotels, Restaurants and Cafes, Sport Stadiums, Shopping
Malls & Supermarkets, Office Buildings, Airports, Hospitals, Clinics and
Healthcare Institutes and Others), Wood & Furniture (Door and Window
Frames, Cabinets, Plywood, Commercial and Residential Furniture and Others,
Consumer Goods, Energy (Wind Energy, Solar Energy, and Others), HVAC Industry, Electrical and Electronics, and
Others
By Geography: North
America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands,
Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India,
South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest
of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South
America), Rest of the World (Middle East, and Africa)
Key Takeaways
- Asia-Pacific dominates the low VOC adhesive market, owing to the growth in the EV industry in the region. China is the largest EV producer in the world. According to the Global EV Outlook by International Energy Agency (IEA), in 2020 the global electric car stock hit the 10 million marks, a 43% increase over 2019, and representing a 1% stock share. Battery electric vehicles (BEVs) accounted for two-thirds of new electric car registrations and two-thirds of the stock in 2020. China, with 4.5 million electric cars, has the largest fleet.
- Volatile organic compounds (VOCs), commonly off-gassed by thermoplastics, adhesives, sealants paints, and more substances, are known to have serious consequences for health and lead to respiratory problems. Hence there is a need for low VOC products.
- Low VOC adhesives are eco-friendly. They have high strength and bonding capabilities. So, they are sought-after in a wide range of industries, especially in paper & packaging and transportation industries.
- The major opportunity for this market is the growing awareness in society to go green. Furthermore, it is also an opportunity for this market to develop products that are of superior quality but with reduced prices.
Figure: Asia-Pacific Low VOC adhesive Market Revenue, 2020-2026 (US$ Billion)
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Low VOC Adhesive Market Segment Analysis – By Chemistry
The polyvinyl
acetate (PVA) segment held a significant share in the low VOC adhesive market
and is expected to rise at a CAGR of 6.6% during 2021-2026. It has wider scope
in packaging applications such as bookbinding, paper bags, cartons, labels,
foils, film, paperboard decals, wood assembly, automobile upholstery, and leather
binding. PVA adhesives are environment friendly and offer properties such as
waterborne nature, presence of less VOCs, and superior adhesion to different
substrates. PVA adhesives are copolymer-based and solidify by
evaporation or by absorption of water by the gluing material. Due to its high
performance and versatility, it has become the leading adhesive chemistry used
in low VOC adhesive formulations.
Low VOC Adhesive Market Segment Analysis – By Adhesion Technology
The water-based adhesives segment held the largest share of 52% in
the low VOC adhesive market in 2020. This is mainly due to their excellent
shear strength. Water-based adhesives (natural or
synthetic) is activated when water evaporates from or is absorbed by a
substrate. Hot melt adhesives cure through the dissipation of heat. Reactive
adhesives involve the combination of a monomer and an initiator to form an
especially permanent bond. Out of these, water based low VOC adhesives are
preferred. This is due to their flexibility, low
content of VOCs, and better efficiency as compared to other adhesion
technologies. Being
water-based they do not contain xylene, toluene
or mineral spirits.
Moreover, water-based adhesives are made from natural
or synthetic polymers that are soluble and are absorbed by the substrate. Also,
they are easy to handle. Based on all these reasons the water-based segment is
set to dominate the market.
Low VOC Adhesive Market Segment Analysis – By Form
The liquid form held the largest share in the
low VOC adhesive market in 2020. Liquid low VOC adhesives are preferred by the
major manufacturers owing to their strong adhesion strength, ability to protect
surface from moisture, and corrosion agents, and availability in various
fillers, such as epoxies, silicones, and acrylics. For instance, liquid epoxy
adhesives are preferred in the electronics industry. They are non-flammable low
VOC adhesives and repair printed circuits, fasten down and seal electronic
components, replace soft soldering and welding of jewelry, set jewel stones,
and repair and bond glass and porcelain. Based on all these reasons, the liquid
form is set to grow in demand during the forecast period.
Low VOC Adhesive Market Segment Analysis – By Substrate
The wood segment held the largest share in
the low VOC adhesive market in 2020. Low VOC wood adhesives are used in more
than 70% of wood products in the world. The main reason is their use in gluing
furniture joints and wood composite materials. As houses contain a lot of wood
in the form of furniture, cupboards, cabinets, flooring etc, it is important to
consider what kind of chemicals they give off and the effect on air quality. Currently
in the world “green living, green thinking” is the order. So, there is a need
for elimination of VOCs particularly formaldehyde emissions from particleboard
adhesive. This is where low VOC adhesives come into play. Low VOC adhesive can
be used on wood flooring, outdoor furniture, wood frame construction and
various other purposes. They do not contain xylene, toluene, light aliphatic naphtha and N-hexane which means they don’t
release toxic VOCs into the living space. A June 2020, survey by
architecture firm The Farnsworth Group found that more than 70% of American
homeowners had started new DIY projects at home, many of them attributing
long hours in lockdown to their sudden desire for refurbishments. Throughout
2020 and 2021, the price of lumber rose to 300% above pre-pandemic levels,
driven by a surge in demand from Americans undertaking DIY projects during
lockdowns. With the boom in demand for wood there has also been an increased
demand for low VOC adhesives. Thus, boosting the market growth.
Low VOC Adhesive Market Segment Analysis – By End-Use Industry
The transportation
segment held the largest share in the low VOC adhesive market in 2020 and is
growing at a CAGR of 6.4% during 2021-2026. The transportation industry uses low
VOC adhesives in the manufacturing of automotive, aviation, locomotive and
marine sectors. Low VOC adhesives in automotive industry are used for- automotive upholstery (leather, fabric, or
synthetic), the bonding of composites and other substrates in the automotive
cabin, decorative trim, emblems, data labels, stickers, finishing films, and
other PSAs that are common throughout the vehicle. Aerospace
interior adhesives protect from flame as well as provide strong bonds, ensuring
a higher level of safety for passengers and crew in dangerous situations. They
are used in marine industry for construction joints,
sealing bulkheads, fittings, trims, portholes and various other applications.
They find applications in locomotives as well. The growth of electric
vehicles (EVs) is also expected to increase the demand for low VOC adhesives. They
play a significant role in body construction, paint, and vehicle assembly of EVs.
Since reducing the weight of EVs helps extend their range, OEMs put significant
effort into reducing the weight of components of the body, interior, and
powertrain. Low VOC adhesives play a big role in this because they enable
technologies that help EVs charge faster, travel further, and last longer.
China is the largest electric vehicle producer in the world. As of
December 2020, China had the largest stock of highway-legal plug-in
passenger cars with over 4.5 million units, 42% of the global fleet in
use. Rising demand for EVs that are lightweight and emit less carbon is
expected to drive market growth of low VOC adhesives.
Low VOC Adhesive Market Segment Analysis – By Geography
Asia-Pacific
region held the largest share in the low VOC adhesive market in 2020 up to 42.6%,
owing to the rise in e-commerce platforms. The scale and growth rate of
ecommerce in Asia really sets it apart from other parts of the globe. Asia
accounts for nearly 60% of the world's online retail sale. According to Digital
Commerce 360 estimates, Asian consumers in 2020 purchased $2.525 trillion worth
of goods on retail websites and multi-merchant marketplaces, an increase of
19.2% from $2.118 trillion in 2019. China alone is the largest ecommerce market
in the world. Thanks to digital transformation, ecommerce in other Asian
countries such as Indonesia, Malaysia, Philippines, Singapore, Thailand, or
Vietnam is also growing exponentially. Packaging is a crucial element of
ecommerce. Some manufacturers use personalized packaging for creating their
brand image among the consumers. In the food packaging industry, adhesives play
an important role. They are used in folding boxes, small paper bags, trays,
cases, beverage cartons, labelling stickers, to name a few. Agencies such as
the United States FDA and the European Commission impose stringent regulations
regarding the use of food packaging. Low VOC adhesives are accepted widely in
this industry due to FDA clearance.
Low VOC Adhesive Market – Drivers
Health and Environmental Effects
If a person is exposed to a high concentration of VOCs in the air, they may experience breathing difficulties, eye, nose or throat irritation, or even headaches. Individuals with pre-existing respiratory problems, such as asthma, may be more sensitive to these volatile compounds. The effects of long-term exposure to VOCs can be more devastating. In fact, there is a known link between exposure of industrial workers to high levels of benzene and formaldehyde and increased cancer rates. VOCs are responsible for numerous problems of pollution and global warming. VOCs evaporate on a near-constant basis, both when actively used and when stored. This evaporation contributes to the formation of ground-level ozone or smog that is extremely irritating and aggressive to living things. In addition to the health problems mentioned above, ground-level ozone also has a strong negative impact on plants, biodiversity and ecosystems. In addition, VOCs are one of the causes of acid rain, which is responsible for damaging lakes, rivers, forests, soils, fish and wildlife populations and buildings. Hence, switching to low VOC products is good for human health as well as environment. This is the main driver behind the growth of the low VOC adhesives market.
Green Buildings
With increased interest in green living, it is essential to use
materials that have a little or no effect on the environment. Low VOC adhesives
are approved in the construction of green buildings. They are also approved for
use in environments with people suffering from allergies or asthma as they do
not affect the indoor air quality. Low VOC adhesives are developed to comply
with stringent and evolving green building standards. This includes bio-based
raw materials within the adhesive, solvent free products and a large,
concentrated emphasis on indoor air quality and lower VOCs during and after
installation. Thus, interest in green buildings are also a driver for the low
VOC adhesive market.
Low VOC Adhesive Market – Challenges
Volatile Price of Raw Materials
The
endeavor of producing low VOC adhesive is challenging. The cost of low VOC
adhesive is much higher than the standard adhesives. The reason behind this is
the growing demand for ecofriendly compounds is increasing the cost of raw
materials. The cost of manufacturing low VOC adhesives is inherently higher
than standard adhesives that offers less restrictions on which raw materials
can be utilized. As government regulations favor ecofriendly compounds, cost of
manufacturing rises. The additional R&D and product engineering required to
meet the ever-evolving environmental stands carries an additional cost. This is
expected to act as a restraint for the low VOC adhesives market over the coming
years.
Low VOC Adhesive Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Low VOC adhesive market. Low VOC adhesive market top companies are:
1. Akzo Nobel N.V.
2. LORD Corporation
3. Wacker Chemie
4. SCIGRIP
5. Pidilite Industries Ltd.
6. Franklin International
7 ARDEX Group
8. Permabond LLC
9. Sika AG
10. H.B. Fuller
11. Arkema Group
12. Henkel AG & Co. KGaA
13. Jowat SE
14. Ashland Global Holdings.
Acquisitions/Technology Launches
In May 2021, Sika has agreed to acquire Hamatite, the adhesives business of The Yokohama Rubber Co Ltd., that offers adhesives to the automotive and construction industries in Japan.
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Adhesives and Sealants Market- Forecast (2021-2026)
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