The contact adhesives market is expected to grow at a CAGR of around 5.7% during the forecast period of 2019 - 2024. The major factors driving the growth of the market studied are the growing demand from the automotive industry and robust growth in demand from Asia-Pacific with the growth of the manufacturing sector. On the flipside, volatility in raw material prices, and stringent environmental regulations regarding VOCs are some of the major concerns for the studied market.
- The neoprene-based segment dominated the market in 2018 and is likely to grow during the forecast period, owing to the growing demand from footwear and construction industry.
- The shifting focus towards water-borne adhesives is likely to provide opportunities for the studied market during the forecast period.
- Asia-Pacific dominated the market across the globe, due to robust demand from the growing industries, such as construction, automotive, footwear, furniture, and packaging.
Key Market Trends
Footwear Leather Segment to Dominate the Market Demand
- Footwear leather segment is expected to dominate the demand for contact adhesives. Contact adhesives are fluid and flexible in nature, and environment-resistant, which makes it suitable for use in shoe manufacturing and leatherwork.
- It can be used for bonding all parts of shoes, including outsoles, insoles, and uppers, among others.
- Asia-Pacific stands to be the largest market for shoe industry, owing to the presence of most populous countries, such as China, and India.
- Besides, being home to major brands, North America and Europe contributes significantly to the demand for contact adhesives for footwear applications.
- The global footwear industry is experiencing rapid expansion due to demand for new and innovative footwear products, rising demand with growing population, increasing sports activities, and increased demand for sports footwear, which are expected to increase production in the industry, further driving the demand for contact adhesives.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share in 2018. The robust demand from industries, such as automotive, construction, footwear, furniture, and packaging are likely to drive the growth of contact adhesives in the region.
- Asia-Pacific countries - China, India, Indonesia, Pakistan, and Bangladesh, are among the top 10 most populous countries in the world. Moreover, population in such countries is further increasing continuously, which is expected to significantly add to the demand for footwear in the coming years.
- In China government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next ten years.
- In India, the government's investment target of USD 120.5 billion for developing 27 industrial clusters is expected to boost commercial construction in the country.
- China already has numerous airport construction projects under planning or developing phase. Indian government has also planned to construct 100 new airports by 2032.
- In addition, residential and commercial construction is also increasing in the countries, such as Philippines, Vietnam, and Indonesia.
- Moreover, such robust growth in construction activities, the demand and production in furniture market is also expected to increase at a robust rate in the coming years.
- Countries such as India, Indonesia, Malaysia, and Thailand in the region, have been witnessing increase in investment & production in the automotive industry. Besides, China stands to be the largest automotive producer in the world.
- Though production declined in China during 2018, the automotive production is expected to increase in future, driven by the government and automaker's efforts towards developing and increasing sales of electronic vehicles.
- The region is also witnessing fastest growth in the global packaging industry, where countries, such as China and India has been leading the market. Factors, such as e-commerce, online food deliveries, and innovation & development in packaging industry has been driving the growth of packaging industry in the region.
- Hence, all such market trends are likely to drive the demand for contact adhesives in the region during the forecast period.
The contact adhesives market is a fragmented market, where few players account for small share of the market demand. Some of the major players in the market include Sika AG, Henkel AG & Co. KGaA, H.B. Fuller Co, Bostik (Arkema), and 3M, amongst others.
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