Bio-based Adhesives Market

Bio-based Adhesives Market Size

Bio-based Adhesives Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 4.7% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 5 billion and is projected to reach USD 8.3 billion by the completion of 2034.

Bio-based adhesives are a greener alternative to traditional petroleum-based adhesives, derived from sustainable sources such as plants, animals, or microorganisms. These adhesives utilize the bonding properties of materials like starch, proteins, and natural resins, which are modified to create strong bonds once applied and dried or cured. Bio-based adhesives reduce reliance on fossil fuels and decrease the carbon footprint by using sustainable resources, minimizing environmental impact. They also exhibit lower levels of volatile organic compounds and allergens, enhancing health and safety.

Market Highlights

Bio-based Adhesives Market is anticipated to grow at a robust rate, with projections indicating a 4.7% compound annual growth rate (CAGR) between 2024 and 2034

Bio-based Adhesives Market is expected to reach USD 8.3 billion during the forecast period. The rising demand for sustainable products is driving this growth, as industries like packaging, automotive, and construction increasingly adopt bio-based adhesives to meet environmental goals. Advancements in adhesive technology are further propelling the market by improving the capabilities and adaptability of bio-based adhesives, making them competitive with conventional adhesives. Additionally, the expanded accessibility and enhancement of raw materials from sustainable sources are fueling market growth.

Source: Fatpos Global

Bio-based Adhesives Market Segmentation

Plant Based segment is anticipated to lead due to their widespread availability and cost-effectiveness

Bio-based Adhesives Market is segmented based on Type into Plant Based, and Animal Based. The Plant Based segment is expected to lead the market due to its widespread availability and cost-effectiveness. Materials such as starch and cellulose are easily available and less expensive, making plant-based adhesives more cost-effective for manufacturers. Plant-based adhesives are versatile and can be used in a variety of industries, such as packaging, construction, and automotive applications, meeting diverse industrial requirements. Adhesives made from plants are seen as a more sustainable option, aligning with the growing consumer and industry interest in eco-friendly goods. Furthermore, numerous governments and organizations promote the utilization of renewable materials through incentives and regulations, endorsing plant-based adhesives and increasing market demand.

Packaging & Paper segment will dominate the industry due to high demand for sustainable and eco-friendly packaging solutions

Bio-based Adhesives Market is classified based on Application into Construction, Packaging & Paper, Healthcare, and Others. The Packaging & Paper segment is expected to dominate the bio-based adhesives market. The increasing demand for sustainable packaging options is driving the popularity of bio-based adhesives for their environmentally friendly attributes in packaging materials. Bio-based adhesives have a wide range of uses and are particularly effective in various paper items such as cardboard and labels, making them ideal for the packaging and paper segment. The market growth of this segment is further driven by the growing understanding of sustainable packaging solutions derived from bio-based sources. Additionally, many governmental rules and policies encourage the use of renewable and sustainable materials in packaging, boosting the demand for bio-based adhesives.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increasing Environmental Concerns are Critical to Boost the Adoption of Bio-Based Adhesives Market

Rising environmental concerns are propelling the expansion of the bio-based adhesives industry. Consumers are becoming more aware of environmental issues and opting for eco-friendly products, driving the demand for greener adhesives. Companies are integrating sustainable practices to reduce their environmental footprint by using bio-based adhesives in their products and packaging. Businesses prioritize sustainability by employing natural adhesive materials to demonstrate their dedication to the environment and appeal to eco-conscious customers. Additionally, governments worldwide are enforcing stricter environmental regulations, encouraging the use of sustainable materials, and pushing businesses to adopt bio-based adhesives.

Advancements in Bio-Based Adhesive Technology Will Aid the Market

Advancements in bio-based adhesive technology are significantly fueling market growth. Innovative formulas result in enhanced bonds and increased adaptability, enabling applications in a wide range of industries from construction to technology. Innovations have reduced curing times and improved resistance to environmental elements such as temperature and humidity. The reduction in volatile organic compound emissions in eco-friendly advancements has resulted in safer adhesives for users and the environment, with an increased availability of sustainable sources. The range of customization options has grown, allowing for personalized features to meet specific requirements like adaptability, waterproofing, and heat tolerance, as well as unique adhesives for specialized markets. Furthermore, cost-effectiveness has been enhanced due to reduced production expenses and increased scalability for large-scale production.

Restraints

High Costs Can Limit the Growth of the Bio-based Adhesives Market

High costs act as a barrier to the growth of the bio-based adhesives market. Initial manufacturing expenses are elevated due to the increased cost of specialized natural ingredients compared to petrochemical-based materials, as well as the higher manufacturing costs associated with advanced processing techniques. Price sensitivity influences market competitiveness, and industries with limited budgets may opt for cheaper traditional adhesives over the higher-priced bio-based adhesives. Economies of scale are a concern for many bio-based adhesive producers who work on a smaller scale, leading to increased costs per unit. Some companies are discouraged by the substantial investments required for new infrastructure and technology to support large-scale production. Moreover, consumers and businesses might not see the environmental advantages as worth the increased expenses, limiting the adoption of these products in the market.

Recent Developments

• Henkel AG & Co. KGaA launched new adhesive solutions in 2023 made from bio-based materials to improve sustainability and lower the carbon footprint of its products.
• In 2023, BASF SE introduced bio-based adhesives created from sustainable sources, enhancing the effectiveness and eco-friendly advantages of its adhesive offerings.
• In 2022, 3M Corporation broadened its selection of eco-friendly adhesives with improved formulas to cater to different industrial requirements, offering greater durability and versatility.
• In 2022, Dow Inc. launched a new series of eco-friendly adhesives that meet stringent sustainability standards and offer comparable performance.
• Sika AG introduced innovative bio-based adhesive technologies in 2021 to lower ecological footprint and improve application effectiveness.

Bio-based Adhesives Market

Key Players:

• 3M Company
• Arkema S.A.
• Dow Inc.
• Ashland Global Holdings Inc.
• Sika AG
• Henkel AG & Co. KGaA
• Jowat SE
• Verdezyne, Inc.
• RPM International Inc.
• Evonik Industries AG
• BASF SE
• Wacker Chemie AG
• Mitsubishi Chemical Holdings Corporation
• UPM-Kymmene Corporation
• H.B. Fuller Company
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Bio-based Adhesives Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The European region is anticipated to dominate the Bio-based Adhesives Market as the area is supported by strict environmental rules and sustainability guidelines that promote the utilization of environmentally safe materials, such as bio-based adhesives. The adoption of these adhesives is fueled by strong consumer awareness and demand for sustainable products. Furthermore, Europe excels in developing innovative and advanced adhesive manufacturing technologies, particularly in the production of bio-based adhesives. In general, Europe's leading position in the bio-based adhesives market is due to its strict regulatory requirements, consumer demand for eco-friendly products, and advances in technology.  

Source: Fatpos Global

Impact of COVID-19 on the Bio-based Adhesives Market

COVID-19 pandemic had a dual impact on the Bio-based Adhesives Market. Initially, lockdowns and restrictions hindered the flow of both raw materials and finished goods, impacting production schedules and delivery deadlines. Also, production capacity and efficiency were impacted by workforce challenges arising from illness, quarantines, and social distancing measures. Additionally, the bio-based adhesives market was affected by decreased demand in industries like automotive and construction, as a result of the economic downturn from the pandemic. However, the pandemic underscored the significance of sustainability and resilience. Customers and companies have become more aware of their environmental footprint, leading to an increased desire for eco-friendly items such as bio-based adhesives. Furthermore, the pandemic has brought attention to the importance of strong and flexible supply chains, potentially spurring advancements and enhancements in the bio-based adhesives industry.

Bio-based Adhesives Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Bio-based Adhesives Market Scope and Segments:

Frequently Asked Questions (FAQ):