Market Overview The market for acrylic pressure sensitive adhesives (PSA) is expected to register a CAGR of 5. 88% during the forecast period, 2019-2024. Major factors driving the market studied are the rising demand for light weight and low emission automotive and the increasing adoption of low cost flexible packaging aids.
New York, Feb. 26, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Acrylic Pressure Sensitive Adhesives (PSA) Market - Growth, Trends, and Forecast (2019 - 2024)" - https://www.reportlinker.com/p05865741/?utm_source=GNW
However, stringent environment regulations regarding emissions are expected to hinder the market growth.
- The tapes segment dominated the market in 2018 and is expected to grow during the forecast period, owing to the growing end-user industries, such as packaging, medical, and transportation.
- The shifting focus toward bio-based PSAs is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the globe with the largest consumption from the countries, such as China, Japan, and India.
Key Market Trends
Rising Demand for Light weight and Low Emission Automotive
- Acrylic-based pressure sensitive adhesives (PSA) are widely used by OEMs for the production of automotive. They are also used in refinishing and aftermarket. Acrylic-based PSAs, in general, exhibit lower initial tack and require a longer set-up period to obtain their maximum adhesion. However, they are less prone to develop sticky edges and maintain a more consistent level of removability on removable labels.
- Acrylic PSAs are mostly applied for outdoor applications and hold a strong odor. They possess decent peel strength, adhesion, and are highly resistant to weather. Double-coated acrylic foam tapes are used to attach automotive exterior trim, such as body side moldings, fascia, rocker panels, molding inserts, emblems, appliqués, and a variety of other automotive trim parts.
- PSAs allow automotive converters and original equipment manufacturers (OEMs) in order to produce end-products with slimmer profiles, lighter overall weight, and greater long-term reliability.
- Major car manufacturers, such as Chevrolet, Daimler, Audi, Volvo, and Kia, have set up their manufacturing facilities in Asia-Pacific, and are further planning to expand their production capacities in the region, in the near future. In the North American region, the double digit growth in Mexico (13%) in the automotive production is also likely to contribute to the demand for acrylic PSA’s.
- Hence, the strong growth of the automotive industry across the globe is expected to boost the demand for acrylic PSAs, over the forecast period.
Asia-Pacific to Dominate the Market
- With over 40% of the global demand, Asia-Pacific is the most promising market for acrylic pressure sensitive adhesives, which is likely to dominate the market in the near future. This domination can be attributed to the growing demand for tapes and labels in the region.
- China, India, Japan, and South Korea account for over 85% of the demand for acrylic pressure sensitive adhesives. The growing packaging and automotive industries are driving the market for acrylic pressure sensitive adhesives in this region.
- China’s packaging requirement is high as the country stands to be the world’s largest manufacturing economy. With a growth pattern in the industrial and FMCG products in the country, the packaging demand has been experiencing an increase, further driving the demand for acrylic PSAs from the packaging industry.
- According to the India Brand Equity Foundation (IBEF), the Indian electronics market is expected to witness a CAGR of 41% during the period 2017-2020, to reach a value of USD 400 billion. Such demand and viable opportunities for production in the consumer electronics segment is estimated to boost the demand for acrylic pressure sensitive adhesives in India.
- Overall, with the consistent growth in the countries like China, India, and Japan, the demand for acrylic pressure sensitive adhesives is expected to increase at a faster pace in the overall region, in the coming years. The huge growth of Asia-Pacific is quite instrumental in expansion of the acrylic pressure sensitive adhesives market.
The acrylic pressure sensitive adhesives market is consolidated and the top seven players account for almost 55% of the market. The major companies include Henkel AG & Co. KGaA, 3M, HB Fuller, Avery Dennison Corporation, and Arkema, among others.
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