The low VOC adhesives market is predicted to touch $81.1 billion by 2030, since being valued at $47.6 billion in 2021. The market will grow at a 6.1% CAGR from 2021 to 2030 owing to the stringent regulations being imposed by the government to reduce the VOC content in products, coupled with the rising awareness of sustainability standards. For example, in 2020, there was an imposition of new VOC standards for corporations producing numerous commodities, including inks, cleaning products, coatings, and adhesives, in China.
Another major driver for the low VOC adhesives market is corporations’ investments in emerging economies, to launch new products. This trend is accompanied by an inclination toward low-carbon-emitting vehicles and a gradually growing awareness about green homes or smart homes. For example, the building of an Adhesive Technologies Innovation Center in Shanghai was announced by Henkel in 2021, with the total spending accounting for about $65 million. This was done to leverage the growing consumption of adhesives with a low VOC content by various industries.
Within the end use segment, the paper & packaging category accounts for more than 30% of the overall low VOC adhesives market share. This can be credited to the rising requirement for sustainable and environment-friendly packaging commodities, including corrugated boxes. Furthermore, the Food and Drug Administration has allowed low-VOC adhesives to be used in food packaging. In addition, the green building and construction sector will fuel the market advance due to the extensive utilization of pressure-sensitive adhesive technology for flooring purposes, including vinyl and carpet floor tiles.
APAC will lead the low VOC adhesives market in the coming years due to the surging infrastructure spending, robust economic growth, and skyrocketing purchasing power of consumers. Moreover, the rising population and developing automotive sector will augment growth in the market, because of a increasing requirement for adhesives in the packaging, healthcare, and automotive sectors. Furthermore, being home to emerging economies, which have a stronger consumer base and economical labor costs, new manufacturing units of low VOC adhesives are being set up in the region.
Hence, the snowballing demand for these products in the packaging industry, coupled with rising vehicle safety standards, will create lucrative opportunities for the key players.
