AWA report outlines pressure-sensitive adhesive market dynamics

New market research from AWA Alexander Watson Associates has indicated there will be strong global growth for pressure-sensitive adhesives (PSAs) through to 2020, with Asia being the dominant market.

Tapes account for the lion's share of PSA demand, followed by labelstock

In the second edition of its Global Pressure-sensitive Adhesives Market Study, AWA has reported that, taking into account the exceptional growth in technology and the demographics of the Asian countries, Asia represents 42 percent of global PSA demand, with continuing growth in the region at a CAGR of 8.4 percent to 2020 expected. 

The small but increasingly vibrant market in Africa and the Middle East also offers real growth over the next few years, at 4.4 percent, according to the report, with the long-established North American and European markets also to grow although at more modest rates. Recent economic volatility in South America has slowed the regions previously dynamic growth prospects.

PSAs are used in a wide variety of applications and industries, thanks to their efficacy and, in combination with a release liner, their user-friendliness. Another recent AWA study, reported here, has found Asian demand for release liners across their many applications to be the highest in the world, representing 37 percent of the total global market.

The Global Pressure-sensitive Adhesives Market Study found that UV-curable hot melt adhesives are currently showing the greatest growth potential, although from a low base. Water-based – emulsion – PSAs command the highest market share today, and are forecast to continue to enjoy a 6.7 percent CAGR to 2020, thanks to their high performance and low cost. Suppliers of high performance, solvent-based PSAs will continue to enjoy growth in appropriate applications, although there are significant safety issues involving the use of solvents and costs are high.

AWA added that it is particularly interesting that end-use markets for PSAs reflect real-life technology innovations. The medical market – for such uses as wound care, surgical incision films and tapes, and for wearable devices for stoma care and electrode terminals – currently represents only two percent of current demand, but is forecast to grow to 2020 at a very healthy 7.7 percent.      Hygiene applications will also enjoy healthy growth in line with changing global demographics. It is, however, the tapes market, where PSAs today perform expert tasks in nearly every advanced industry – particularly in terms of mechanical fastener replacement – that we see the highest global demand, currently 62 percent of the total;  and the market is predicted to continue to enjoy very healthy annual growth. The long-established markets for pressure-sensitive labelstocks and graphic films will also grow also, but at much lower percentages.

The Global Pressure-sensitive Adhesives Market Study 2016 is available to order via the AWA website at www.awa-bv.com.