Europe Adhesives Market

Europe Adhesives Market Analysis

The Europe Adhesives Market is expected to register a CAGR of greater than 6.7% during the forecast period.

• The increasing application in the packaging industry and growing demand from the construction industry extensively drive the demand for adhesives. However, the growth is likely hindered by rising environmental concerns and VOC emissions regulations related to adhesives.
• In the studied market, water-borne dominates the adhesive technology segment.
• The innovation and development of bio-based adhesives and shifting focus toward adhesive bonding for composite materials will likely offer opportunities for the adhesives market.
• Germany stands to be the largest market for adhesives in the region, where the consumption is driven by end-user industries, such as automotive, construction, electronics and packaging.

Europe Adhesives Market Trends

The Packaging End-User Segment to Dominate the Market

• The packaging segment is the largest consumer of the European adhesives market. The packaging industry has been witnessing strong demand from end-user industries, such as food and beverages, cosmetics, consumer goods, stationery, and other end-user industries.
• Germany is one of the biggest e-commerce markets in Europe and has the second largest population, which will drive the packaging production market. Total online goods sales reached around USD 106 billion in 2021, an increase compared to USD 89 billion in 2020.
• In the United Kingdom, plastic packaging makes up around 70% of all plastic trash. Hence, plastic packaging is the main concern, and the demand for paper packaging is increasing. The plastic tax (taxing any plastic packaging that does not contain at least 30% recycled plastic) that went into effect in the United Kingdom on April 1, 2022, is also likely to boost demand for paper-based packaging.
• The United Kingdom produced around 1.9 million tons of packaging paper and paperboard and 5.3 million tons of corrugated board in 2021, thereby increasing the demand for packaging adhesives in the country.
• Similarly, in France the packaging production increased, reaching 101.8 million kg in 2021 compared to 97.7 million kg of production in 2020, increasing the adhesives consumption volume by around 6.25% in 2021 compared to 2020. France produces around 4.8 million tons of plastic per year, of which 45% is used for packaging.

United Kingdom to Register Significant Market Growth

• The United Kingdom is one of the largest consumers of adhesives in the region. Growing construction activities, increasing consumption in the packaging industry, and the growing healthcare and automotive industries are key factors driving the consumption of adhesives in the country.
• The construction industry drives the United Kingdom's adhesives market due to diverse applications, such as roofing, plumbing, and flooring. The government plans to invest USD 27.8 billion in housing, science and innovation, transport, and a 5G network over the next five years, of which around USD 8.7 billion have been allocated for the construction of new homes and USD 4.8 billion for infrastructure.
• In addition, the government has plans to invest USD 122.9 billion in large-scale housing projects, along with key social infrastructures, such as schools and hospitals. Under these projects, the government promised to build about 1,000,000 homes, which is expected to increase the demand for adhesives.
• Similarly, the electric vehicle production volumes in the United Kingdom have increased with the availability of new EV models, ongoing government support, and the continued expansion of the public charging infrastructure. The increased production volumes are expected to improve the UK adhesives market.
• Adhesives in UK healthcare are largely being procured across the medical device industry. The medical device market in the United Kingdom is the third largest in Europe, following Germany and France, and the sixth largest in the world. Domestic device manufacturing is distinguished by a large number of small-scale medical device companies, as well as a few global manufacturers with a significant market presence. Many large US corporations have subsidiaries in the United Kingdom.

Europe Adhesives Industry Overview

The Europe Adhesives market is partially consolidated. Some major players in the market include Arkema Group, Henkel AG & Co. KGaA, H.B. Fuller Company, Huntsman International LLC, and Sika AG.

Europe Adhesives Market Leaders

Europe Adhesives Market News

• In March 2022, Bostik signed an agreement with DGE for distribution throughout Europe, Middle East & Africa. The agreement includes Born2BondTM engineering adhesives developed for 'by-the-dot' bonding applications in specific industries, such as automotive, electronics, luxury packaging, medical devices, and MRO.
• In Feb 2022, H.B. Fuller announced the acquisition of Fourny NV to strengthen its Construction Adhesives business in Europe.
• In July 2021, H.B. Fuller announced a strategic agreement with Covestro to offer sustainable adhesives in the market.