CAGR: 4.1%Current Market Size: USD 44.45 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global cold seal adhesive market is expected to grow from USD 44.45 billion in 2022 to USD 61.3 billion by 2030, at a CAGR of 4.1% during the Projection period 2023-2030. The growth of this market is mainly driven owing to the rising demand for cold seal adhesives in various applications such as medical packaging and food packaging.
Unlike other pressure-sensitive adhesives, cold seal adhesives are capable of forming a strong bond with themselves when pressure is applied while also being rewound for storage without affecting the bond. This adhesive forms a bond between surfaces that are located close to one another. The adhesive is applied in a thin layer, and it sets quickly once it comes into contact with another surface. In addition to their high transparency property, cold seals are ideally suited for use on ingredient labels of prepared food or beverages due to their better clarity than hot melts. A cold seal adhesive is usually applied on the inside of packaging when it comes to heat-sensitive products like chocolates, dairy products, and others. A natural-based product, it requires only pressure to pack. Using cold seal adhesive prevents leakage, maintains the freshness & fragrance of the product, and improves its shelf life. The increasing exploitation of natural resources has resulted in severe degradation of the environment. The waste generated by household, commercial, and logistical operations further destroys the environment. Cold seal adhesive reduces packaging waste from logistics, transportation, storage, and warehouses. The cold seal adhesive solutions are reusable & recyclable, and they can be repurposed according to logistical requirements.
Sample Request: - Global Cold Seal Adhesive Market
Market Dynamics:
Drivers:
Packaging food industry growth will be driven by innovative processing methods developed to increase shelf life. This is likely to bolster market growth in the Projection period. Moreover, a major end-user of the market is the pharmaceutical industry. In the past few decades, technological innovations, consumer concerns about health, and rising disposable incomes have helped to propel the global pharmaceutical industry forward, and this trend is expected to continue.
Restraints:
It will be challenging for the market players to use cold seal adhesive as there are stringent rules regarding its use. Consumers' health is under increased scrutiny by regulatory authorities when cold seal adhesive is used as packaging, labelling, and wrapping material for products consumed directly by consumers. Cold seal adhesive is unstable due to its lack of chemical resistance, making it unpopular when it comes to consumer health concerns.
Opportunities:
A growing awareness of climate change, environmental degradation and the serious consequences for humankind has led to an urgent need for sustainable development models. Since single-use, non-recyclable, and expendable packaging are non-biodegradable, they can harm the environment. The microplastics that remain in the biosphere for millions of years form the basis for the food chain, causing severe health problems for humans.
Challenges:
A lack of chemical resistance makes cold seal adhesives vulnerable to air exposure if handled incorrectly, which can hamper the market growth. During assembly lines, improper packaging can degrade cold seal adhesive quality, hampering the market's growth. As a result of its oxidation, it reduces its functional properties and renders it useless. Improper packaging can also cause it to deteriorate, hampering its growth.
Segmentation Analysis:
The global cold seal adhesive market has been segmented based on product type, end-user, and region.
By Product Type
The product type segment includes water-based adhesives, solvent-based adhesives, and others. The water-based adhesives segment led the largest share of the cold seal adhesive market with a market share of around 54.3% in 2022. In this class of synthetic organic compounds, water serves as the major raw material, resulting in water-based adhesives. Because of their high molecular weight, low viscosity, and ability to adhere to a wide range of surfaces, they are ideal for use in paints, coatings, printing inks and other products. As of 2021, water-based cold seal adhesive technologies are expected to dominate the market, with a market share of about 48%. They are widely used owing to their fast-setting qualities. As a result of fast-setting properties, the assembly can function faster, cutting production downtime and improving efficiency.
By End-User
The end-user segment includes food packaging, industrial packaging, medical packaging & others. The food packaging segment led the largest share of the cold seal adhesive market with a market share of around 49.8% in 2022. Food packaging dominated the market with a 42.1% market share in 2021, due to the growing population and increasing disposable income. This segment will continue to grow as consumers increasingly desire groceries, dairy products, and other beverages.
Global Cold Seal Adhesive Market- Sales Analysis.
The sale of cold seal adhesive expanded at a CAGR of 3.7% from 2016 to 2022.
Growing compliance rates, government initiatives for sustainable development, and market players adopting sustainable packaging solutions will contribute to the global cold seal adhesive market's growth.
A massive amount of packaging waste is generated every day due to global packaging demands. Cold seal adhesive is environmentally friendly, and reusable, and thus reduces the amount of waste generated.
Consumers are increasingly turning to roll-on tubes, sealed with cold seal adhesive, because of their convenience and portability. In addition, cold seal adhesive is increasingly used in cosmetic packaging to prevent oxidation and moisture absorption, which extends product shelf life.
Thus, owing to the aforementioned factors, the global cold seal adhesive market is expected to grow at a CAGR of 4.1% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the cold seal adhesive market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the cold seal adhesive market and held a 39.7% share of the market revenue in 2022.
Global Cold Seal Adhesive Market - Country Analysis:
Germany's cold seal adhesive market size was valued at USD 3.18 billion in 2022 and is expected to reach USD 4.41 billion by 2030, at a CAGR of 4.2% from 2023 to 2030.
In Germany, flexible packaging production is driving adhesive consumption. For instance, the German Plastics Packaging Industry Association (IK) reported that in 2018 the production of pouches, carrier bags, and big bags increased by 6.6%, reaching 537,000 tons.
China’s cold seal adhesive market size was valued at USD 4.5 billion in 2022 and is expected to reach USD 6.39 billion by 2030, at a CAGR of 4.5% from 2023 to 2030.
With low-cost manufacturing, China dominates the Asia Pacific cold seal adhesive market, and India is an emerging industrial market with favourable trade policies and low-cost labour. Nevertheless, sustainable development strategies & solutions are necessary due to increased pressure on sustainability and environmental conservation. Government initiatives are now promoting a balance in development by encouraging the use of reusable, biodegradable materials in manufacturing.
India's cold seal adhesive market size was valued at USD 3.5 billion in 2022 and is expected to reach USD 4.9 billion by 2030, at a CAGR of 4.4% from 2023 to 2030.
Pharmaceutical demand in the country is expected to grow due to the increasing number of hospitals and healthcare facilities as the country's geriatric population grows. Over the Projection period, cold seal adhesives are expected to be used more frequently in pharmaceutical packaging as pharmaceutical production increases.
Key Industry Players Analysis:
To increase their market position in the global cold seal adhesive market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
4.1% |
Market Size |
44.45 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product Type, By End-User, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Trillium Products Ltd., Dow, H.B. Fuller Company, Henkel, ALTANA, Shenzhen IPAK Packaging Co. Ltd, Kendall Packaging Corporation, Ashland, 3M, DIC Corporation, Bond Tech Industries, and Bostik SA. |
By Product Type |
|
By End-User |
|
Regional scope |
|
Scope of the Report
Global Cold Seal Adhesive Market by Product Type:
Global Cold Seal Adhesive Market by End-User:
Global Cold Seal Adhesive Market by Region:
Global cold seal adhesive market is expected to reach USD 61.3 billion by 2030, at a CAGR of 4.1% from 2023 to 2030.
Leading players in the cold seal adhesive market are Trillium Products Ltd., Dow, H.B. Fuller Company, Henkel, ALTANA, Shenzhen IPAK Packaging Co. Ltd, Kendall Packaging Corporation, Ashland, 3M, DIC Corporation, Bond Tech Industries, Bostik SA among others.
Rising demand among the end-users and sustainable packaging materials demand is rising day by day.
Asia Pacific region will witness more growth in the cold seal adhesive market.
The segments covered in the cold seal adhesive market are; product type, end-user and region.
Political Factors- Before considering whether to expand, cold seal adhesives should extensively examine the taxes policies that are relevant to the business. Tax policy will benefit industries that are top priorities for the government. Many governments in developing countries are actively attempting to reduce company taxes in order to attract foreign direct investment. cold seal adhesives market players should consider these countries since their low tax rates will make it easier to produce a profit and invest in R&D, innovation, and new product development projects.
Economic Factors- The abilities and skills of the workers have a considerable impact on the performance of cold seal adhesives. The cold seal adhesives market requires talented employees to be accessible when needed in order to remain competitive. cold seal adhesives market players should investigate trends in labour demand and supply to better understand how employees with the relevant skill set may be successfully employed. A tight labour market with strong worker unions can cause a number of problems for cold seal adhesives. It can, for example, apply pressure on cold seal adhesives to award a little salary raise, or it can block production by calling a strike. As a result, it is critical to analyse labour market dynamics, anticipate essential developments, and modify talent management approaches as needed.
Social Factors- When cold seal adhesives products/services are largely aimed at young consumers, two favourable demographic indicators are high population growth and an increasing proportion of the young population group. cold seal adhesives should also investigate the host country's perspective on immigration because a welcoming attitude towards immigrants of varied cultural origins indicates the need for diversity management techniques. cold seal adhesives market players should change their marketing strategies to encourage diversity and inclusiveness. A positive view on migration also demonstrates that cold seal adhesives can easily hire personnel from a variety of cultural backgrounds. Workplace diversity is usually connected with increased productivity, improved innovation, and superior overall business success.
Technological Factors- The research and development trend in the chosen industry or region demonstrates how proactive organisations are in offering cutting-edge solutions to meet the needs of their customers. cold seal adhesives market must gain a better understanding of how new technological improvements can benefit the organisation in addition to providing value to customers. Significant investment in research and development activities would be required in markets defined by disruptive technology. However, cold seal adhesives market players must have a long-term perspective and not expect a quick payback from their R&D work.
Environmental Factors- Renewable technology development to reduce reliance on natural resources has become a major trend in several industries. cold seal adhesives market pplayers should analyse how well a country's technology infrastructure supports the use of renewable technologies in order to capitalise on this environmental trend. Certain governments around the world offer appealing incentives to employ renewable energy sources. By seizing the opportunity and investing in renewable energy sources, cold seal adhesives market may be able to fulfil their aims for sustainable business development.
Legal Factors- Several federal and state legislation are in existence in several countries to protect consumers from potential economic exploitation. To protect consumer privacy in the age of information technology, rules have become increasingly stricter. To avoid lawsuits, cold seal adhesives must strictly adhere to data protection standards when executing online transactions. Before entering new markets, cold seal adhesives management should examine local legislation governing refunds, discounts, credit terms, quality, fraudulent advertising, and maximum pricing (particularly in the case of basic essential goods).
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