The Tackifier Market size is estimated to reach US$4.9 billion by 2027 after growing at a CAGR of around 4.2% from 2022 to 2027. Tackifier is a chemical compound used in formulating adhesives to increase the track of adhesives and its stickiness. Tackifier have low molecular weight, glass transition and softening temperature above room temperature, which provides them with suitable viscoelasticity. Tackifier is majorly used in hot melt adhesive (HMA) and pressure-sensitive adhesives which are applied in various industrial applications, like profile wrapping, foil tape, product assembly and in sealants. Hence, due to such applications, tackifier has high applicability in sectors like construction, automotive, packaging, and electronic etc. Factors like growing construction activities, increase in demand of light trucks, high consumption of electronic equipment’s and high consumption of packaging products are driving the growth of Tackifier Market. However, the negative effects of adhesives such as high toxicity, skin irritation, acid burn and allergies can put regulation on their production which can hamper tackifier usage in them. This can hamper the growth of tackifier industry.
COVID-19 Impact
COVID-19 had a negative impact on the major end users of adhesives like construction, automotive and electronics. The lockdown implemented by countries across the world caused lack of availability of workforce and supply of raw materials was halted. Hence, all this decreased the productivity of these sectors, which negatively impacted the usage of tackifier for adhesive production. For instance, according to Office for National Statistics, in 2020, new construction work in Great Britain including private housing and private commercial buildings decreased by 11.9% as impact of Corona virus. Also, according to International Organization of Motor Vehicles Manufacturer, in 2020, global vehicle production was 77.7 million units, showing a 13% decrease compared to 2019 production level. Further, according to UN report, in 2020, the COVID-19 pandemic caused a 30% fall in electronic and electrical equipment sales in low and middle-income countries and 5% decline in high-income countries. Hot melt adhesive is used in cars for assembling door panel, for carpet attachment and for insulation of wires, in construction it is used in bonding & sealant process, while in electronic sector it is used in assembly of smartphones, tablet computers, wearable electronics and wireless speakers. Tackifier forms major component of hot melt adhesives and the decrease in productivity of major users of adhesives led to decrease in demand of tackifier. This negatively impact the growth of tackifier industry.
Report Coverage
The report: “Tackifier Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the tackifier industry.
By Packaging – Bags, Drums, Plastic Containers, and Others.
By Form – Solid, Liquid, and Molten.
By Feedstock – Natural and Synthetic.
By Resin – Hydrocarbon Resin (Aliphatic, Aromatic, and Mixed Aliphatic & Aromatic), Rosin Resin, and Terpene Resin.
By Application – Hot Melt Adhesives (Spine Gluing, Profile Wrapping, Product Assembly, Laminating, and Others), Pressure Sensitive Adhesives (Foil Tape, Automotive Interior Trim Assembly, and Sound Damping Film), Sealants (Insulated Glass, and Ceramic Tiles & Fixtures), and Others.
By End Users – Electronic (Mobile, Tablets, and Laptops), Automotive (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles, and Others), Ceramics, Packaging, Textiles, Construction (Residential, Commercial and Industrial), and Others.
By Geography – North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa).
Key Takeaways
- Asia-Pacific dominates the tackifier industry as the region consists of major end user industries like automotive, construction and electronics in countries like China & India which are leading producers of smartphones and automobiles.
- Tackifier has high demand in packaging sector, as ethylene vinyl acetate hot melt adhesives are majorly used in packaging materials like cardboard and plastic for bonding.
- The high applicability of adhesives in energy industry especially wind power industry for bonding structural parts will provide growth opportunities for tackifier industry in energy sector.
Tackifier Market Segment Analysis – By Resin
Rosin resin held a significant share in global Tackifier Market in 2021, with a share of over 40%. Rosin resin are oldest natural raw material for adhesives industry and are derived from pine tree. Rosin resins are compatible with all major base polymers including ethylene vinyl acetate and offer exceptional tack due to rich adhesive properties. The rapid development in major sectors like automotive, construction and electronic, has led to increase in demand for adhesives in them. For instance, according to European Automobile Manufacture Association, in first nine months of 2021, US automobile manufacturers produced 4.8 million passenger cars showing 10.8% increase from 2020, while Chinese car production was 14 million units showing 10.2% increase for same period. Also, according to US Census Bureau, in January 2022, total construction output was US$1.67 million showing an increase of 8% compared to 2021 same month. Further, according to China Academy of Information and Communication, in 2021, China shipped 342.8 million smartphones to domestic consumers showing 15.9% increase from 2020. Such increase in productivity of these sectors will lead to more usage of adhesives in them for product assembly and gluing, resulting in more usage of rosin resin for adhesive production. This will positively impact tackifier industry growth.
Tackifier Market Segment Analysis – By End Industries
Automotive industry held a significant share in global Tackifier Market in 2021, with a share of over 26%. Tackifier is used as an additive in making adhesives such as hot melt adhesives and pressure sensitive adhesives. Hot melt adhesives are used in automotive for bonding carpet, headliner, door panel and for insulation of wires, while pressure sensitive adhesives are used for automotive interior trim assembly. The rise in production of automotive on account of growing demand has positively impacted the usage of adhesives in automotive industry. For instance, according to International Organization of Motor Vehicles Manufacturer, in 2021, global automotive production was 80.1 million units showing an increase of 3% compared to 77.7 million units produced in 2020. Such increase in production level of automotive will demand more usage of hot melt adhesives & pressure sensitive adhesives for bonding of automotive parts. This will positively impact tackifier industry growth.
Tackifier Market Segment Analysis – By Geography
Asia-Pacific held the largest the share in global Tackifier Market in 2021, with a share of over 34%. The region consists of major economies like China, India, Japan and Indonesia which consists of major end users of adhesives like automotive, construction, electronic and textiles. The rapid economic development in these nations has increased their industrial productivity. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, Asia held 50% share of global automobile production volume, with China producing 26 million units, India 4.3 million units, Thailand 1.6 million units and Indonesia 1.12 million units. According to statement given by Japan’s Ministry of Land, Infrastructure, Transport and Tourism, in January 2022, construction orders in Japan increased by 11% compared to 2021 same month. Further, according to Ministry of Industry and Commerce, in 2021, India exported US$11 billion worth electronic goods showing a 49% increase than US$7.4 billion worth of goods exported in 2020. Tackifier is used in making adhesives like hot melt adhesives which is used in automotive, construction and electronic sector for bonding of components, profile wrapping and product assembly. The growing productivity of these sectors will create more usage of adhesives in them, resulting in more demand of tackifier for adhesive production. This will positively impact tackifier industry growth.
Tackifier Market Drivers
Growing Construction Activities
Hot melt adhesives are found in every aspect of residential and commercial construction namely in roofing, flooring, wallboard & drywall covering, doors bonding and tiles bonding. The economic development and rapid urbanization have increased the level of construction activities. For instance, according to National Institute of Statistics and Economic Studies, in March 2021, construction output in France increased to 56.7% compared to decrease of -41.1% in 2020 same month. Further, according to Statistics Canada, in January 2022, the overall, non-residential construction investment reached $5 billion mark for the first time since June 2020, hence showing an increase of 1.5%. The increase in construction output & investments will create more demand for hot melt adhesives in the sector. This results in more usage of tackifier in hot melt adhesives production, which will boost the growth of tackifier industry.
Increase in Demand of Lightweight Trucks
Adhesives like hot melt adhesives and pressure sensitive adhesives are majorly used during light truck and SUVs manufacturing. Hot melt adhesives are used due to their extreme durability & viscoelasticity in engines, radiators, and batteries while pressure sensitive adhesives are used for bonding dashboard, side view mirrors and foot carpet. Growing demand for SUVs and light trucks in region like Europe and US has positively impacted the demand for adhesives. For instance, according to International Council of Clean Transportation in Europe, in 2019, 5.7 million units of SUVs were sold in Europe which was 10 times more than 2001 sales volume. Further, according to National Automobile Dealers Association, in Q2 of 2021, light trucks like SUVs represented 76.9% share in 17 million units in US auto sales. Such increase in demand for light commercial vehicles like SUVs, will create more demand for hot melt adhesives & pressure sensitive adhesives to be used in such vehicles. This will boost the growth of tackifier industry.
Tackifier Market Challenges
Negative Effect of Adhesives
Using adhesives like hot melt adhesive can be very risky as exposure to such adhesives can cause skin irritation, acid burns and allergies. Hence, in order to prevent such issues certain regulations have been implemented by government organizations. For instance, adhesives & sealant manufacturing guidelines by Adhesives & Sealant Council and Association of European Adhesives & Sealant Industry regulates manufacturing of adhesives in US and Western Europe. Such guidelines can restrict the production level of adhesives in order to prevent environment hazards, resulting in less usage of tackifier in adhesives production. This can hamper tackifier industry growth.
Tackifier Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In Tackifier Market report, the tackifier top 10 companies are:
- Arakawa Chemicals Industries Ltd.
- Eastern Chemical Company
- Exxon Mobil Corporation
- Kolon Industries Inc.
- Arizona Chemical
- Arkema Group
- Yasuhara Chemical Co. Ltd
- Kraton Corporation
- Robert Kraemer GmbH & Co
- Zeon Corporation
Recent Developments
- In 2022, Arkema announced the acquisition of Shanghai Zhiguan Polymer Materials (PMP), a producer of hot melt adhesives for the consumer electronics market.
- In 2021, Avery Dennison acquired ACPO Ltd for US$87.6 million and this acquisition will boost adhesives label business of the Avery Dennison and will increase its product portfolio of adhesives.
- In 2021, Bostik launched Nuplaviva 50 & Nuplaviva 75, two construction adhesives that consist 50% to 75% of renewable content and can be applied on traditional as well as sustainable substrates.
Relevant Reports
Hot Melt Adhesives Market – Forecast (2022 - 2027)
Report Code – CMR 0144
Pressure Sensitive Adhesives (PSA) Market – Forecast (2022 - 2027)
Report Code – CMR 0147
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