The bonding layer of adhesive resin industry typically follows the growth of "barrier resin" markets such as EVOH, nylon and polyester. Flexible food packaging applications are the main driver of demand for bonding layer hot melt adhesive resins. This is followed by rigid packaging applications for multi-layer bottles, automotive gas tanks and barrier sheets. North America and Europe are the world's largest markets for binding layer resins in terms of volume. Developing regions such as China and the "rest of Asia" (including India, Southeast Asian countries) are experiencing growing demand for binding layer resins, but in lower volumes compared to developed Western markets.
Overall demand for bonding layer adhesive resins will be 277KT in 2019 and is expected to grow at 3.9% annually over the next five years. North America will continue to be the global leader in terms of bonding resin consumption, while demand in China and the "rest of Asia" is expected to grow fastest between 2019 and 2024. However, this growth is slowing down.
Key features that the market will see in the forecast years (2019-2024) include:
- In China and the rest of Asia area, demand for flexible resin packaging is driving growth in demand for binding layer resins, albeit at a slower rate. This growth is influenced by changing lifestyles and increased consumer reliance on processed, packaged and pre-cooked foods. Another factor that has increased sales in the flexible packaging market as a result of increasing Internet penetration is the e-commerce market.
- In developed countries, demand for wood-plastic composites is expected to maintain a high growth rate from 2019 to 2024. This high growth is driven by the application of balcony decks and railings and the use of recycled plastics in wood composites.
- Hot melt adhesive resins are generally not produced in specific volumes, but are produced on a market-driven basis. Current suppliers of laminate resins are well positioned to meet any increase in demand for the resins. Suppliers have established and enjoy a good market share. Since the current suppliers are able to meet any growth in demand, there are significant barriers to entry for "new entrants" to the bonding resin manufacturing business during the forecast period of the report.
- North American and European manufacturers are meeting the demand for multilayer films in developing regions such as China, the "rest of Asia" and South America. Over the past few years, processors in developing markets have invested in new equipment capable of manufacturing multi-layer membrane structures for a variety of applications. The converting industry in these regions is still in its infancy and will grow as the demand for applications using multilayer structures increases.
- Improvements that are driving food packaging are ongoing. Some of these improvements may prove to be a demand driver for applications in the coming years. Some of these improvements that are believed to contribute to the growth of flexible food packaging are "active" packaging, "smart" packaging and "sustainable" packaging or "biodegradable" packaging. "biodegradable" packaging.
- Film packaging often incorporates additives to extend the life of the product. "Active" packaging and additives include moisture absorbers, temperature controlled packaging, preservative releasers, deaerators and carbon dioxide absorbers. "Active" packaging is mainly used in the food industry to control and react to changes that occur inside the package. The main role of food packaging is to ultimately protect the food from all external influences such as light, water, oxygen and microbial or chemical contamination. With "active" packaging, many of these variables can be addressed or even eliminated.
- Smart packaging involves a "smart" material that can detect changes in its environment through any combination of indicators, sensors, and processors. When environmental changes are detected, they automatically respond so that they do not harm the product, the package or the consumer. The creation, ongoing development and application of smart packaging films has begun in the flexible film sector.
According to Banzan adhesive investigation, many have exaggerated the non-recyclability of packaging, thus negatively impacting the market for binding layer resins, which are at the heart of the packaging industry (the bonding resins that form multi-layer packaging sheets). However, there are many factors to consider in the "carbon footprint" of various packaging types. For example, small bags can save a lot of energy in production and transportation. Comparing rigid containers to sachets, shipping trucks with empty sachets, these sachets have a capacity equivalent to the product capacity of 15 to 25 trucks with empty rigid containers. The packaging system is simplified by eliminating labels, closures, etc., and the resulting savings in packaging materials and secondary packaging operating systems are enormous. As a result, the growth in the consumption of binding layer resins in the packaging industry will not slow down in the near future.