Comprehensive Analysis of the Adhesive Tapes Market -

Key Takeaways

The adhesive tapes market is projected to experience moderate growth in the forecasted period, driven by the increased use of adhesives in various end-use industries such as packaging and building & construction.
Asia-Pacific is the dominant region in the adhesive tape market and is expected to maintain its lead. China, in particular, is a significant market due to its large-scale production of electronics and healthcare products.
The global adhesive tapes market is fragmented with numerous small-scale companies entering the market. The increasing number of participants has positively impacted the market value over time. Major players have adopted key strategies to enhance their market share globally.

Adhesive Tapes Market Segment Analysis – By Adhesive Formulation

Pressure Sensitive Adhesive Tapes

In 2023, pressure-sensitive adhesive (PSA) tapes held the largest share in the adhesive tapes market and are expected to grow at a CAGR of 4.2% during the forecast period. The growing applications of PSA tapes in industries such as packaging, healthcare, electrical and electronics, automotive, building & construction, and others are key drivers. The demand for PSA tapes is significant due to their ease of use and low threat of substitute products.

Asia-Pacific is a crucial region contributing to the growth of PSA tapes, driven by the increasing industrial production in emerging economies like China, Japan, and India. This growth is expected to accelerate in the forecasted period due to these factors.

Adhesive Tapes Market Segment Analysis – By End-use Industry

Packaging Industry

The packaging industry segment held a significant share of the adhesive tapes market in 2023 and is expected to grow at a CAGR of 5.3% during the forecast period. The rise of online shopping has increased the demand for packaging and distribution of goods, consequently driving the demand for adhesive tapes.

Adhesive tapes are widely used across various industries including automotive, healthcare, textiles, leather, aerospace, defense, and locomotives. In the automotive industry, adhesive tapes are preferred over bolts and screws to reduce vehicle weight and improve fuel efficiency. For instance, according to the International Organization of Motor Vehicle Manufacturers, India produced 5,456,857 automotive units in 2022, a 24.05% increase from the previous year.

Additionally, adhesive tapes play a critical role in medical equipment assembly and wound care during surgeries. Skin-friendly adhesive tapes are used in baby and adult diapers. The demand for water-activated adhesive formulation tapes and recyclable, biodegradable packing materials has further boosted market growth.

Adhesive Tapes Market Segment Analysis – By Geography

Asia-Pacific Region

The Asia-Pacific region dominated the adhesive tapes market in 2023, driven by the fast-growing end-use industries in the area. The region is the largest contributor to the market, with significant growth in healthcare, building & construction, packaging, and other sectors.

For example, the Japan Packaging Institute reported that the shipment value of the packaging industry in Japan was approximately ¥6,079 billion (US$41 billion) in 2022, reflecting a 6.9% increase. The healthcare industry also dominates the Asia-Pacific region, driven by the demand for medical bandages and advanced wound care products.

The region’s growth is fueled by economic expansion and significant investment in various industries. Major regional players like Nitto Denko of Japan and Ajit Industries of India have expanded their production capabilities. Competitive pricing due to lower production costs and the ability to serve emerging local markets effectively are major driving factors.

Market Drivers

Increased Demand from Various End-use Industries

Adhesive tapes are used across diverse industries such as packaging, consumer & office, healthcare, electrical & electronics, automotive, paper & printing, building & construction, and retail. The trend towards smaller electronic devices has increased the use of adhesive tapes in the electrical and electronics industry.

In the healthcare and medicine industry, the demand for adhesive tapes is expected to accelerate due to the aging population and increasing chronic disease cases. The need for hydrophilic films, in vitro diagnostics, and oral melting films is driving demand in the global healthcare industry.

According to World Bank data, global construction industry spending increased to $13.4 trillion in 2022, with a growth rate of 3.8%. The construction industry is a major consumer of adhesive tapes, especially in regions like Asia-Pacific, the Middle East, and South America. Adhesive tapes are essential for HVAC, glazing, and insulation, further driving market growth.

Expanding E-commerce Industry

The COVID-19 pandemic has significantly boosted the e-commerce retail sector, especially in developing countries. This growth has increased the demand for packaging materials that require adhesive tapes to secure products during logistics.

According to a survey by the B2B e-commerce association of the United States, e-commerce’s share of total U.S. retail sales increased to 15.6% in the third quarter of 2023, up from 14.8% in the same period in 2022. This growth highlights the importance of e-commerce and its impact on global retail sales. As a result, the demand for high-quality packaging to meet consumer expectations is crucial, driving the adhesive tapes market.

Market Challenges

Volatility in Raw Material Prices

Fluctuating raw material prices are a significant challenge for the adhesive tapes market. The cost and availability of raw materials like rubber, paper, polypropylene (PP), silicone, acrylic adhesives, and polyvinyl chloride (PVC) directly influence production costs.

According to the World Bank’s Commodity Markets Outlook, the raw materials price index experienced a 1% decline in the third quarter of 2023, primarily due to decreases in natural rubber prices, which were 8% lower than the previous year. This volatility affects the adhesive industry’s production costs, leading to higher product prices and potentially reduced demand in price-sensitive regions.