Adhesives and tapes are chemical formulations used in binding two substrates. These are primarily utilized in construction, packaging, automotive, footwear, furniture, medical, electronics, and bookbinding industries. Adhesives and tapes offer the advantage of developing products and solutions that are lighter and more compact. These are typically used as effective substitutes for joints, fasteners, screws, nails, and clamps. In addition to compactness, adhesives and tapes enable shorter process time, which can be attributed to their easy handling and dispensing technologies. Technologies such as hot melt and radiation curing enable bonding of substrates within a few seconds of application. This has helped end-users, especially in packaging and construction industries, to achieve time and cost benefits that are purely attributed to fast process time.
Currently, the packaging industry is the major consumer of adhesives and tapes in Saudi Arabia. Adhesives and tapes are used as building blocks in the manufacture of packaging solutions. These are used in sealing, labeling, and bonding applications in the packaging industry. Adhesives and tapes are also widely used in a variety of applications in the construction industry including tile, structural, thermal, and audio insulation panel bonding. Adhesives and tapes are very versatile and can be formulated differently for specific applications. Construction and packaging industries primarily boost demand for adhesives and tapes. Hence, growth in these industries is anticipated at an above-average rate in Saudi Arabia in the next few years. These end-user segments are primarily driven by rising trade activities and increasing investments in the construction industry in Saudi Arabia.
Downward pressure on manufacturers’ margins based on volatile crude oil prices primarily restrains the adhesives and tapes market in Saudi Arabia. However, rapidly rising demand for flexible packaging solutions in food and beverage packaging applications is anticipated to provide prospective opportunities for growth of the adhesives and tapes market in Saudi Arabia in the near future.
In terms of volume, acrylic adhesives and tapes continued to dominate the adhesives and tapes market in Saudi Arabia, accounting for over 30% share in 2014. Polyvinyl acetate (PVAc) is estimated to be the fastest-growing segment of the adhesives and tapes market during the forecast period in Saudi Arabia. This fast-paced growth can be attributed to high growth in the packaging industry in the country during the forecast period. Ethyl vinyl acetate (EVA) is projected to expand at a CAGR higher than the market average during the forecast period due to recovering construction industry and strong growth in the footwear industry in Saudi Arabia. Polyurethane (PU) is also consumed in high volumes in construction, packaging, footwear, and automotive industries in Saudi Arabia.
In terms of volume, pressure sensitive technology dominated the adhesives and tapes market in Saudi Arabia, constituting more than 50% share in 2014. Hot melt technology is projected to be the fastest-growing technology segment in Saudi Arabia during the forecast period. High demand for hot melt adhesives and tapes is anticipated to arise from the construction and furniture industry in Saudi Arabia during the forecast period.
Water-based formulations are estimated to dominate the adhesives and tapes market in Saudi Arabia during the forecast period. These formulations are eco-friendly, emit minimal volatile organic compounds, and are available at lower prices as compared to spray & cylinder based formulations.