Low VOC Adhesives Market Trends

Growth Drivers

• Increasing Demand for Packaged Food- Market growth is expected to be driven by the increasing number of working people worldwide over the next few years. In addition, the hygienic nature of packaged food is another factor that makes it reliable and grows in the low VOC adhesive market. Data indicate that over 20% of the regional consumption of packaged foods comes from Saudi Arabia.
• Rapid Increase in Demand for Lighter Vehicles- The increasing investments in emerging nations for low carbon emissions and lighter cars are the main growth drivers in the market. The reduction of vehicle weight by about 10% contributes to an 8 % reduction in fuel consumption and a 5% reduction in the volumes of emissions, according to information sources.
• Stringent Government Regulations Related to Environmental Concerns- In view of strict government rules, the demand for eco-friendly products in packaging adhesives is increasing and this has led to rising manufacturing costs which are expected to limit market growth. In addition, the market growth has been expected to be positively affected by stringent government legislation on environmental safety standards which emphasize the production of lower volatile organic compounds VOCs.

Challenges

• Fluctuating Price of Materials- Due to strict government regulations, there has been a rise in demand for environmentally friendly compounds which leads to higher raw material costs, adding on inorganic materials, such as synthetic rubber, chemicals, and refined petroleum products, which is also being a lead in cost increasements. Thus, there have been variations in the situation which will hinder the market growth.
• Strict Regulatory Policies Related to Environment
• Unfavourable Conditions and Situations for Implementing Adhesives.