Markets and Markets has recently released a report titled “Pressure Sensitive Adhesives Market by Technology (Water-Based, Solvent-Based, Hot Melt & Radiation), by Application (Industrial Tapes, Specialty Tapes, Medical Tapes, Labels, Graphics & Others) & by Geography - Global Trends & Forecasts to 2018”, which defines and segments the global pressure sensitive adhesives market with analysis and forecasting of the global revenue. The pressure sensitive adhesives market is expected to grow to $8.4 billion by 2018, with a very high CAGR from 2013 to 2018.
According to the report, the PSA market is highly diversified with most companies offering acrylic water-based and hot melt adhesives. Water-based technology is the most dominating technology and is used in different applications. Radiation cured technology, although not economical, is finding larger applications due to sustainable production abilities. Acrylic water-based adhesives are the most commercialized PSA in the market. The companies engaged in the production of these PSA are 3M, Avery Dennison, Bostik, Bemis, Bayer material Science, and Novamelt. The water-based PSA’s are well-established in the market, however, due to their versatile properties and low price; they have gained an advantage over high priced polymers.
The major global companies operating in PSA market are US-based Ashland, Dow Chemical and 3M; and BASF from Germany. According to the report, these companies are "consistently focusing on expanding their production capacity to achieve competitive advantage and thereby serve customers more effectively." Companies such as Avery Dennison recently started a plant in India manufacturing PSA labels and allied products.
New product development is the largest development strategy adopted by the companies. By doing this, the companies are focusing on establishment of its existing and emerging products in the PSA market. In order to expand its product portfolio, Ashland Performance Materials, a commercial unit of Ashland Inc. launched Arocure UV curable hot melt PSAs for specialty tapes applications.
Due to the highly fragmented market, many companies are consistently focusing to achieve competitive advantage and thereby serve customers more effectively. The threat of the new entrants is however, not a serious issue for this market. The development cost of manufacturing plant is restraining the entry of new players in this market. On the other hand, simple manufacturing processes are creating opportunities for new players, to easily enter into the market.