Market Trends of Europe Adhesives Industry
This section covers the major market trends shaping the Europe Adhesives Market according to our research experts:
The Packaging End-User Segment to Dominate the Market
- The packaging segment is the largest consumer of the European adhesives market. The packaging industry has been witnessing strong demand from end-user industries, such as food and beverages, cosmetics, consumer goods, stationery, and other end-user industries.
- Germany is one of the biggest e-commerce markets in Europe and has the second largest population, which will drive the packaging production market. Total online goods sales reached around USD 106 billion in 2021, an increase compared to USD 89 billion in 2020.
- In the United Kingdom, plastic packaging makes up around 70% of all plastic trash. Hence, plastic packaging is the main concern, and the demand for paper packaging is increasing. The plastic tax (taxing any plastic packaging that does not contain at least 30% recycled plastic) that went into effect in the United Kingdom on April 1, 2022, is also likely to boost demand for paper-based packaging.
- The United Kingdom produced around 1.9 million tons of packaging paper and paperboard and 5.3 million tons of corrugated board in 2021, thereby increasing the demand for packaging adhesives in the country.
- Similarly, in France the packaging production increased, reaching 101.8 million kg in 2021 compared to 97.7 million kg of production in 2020, increasing the adhesives consumption volume by around 6.25% in 2021 compared to 2020. France produces around 4.8 million tons of plastic per year, of which 45% is used for packaging.
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United Kingdom to Register Significant Market Growth
- The United Kingdom is one of the largest consumers of adhesives in the region. Growing construction activities, increasing consumption in the packaging industry, and the growing healthcare and automotive industries are key factors driving the consumption of adhesives in the country.
- The construction industry drives the United Kingdom's adhesives market due to diverse applications, such as roofing, plumbing, and flooring. The government plans to invest USD 27.8 billion in housing, science and innovation, transport, and a 5G network over the next five years, of which around USD 8.7 billion have been allocated for the construction of new homes and USD 4.8 billion for infrastructure.
- In addition, the government has plans to invest USD 122.9 billion in large-scale housing projects, along with key social infrastructures, such as schools and hospitals. Under these projects, the government promised to build about 1,000,000 homes, which is expected to increase the demand for adhesives.
- Similarly, the electric vehicle production volumes in the United Kingdom have increased with the availability of new EV models, ongoing government support, and the continued expansion of the public charging infrastructure. The increased production volumes are expected to improve the UK adhesives market.
- Adhesives in UK healthcare are largely being procured across the medical device industry. The medical device market in the United Kingdom is the third largest in Europe, following Germany and France, and the sixth largest in the world. Domestic device manufacturing is distinguished by a large number of small-scale medical device companies, as well as a few global manufacturers with a significant market presence. Many large US corporations have subsidiaries in the United Kingdom.
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