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Paperboard and Packaging Adhesives to See High Growth

The global market for paperboard and packaging adhesives is expected to reach $16.9 billion in 2018, according to “Global Adhesives for Paperboard and Packaging Industry 2013-2018: Trend, Profit and Forecast Analysis,” a new report from Research and Markets. The market, which is consolidated, is characterized by high competitive rivalry due to fixed costs, high economies of scale, and industry saturation. The driving forces behind the development of the industry include increasing consumer protection and improved distribution of food and other packaged items in terms of both quality and quantity.

The industry is likely to witness considerable growth as the growing market for consumer goods accelerates the demand for adhesives for paperboard and packaging, according to the report. The industry faces serious challenges from the increase in the cost of raw materials. An increasing degree of price volatility has threatened the balance between price and quality. Curtailing costs in an unfavorable business environment, maintaining efficiency and quality, regulatory pressures, substantial overcapacity issues, and inflation affect industry growth.

The study discusses changes in the structure of the chemical industry’s approach to producing ethylene and propylene, which are essential for industries such as adhesives. Growth and merger and acquisition activity in the industry had been driven by the need for new technology, product innovation, and geographic expansion.

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