Organic Binder Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Binder Type (Resins, Wax, Gums, Shellac), By Application (Paints & Coatings, Construction, Food & Agriculture, Pharmaceutical, Printing & Packaging, Others), And By Geography- Forecasts From 2022 To 2027

The organic binder market is anticipated to grow at a CAGR of 4.26% to attain a market size of US$9,637.225 million by 2027, from US$7,195.569 million in 2020.

Organic binders are biodegradable and hence are considered environmentally safe. The growing trend for the adoption of green materials is driving the demand for organic binders in several end-user industry verticals. Organic binders, based on binder type, are segregated into resins, gums, waxes, and others utilized in various end-use industries around the globe. Hence, the immense potential application of organic binder, especially for adhesion and cohesion, is further augmenting the market demand in the forecast period. Furthermore, the growing food and agriculture industry is propelling the market growth along with the growing global demand for food, and thus, prolonging their shelf-life holds importance. The growing leather industry is further driving the growth of the global organic binder market over the next five years.

Due to the early adoption of technology, North America and Europe are expected to hold a significant market share.  In addition, with high disposable income, the citizens in these regions are able to spend on high-quality products containing organic binders. The Asia Pacific region is expected to be the fastest-growing region with the growing construction industry, coupled with the growing urbanization and keeping in view the introduction of sustainable technologies.

The growing demand for sustainable construction is driving the demand for organic materials like organic binders, further driving the market growth in the forecast period.

With technological advancements, the market for organic binders holds great market potential with the soaring opportunity to introduce green building materials, promoting sustainable construction and contributing to a lower carbon footprint. The growing construction industry worldwide, coupled with growing urbanization and economic growth, is further fueling the market demand in the forecast period. The global urban population grew from 3.724 billion in 2012 to 4.196 billion in 2018 (source: World Bank).

With rapid urbanization shaping the global economy, significant efforts are being made to provide effective infrastructural services for construction to be carried out in a sustainable way. The growing development of smart cities and green building solutions are offering better growth prospects for the market to thrive in the forecast period.

The growing food industry is expected to fuel the market demand with the rising global demand for food.

The food & beverage industry worldwide is growing at 5% y-o-y growth approximately. The expenditure on food products by consumers worldwide is expected to surge to around USD20 trillion by the end of 2030 (source: The New Zealand Institute for Plant & Food Research). The market for organic binders is projected to grow during the forecast period with the rising trend for healthy, convenient, natural, and sustainable food products among a wide range of customers worldwide.

Functional foods are gaining traction owing to their ability to provide benefits beyond basic nutrition, and they are considered among the fastest-growing segments in the food industry worldwide. Major markets for health foods include Japan, the United States, and Europe. Additionally, New Zealand, from the Oceania region holds a high reputation for producing food products rich in quality, in addition to being eco-friendly and sustainable. The region offers good growth prospects for the organic binder market to grow at a significant pace as the food sector in New Zealand produces more than sufficient food to feed its population.

The growing pharmaceutical industry is fueling the market demand in the forecast period.

The global pharmaceutical market is expected to achieve a market size of around USD 1,430 billion by 2020 (source: IFPMA). The growth is majorly attributed to the development and manufacturing of novel drugs around the globe, which is fueling the market demand in the forecast period. Furthermore, the growing chronic disease prevalence, increasing incidences of cancer, and rare diseases, and surging demand for precision or personalized medicine is further augmenting the market demand. The increase in the lifespans of individuals and changing living conditions have created a need for the development of medicines or drugs that are quite effective and influence the health of individuals in a positive manner, hence, contributing to enhancing their economic productivity as well. In addition, advancements in medicine have helped in the protection against many deadly diseases.

Moreover, effective drug therapy has become an integral part of healthcare, focused on bringing in a revolution in the treatment of non-communicable diseases. The growing geriatric population is further soaring the demand for effective medicines, driving the growth of the pharma industry in the forecast period. The elderly population, 65 years of age or older, grew from 566.878 million in 2013 to 673.619 million in 2018 (source: World Bank). The market is poised to grow during the forecast period as many people in this category are either suffering from age-associated chronic diseases or are suffering from diseases due to the adoption of an unhealthy lifestyle at a young age. In addition, with declining fertility rates and increasing life expectancy at birth, global ageing is continuing to accelerate, creating a market demand for targeted and efficient drugs, when required, in addition to other treatment drugs. This has further given rise to an overall improvement where these drugs are quite helpful in providing assistance to improve the quality of life, and this, in turn, is propelling the market growth during the forecast period.

Key Developments

• June 2020: According to a press release in June 2020 from Wacker Chemie AG, the Wacker Biotechnology Center will focus and intensify research activities in the field of biotechnology, which will accelerate the growth of its life-sciences division that is devoted to organic binders. The foundation stone was laid in 2020 for the building, whose commissioning is supposed to be happening in 2024.
• August 2019: DIC Corporation, has agreed to acquire BASF’s global pigments business, known by the name of BASF Colors & Effects (BCE). The acquisition will expand DIC’s portfolio as a global manufacturer of pigments, including those for coatings, electronic displays, inks, cosmetics, plastics, and speciality applications, by creating a world-class pigment supplier that offers customers a range of versatile solutions as per the press release of DIC Corporation.

Impact of COVID-19 on Organic Binder Market

The COVID-19 outbreak has affected logistics and transport and has resulted in a pause in China's shipments. There have been breaks in the supply chain and unavailability of labour which has affected the market. The standstill of industries such as the automotive industry had lowered the demand for organic binders such as bentonite and corn starch which are solid in nature. Globally, the organic binder market is expected to see healthy growth in the forecasted period owing to the growing construction and automotive industries. With the increase in demand for organic chemicals due to the spread of Coronavirus, manufacturers are preparing to increase their prices along with suppliers and online vendors and this will ultimately affect the customers. Globally, the organic binder market is expected to see healthy growth in the forecasted period owing to the growing construction and automotive industries.

Organic Binder Market Scope:

Report Metric	Details
Market Size Value in 2020	US$7,195.569 million
Market Size Value in 2027	US$9,637.225 million
Growth Rate	CAGR of 4.26% from 2020 to 2027
Base Year	2020
Forecast Period	2022–2027
Forecast Unit (Value)	USD Million
Segments Covered	Binder Type, Application, And Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	BASF SE, DuPont de Nemours, Inc., Harmony Additive Pvt. Ltd., Technofink, ENDURA IPNR, keramicalia, Empower Materials Inc., Ashland, Vesuvius
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Binder Type
  • Resins
  • Wax
  • Gums
  • Shellac
• By Application
  • Paints & Coatings
  • Construction
  • Food & Agriculture
  • Pharmaceutical
  • Printing & Packaging
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • UAE
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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Frequently Asked Questions (FAQs)

Q1. What will be the organic binder market size by 2027?
A1. The organic binder market is anticipated to reach a market size of US$9,637.225 million in 2027. 

Q2. What are the growth prospects for the organic binder market?
A2. The global organic binder market is anticipated to grow at a CAGR of 4.26% over the forecast period. 

Q3. What is the size of the global organic binder market?
A3. Organic Binder Market was valued at US$7,195.569 million in 2020. 

Q4. What factors are anticipated to drive the organic binder market growth?
A4. The growing trend for the adoption of green materials is driving the demand for organic binders in several end-user industry verticals. 

Q5. Which region holds the largest market share in the organic binder market?
A5. Geographically, North America and Europe are expected to hold a significant share in the organic binder market due to the early adoption of technology.

BASF SE

DuPont de Nemours, Inc.

Harmony Additive Pvt. Ltd.

Technofink

ENDURA IPNR

keramicalia

Empower Materials Inc.

Ashland

Vesuvius