The organic binder market is anticipated to grow at a CAGR of 5.54% in order to attain a market size of US$10,205.409 million by 2025, from US$7,384.615 million in 2019. Organic binders are biodegradable and hence are considered as 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, on the basis of binder type are segregated into resins, gums, waxes, and others utilized in various end-use industries round 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.
Geographically, North America and Europe are expected to hold a significant market share due to the early adoption of technology. 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 hold 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 lowering 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 for providing 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 with 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, hence 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 use of shellac in order to provide a protective coating against moisture and increasing the shelf-life of food products is further propagating the market growth in the forecast period. It is widely used as a shiny wax coating on fruits and used for coating nuts too. Favourable regulatory approvals to recognize shellac as safe, non-toxic, and physiologically harmless is also burgeoning the market demand for shellac. In the European region, Bleached Shellac and Dewaxed Bleached Shellac are in compliance with the Commission Regulation EU 231/2012 and its specification for E904 Shellac as a food additive. The organic binder has gained approval to be utilized as a surface treatment for fruits, mainly citrus fruits which include peaches, mangoes, papayas, and pineapples among others, in addition to being used as a glazing agent for nuts according to EU 1147/2012. Additionally, the product considered as fit for use on the surface of unpeeled eggs as per EU 675/2012.
In bakery products, the organic binders are used as a glazing agent for coffee beans, processed nuts, and starch-based snacks among others as per EU 1129/2011 Directive.
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 USD1,430 billion by 2020 (source: IFPMA). The growth is majorly attributed to the development and manufacturing of novel drugs around the globe, fueling the market demand in the forecast period. Furthermore, the growing chronic disease prevalence, increasing incidences of cancer, rare diseases, and surging demand for precision or personalized medicine is further augmenting the market demand. The increase in lifespans of individuals, changing living conditions have created a need for the development of medicines or drugs which are quite effective and influence the health of the individuals in a positive manner, hence, contributing to enhancing the economic productivity as well. In addition, advancements in medicines 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 or age and above 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 under this category are either suffering from age-associated chronic diseases or are suffering from diseases due to the adoption of an unhealthy lifestyle when at a young age. In addition, with the declining fertility rates and increasing life expectancy at birth, global aging 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 for improving the quality of life, and this, in turn, is propelling the market growth during the forecast period.