Gummed Tape Market Report

Due to rising demand for the oil and gas industry due to rising global energy demand, the demand for gummed tape is expected to grow. In the oil and gas industry, gummed tape is utilized for sealing and labelling pipelines, bundling equipment, and providing temporary repairs. As per the data of the US Energy Information Administration in 2022, the global consumption of gas was recorded at 143,099 billion cubic feet. A similar type of growth has been recorded in the petroleum consumption or petroleum industry, as according to the U.S. Energy Information Administration, the global consumption of liquid fuels is expected to be above 1.9 million barrels per day for the forecast period; furthermore, the consumption in 2024 was summed at 1.1 million barrels per day. Also, the demand for gummed tape market is expected to rise due to the rising demand for automotive sector. In the automotive industry, gummed tape is used for sealing and securing parts during assembly, protecting surfaces from scratches and damage, and labelling components for identification. According to the data of the International Organization of Motor Vehicle Manufacturers, the global sales of motor vehicles for the automotive sector were recorded at 92.7 million in 2023, whereas the sales in 2022 were recorded at 82.8 million, showing a growth of approximately 12% and is expected to grow at a steady pace over the period of time.

The gummed tap market faces direct competition form the available alternatives primarily it faces a competition form pressure-sensitive tapes, which are user-friendly, versatile, and convenient, and offer advantages over gummed tape, including no need for moisture activation and faster application. Additionally, substitutes provide superior adhesive performance and cost efficiency, while industry trends and consumer preferences increasingly favour convenience and environmental responsibility. These factors, combined with ongoing innovation in packaging solutions, contribute to the competitive pressure on the gummed tape market. Furthermore, technological advancements in synthetic tapes have improved their performance and usefulness compared to traditional gummed tapes. Innovations such as UV resistance, moisture barriers, tamper-evident features, and improved adhesive technologies ensure better durability and security. Synthetic tapes also offer enhanced temperature resistance and customization options, making them suitable for a variety of specialized applications.

In March 2022, Intertape Polymer Group Inc. ("IPG") entered into an arrangement agreement to be acquired by Clearlake Capital Group, L.P. in a US$2.6 billion transaction. Intertape Polymer Group announced that it had entered into a definitive agreement to be acquired by an affiliate of Clearlake Capital Group, L.P. (together with certain of its affiliates, "Clearlake"). Under the terms of the agreement, Clearlake would acquire the outstanding shares of IPG for CDN$40.50 per share in an all-cash transaction valued at approximately US$2.6 billion, including net debt. This represented a premium of approximately 82% to the closing price of IPG common shares on the Toronto Stock Exchange on March 7, 2022, and approximately 66% to the volume-weighted average trading price of IPG common shares on the Toronto Stock Exchange for the preceding 30 trading days. Upon completion of the transaction, IPG would become a privately held company. In September 2021, Ajit Industries Private Limited (AIPL) launched eco-friendly green tapes in India. Ajit Industries unveiled a wide range of new tapes, made from recyclable and biodegradable materials, which included, among others, Self-Adhesive Kraft Paper Tape, Water Activated Kraft Paper Tape KP 90, Eco-friendly Honeycomb Packaging Paper, and Recyclable Bopp Tape.

North America can also be considered a lucrative market due to the rise in demand for the oil and gas industry. The oil and gas industry in North America are rising due to technological advancements like fracking, which has unlocked vast shale reserves, and efforts to enhance energy independence. As per the data of the U.S. Energy Information Administration, the total petroleum per day consumption of the United States in 2022 was 20.01 million barrels, or a total of 7.3 billion barrels of petroleum. Similarly, the demand for gas is also expected to rise, as according to the data, the consumption of gas alone in the in the United States is valued at 32 trillion cubic feet in the year 2023. Asia Pacific is considered a lucrative market due to rising demand for the logistic industry, as according to the data of the World Economic Forum, the logistic industry is forecasted to reach the mark of US$ 18.3 trillion, out of which Asia Pacific holds a significant global share. A total of 11.9 percent is secured by Asia Pacific, which is valued at US$ 8.68 trillion in the year 2030, which is a growth of approximately 220 percent compared to 2023, where the share of Asia Pacific was valued at US$ 3.95 trillion. Thus, due to rising demand for the logistic sector, the gummed taped market is expected to rise.