Tackling Tomorrow: Preparing for the Future of Specialty Chemicals and Adhesives

The global specialty adhesives market is projected to grow at a compound annual growth rate of 4.7 percent through 2032. The specialty chemicals market is expected to grow at 5.2 percent through 2030. This growth reflects both technical innovation and shifting consumer preferences.

Innovation Is Driving Market Growth

Across multiple industries, traditional fasteners like bolts, rivets, and welds are being replaced by engineered adhesives. These alternatives offer better performance, lighter weight, and more design flexibility. They are already in use in automotive and aerospace applications, and their use is expected to grow significantly.

At the same time, consumer purchasing habits are reshaping packaging needs. More products are being delivered directly to homes, which is increasing demand for corrugated packaging. Additionally, many products that previously arrived in plastic packaging now come in paper-based bags or pouches. These changes are driven by convenience, regulatory pressure, and sustainability goals, all of which are increasing demand for specialized adhesives.

HBM's operating company, HarperLove, is playing a leadership role in this area. HarperLove provides adhesives and additives that help packaging manufacturers meet these new demands.

Addressing Industry Challenges

While the outlook is positive, companies must be prepared to meet several challenges to grow effectively:

• Rising expectations for sustainability
  Regulatory pressure, supply chain volatility, and fluctuations in raw material costs require companies to be both agile and experienced.
• Faster innovation cycles
  The pace of new product development in specialty adhesives is increasing. Continued investment in research, development, and technical expertise will be necessary to remain competitive.
• Talent acquisition and retention
  As job roles evolve with new technologies, companies must strengthen their workforce through onboarding, training, and culture building. These investments are essential for creating a stable and engaged team.

HBM's Role: Strategic Ownership and Supported Autonomy

HBM Holdings is a privately held industrial conglomerate focused on the long-term ownership of middle-market industrial businesses. We provide capital, operating insight, and leadership support, while giving our companies the autonomy to run their businesses. Our model is rooted in partnership. We are operators, not financial engineers.

When a company becomes part of the HBM portfolio, we work alongside its leadership to shape a clear and shared direction for the future. Our role is to provide support through resources, experience, and talent development while trusting their expertise to lead the day-to-day.

We call this approach supported autonomy. It reflects our belief that the best outcomes come from empowering strong, experienced teams, while offering a steady, values-aligned partner to help navigate growth and opportunity.

HarperLove: A Leader in Sustainable Packaging Adhesives

HBM entered the specialty adhesives space in 2019 with the addition of HarperLove to our portfolio. Founded in 1978, HarperLove is a leading provider of specialty adhesives, performance additives, and wet-strength resins for the packaging industry.

HarperLove's starch-based adhesives are sustainable and cost-effective. These products are used in corrugated boxes and other types of packaging. tailored formulas support specific packaging needs. For example, the adhesive requirements for a banana box in a grocery supply chain are different from the packaging used for doorstep delivery. HarperLove delivers the performance needed for both.

Learn More

To learn more about what we look for in an operating company, or to connect with our team, visit hbmholdings.com.

Special thanks to @Jeff Buchanan, Director of Sales and Market Development at HarperLove, for the insights and perspective that helped shape this post.