Asia-Pacific Adhesives Market

APAC Adhesives Market Analysis

The Asia-Pacific Adhesives Market is expected to register a CAGR of greater than 6.7% during the forecast period.

The region was negatively affected by the COVID-19 pandemic. The adhesives market in the region also faced a similar situation. But the market has now reached pre-pandemic levels, and it is expected to grow steadily.

• A lot of what drives the demand for adhesives is how they are used in the construction industry and how the packaging industry is using them more and more.
• But the growth is likely to be slowed down by the strict rules about VOC emissions from glues and sealants.
• The innovation and development of bio-based adhesives and their rising usage in the aerospace industry are likely to offer opportunities for the Asia-Pacific adhesives market.
• China stands to be the largest market for sealants in the region, where the consumption is driven by end-user industries such as automotive, packaging, construction, healthcare, and aerosol, among others.

APAC Adhesives Market Trends

Building and Construction Industry to Dominate the Market

• Construction adhesives are widely used in the building and construction sectors for purposes such as the bonding layer for floor fixing between the existing floor and the substrate.
• The largest share of the Asia-Pacific sealants market was covered by silicone sealants because of their unique properties, such as resistance to extreme weather conditions like sunlight, rain, strong winds, and snowfall, among others.
• The countries are aiming at rebuilding infrastructure in the region that will be more energy efficient and digitally advanced, leading to the construction of new buildings or the reconstruction of older ones. This will lead to a significant increase in demand for building and construction sealants.
• According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects in 2019 at an estimated investment of about USD 142 billion, which are estimated to be completed by 2023. The growing demand for housing is likely to drive residential construction in the country, both in the public and private sectors.
• Moreover, the Indian government has been actively boosting housing construction as it aims to provide a home to about 1.3 billion people. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years and is likely to witness the construction of 60 million new homes in the country.
• The increasing construction activity in the Asia-Pacific region tends to increase the demand for adhesives in the forecast period.

Rise in Demand from Packaging Industry

• The packaging industry is a microcosm of how the COVID-19 pandemic amplified tendencies that existed before the virus disrupted the global economy. Before the pandemic, the number of online purchases kept going up. In 2020, when shopping and eating in person went down, the number of online purchases went through the roof.
• The Indian packaging industry has seen decent growth over the years. Rapidly adopting a modern lifestyle, increasing per capita income, and fast advancements in technology have influenced the packaging sector across the country. Plastic packaging is growing at a significant rate of 20-25% annually and has reached 6.8 million tons, whereas paper packaging reached a volume of 7.6 million tons in 2021.
• In Malaysia, adhesives are largely consumed across the packaging industry. The packaging industry in Malaysia is expected to register a CAGR of about 5.7% in terms of volume during the forecast period. The main factors contributing to the growth of the packaging industry are the growing demand for packaged goods from the pharmaceutical, food processing, and manufacturing industries, as well as the growth of the FMCG segment, the healthcare sector, and ancillary industries.
• The Indonesian packaging sector gave a 28 percent return over the period 2017-2021 and is expected to grow at a steady rate during the forecast period. There are various investments made in the packaging sector by various companies, like Fajarpaper and SCGP.
• The rising demand for packaging in Asia-Pacific countries is likely to have created demand for adhesives in the region.

APAC Adhesives Industry Overview

The Asia-Pacific adhesives market is a fragmented market with healthy competition in the market. The major companies (not in any particular order) include 3M, Sika AG, Henkel AG & Co. KGaA, HB Fuller Company, and Arkema Group amongst others.

APAC Adhesives Market Leaders

APAC Adhesives Market News

• February 2022: Arkema acquired PMP (Shanghai Zhiguan Polymer Materials), reactive hot-melt polyurethane (HMPUR) adhesives manufacturer, to strengthen its engineering adhesives portfolio in the Asia-pacific region.
• May 2022: Azelis expanded its Asia Pacific footprint with the acquisition of Chemiplas Agencies Ltd, a distributor of specialty chemicals, plastic raw materials, and ingredients in Australia, New Zealand, and the Pacific Islands.