Indonesia Adhesives & Sealants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.66 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Adhesives & Sealants Market Analysis
The Indonesia Adhesives and Sealants Market valued at around USD 696 million by the end of this year, and the market is projected to register a CAGR of 6.66% during the forecast period. The COVID pandemic has disrupted the supply chain network of raw materials, negatively affecting the adhesives and sealants market. Post-pandemic, the rising demand for construction and packaging industries is excepted to revive the market for adhesives and sealants.
- The demand for adhesives and sealants is extensively driven by the growing demand from the construction industry in the country.
- The over-reliance on the import of raw materials is likely to hinder the market's growth.
- In the studied market, the packaging end-user segment is expected to dominate. However, the aerospace end-user segment is expected to be the fastest-growing segment in the country during the forecast period.
- The innovation and development of bio-based adhesives and shifting focus toward adhesive bonding for composite materials are likely to offer opportunities for the adhesives and sealants market in the country.
Indonesia Adhesives & Sealants Market Trends
This section covers the major market trends shaping the Indonesia Adhesives & Sealants Market according to our research experts:
Water-borne Adhesives Technology to Dominate the Market
- Water-borne adhesives use water as a carrier or diluting medium to disperse a resin. They are set by allowing the water to evaporate or be absorbed by the substrate. These adhesives are compounded with water as a diluent rather than a volatile organic solvent, and they can be considered low-VOC adhesives.
- Water-borne adhesives are produced from either soluble synthetic polymers (from polymers such as cellulose ethers, polyvinyl alcohol, methylcellulose, carboxymethylcellulose, and polyvinylpyrrolidone) or natural polymers (from vegetable sources such as starches and dextrins, protein sources such as blood, fish, milk albumen, and soybean, and animal sources such as bones and hides).
- In Indonesia, waterborne technology is the fastest-growing technology in the adhesives market. The major reason for their preference over solvent-borne is due to their eco-friendly nature, as it is generally lower in volatile organic compounds (VOCs), which degrade the environment.
- In Indonesia, the market for acrylic water-based adhesives is expected to register a 5.66% growth rate by 2028 as waterborne adhesives, and acrylic water-borne adhesives are majorly employed for different applications in the building and construction industry. Acrylic water-borne adhesives are majorly used as pressure-sensitive adhesives in the construction sector in the form of labels and tapes for tile bonding and laminating purposes.
- All the aforementioned factors are expected to drive the market for water-borne acrylic coatings in the country.
The Packaging Segment to Dominate the Market
- The packaging segment is the largest consumer of the adhesives and sealants market. The packaging industry has been witnessing strong demand from end-user industries, such as food and beverages, cosmetics, consumer goods, stationery, and other end-user industries.
- Moreover, the demand for cosmetics and food and beverage products is expected to grow due to the growing population and demand for quality products, urbanization, and consumers inclining toward technology, hence, fueling the demand for the packaging industry.
- The Indonesian packaging sector gave a 28% return over the period 2017-2021 and is expected to grow at a steady rate during the forecast period. There are various investments done in the packaging sector by various companies like Fajarpaper and SCGP.
- In 2021, the market registered a positive growth of 4.28%, with 153.41 million tons of packaging material used for various purposes. It is expected that the packaging industry will keep growing as there has been a rise in the e-commerce sector which has given a significant boost to the packaging industry in the past few years as special packaging is required for shipping goods.
- The government of Indonesia has taken steps toward the use of plastic, as Indonesia is the second-largest contributor of plastic waste in the ocean after China. The extended producer responsibility (EPR) regulation imposed by the Indonesian government will oblige producers and retailers to redesign their product packaging to have a higher proportion of recyclable material. This will encourage manufacturers to use paper and paperboard as the base material for the packaging, which will increase the volume of adhesives used in the packaging process.
- Hence, such trends driving the growth of packaging industry is likely to further fuel the consumption of adhesives and sealants in the country.
Indonesia Adhesives & Sealants Industry Overview
Indonesia Adhesives and Sealants Market share is highly fragmented. The major companies (not in any particular order) include 3M, H.B. Fuller Company, Henkel AG & Co. KGaA, Sika AG, and DEXTONE INDONESIA.
Indonesia Adhesives & Sealants Market Leaders
3M
H.B. Fuller Company
Henkel AG & Co. KGaA
Sika AG
DEXTONE INDONESIA
*Disclaimer: Major Players sorted in no particular order
Indonesia Adhesives & Sealants Market News
- July 2021: H.B. Fuller company announced a strategic agreement with Covestro to offer sustainable adhesives.
- April 2021: 3M announced its latest addition to a new class of silicone adhesives that balances strength, flexibility, and comfort, 2484 3M Single Coated Medical Film Tape with Hi-Tack Silicone Adhesive on Liner.
Indonesia Adhesives & Sealants Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Report
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand from the Packaging Industry
4.1.2 Growing Demand from the Construction Industry
4.2 Restraints
4.2.1 Over-reliance on Import of Raw Materials
4.2.2 Other Restraints
4.3 Industry Value-chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Adhesives by Resin
5.1.1 Acrylic
5.1.2 Cyanoacrylate
5.1.3 Epoxy
5.1.4 Polyurethane
5.1.5 Silicone
5.1.6 VAE/EVA
5.1.7 Other Resins
5.2 Adhesives by Technology
5.2.1 Hot Melt
5.2.2 Reactive
5.2.3 Solvent-borne
5.2.4 UV Cured
5.2.5 Water-borne
5.3 Sealants by Resin
5.3.1 Polyurethane
5.3.2 Epoxy
5.3.3 Acrylic
5.3.4 Silicone
5.3.5 Other Resins
5.4 End-user Industry
5.4.1 Aerospace
5.4.2 Automotive
5.4.3 Building and Construction
5.4.4 Footwear and Leather
5.4.5 Healthcare
5.4.6 Packaging
5.4.7 Woodworking and Joinery
5.4.8 Other End-user Industries
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 3M
6.4.2 ALTECO co., ltd.
6.4.3 DEXTONE INDONESIA
6.4.4 H.B. Fuller Company
6.4.5 Henkel AG & Co. KGaA
6.4.6 Huntsman International LLC
6.4.7 Mapei Inc
6.4.8 Pamolite Adhesive Industry
6.4.9 Pidilite Industries Ltd.
6.4.10 Sika AG
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Innovation and Development of Bio-based Adhesives
7.2 Shifting Focus Toward Adhesive Bonding for Composite Materials
Indonesia Adhesives & Sealants Industry Segmentation
Adhesives are made from a combination of resins, additives, and solvents. The composition of the resins and additives entirely depends on the end-user industry in which they are used. The Adhesives market is segmented by resin type, technology, and end-user industry. By Adhesive resin type, the market is segmented into acrylic, cyanoacrylate, epoxy, polyurethane, silicone, VAE/EVA, and other resins. In the case of technology, the market is segmented into the hot melt, reactive, solvent-borne, UV-cured, and waterborne. By sealant resin type, the market is segmented into polyurethane, epoxy, acrylic, silicone, and other resin types. By end-user industry, the market is segmented into aerospace, automotive, building and construction, footwear and leather, healthcare, packaging, woodworking and joinery, and other end-user industries. The report offers market size and forecasts in terms of both revenue (USD million) and volume (kilotons) for all the above segments.
| Adhesives by Resin | |
| Acrylic | |
| Cyanoacrylate | |
| Epoxy | |
| Polyurethane | |
| Silicone | |
| VAE/EVA | |
| Other Resins |
| Adhesives by Technology | |
| Hot Melt | |
| Reactive | |
| Solvent-borne | |
| UV Cured | |
| Water-borne |
| Sealants by Resin | |
| Polyurethane | |
| Epoxy | |
| Acrylic | |
| Silicone | |
| Other Resins |
| End-user Industry | |
| Aerospace | |
| Automotive | |
| Building and Construction | |
| Footwear and Leather | |
| Healthcare | |
| Packaging | |
| Woodworking and Joinery | |
| Other End-user Industries |
Indonesia Adhesives & Sealants Market Research FAQs
What is the current Indonesia Adhesives and Sealants Market size?
The Indonesia Adhesives and Sealants Market is projected to register a CAGR of 6.66% during the forecast period (2024-2029)
Who are the key players in Indonesia Adhesives and Sealants Market?
3M, H.B. Fuller Company, Henkel AG & Co. KGaA, Sika AG and DEXTONE INDONESIA are the major companies operating in the Indonesia Adhesives and Sealants Market.
What years does this Indonesia Adhesives and Sealants Market cover?
The report covers the Indonesia Adhesives and Sealants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Adhesives and Sealants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Adhesives and Sealants Industry Report
Statistics for the 2024 Indonesia Adhesives and Sealants market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Adhesives and Sealants analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
