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Indonesia Adhesives Market Size

The Indonesia Adhesives Market is projected to experience growth over the forecast period, despite a previous decline due to the COVID-19 pandemic, which disrupted supply chains and reduced consumption. The market's expansion is closely linked to the development of the packaging industry, which has shown resilience and continued growth, driven by sectors such as food and beverage, pharmaceuticals, and retail. Additionally, significant investments in infrastructure and construction projects are expected to further boost the demand for adhesives, contributing to the overall increase in market size.

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Market Size of indonesia adhesives Industry

Indonesia Adhesives Market Summary
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svg icon Study Period 2017 - 2028
svg icon Market Size (2024) USD 0.82 Billion
svg icon Market Size (2028) USD 1.04 Billion
svg icon Largest Share by End User Industry Packaging
svg icon CAGR (2024 - 2028) 5.95 %
svg icon Fastest Growing by End User Industry Aerospace

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Indonesia Adhesives Market Analysis

The Indonesia Adhesives Market size is estimated at 0.82 billion USD in 2024, and is expected to reach 1.04 billion USD by 2028, growing at a CAGR of 5.95% during the forecast period (2024-2028).

0.82 Billion

Market Size in 2024 (USD)

1.04 Billion

Market Size in 2028 (USD)

5.91 %

CAGR (2017-2023)

5.95 %

CAGR (2024-2028)

Largest Market by End-user Industry

39.32 %

value share, Packaging, 2023

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The packaging industry holds the largest share of the market owing to its widespread applications, including labels, tapes, carton sealing and joining, and labeling.

Fastest Growing Market by End-user Industry

8.18 %

Projected CAGR, Aerospace, 2024-2028

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The aerospace industry is likely to register the fastest growth in the market owing to the rapid expansion of general aviation and civil aviation for the domestic market.

Largest Market by Technology

32.26 %

value share, Hot Melt, 2023

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In Indonesia, hot melt adhesives gain the major market share owing to their easy applicability, non-toxic, and fast curing process across industries.

Largest Market by Resin

25.60 %

value share, Polyurethane, 2023

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Polyurethane adhesives hold the largest share owing to their wide applications in building construction, woodworking, and automotive industries, specifically for exterior applications.

Leading Market Player

11.47 %

market share, Henkel AG & Co. KGaA, 2021

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Henkel is the leading adhesives manufacturer in Indonesia. This can be attributed to the popularity of its products in widespread industries, including building and construction, automotive, aerospace, woodworking, and others.

The numerous ongoing and planned infrastructure projects in the country to have a key role in the growth of adhesive demand

  • The consumption of adhesives in Indonesia has shown a downward trend in 2020 due to the impact of COVID-19. The consumption was reduced by about 13% in terms of volume in the same year compared to 2019. The lockdown in the country has largely become the major reason for the shortage of adhesives in the country. Moreover, due to the shutdown of production facilities and supply chain disruption, the demand for these adhesives is largely being impacted.
  • The Indonesian packaging industry plays an important role in all industries and businesses. Therefore, the development of the packaging industry cannot be separated from the development of the national industry. In fact, packaging has become one of the determining factors for the competitiveness of national industrial products. In recent years, the packaging sector has grown by 6%-7% year-on-year, with a realized value of IDR 104,728 billion in 2021. In reality, as the COVID-19 epidemic began to spread, the packing business did not suffer considerably. The packaging industry is expected to increase at a 6%-8% annual rate, in conjunction with the growth of the major supporting sectors, such as food and beverage (Mamin), pharmaceutical, and retail.
  • On the other side, the industry is now investing in massive infrastructure projects to accelerate the country's growth. For example, Indonesia is planning to invest over USD 40 billion to expand Jakarta's metro network, which is expected to strengthen the country's construction industry. Indonesia is also planning ambitious construction projects worth more than USD 400 billion in the future years, including the construction of 25 airports and new power plants. All of these variables influence the demand for adhesives.
Indonesia Adhesives Market

Indonesia Adhesives Industry Segmentation Indonesia Adhesives Industry Segmentation

Aerospace, Automotive, Building and Construction, Footwear and Leather, Healthcare, Packaging, Woodworking and Joinery are covered as segments by End User Industry. Hot Melt, Reactive, Solvent-borne, UV Cured Adhesives, Water-borne are covered as segments by Technology. Acrylic, Cyanoacrylate, Epoxy, Polyurethane, Silicone, VAE/EVA are covered as segments by Resin.

  • The consumption of adhesives in Indonesia has shown a downward trend in 2020 due to the impact of COVID-19. The consumption was reduced by about 13% in terms of volume in the same year compared to 2019. The lockdown in the country has largely become the major reason for the shortage of adhesives in the country. Moreover, due to the shutdown of production facilities and supply chain disruption, the demand for these adhesives is largely being impacted.
  • The Indonesian packaging industry plays an important role in all industries and businesses. Therefore, the development of the packaging industry cannot be separated from the development of the national industry. In fact, packaging has become one of the determining factors for the competitiveness of national industrial products. In recent years, the packaging sector has grown by 6%-7% year-on-year, with a realized value of IDR 104,728 billion in 2021. In reality, as the COVID-19 epidemic began to spread, the packing business did not suffer considerably. The packaging industry is expected to increase at a 6%-8% annual rate, in conjunction with the growth of the major supporting sectors, such as food and beverage (Mamin), pharmaceutical, and retail.
  • On the other side, the industry is now investing in massive infrastructure projects to accelerate the country's growth. For example, Indonesia is planning to invest over USD 40 billion to expand Jakarta's metro network, which is expected to strengthen the country's construction industry. Indonesia is also planning ambitious construction projects worth more than USD 400 billion in the future years, including the construction of 25 airports and new power plants. All of these variables influence the demand for adhesives.
End User Industry
Aerospace
Automotive
Building and Construction
Footwear and Leather
Healthcare
Packaging
Woodworking and Joinery
Other End-user Industries
Technology
Hot Melt
Reactive
Solvent-borne
UV Cured Adhesives
Water-borne
Resin
Acrylic
Cyanoacrylate
Epoxy
Polyurethane
Silicone
VAE/EVA
Other Resins
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Indonesia Adhesives Market Size Summary

The Indonesia adhesives market is poised for growth, driven by the expanding packaging and construction industries. Despite a downturn in 2020 due to the COVID-19 pandemic, which disrupted supply chains and reduced production capacity, the market is expected to recover and grow steadily. The packaging sector, integral to various industries, is anticipated to continue its upward trajectory, supported by the burgeoning e-commerce sector and infrastructure projects. These developments are expected to increase the demand for adhesives, particularly in packaging applications, as companies strive to enhance product protection and appeal. The government's focus on sustainability, through regulations like the extended producer responsibility, is likely to further boost the use of paper and paperboard, thereby increasing the volume of adhesives required.

The automotive industry in Indonesia also plays a significant role in the adhesives market, with the sector showing promising growth and a shift towards electric vehicles. This transition presents opportunities for adhesive manufacturers to cater to new technological demands. The market is characterized by fragmentation, with major players like 3M, DEXTONE INDONESIA, H.B. Fuller Company, Henkel AG & Co. KGaA, and Sika AG holding a significant share. These companies are actively innovating and expanding their product offerings to meet the evolving needs of the Indonesian market. As the country continues to invest in infrastructure and technology, the adhesives market is expected to experience robust growth, aligning with broader economic trends.

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Indonesia Adhesives Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2028 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Aerospace

      2. 1.1.2 Automotive

      3. 1.1.3 Building and Construction

      4. 1.1.4 Footwear and Leather

      5. 1.1.5 Healthcare

      6. 1.1.6 Packaging

      7. 1.1.7 Woodworking and Joinery

      8. 1.1.8 Other End-user Industries

    2. 1.2 Technology

      1. 1.2.1 Hot Melt

      2. 1.2.2 Reactive

      3. 1.2.3 Solvent-borne

      4. 1.2.4 UV Cured Adhesives

      5. 1.2.5 Water-borne

    3. 1.3 Resin

      1. 1.3.1 Acrylic

      2. 1.3.2 Cyanoacrylate

      3. 1.3.3 Epoxy

      4. 1.3.4 Polyurethane

      5. 1.3.5 Silicone

      6. 1.3.6 VAE/EVA

      7. 1.3.7 Other Resins

Indonesia Adhesives Market Size FAQs

The Indonesia Adhesives Market size is expected to reach USD 821.76 million in 2024 and grow at a CAGR of 5.95% to reach USD 1.04 billion by 2028.

In 2024, the Indonesia Adhesives Market size is expected to reach USD 821.76 million.

Indonesia Adhesives Market Report Snapshots

Indonesia Adhesives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028