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

Japan Adhesives Market Analysis

The Japan Adhesives Market size is estimated at 2.24 billion USD in 2024, and is expected to reach 2.72 billion USD by 2028, growing at a CAGR of 4.94% during the forecast period (2024-2028).

Japan's adhesives industry is experiencing significant transformation driven by the country's robust manufacturing sector and technological innovation. The automotive sector, being the third-largest globally, represents a crucial market with 78 manufacturers across 22 prefectures employing over 5.5 million people. The industry's technological orientation is evident in its shift toward electric and hybrid vehicles, with projections indicating electric vehicles will constitute 55% of the total automotive market by 2030. This transition is further supported by significant investments, such as Subaru's recent commitment of USD 1.93 billion for a new electric vehicle manufacturing plant in Tokyo.

The construction and infrastructure sector is witnessing substantial growth, particularly driven by government initiatives and major upcoming events. The Japanese government's commitment to public works projects, including preparations for the 2025 World Expo in Osaka, is stimulating demand for construction adhesives. The sector's growth is particularly notable in wooden construction, with 59% of homes in Japan being wooden structures, creating sustained demand for specialized wood adhesives in residential construction and renovation projects.

The healthcare sector represents another significant market for medical adhesives, supported by Japan's extensive medical infrastructure comprising 179,400 medical care institutions. The industry's focus on advanced medical devices and equipment has led to increased demand for specialized adhesive solutions that meet stringent medical-grade requirements. This trend is particularly evident in the development of new adhesive technologies for medical device assembly and wound care applications.

The furniture and woodworking industry is experiencing steady growth, with projections indicating the furniture market will reach USD 18.81 billion by 2026. This growth is driven by changing consumer preferences and the increasing trend of home renovation projects. The industry's evolution is characterized by a shift toward sustainable materials and manufacturing processes, including the development of eco-friendly industrial adhesives solutions aligned with Japan's environmental regulations and the government's "Green Growth Strategy" initiatives introduced in 2021.

Japan Adhesives Market Trends

With the advancement in plastic recyclability and demand from food and beverage industry, plastic packaging to lead the packaging industry

• The Japanese packaging industry registered significant growth in recent times and contributed 1.13% to the nation's GDP owing to the growing trend for protecting and enhancing products' safety and longevity. The food & beverages sector contributes a major share to the Japanese packaging industry due to its complex and evolving nature. The Japanese government has set a target of achieving 45% sufficiency of food products by 2025, likely contributing to the packaging industry over the coming years. Moreover, the aging population is expected to propel packaging demand as elderly consumers prefer packaged and prepared food for easy access.
• In line with the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions to the supply chain and imports & exports. As a result, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market. Packaging production is majorly driven by plastic packaging in the country, which accounts for around 86% of the packaging produced in 2021. With the growing demand for flexible and rigid packaging for various applications and plastic recycling advancements, the plastic production segment is likely to register the fastest growth, with a 3.94% CAGR during the forecast period.
• The growth of the Japanese packaging industry is mainly attributed to the rising per capita income, improvement of the supply chain, and increasing e-commerce activities over the years. The growing attention to food safety and quality in post-pandemic times across the nation is likely to drive the food processing industry, which will further propel the packaging demand over the coming years.

In addition to being home to renowned automotive manufacturers including Toyota, Honda, and Nissan, the demand for EVs is rising the automotive industry

• Japan is home to the world's largest automotive companies, such as Toyota, Honda, and Nissan, of which Toyota is the world's second-largest company in terms of market capitalization. Toyota's sales revenue showed a 15% Y-o-Y growth in the fiscal year ending March 2022, suggesting an increasing trend of automotive market growth in Japan. Passenger vehicle sales in Japan are expected to reach 3951.71 thousand units by 2027.
• Due to the impact of the COVID-19 pandemic, the sales of automobiles reduced drastically because of nationwide lockdowns, overall economic slowdown, decreased exports, supply chain disruptions, etc. These factors led to a decrease in the sales volume of automobiles in 2020 as passenger car sales fell from 3997 thousand in 2019 to 3841 thousand in 2020.
• Japan witnessed a decrease in automotive market revenue in 2021 compared to 2020 because of the increasing awareness of environmental concerns and increased use of public transport in the cities of Japan. The government is also supporting the cause by making public transport more efficient than before. The railways cover nearly 72% of the public transportation system in Japan.
• Japan witnessed peak sales of electric vehicles in 2017 because of the launch of new plug-in hybrid vehicles, which appealed to consumers. The electric vehicles segment of the automotive industry is expected to record a CAGR of 24.39% in 2022-2027. The number of electric vehicles sold in Japan is expected to be 165.5 thousand by 2027. This will lead to an increase in the overall revenue of the automotive industry in Japan.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Automotive Segment in Japan Adhesives Market

The automotive segment continues to dominate the Japan adhesives market, holding approximately 27% market share in 2024. This significant market position is driven by Japan's robust automotive manufacturing sector, with major companies like Toyota, Honda, and Nissan maintaining strong production volumes. The increasing trend toward vehicle lightweighting and the replacement of mechanical fasteners with adhesive films has further strengthened this segment's position. Japanese automotive manufacturers are extensively using structural adhesives for various applications, including exterior and interior parts, body components, and structural bonding. The growing focus on electric vehicle production, with manufacturers investing in new production facilities and technologies, has created additional demand for specialized automotive adhesives.

Aerospace Segment in Japan Adhesives Market

The aerospace segment is emerging as the fastest-growing segment in the Japanese adhesives market, projected to grow at approximately 8% during 2024-2029. This remarkable growth is primarily driven by Japan's expanding role in global aircraft component manufacturing, where local giants like Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Subaru manufacture nearly 35% of Boeing aircraft components. The increasing demand for aerospace adhesives is further supported by the growing maintenance, repair, and overhaul (MRO) operations in the country. The segment's growth is also bolstered by the anticipated 47% increase in passenger traffic over the next two decades, necessitating significant expansion in the country's air fleet and consequently driving demand for aerospace adhesives.

Remaining Segments in End User Industry

The Japanese adhesives market encompasses several other significant segments, including building and construction, packaging, healthcare, woodworking and joinery, and footwear and leather. The building and construction segment maintains a strong presence due to ongoing infrastructure development and renovation projects. The packaging segment is driven by the growing e-commerce sector and sustainable packaging solutions. The healthcare segment is expanding due to Japan's aging population and increasing medical device production. The woodworking and joinery segment benefits from Japan's traditional preference for wooden structures, while the footwear and leather segment serves the country's fashion and sports industries. Each of these segments contributes uniquely to the market's diversity and overall growth.

Segment Analysis: Technology

Water-borne Segment in Japan Adhesives Market

Water-borne adhesives dominate the Japanese adhesives market, holding approximately 31% market share in 2024. These adhesives are particularly popular due to their environmentally friendly nature and low VOC content, which ensures worker safety at manufacturing sites. The segment's prominence is largely driven by their extensive use in the woodworking industry, where Japan has a significant presence due to its large wooden housing sector. Water-borne adhesives offer manufacturers a cost-effective solution, with prices nearly 50% lower than other adhesive technologies. Their strong performance in bonding wood, paper, textiles, leather, and other porous substrates, combined with their economic advantages, has cemented their position as the leading adhesive technology in Japan.

UV Cured Segment in Japan Adhesives Market

UV cured adhesives are emerging as the fastest-growing segment in the Japanese adhesives market, with significant technological advancements driving their adoption. These adhesives offer unique advantages such as single-component formulation, eliminating the need for weighing or mixing before use, which significantly simplifies production schedules. The technology's appeal lies in its 100% reactive nature, resulting in zero volatile losses during curing and a non-polluting process. The segment's growth is particularly strong in high-precision applications where rapid curing at room temperature and superior bonding properties are essential. The activation process, occurring only when exposed to UV light of 250 to 350 nm, provides manufacturers with excellent control over the curing process, making these adhesives increasingly popular in advanced manufacturing applications.

Remaining Segments in Technology

The Japanese adhesives market features several other significant technology segments, including reactive adhesives, hot melt adhesives, and solvent-borne adhesives. Reactive adhesives are particularly valued in applications requiring high-strength adherence and substantial permanency, especially in high-tech devices and automotive applications. Hot melt adhesives have gained prominence due to their fast setting properties and absence of volatile organic compounds, making them particularly suitable for packaging and assembly operations. Solvent-borne adhesives, while facing some regulatory challenges due to VOC content, continue to maintain their position in specific applications where their unique properties make them irreplaceable, particularly in demanding industrial applications requiring high performance and durability.

Segment Analysis: Resin

Polyurethane Segment in Japan Adhesives Market

Polyurethane resin-based adhesives dominate the Japanese adhesives market, holding approximately 26% market share in 2024. These adhesives are particularly favored in the automotive and construction industries due to their superior adhesion properties of nearly 8.5 N/mm2 to sheet molding composites. The segment's strong position is driven by its versatility in bonding different substrates, excellent durability, and resistance to environmental factors. Polyurethane adhesives are extensively used in vehicle production and are gaining further traction with the implementation of policies like the "Green Growth Strategy" that promotes electric vehicle adoption in Japan. The segment's growth is also supported by its wide temperature operating range between -40°C and 100°C, making it suitable for various industrial applications.

Epoxy Segment in Japan Adhesives Market

The epoxy adhesives segment is emerging as the fastest-growing category in the Japanese adhesives market, driven by its excellent adhesion to various substrates, superior resistance to chemicals and solvents, and good electrical insulation properties. These adhesives demonstrate high strength and low shrinkage during curing, making them ideal for structural applications. The segment's growth is further propelled by their competitive pricing, being approximately 30-40% cheaper than cyanoacrylate resins at around USD 4.8 to 5.52/kg. Their high tensile strength of approximately 35-41 N/mm2 makes them particularly valuable in automotive and construction applications. The increasing demand for strong adhesion across a wide range of surface applications, coupled with rising electric vehicle sales in Japan, is expected to drive continued growth in this segment.

Remaining Segments in Resin Segmentation

The Japanese adhesives market features several other significant resin segments, including VAE/EVA, acrylic adhesives, silicone, and cyanoacrylate. VAE/EVA adhesives are particularly valued in the footwear and automotive industries due to their high-temperature resistance and flexibility. Acrylic adhesives are preferred for their improved temperature, solvent, and UV resistance properties, making them ideal for outdoor applications. Silicone adhesives have carved out a niche in applications requiring extreme temperature resistance and flexibility, while cyanoacrylate adhesives are known for their rapid curing properties and strong bonding capabilities. Each of these segments serves specific industrial needs and contributes to the overall diversity and functionality of the adhesives market in Japan.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on various end-user production trends including automobile production, newly built construction floor area, packaging production, aircraft deliveries, footwear production, and regional data on adhesives and sealants demand, etc.