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

Russia Adhesives Market Analysis

The Russia Adhesives Market size is estimated at 2.51 billion USD in 2024, and is expected to reach 3.28 billion USD by 2028, growing at a CAGR of 6.85% during the forecast period (2024-2028).

The Russian adhesives industry is undergoing significant transformation driven by government initiatives and changing market dynamics. The Russian government's Import Substitution policy has created new opportunities for domestic manufacturing and supply chain development in the adhesives sector. The President's recent announcement of 13 major construction projects spanning education, healthcare, and infrastructure development signals strong government commitment to industrial growth. These initiatives are complemented by the government's strategic focus on boosting economic growth above global averages by 2025, creating a favorable environment for industrial expansion and technological advancement in the adhesives sector.

Technological innovation and sustainability are becoming increasingly prominent in the Russian adhesives market, particularly in product formulations and application methods. Water-borne adhesives have emerged as the dominant technology, accounting for 60.1% of total adhesive consumption, driven by their environmental benefits and cost-effectiveness. Among resin types, polyurethane-based adhesives maintain a significant position with a 21.8% market share, owing to their superior bonding properties and versatility across applications. This shift towards environmentally conscious solutions reflects broader industry trends and regulatory requirements for reduced volatile organic compound (VOC) emissions.

The market is experiencing robust growth across diverse end-user industries, with packaging and construction leading demand. Russia's position as the eighth-largest packaged food products market globally, with 27.5 million tons of trade volume, has created substantial opportunities for adhesive manufacturers. The construction sector presents particularly promising prospects, with wooden structures currently accounting for 22% of all construction technologies and new floor area expected to reach 2 billion square footage by 2028. These developments are driving innovation in application-specific adhesive technologies and creating new market opportunities.

The industry's supply chain and manufacturing landscape are evolving to meet changing market demands and regulatory requirements. Domestic manufacturers are expanding their production capabilities and investing in research and development to reduce dependency on imports. The focus on local manufacturing aligns with national industrial policies and helps ensure supply chain resilience. Manufacturers are increasingly emphasizing product customization and technical support services to meet specific application requirements across industries, while also investing in sustainable adhesives production methods and eco-friendly formulations to align with global environmental standards.

Russia Adhesives Market Trends

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

• The Russian packaging industry has experienced healthy growth in the last couple of years. The rapid adoption of design and technology to package products for better protection and enhance products' safety and longevity is likely to offer promising growth opportunities in the near future. The Russian packaging industry has majorly been driven by the rapid growth of the food and beverages industry in recent years. Russia is a major exporter of food products worldwide, which further influences packaging sales to meet the need for sophisticated packaging across various-end use industries.
• In line with the COVID-19 pandemic, the country-wide lockdown and temporary shutdown of manufacturing facilities caused several issues, including disruptions to supply chains and imports and exports trade. As a result, the country's packaging production declined by 7% in 2020 compared to the previous year, thus, significantly affecting the market. Packaging production is majorly driven by plastics in the country, which nearly accounted for over 70% of the packaging produced in 2021. With the advancement of plastic recyclability, the plastic production segment is likely to register the fastest growth with a CAGR of around 4.4% during the forecast period.
• The growth of the packaging industry in Russia is expected to continue due to the increasing demand for fresh food domestically. The growing interest in public health issues during the post-pandemic period, along with the emerging e-commerce activities across the nation, is likely to continue to boost the growth of the food processing industry, which is expected to propel packaging demand over the coming years.

Rising commercial vehicles production such as trucks propel the automotive production

• The automotive production market in Russia is not growing as it is majorly becoming an importer of passenger vehicles. Foreign companies hold the maximum share in the Russian automotive market as foreign manufacturers' shares accounted for 8.9 million units in 2020 compared to Russian manufacturers' 3.5 million units of passenger vehicles. This was due to geopolitical tensions in Russia in recent years.
• Minimal or null Y-o-Y growth is expected in 2022-2028, which is evident from the fact that car sales decreased by 78.5% Y-o-Y in 2022. Foreign players are leaving the Russian market because of socio-political reasons such as soaring financial sanctions by foreign countries on different resources in terms of exports and imports, growing interest rates by the Russian Federal Bank, and war conditions with the neighboring country Ukraine. Optimistically, there was an announcement made in March 2022 by the Russian Ministry of Industry and Trade to take the automaker CJSC Renault plant under government control to attempt the revival of the automotive industry, which can prevent the automotive market from going into huge losses during the forecast period 2022-2028.
• In the case of commercial vehicles, the production by Russian manufacturers is growing, with leading truck manufacturer Kamaz in Russia having increased the number of trucks produced from 5700 in Q1 of 2018 to 7400 in Q1 of 2021. This increase in the production of trucks is expected to contribute to the growth of the Russian automotive sector in the forecast period 2022-2028.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Packaging Segment in Russia Adhesives Market

The packaging segment dominates the Russian adhesives market, commanding approximately 55% market share in 2024, driven by the country's position as the eighth-largest packaged food products market globally with 27.5 million tons of trade volume. The segment's prominence is further strengthened by the increasing production of beverages (both alcoholic and soft drinks) and the processing of potatoes and vegetables, which drive the demand for packaging adhesives. The Russian government's Import Substitution policy and recent import restrictions by several countries have created new opportunities for the domestic packaging industry, simultaneously influencing the adhesives market. Water-borne adhesives are particularly popular in this segment due to their cost-effectiveness and high bonding strength required for various packaging applications.

Building and Construction Segment in Russia Adhesives Market

The building and construction segment represents the second-largest application area for adhesives in Russia, with significant growth potential driven by various infrastructure development initiatives. The Russian President's announcement to construct 13 new projects, ranging from education and healthcare to infrastructure development, signals strong growth prospects for construction adhesives. The government's commitment to boost the country's economic growth above the world average by 2025 has provided additional stimulus to construction activities. Water-borne adhesives are witnessing high demand in this segment due to their unique qualities, including high strength, outstanding stability, fast cure times, on-demand curing, high viscosity, transparency, and precision.

Remaining Segments in End User Industry

The Russian adhesives market serves several other vital sectors including automotive, healthcare, aerospace, footwear and leather, and woodworking industries. The automotive sector utilizes adhesives for lightweight vehicle manufacturing and assembly operations, while the healthcare industry demands specialized medical adhesives for medical device manufacturing and packaging. The aerospace sector requires high-performance aerospace adhesives for critical applications in aircraft manufacturing, while the woodworking industry relies heavily on wood adhesives for furniture production and wooden construction. The footwear and leather segment utilizes specialized adhesives for bonding different materials in shoe manufacturing. Each of these segments contributes uniquely to the market's diversity and growth, with specific requirements for adhesive properties and performance characteristics.

Segment Analysis: Technology

Water-borne Segment in Russia Adhesives Market

Water-borne adhesives dominate the Russian adhesives market, holding approximately 47% market share in 2024. These adhesives are formulated as dispersions or emulsions with polymer particles typically ranging from 50-300 nm in diameter. Their widespread adoption is primarily driven by their environmental friendliness, negligible VOC content, and cost-effectiveness compared to other technologies. Water-borne adhesives are particularly prevalent in woodworking and footwear industries, offering excellent bonding capabilities for wood, paper, textiles, leather, and other porous substrates. The segment's dominance is further strengthened by stringent environmental regulations and increasing focus on worker safety at manufacturing sites.

Hot Melt Segment in Russia Adhesives Market

The hot melt adhesives segment is experiencing robust growth in the Russian market, projected to grow at approximately 5% through 2024-2029. These thermoplastic adhesives, commonly available in solid cylindrical sticks of various diameters (12mm, 15mm, or 43mm), are designed for application using hot glue guns and can operate within temperature ranges of 60-200 degrees Celsius. The segment's growth is primarily driven by manufacturers' shift from solvent-borne adhesives due to lower VOC content requirements. Innovation in the segment, particularly the development of products containing 50% or more solids contributing to green technology, is expected to further accelerate market expansion in the coming years.

Remaining Segments in Technology

The Russian adhesives market also encompasses reactive, solvent-borne, and UV-cured adhesives segments. Reactive adhesives are particularly valued in applications requiring substantial permanency and high-strength adherence, especially in high-tech devices and automotive applications. Solvent-borne adhesives, while facing challenges due to VOC regulations, maintain their relevance in specific industrial applications where their unique properties are essential. UV-cured adhesives, though representing a smaller market share, are gaining traction in specialized applications due to their one-component formulation and pollution-free curing process, particularly in industries requiring precise and controlled adhesive applications.

Segment Analysis: Resin

Polyurethane Segment in Russian Adhesives Market

Polyurethane adhesives dominate the Russian adhesives market, commanding approximately 22% market share in 2024. These adhesives are witnessing higher demand due to their durable and flexible properties, which enable them to withstand significant wear and tear when applied on various substrates including glass, ceramic, plastic, composites, metals, alloys, and wood. The superior adhesion properties of polyurethane adhesives to sheet molding composites, with a tensile strength of nearly 8.5 N/mm2, make them particularly attractive for manufacturers in the building & construction and automotive industries. Their versatility in bonding different materials, combined with excellent resistance to environmental factors and a wide operating temperature range between -40°C and 100°C, has solidified their position as the leading adhesive resin type in Russia.

VAE/EVA Segment in Russian Adhesives Market

The VAE/EVA resin-based adhesives segment is experiencing robust growth in the Russian market, projected to grow at approximately 8% during 2024-2029. This growth is primarily driven by their extensive application in the woodworking industry, where their low viscosity of around 200 mPa.s, vibration resistance capacity, and high-temperature resistance capabilities make them ideal for various applications. These adhesives can function effectively in temperatures ranging from -40°F to 160°F, offering exceptional flexibility and lightweight properties. The increasing adoption of VAE/EVA adhesives in packaging applications and their growing usage in sports footwear manufacturing, particularly in outsole, midsole, and insole applications, further contribute to their rapid market expansion.

Remaining Segments in Resin

The Russian adhesives market features several other significant resin segments including acrylic, epoxy, cyanoacrylate, and silicone adhesives. Epoxy adhesives have carved out a strong position in high-strength bonding applications, especially in construction and automotive sectors. Acrylic adhesives are particularly valued for their pressure sensitive adhesives applications in packaging, construction, and healthcare industries. Cyanoacrylate adhesives are preferred for their rapid curing properties and versatility across multiple industries. Silicone-based adhesives have found their niche in applications requiring excellent temperature resistance and flexibility, particularly in construction and automotive applications. Each of these segments contributes uniquely to the market's diversity, offering specific advantages for different application requirements.

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.