Thailand Adhesives Market Size & Share Analysis - Growth Trends & Forecasts UP TO 2028

Thailand Adhesives Market Analysis

The Thailand Adhesives Market size is estimated at 629.75 million USD in 2024, and is expected to reach 788.46 million USD by 2028, growing at a CAGR of 5.78% during the forecast period (2024-2028).

Thailand's adhesives industry is experiencing significant transformation amid broader economic developments, with the country recording a GDP of USD 7,630 per capita and a growth rate of 2.8% in 2022. The industry is increasingly focusing on sustainable and environmentally friendly solutions, with manufacturers developing low VOC and solvent-free adhesive products. This shift is particularly evident in the water-borne adhesives segment, which offers superior bonding strength while maintaining environmental compliance. The government's implementation of the Plastic Waste Management Roadmap (2018-2030) has further accelerated the adoption of eco-friendly adhesive solutions, with major biopolymer companies like GC and Cargill announcing plans to invest USD 20 billion in establishing new bioplastic plants.

The rapid digitalization of Thailand's economy is reshaping industry dynamics, with the e-commerce sector projected to grow at an annual rate of 8% between 2021 and 2025, significantly outpacing the global average of 6%. This digital transformation has led to increased demand for specialized adhesive solutions in packaging applications, particularly in the development of smart packaging solutions. Water-borne and hot-melt adhesives are gaining prominence in these applications due to their versatility and environmental benefits, while manufacturers are increasingly investing in research and development to create innovative adhesive solutions that meet the evolving needs of e-commerce packaging.

Thailand's healthcare sector is emerging as a crucial market for specialty adhesives, with total healthcare expenditure expected to reach USD 47.9 billion by 2026. The government's allocation of approximately 13.3% of its total budget to public health services has created substantial opportunities for adhesive manufacturers, particularly in medical device assembly and wound care applications. The industry is witnessing increased demand for silicone-based adhesives in medical applications, offering gentle and atraumatic adhesion to the skin while promoting wound healing.

The country's industrial landscape is undergoing significant transformation with the government's ambitious electric vehicle (EV) initiatives, aiming for EVs to constitute 30% of all motor vehicles produced by 2030. This industrial evolution has spurred innovation in adhesive technologies, particularly in developing solutions for battery assembly and lightweight material bonding. Manufacturers are investing in advanced adhesive formulations that can withstand high temperatures and provide excellent electrical insulation properties, while also meeting the stringent safety requirements of EV production. The Eastern Economic Corridor development has further accelerated this industrial transformation, attracting significant investments in advanced manufacturing facilities and creating new opportunities for industrial adhesives applications.

Thailand Adhesives Market Trends

Growing demand for plastic packaging in food, cosmetics, and other industries will propel the packaging industry

• Thailand registered a GDP of USD 7,450 per capita with a growth rate of 3.3% Y-O-Y in 2022. The packaging industry contributes a share of around 1.91 of the country's GDP. Trade exchange, employment, labor charges, government policy support, etc., affect the Thai packaging industry.
• The country observed an economic slowdown in 2020 because of the COVID-19 pandemic. Production volume declined by 4.74% in the same year compared to 2019. This happened due to supply chain disruptions, labor shortages, and a lockdown in the country for nearly three months. However, because of economic recovery in the country in line with international borders being opened in 2021, the regular supply of raw materials began for production, which increased by 7,900 ton in 2021.
• Thailand is one of the major manufacturing countries in the global plastic packaging market. The plastic packaging industry reaches USD 5 billion annually, the highest among other types of packaging. Around 28% of the country's plastic production is used in plastic packaging products. This packaging is majorly used in food, healthcare, cosmetics, and many other types of products in Thailand.
• The usage of bioplastics in the packaging industry of Thailand is increasing. The government has also prioritized the bioplastic industry's development through policies such as the Plastic Waste Management Roadmap (2018-2030). GC and Cargill are two multinational biopolymer companies that have announced plans to invest USD 20 billion in establishing new bioplastic plants in Thailand.

Nearly 50.1% share of the overall automotive production among the ASEAN countries is likely to drive the industry in Thailand

• The Thai automobile sector has grown tremendously over the last 50 years. The country is constantly advancing its next-generation automotive industry to follow the S-Curve promotion with better value-added production, and it also aims for the automotive industrial policy to be aligned with the environmental protection policy. Thailand is the largest auto producer in the ASEAN region. In 2020, production totaled 1,427,074 units, accounting for 50.1% of total ASEAN production. This was followed by Indonesia (690,150 units, or approximately 24.2%) and Malaysia (485,186 units, or approximately 17.0%).
• In 2019, the country recorded about 20.13,710 units of vehicles produced, which drastically reduced to 14,27,074 units in 2020, accounting for a decline of about 29% owing to the COVID-19 pandemic. As a result, the variation in automotive production between 2019 and 2021 amounted to about -16%, whereas between 2020 and 2021, the variation was recorded at about -1%.
• Thailand, ranked as the 11th largest automotive producer in the world and the first in ASEAN, is poised to become ASEAN's EV center, owing to its well-established value chain, which provides the industry with top-notch quality products at a competitive price. Thailand's EV stock has been steadily increasing in response to local demand. More importantly, several well-known Thai corporations have been actively investing in EV charging infrastructure around the country, indicating rising confidence in future demand increases. Efforts by governmental and private sector institutions to increase EV infrastructure, such as charging stations, suggest that Thailand's EV ecosystem is developing rapidly.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Packaging Segment in Thailand Adhesives Market

The packaging segment dominates the Thailand adhesives market, accounting for approximately 33% of the total market volume in 2024. This significant market share is driven by the widespread applications of packaging adhesives in various packaging solutions, including labels, tapes, carton sealing, and flexible packaging applications. The segment's growth is further propelled by Thailand's robust e-commerce sector, which continues to expand steadily, creating increased demand for packaging solutions. The packaging industry's production volume is expected to reach nearly 198 million tons, demonstrating the substantial requirement for adhesives in this sector. Water-borne adhesives are particularly popular in this segment due to their cost-effectiveness and environmental sustainability, while hot melt adhesives are gaining traction due to their faster application properties and elimination of drying requirements.

Woodworking and Joinery Segment in Thailand Adhesives Market

The woodworking and joinery segment is emerging as the fastest-growing segment in the Thailand adhesives market, driven by the rapid expansion of furniture production and increasing domestic demand. The segment's growth is supported by Thailand's strong position in furniture exports, with the country being ranked among the top global furniture exporters. The government's support through entrepreneurship programs and increasing investments in furniture manufacturing capabilities is expected to further boost the segment's growth. Water-borne adhesives are the most consumed technology in this segment due to their lower VOC emissions and cost advantages, with consumption reaching significant volumes for wood adhesives and furniture applications. The rising trend of eco-friendly adhesives and the growing home furnishing market in Thailand are expected to continue driving demand in this segment.

Remaining Segments in End User Industry

The Thailand adhesives market encompasses several other significant segments including automotive, building and construction, healthcare, and footwear and leather industries. The automotive segment maintains a strong presence due to Thailand's position as a major automotive manufacturing hub in Southeast Asia. The building and construction segment benefits from ongoing infrastructure development projects and residential construction activities, supported by the use of construction adhesives. The healthcare segment is growing steadily due to Thailand's position as a major healthcare hub in Asia, with increasing demand for medical adhesives, while the footwear and leather segment continues to evolve with the expansion of e-commerce platforms and changing consumer preferences. Each of these segments contributes uniquely to the market's dynamics, with varying requirements for adhesive technologies and applications.

Segment Analysis: Technology

Water-borne Segment in Thailand Adhesives Market

Water-borne adhesives dominate the Thailand adhesives market, holding approximately 39% market share in 2024. These adhesives are highly preferred by manufacturers due to their lower operational costs and higher production capacities, as they don't require specialized permits or handling charges unlike other adhesive types. The segment's dominance is particularly evident in the building and construction industry, where it consumed nearly 8.9 thousand tons in recent years. Water-borne adhesives offer significant advantages including low VOC content, making them safer to handle compared to solvent-borne alternatives. Additionally, manufacturers can easily adapt existing equipment used for solvent-borne adhesives to work with water-borne adhesives, whether through spraying or roll coating applications, making the transition to water-borne adhesives relatively straightforward.

Hot Melt Segment in Thailand Adhesives Market

The hot melt adhesives segment represents the second-fastest growing technology in the Thailand adhesives market, with manufacturers increasingly adopting these solutions across various industries. These industrial-strength adhesives, which are thermally melted and then cooled to achieve adhesive properties, are gaining traction in packaging, product assembly, woodworking, bookbinding, and product labeling applications. The versatility of hot melt adhesives is demonstrated by their ability to operate at temperatures ranging from 60 to 200 degrees Celsius, making them suitable for a wide range of applications. The segment's growth is further driven by the trend of customers migrating away from solvent-borne adhesives toward hot-melt adhesives due to their lower VOC content, positioning them as a more environmentally friendly alternative in the market.

Remaining Segments in Technology

The Thailand adhesives market also encompasses reactive, solvent-borne, and UV cured adhesives technologies. Reactive adhesives are particularly valued in applications requiring substantial permanency and high-strength adherence, such as high-tech devices and automotive manufacturing. Solvent-borne adhesives maintain a significant presence in the market, though their share is gradually declining due to environmental concerns and the shift toward more sustainable alternatives. UV cured adhesives, while representing the smallest segment, offer unique advantages such as instant curing and 100% reactive properties, making them particularly valuable in specialized applications where precision and speed are crucial. Each of these technologies serves specific market niches and continues to play important roles in various industrial applications.

Segment Analysis: Resin

Polyurethane Segment in Thailand Adhesives Market

Polyurethane adhesives dominate the Thai adhesives market, holding approximately 24% market share in 2024. The segment's prominence can be attributed to its superior flexibility and excellent adhesion properties to sheet molding composites, making it highly preferred in the automotive industry. These adhesives are particularly valued for their ability to form tough bonds with high peel strength and medium to high shear strength. The rising vehicle production in Thailand, which increased by 4.7% in recent months, has significantly boosted the demand for polyurethane adhesives. Additionally, the segment's growth is supported by increasing residential construction activities, with the government allocating substantial funding for low-cost housing projects and capital expenditures to balance housing demand and supply.

VAE/EVA Segment in Thailand Adhesives Market

The VAE/EVA adhesives segment is experiencing the fastest growth in the Thai adhesives market, driven by its versatile applications across various industries. These adhesives are particularly valued for their wide operating temperature range, from -40°F to 160°F, and their broad viscosity range between 900-3000 cPs. The segment's growth is primarily fueled by its extensive use in packaging applications, including paper bags, pouches, sacks, envelopes, corrugated boards, and cartons. Furthermore, EVA hot melts are increasingly being adopted in edge banding machines, profile laminating, cabinet assembly, and various construction applications, contributing to their rapid market expansion. The segment's superior value proposition and growing acceptance across diverse applications position it for continued strong growth in the coming years.

Remaining Segments in Resin Segmentation

The Thai adhesives market features several other significant resin segments, including acrylic, cyanoacrylate, epoxy, and silicone adhesives. Acrylic adhesives are widely used in building and construction, packaging, and automotive applications due to their high bond strength and faster curing times. Cyanoacrylate adhesives have gained prominence in healthcare and automotive applications owing to their instant bonding properties. Epoxy adhesives are preferred in structural applications due to their high bond strength properties, while silicone adhesives are valued for their flexibility and heat resistance properties, particularly in automotive and healthcare applications. Each of these segments serves specific market needs and contributes to the overall diversity and functionality of the adhesives market in Thailand.

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.