The India Adhesives & Sealants market is expected to record a CAGR of 11.17% during the forecast period of 2019-2024. The major factor driving the market studied is the increasing demand from the packaging industry and the growth of automotive production in the country.
- Challenges in the procurement of raw material are expected to hinder the market's growth.
- Increasing electronic operations in India is likely to act as an opportunity in the forecast period.
Key Market Trends
Increasing Demand from the Packaging Industry
- The demand for adhesives in the packaging industry is increasing with a higher number of end-user applications. The packaging applications that use adhesives and sealants include flexible packaging, specialty packaging, composite containers, and frozen food packaging.
- As of 2018, the per capita packaging consumption of India is significantly low at 8.7 kg, compared to countries, such as Taiwan and Germany, where it was 19 kg and 42 kg respectively, thereby making a huge space for the packaging industry to grow, in-turn boosting adhesives and sealants market growth rate in the packaging sector.
- India is the second largest producer of food in the world, and one of the major consumers of packaged foods and beverages. As per the Packaging Industry Association of India (PIAI), the Indian packaging industry is currently the 5th largest sector of India's economy and is having a growth rate of 22-25% per year.
- Owing to various packaging requirements, such as light weighing products, different sizes, shelf life, and ease of recycling, the demand for packaging, especially flexible packaging, has been increasing in India. Flexible packaging has been the most suitable option for addressing these concerns and is being widely adopted for several products across different industries.
Acrylics to Dominate the Water Born Adhesives Segment
- Water-borne acrylic adhesives are considered as an environmentally friendly and economically feasible substitute to solvent-based adhesives. The major advantage of water-borne adhesives is the absence of volatile organic compounds.
- The properties of the acrylics include durability, color retention, quick-drying, environmentally friendly, impact resistant, etc. Acrylics are majorly used on exterior and interior surfaces, such as on frames, doors, wall surfaces, trim, etc.
- Acrylics can be applied to areas, such as primed metals, direct to metal applications, wood, and masonry surfaces. Acrylics are also used directly to metal or as a top coat for many colors and gloss levels.
- The application of the acrylics includes bonding wood, paper, wall panel bonding, sealing (grouts), textiles bonding, paper stamps, leather tile envelopes, labels, etc. Acrylics are used by various end-user industries, such as buildings and construction, woodworking and joinery, paper, board, packaging, etc.
- Furthermore, acrylics are majorly used by paper, board, and packaging industries. Packaging industry dominates the demand for acrylic adhesives with numerous applications in products, such as tapes, labels, cases, and cartons.
- Factors, such as e-commerce, online food deliveries, and innovation and development in the packaging industry has been driving the growth of the packaging industry in the region.
The India adhesives and sealants market is consolidated, with the top four players with an approximate market share of 85.30%. The major companies include Pidilite Industries Ltd., Henkel AG & Co. KGaA, Sika AG, Arkema Group (Bostik India), and H.B. Fuller Company.
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