Market Trends of Asia-Pacific Adhesives Industry
This section covers the major market trends shaping the Asia-Pacific Adhesives Market according to our research experts:
Building and Construction Industry to Dominate the Market
- Construction adhesives are widely used in the building and construction sectors for purposes such as the bonding layer for floor fixing between the existing floor and the substrate.
- The largest share of the Asia-Pacific sealants market was covered by silicone sealants because of their unique properties, such as resistance to extreme weather conditions like sunlight, rain, strong winds, and snowfall, among others.
- The countries are aiming at rebuilding infrastructure in the region that will be more energy efficient and digitally advanced, leading to the construction of new buildings or the reconstruction of older ones. This will lead to a significant increase in demand for building and construction sealants.
- According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects in 2019 at an estimated investment of about USD 142 billion, which are estimated to be completed by 2023. The growing demand for housing is likely to drive residential construction in the country, both in the public and private sectors.
- Moreover, the Indian government has been actively boosting housing construction as it aims to provide a home to about 1.3 billion people. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years and is likely to witness the construction of 60 million new homes in the country.
- The increasing construction activity in the Asia-Pacific region tends to increase the demand for adhesives in the forecast period.
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Rise in Demand from Packaging Industry
- The packaging industry is a microcosm of how the COVID-19 pandemic amplified tendencies that existed before the virus disrupted the global economy. Before the pandemic, the number of online purchases kept going up. In 2020, when shopping and eating in person went down, the number of online purchases went through the roof.
- The Indian packaging industry has seen decent growth over the years. Rapidly adopting a modern lifestyle, increasing per capita income, and fast advancements in technology have influenced the packaging sector across the country. Plastic packaging is growing at a significant rate of 20-25% annually and has reached 6.8 million tons, whereas paper packaging reached a volume of 7.6 million tons in 2021.
- In Malaysia, adhesives are largely consumed across the packaging industry. The packaging industry in Malaysia is expected to register a CAGR of about 5.7% in terms of volume during the forecast period. The main factors contributing to the growth of the packaging industry are the growing demand for packaged goods from the pharmaceutical, food processing, and manufacturing industries, as well as the growth of the FMCG segment, the healthcare sector, and ancillary industries.
- The Indonesian packaging sector gave a 28 percent return over the period 2017-2021 and is expected to grow at a steady rate during the forecast period. There are various investments made in the packaging sector by various companies, like Fajarpaper and SCGP.
- The rising demand for packaging in Asia-Pacific countries is likely to have created demand for adhesives in the region.
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