Australia Adhesives Market Size

The Australia Adhesives Market is projected to experience growth over the forecast period, driven by various end-user industries such as construction and packaging. Despite challenges posed by economic downturns and the COVID-19 pandemic, which initially slowed demand, the market is expected to expand. The packaging sector, in particular, has shown resilience and potential for future growth, while the construction industry is anticipated to recover and drive further demand for adhesives. These dynamics contribute to the overall increase in the market size of adhesives in Australia.

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Market Size of australia adhesives Industry

Australia Adhesives Market Summary
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svg icon Study Period 2017 - 2028
svg icon Market Size (2024) USD 600.35 Million
svg icon Market Size (2028) USD 737.35 Million
svg icon Largest Share by End User Industry Packaging
svg icon CAGR (2024 - 2028) 5.27 %
svg icon Fastest Growing by End User Industry Footwear and Leather

Major Players

Australia Adhesives Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Australia Adhesives Market Analysis

The Australia Adhesives Market size is estimated at 600.35 million USD in 2024, and is expected to reach 737.35 million USD by 2028, growing at a CAGR of 5.27% during the forecast period (2024-2028).

600.35 Million

Market Size in 2024 (USD)

737.35 Million

Market Size in 2028 (USD)

5.83 %

CAGR (2017-2023)

5.27 %

CAGR (2024-2028)

Largest Market by End-user Industry

31.93 %

value share, Packaging, 2023

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The packaging end-user industry holds the largest share of the Australian adhesives market owing to its widespread applications including labels, tapes, carton sealing, and joining.

Fastest Growing Market by End-user Industry

16.36 %

Projected CAGR, Footwear and Leather, 2024-2028

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The aerospace industry is likely to register the fastest growth in the market owing to the rapid expansion of general and civil aviation in the domestic market.

Largest Market by Technology

35.05 %

value share, Water-borne, 2023

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Water-borne technology, an environmentally friendly and economically viable solution, holds a major share of the market due to its well-recognized usage in food packaging applications through emulsion and dispersion systems.

Largest Market by Resin

22.87 %

value share, Polyurethane, 2023

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The polyurethane adhesives segment holds the largest market share owing to their wide applications in building construction, woodworking, and automotive industries, specifically for exterior applications.

Leading Market Player

19.79 %

market share, Arkema Group, 2021

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Arkema is the leading adhesives manufacturer in Australia due to the popularity of its products in industries including building and construction, automotive, packaging, and medical.

The rising operational capacity of packaging firms to consequently influence the growth of adhesives market in a way

  • In Australia, the economic crisis of 2017-2018 reduced output from key end-user industries, such as construction, packaging, and the other end-user industries market segment. As a result, demand for adhesives in the country grew slowly from 2017 to 2019. Adhesive demand fell further in 2020 due to numerous limitations implemented to combat the COVID-19 pandemic. Among all adhesive technologies, the market for UV-cured adhesives suffered the most and fell by 12.50% in volume compared to 2019.
  • The packaging business in Australia is regarded as one of the most prominent sectors in the country. Despite decreasing demand, the packaging sector did quite well over the last five years, and according to some business experts, the Australian packaging industry has the ability to meet the rising needs of the future. According to a study by Macquarie University, Australians buy 118,000 tons of bottles each year on average. Many packaging firms have boosted their operational capacity to accommodate the enormous surge in demand for plastic-related products. The Australian packaging market was valued at 28.64 million tons in 2016 and is predicted to expand to 31.36 million tons by 2021, representing an almost 10% growth.
  • Construction adhesives in Australia are expected to record a CAGR of approximately 4% by volume and 6% by value from 2022 to 2028. The outlook for Australian building and construction is much stronger than expected, yet the recovery remains uneven as the pandemic continues to impact certain industrial sectors and localities. Some building and construction sectors witnessed tremendous growth in 2021, while others experienced recession and depression. All these factors are expected to boost the demand for adhesives in the country over the forecast period.
Australia Adhesives Market

Australia Adhesives Industry Segmentation

Aerospace, Automotive, Building and Construction, Footwear and Leather, Healthcare, Packaging, Woodworking and Joinery are covered as segments by End User Industry. Hot Melt, Reactive, Solvent-borne, UV Cured Adhesives, Water-borne are covered as segments by Technology. Acrylic, Cyanoacrylate, Epoxy, Polyurethane, Silicone, VAE/EVA are covered as segments by Resin.

  • In Australia, the economic crisis of 2017-2018 reduced output from key end-user industries, such as construction, packaging, and the other end-user industries market segment. As a result, demand for adhesives in the country grew slowly from 2017 to 2019. Adhesive demand fell further in 2020 due to numerous limitations implemented to combat the COVID-19 pandemic. Among all adhesive technologies, the market for UV-cured adhesives suffered the most and fell by 12.50% in volume compared to 2019.
  • The packaging business in Australia is regarded as one of the most prominent sectors in the country. Despite decreasing demand, the packaging sector did quite well over the last five years, and according to some business experts, the Australian packaging industry has the ability to meet the rising needs of the future. According to a study by Macquarie University, Australians buy 118,000 tons of bottles each year on average. Many packaging firms have boosted their operational capacity to accommodate the enormous surge in demand for plastic-related products. The Australian packaging market was valued at 28.64 million tons in 2016 and is predicted to expand to 31.36 million tons by 2021, representing an almost 10% growth.
  • Construction adhesives in Australia are expected to record a CAGR of approximately 4% by volume and 6% by value from 2022 to 2028. The outlook for Australian building and construction is much stronger than expected, yet the recovery remains uneven as the pandemic continues to impact certain industrial sectors and localities. Some building and construction sectors witnessed tremendous growth in 2021, while others experienced recession and depression. All these factors are expected to boost the demand for adhesives in the country over the forecast period.
End User Industry
Aerospace
Automotive
Building and Construction
Footwear and Leather
Healthcare
Packaging
Woodworking and Joinery
Other End-user Industries
Technology
Hot Melt
Reactive
Solvent-borne
UV Cured Adhesives
Water-borne
Resin
Acrylic
Cyanoacrylate
Epoxy
Polyurethane
Silicone
VAE/EVA
Other Resins
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Australia Adhesives Market Size Summary

The Australian adhesives market is poised for growth, driven by the recovery and expansion of key industries such as construction and packaging. Despite challenges posed by economic downturns and the COVID-19 pandemic, which initially dampened demand, the market is expected to experience a steady increase over the forecast period. The construction sector, in particular, is anticipated to see significant growth, supported by government initiatives like the "HomeBuilder" scheme and substantial infrastructure investments. This resurgence in construction activities is likely to boost the demand for adhesives and sealants, as both residential and non-residential projects ramp up. Additionally, the packaging industry, bolstered by the food and beverages sector, continues to evolve with innovations in design and technology, further driving the need for packaging adhesives.

The market landscape is moderately consolidated, with major players such as 3M, Arkema Group, AVERY DENNISON CORPORATION, DuluxGroup Ltd., and Henkel AG & Co. KGaA dominating the scene. These companies are actively introducing new products to cater to evolving market demands, such as bio-based and solvent-free adhesive solutions. The packaging sector's reliance on plastic, which constitutes a significant portion of the packaging produced in Australia, is expected to maintain its growth trajectory, supported by advancements in plastic recyclability. As e-commerce and public health concerns continue to shape consumer behavior, the demand for packaging solutions is likely to remain robust, further contributing to the market's expansion.

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Australia Adhesives Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2028 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Aerospace

      2. 1.1.2 Automotive

      3. 1.1.3 Building and Construction

      4. 1.1.4 Footwear and Leather

      5. 1.1.5 Healthcare

      6. 1.1.6 Packaging

      7. 1.1.7 Woodworking and Joinery

      8. 1.1.8 Other End-user Industries

    2. 1.2 Technology

      1. 1.2.1 Hot Melt

      2. 1.2.2 Reactive

      3. 1.2.3 Solvent-borne

      4. 1.2.4 UV Cured Adhesives

      5. 1.2.5 Water-borne

    3. 1.3 Resin

      1. 1.3.1 Acrylic

      2. 1.3.2 Cyanoacrylate

      3. 1.3.3 Epoxy

      4. 1.3.4 Polyurethane

      5. 1.3.5 Silicone

      6. 1.3.6 VAE/EVA

      7. 1.3.7 Other Resins

Australia Adhesives Market Size FAQs

The Australia Adhesives Market size is expected to reach USD 600.35 million in 2024 and grow at a CAGR of 5.27% to reach USD 737.35 million by 2028.

In 2024, the Australia Adhesives Market size is expected to reach USD 600.35 million.

Australia Adhesives Market Report Snapshots

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