Indonesia Adhesives Market Size

Indonesia Adhesives Market Analysis

The Indonesia Adhesives Market size is estimated at 0.82 billion USD in 2024, and is expected to reach 1.04 billion USD by 2028, growing at a CAGR of 5.95% during the forecast period (2024-2028).

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0.82 Billion

Market Size in 2024 (USD)

1.04 Billion

Market Size in 2028 (USD)

5.91 %

CAGR (2017-2023)

5.95 %

CAGR (2024-2028)

Largest Market by End-user Industry

39.32 %

value share, Packaging, 2023

The packaging industry holds the largest share of the market owing to its widespread applications, including labels, tapes, carton sealing and joining, and labeling.

Fastest Growing Market by End-user Industry

8.18 %

Projected CAGR, Aerospace, 2024-2028

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

Largest Market by Technology

32.26 %

value share, Hot Melt, 2023

In Indonesia, hot melt adhesives gain the major market share owing to their easy applicability, non-toxic, and fast curing process across industries.

Largest Market by Resin

25.60 %

value share, Polyurethane, 2023

Polyurethane adhesives hold the largest share owing to their wide applications in building construction, woodworking, and automotive industries, specifically for exterior applications.

Leading Market Player

11.47 %

market share, Henkel AG & Co. KGaA, 2021

Henkel is the leading adhesives manufacturer in Indonesia. This can be attributed to the popularity of its products in widespread industries, including building and construction, automotive, aerospace, woodworking, and others.

The numerous ongoing and planned infrastructure projects in the country to have a key role in the growth of adhesive demand

Indonesia Adhesives Industry Segmentation Indonesia 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.

• The consumption of adhesives in Indonesia has shown a downward trend in 2020 due to the impact of COVID-19. The consumption was reduced by about 13% in terms of volume in the same year compared to 2019. The lockdown in the country has largely become the major reason for the shortage of adhesives in the country. Moreover, due to the shutdown of production facilities and supply chain disruption, the demand for these adhesives is largely being impacted.
• The Indonesian packaging industry plays an important role in all industries and businesses. Therefore, the development of the packaging industry cannot be separated from the development of the national industry. In fact, packaging has become one of the determining factors for the competitiveness of national industrial products. In recent years, the packaging sector has grown by 6%-7% year-on-year, with a realized value of IDR 104,728 billion in 2021. In reality, as the COVID-19 epidemic began to spread, the packing business did not suffer considerably. The packaging industry is expected to increase at a 6%-8% annual rate, in conjunction with the growth of the major supporting sectors, such as food and beverage (Mamin), pharmaceutical, and retail.
• On the other side, the industry is now investing in massive infrastructure projects to accelerate the country's growth. For example, Indonesia is planning to invest over USD 40 billion to expand Jakarta's metro network, which is expected to strengthen the country's construction industry. Indonesia is also planning ambitious construction projects worth more than USD 400 billion in the future years, including the construction of 25 airports and new power plants. All of these variables influence the demand for adhesives.