Report Overview

India Adhesives and Sealants Market – Industry Trends & Forecast Report, 2030

The India Adhesives and Sealants Market size was estimated at USD 2.155 billion in 2023. During the forecast period between 2024 and 2030, the India Adhesives and Sealants Market size is projected to grow at a CAGR of 5.12% reaching a value of USD 3.057 billion by 2030. A prominent driver of the India Adhesives and Sealants Market is the growing packaging and building and construction industries. Notably, the demand for adhesives in India's packaging sector is on the rise, driven by increased end user applications. The packaging market’s growth is particularly evident in flexible packaging due to lightweight items, various sizes, extended shelf life, and recyclability. Adhesives play a crucial role in applications like flexible packaging, specialty packaging, composite containers, and frozen food packaging. The expansion of India Adhesives and Sealants Market is further fueled by the thriving e-commerce and online food delivery industries. The growth of India Adhesive and Sealants Market is also attributed to the entry of foreign competitors, technological advancements, and supportive government and private initiatives. For instance, in December 2022, The Indian Cellular and Electronics Association of India (ICEA of India) urged the government to extend the production-linked incentive (PLI) scheme to include electronics components, adhesives, and subassemblies, with an initial budgeted commitment of INR 5,000 crore, anticipating export opportunities worth USD 100 billion during the period in analysis.

Adhesives and Sealants – Overview

Adhesives, substances designed for permanent bonding of surfaces, and sealants, which form a protective layer by connecting surfaces, are versatile solutions known for their strong bonding properties. Widely applied in industrial sectors, such as flexible packaging, textiles, and structural applications, these products share similar production techniques and materials. Sealants, being semi-solid, effectively prevent fluid leaks by filling gaps between substrates. Both adhesives and sealants find application across materials such as metals, wood, glass, and plastics, with diverse formulations including organic, inorganic, acrylic, polyurethane, and silicone. Electronics, aerospace, automotive, food & beverages, and transportation industries extensively use these materials. While adhesives provide robust bonding, sealants, though less powerful, play a crucial role in holding substrates and sealing gaps.

India Adhesives and Sealants Market

Growth Drivers

Growing Building & Construction Industry Spurring Demand for Adhesive and Sealants

The building and construction sector has demonstrated resilience despite disruptions during Covid-19 pandemic period, supported by the government's infrastructure investments. In 2020, the consumption of adhesives in India witnessed a temporary decline, experiencing a 9.94% reduction in production due to the impact of the COVID-19 pandemic. Major contributors to this downturn were the nationwide lockdown and shortages of raw materials. The Indian government’s allocations and initiatives, such as Housing for All and Pradhan Mantri Awas Yojana (PMAY), are expected to be pivotal drivers for the construction sector.

Rising Demand from End User Industries

In the dynamic landscape of India's industrial growth, adhesives are witnessing increased demand from various sectors. The packaging industry, in particular, is experiencing a surge, registering a 200% consumption increase over the last decade. With a diverse range of applications in agriculture, FMCG, and automotive manufacturing, adhesives are becoming integral. Additionally, government initiatives, such as e-AMRIT for the automotive sector, align with the rising demand, creating a promising outlook for adhesives across diverse end user industries. Moreover, amid the United States facing a trade crisis with China, the major North American country’s increasing reliance on furniture imports from India is significantly boosting the woodworking and joinery industry. This positive trend aligns with the overall optimistic outlook for the adhesives industry, reflecting its robust growth potential in tandem with the thriving construction and related industries.

Challenges

Volatile Raw Material Prices

The India Adhesives and Sealants Market face growth constraints due to volatile raw material prices. Fluctuations in raw material costs impact production expenses, hindering market expansion. The unpredictable nature of material prices poses challenges for manufacturers in maintaining competitive pricing and overall market stability. Volatile raw material prices require strategic adaptation and risk management within the industry to mitigate the adverse effects on the growth trajectory of the India Adhesives and Sealants Market.

Stringent Environmental Regulations

The increasing focus on environmental sustainability is becoming a significant factor in the fluctuation of prices. Stringent environmental regulations have increased the demand for eco-friendly raw materials, albeit at a higher cost. While these environmentally conscious alternatives align with the industry's commitment to sustainability, their elevated costs affect profit margins of adhesive manufacturers.

Impact of Escalating Geopolitical Tensions on India Adhesives and Sealants Market

The India Adhesives and Sealants Market is impacted by geopolitical tensions in several ways. Adhesives and sealants play a crucial role in construction and renovation projects, providing bonding and sealing solutions for materials like stone, ceramic, and porcelain tiles. The war between Russia and Ukraine has disrupted the supply chain of raw materials and chemicals essential for producing stone and tile adhesives and sealants. Ukraine, a major producer and exporter of vital minerals like limestone, silica sand, and kaolin, crucial components in these products, has been significantly impacted. Geopolitical tensions have induced price volatility in key inputs for the stone and tile adhesives and sealants industry. Fluctuations in raw material prices, transportation costs, and currency exchange rates directly influence production costs and pricing. The ongoing conflict's uncertainty has created market instability, posing challenges for manufacturers in predicting and stabilizing prices. Such instability may impact industry profitability and potentially result in higher prices for end users.

India Adhesives and Sealants Market

Segmental Coverage

India Adhesives and Sealants Market – By Technology

Based on technology, the India Adhesives and Sealants Market is segmented into Water-based, Solvent-based, Hot Melt, and Reactive & Others. The hot melt segment holds the highest share in the India Adhesives and Sealants Market by technology, due to the hot melt technology’s ease of application, non-toxic nature, and rapid curing process, making it widely used across various industries. Also, hot melt adhesives typically consist of 100% solid formulations, relying on thermoplastic polymers. Hot melt adhesives maintain a solid state at room temperature but transform into a liquid state when heated above their softening point, allowing for processing.

India Adhesives and Sealants Market – By Resin Type

On the basis of resin type, the India Adhesives and Sealants Market is split into Adhesives and Sealants segments. The adhesives segment holds a higher share in the India Adhesives and Sealants Market by resin type. The adhesives segment includes acrylic, cyanoacrylate, epoxy, polyurethane, and silicone. Among them, the polyurethane adhesives subsegment dominates the India Adhesives and Sealants Market. It is primarily driven by their extensive utilization in building construction, woodworking, and the automotive sector, particularly in outdoor applications.

India Adhesives and Sealants Market – By Application

By application, the India Adhesives and Sealants Market is divided into Paper & Packaging, Building & Construction, Woodworking, Transportation, Footwear & Leather, and Medical segments.

India Adhesives and Sealants Market – By Region

Regionally, the India Adhesives and Sealants Market is segmented as North India, South India, East India, and West India.

Competitive Landscape

Major players operating in India Adhesives and Sealants Market include 3M, Arkema, astral adhesives, Henkel Adhesives Technologies India Private Limited, Jubilant Industries Ltd, Pidilite Industries Ltd, Sika India, Dow, and MAPEI. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In June 2023 – Henkel announced that its adhesive technologies plant in Chennai, Tamil Nadu, the company’s crucial site in the India, Middle East, and Africa region, had achieved carbon neutrality, aligning with the company's global climate-positive goals by 2030. The Chennai facility transitioned to a zero-carbon footprint by utilizing renewable energy sources and adopting energy-efficient solutions in adhesive technologies. The achievement covers scope 1 and 2 of the Greenhouse Gas (GhG) protocol.

Scope of the Report

By Technology

• Water-based

• Solvent-based

• Hot Melt

• Reactive & Others

By Resin Type

• Adhesives

• Sealants

By Application

• Paper & Packaging

• Building & Construction

• Woodworking

• Transportation

• Footwear & Leather

• Medical

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Technology Overview
   3. Market Segmentation
2. Executive Summary
3.  India Adhesives and Sealants Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing construction industry
         2. Rising demand from end-user industries
      2. Restraints
         1. Volatile raw material prices
         2. Stringent environmental regulations
      3. Opportunities
         1. Emergence of sustainable solutions
         2. Market expansion in emerging sectors such as packaging and the building and construction industry in India
      4. Challenges
         1. Regulatory changes
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  India Adhesives and Sealants Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By Technology
         1. Water-based
         2. Solvent-based
         3. Hot Melt
         4. Reactive & Others
      2. By Resin Type
         1. Adhesives
            1. Acrylic
            2. Cyanoacrylate
            3. Epoxy
            4. Polyurethane
            5. Silicone
            6. Others
         2. Sealants
            1. Acrylic
            2. Epoxy
            3. Polyurethane
            4. Silicone
            5. Others
      3. By Application
         1. Paper & Packaging
         2. Building & Construction
         3. Woodworking
         4. Transportation
         5. Footwear & Leather
         6. Medical
         7. Others
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Adhesives and Sealants Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Escalating Geopolitical Tensions on India Adhesives and Sealants Market
7. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. 3M
   2. Arkema
   3. ASTRAL ADHESIVES
   4. Henkel Adhesives Technologies India Private Limited
   5. Jubilant Industries Ltd
   6. Pidilite Industries Ltd
   7. Sika India
   8. Dow
   9. MAPEI
   10. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.  Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Adhesives and Sealants Segmentation

Figure 2       India Adhesives and Sealants Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Adhesives and Sealants Market Size, By Value (USD Billion), 2019–2030

Figure 5       India Adhesives and Sealants Market Share, By Technology, By Value, 2019–2030

Figure 6       India Adhesives and Sealants Market Share, By Resin Type, By Value, 2019–2030

Figure 7       India Adhesives and Sealants Market Share, By Application, By Value, 2019–2030

Figure 8       India Adhesives and Sealants Market Share, By Region, By Value, 2019–2030

List of Tables

Table 1        India Adhesives and Sealants Market Size, By Value (USD Billion), 2019–2030

Table 2        India Adhesives and Sealants Market Share, By Technology, By Value, 2019–2030

Table 3        India Adhesives and Sealants Market Share, By Resin Type, By Value, 2019–2030

Table 4        India Adhesives and Sealants Market Share, By Application, By Value, 2019–2030

Table 5        India Adhesives and Sealants Market Share, By Region, By Value, 2019–2030

Table 6        3M Company Overview

Table 7        3M Financial Overview

Table 8        Arkema Company Overview

Table 9        Arkema Financial Overview

Table 10      Astral Adhesives Company Overview

Table 11      Astral Adhesives Financial Overview

Table 12      Henkel Adhesives Technologies India Private Limited Company Overview

Table 13      Henkel Adhesives Technologies India Private Limited Financial Overview

Table 14      Jubilant Industries Ltd Company Overview

Table 15      Jubilant Industries Ltd Financial Overview

Table 16      Pidilite Industries Ltd Company Overview

Table 17      Pidilite Industries Ltd Financial Overview

Table 18      Sika India Company Overview

Table 19      Sika India Financial Overview

Table 20      Dow Company Overview

Table 21      Dow Financial Overview

Table 22      MAPEI Company Overview

Table 23      MAPEI Financial Overview