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

China Adhesives Market Trends

Rapid growth of the food and beverage industry and rising demand for lightweight and flexible packaging to boost the China packaging demand

• Packaging is one of the fast-growing industries in terms of design and technology for protecting and enhancing products’ safety and longevity. The food and beverage sector contributes a major share of the packaging industry in China. The food and beverage sector registered nearly USD 595 billion in 2019, more than 7.8% higher than the previous year. Owing to its high production capacity, China has positioned itself as a major exporter of food and drinks worldwide.
• Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including supply chain disruptions and imports and exports trade. As a result, the country's packaging production declined by 8% in 2020 compared to the previous year, significantly affecting the market. Packaging production is majorly driven by plastic packaging in the country, which nearly accounted for around 79% of the packaging produced in 2021. With the growing demand for lightweight and flexible packaging for a variety of applications, the plastic production segment is likely to register the fastest growth of around 6.58% CAGR during the projected period.
• The growth of the packaging industry in China is mainly attributed to the rising middle-class population, improvement of the supply-chain system, and emerging e-commerce activities over the years. Furthermore, the growing attention to food safety and quality in post-pandemic times across the nation is likely to drive the food processing industry, which will further contribute to the packaging demand in the coming years.

Owing to government policies, EVs demand in China is rising and is likely to propel the automotive production

• China's automotive market for passenger vehicles is the largest in the world, as it accounted for 21.41 million units in 2021 compared to other major global players such as Japan, the United States, and Germany. This number is expected to grow at the same pace because of the increasing production capacity of automotive companies post-pandemic in China, as BYD, which is a local electric vehicle manufacturer in China, holds 8.84% of total electric vehicle production in the world.
• China, being the epicenter of the COVID-19 pandemic, witnessed huge losses in the automotive industry in 2020 as it led to nationwide lockdowns, supply chain disruptions, lack of human resources availability, etc. This was the reason for the negative Y-o-Y growth rate in China in 2020.
• The Chinese government's policies for electric vehicle owners, such as time-limited purchase subsidies, traffic regulations waivers, and charging rebates for EV owners, have encouraged the sale and demand for EVs in China. The sales of electric vehicles are expected to reach 7,526 thousand in 2027. EV production in China increased from 1 million units in 2019 to 3.5 million units in 2021, and it is expected to record a 15.07% CAGR in the forecast period (2022-2028).
• Shanghai Automotive Industry Corporation is China's largest automotive company in terms of production. The growth in the number of both passenger and commercial vehicles manufactured by SAIC is significant, as it increased from nearly 2 million units in 2019 to 7 million units in 2021. This growth trend shows that the Chinese automotive market is expected to grow steadily during the forecast period.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Packaging Segment in China Adhesives Market

The packaging segment dominates the China adhesives market, accounting for approximately 25% of the total market value in 2024. This significant market share is primarily driven by China's position as a global packaging manufacturing hub and the rapid growth of e-commerce activities. The segment's growth is further supported by the increasing demand for sustainable and eco-friendly packaging solutions, particularly in the food and beverage sector. The packaging industry in China has witnessed substantial technological advancements in flexible packaging applications, which has directly contributed to the high consumption of hot melt adhesives in this sector. Additionally, the implementation of China's "14th Five Year Plan" has emphasized the development of green packaging solutions, creating new opportunities for adhesive manufacturers in this segment.

Automotive Segment in China Adhesives Market

The automotive segment is emerging as the fastest-growing segment in the China adhesives market, driven by the country's expanding electric vehicle (EV) production capabilities and technological advancements in automotive manufacturing. The segment is expected to maintain strong growth momentum through 2024-2029, supported by manufacturers increasingly replacing traditional mechanical fasteners with adhesive solutions to achieve vehicle weight reduction and improved fuel efficiency. China's position as the world's largest automotive market, coupled with government initiatives supporting electric vehicle production, continues to drive innovation in automotive adhesive applications. The trend toward lightweight vehicle construction and the growing emphasis on electric vehicle manufacturing has created substantial demand for specialized adhesive solutions in areas such as battery assembly, interior components, and structural bonding. The use of reactive adhesives in these applications is particularly noteworthy due to their high-strength bonding capabilities.

Remaining Segments in End User Industry

The other significant segments in the China adhesives market include building and construction, woodworking and joinery, healthcare, footwear and leather, and aerospace industries. The building and construction segment maintains strong demand due to ongoing urbanization and infrastructure development projects, with a notable increase in the use of construction adhesives. The woodworking and joinery segment benefits from China's position as a major furniture manufacturing hub, where wood adhesives play a critical role. The healthcare segment is experiencing steady growth due to increased medical device manufacturing, with medical adhesives being essential for various applications. The footwear and leather segment continues to be significant due to China's large footwear manufacturing industry. The aerospace segment, while smaller in market share, serves specialized high-value applications in the growing aviation sector, utilizing advanced aerospace adhesives.

Segment Analysis: Technology

Water-borne Segment in China Adhesives Market

Water-borne adhesives dominate the Chinese adhesives market, holding approximately 40% market share in 2024. These adhesives are primarily formulated as dispersions or emulsions, with dispersed polymer particles ranging from 50-300 nm in diameter. Their widespread adoption is driven by their eco-friendly nature, low VOC content, and cost-effectiveness compared to other technologies. The segment's strong position is further reinforced by China's "14th Five Year Plan" which emphasizes environmental sustainability in industrial processes. Water-borne adhesives find extensive applications in woodworking, footwear, and other industries requiring bonding of porous substrates like wood, paper, textiles, and leather. Their effectiveness in these applications, combined with worker safety benefits and regulatory compliance, has established water-borne adhesives as the preferred choice among Chinese manufacturers.

Hot Melt Segment in China Adhesives Market

The hot melt adhesives segment is experiencing robust growth in the Chinese market, driven by increasing demand across various end-user industries. These thermoplastic adhesives, available in different diameters such as 12mm, 15mm, or 43mm, offer significant advantages including rapid curing, versatile application methods, and wide operating temperature ranges from 60°C to 200°C. The segment's growth is particularly supported by the rising adoption in packaging and construction applications, where EVA resin-based hot melt adhesives are preferred due to their affordability and performance characteristics. The trend of manufacturers shifting from traditional water-borne or solvent-borne adhesives to hot melt alternatives is expected to continue, driven by their superior bonding properties and operational efficiency advantages.

Remaining Segments in Technology

The Chinese adhesives market also encompasses reactive, solvent-borne, and UV cured adhesives segments, each serving specific industrial applications. Reactive adhesives are particularly valued in automotive and high-tech applications where permanent, high-strength bonding is crucial. Solvent-borne adhesives, despite facing regulatory pressure due to VOC emissions, maintain their relevance in specialized applications where their unique properties are essential. UV cured adhesives, while representing a smaller market share, are gaining traction in precision applications due to their rapid curing properties and environmental benefits. These segments collectively provide manufacturers with a comprehensive range of solutions to meet diverse bonding requirements across industries.

Segment Analysis: Resin

Polyurethane Segment in China Adhesives Market

Polyurethane adhesives maintain their dominant position in China's adhesives market, commanding approximately 26% market share in 2024. These adhesives are extensively preferred by footwear and automotive industry manufacturers owing to their superior adhesion properties of nearly 8.5 N/mm2 to sheet molding composites. The segment's leadership is driven by polyurethane adhesives' versatility in bonding diverse substrates, excellent durability, and resistance to chemicals and environmental factors. Their ability to operate across a wide temperature range from -40°C to 100°C makes them ideal for both interior and exterior applications. The growing electric vehicle production in China, coupled with increasing demand from construction and packaging industries, continues to drive the segment's growth. Additionally, polyurethane adhesives' ability to form tough bonds with high peel strength and shear strength makes them particularly valuable in structural applications.

Acrylic Segment in China Adhesives Market

The acrylic adhesives segment is projected to experience robust growth at approximately 7% CAGR during 2024-2029, emerging as the fastest-growing segment in China's adhesives market. This growth is primarily attributed to their increasing adoption in packaging applications due to their durable bond and faster curing times, with full curing achieved in 24 hours at 23°C. The segment's expansion is further supported by China's emphasis on flexible and sustainable packaging under its "14th Five Year Plan" policy. Acrylic adhesives' superior performance characteristics, including improved temperature resistance, solvent resistance, and UV stability compared to rubber adhesives, make them increasingly popular across various applications. Their ability to reduce assembly times by up to 60% and decrease the cost of assemblies by up to 50% has made them particularly attractive for automotive graphics, re-peeling protective films, exhibition graphics, and architectural applications.

Remaining Segments in Resin Segmentation

The other significant segments in China's adhesives market include VAE/EVA, epoxy, cyanoacrylate, silicone, and other specialty resins, each serving unique application needs. VAE/EVA adhesives are particularly valued in the sports footwear industry for their flexibility and shock absorption properties. Epoxy adhesives dominate construction applications due to their high tensile strength and structural properties. Cyanoacrylate adhesives are preferred for their fast curing times and strong bonding capabilities with various substrates. Silicone adhesives excel in high-temperature applications and provide excellent flexibility and weather resistance. The remaining specialty resins, including rubber-based adhesives and anaerobic adhesives, cater to specific industrial applications requiring unique performance characteristics such as chemical resistance or specialized curing mechanisms. The use of pressure sensitive adhesives in textile applications is also gaining traction, providing manufacturers with versatile bonding solutions.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on various end-user production trends including automobile production, newly built construction floor area, packaging production, aircraft deliveries, footwear production, and regional data on adhesives and sealants demand, etc.