Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 3.39 Billion |
| Market Size (2028) | USD 4.25 Billion |
| Growth Rate (2024 - 2028) | 5.75% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Germany Adhesives Market Analysis by Mordor Intelligence
The Germany Adhesives Market size is estimated at 3.39 billion USD in 2024, and is expected to reach 4.25 billion USD by 2028, growing at a CAGR of 5.75% during the forecast period (2024-2028).
Germany's industrial landscape is undergoing significant transformation, with construction and infrastructure development playing a pivotal role in shaping the adhesives market. The construction sector currently accounts for 11% of total industrial production output, highlighting its substantial contribution to the economy. The German government has initiated several large-scale infrastructure projects, including the Digital Park Fechenheim development spanning 10.7 hectares with a gross floor area of 100,000 square meters. The new German Social Democrat government has created a dedicated ministry to address housing challenges, pledging the construction of over 400,000 new housing units annually from 2022, with 100,000 designated for public subsidization.
The automotive industry in Germany is experiencing a revolutionary shift towards electric mobility and sustainable manufacturing practices. The government has set an ambitious target of achieving 15 million electric vehicles on the road by 2030, driving significant changes in vehicle design and manufacturing processes. German manufacturers are projected to capture 29% of global electric vehicle production by 2024, representing a substantial increase from their previous market position. This transformation has led to increased demand for specialized automotive adhesives that can accommodate the unique requirements of electric vehicle assembly, including battery installation and lightweight material bonding.
The packaging sector has emerged as a crucial driver of adhesive consumption, with significant developments in sustainable and e-commerce-oriented solutions. The industry has witnessed a remarkable shift in material preferences, with plastic packaging accounting for approximately 79% of total packaging production in 2021. The German retail landscape has experienced substantial growth in e-commerce, with online sales reaching EUR 99.1 billion in 2021, necessitating innovative packaging adhesives solutions that meet both durability and sustainability requirements. The government's commitment to achieving 90% recyclability or reusability in home plastic packaging by 2025 has accelerated the development of eco-friendly adhesive solutions.
The manufacturing sector, particularly in medical devices and furniture production, continues to drive technological advancement in adhesive applications. The German medical devices market has demonstrated robust growth, reaching USD 41.9 billion in 2022, establishing itself as the third-largest medical technology market globally after the United States and Japan. The furniture manufacturing industry has shown remarkable resilience and innovation, recording a 12.15% growth rate in 2021, driven by increasing demand for customized furniture solutions and sustainable manufacturing practices. This growth has been further supported by the rising popularity of online furniture retail, with e-commerce platforms investing heavily in innovative visualization technologies and customer experience enhancements. The demand for wood adhesives in furniture production has also seen a notable increase, aligning with the sector's growth.
Germany Adhesives Market Trends and Insights
With the advancement in plastic recyclability and demand for food and beverage industry, plastic packaging to lead the packaging industry
- With the rise in busier lifestyles, greater spending power, and related factors in the country, the demand for quick and on-the-go packaged products is increasing.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 5% in 2020 compared to the previous year, significantly affecting the market.
- Germany is one of the biggest e-commerce markets in Europe and has the second largest population in Europe, which will drive the packaging production market. Compared to Europe’s average, Germany has a high number of online shoppers, the percentage of people using the internet, and the average annual spending. Total sales of goods sold online reached around EUR 99.1 billion in 2021, an increase compared to EUR 83.3 billion in 2020.
- Packaging production is majorly driven by plastics in the country, which nearly accounts for around 79% of the packaging produced in 2021. The plastic packaging industry is majorly driven by the rapid growth of the food and beverages industry in the country. In addition, with the advancement of plastic recyclability, the plastic production segment is likely to register the fastest growth rate of around 3.32% CAGR during the projected period. Therefore, all the above-mentioned factors will further thrive the packaging demand in the coming years in the country.
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Despite the government regulations on carmakers, electrical vehicles demand is likely to propel the automotive industry
- The automotive manufacturing industry is the most important industry in Germany, and 24% of the domestic industry revenue is generated from this industry. Automotive production in Germany declined by 9.4% in the third quarter of 2018, as the country experienced an economic slowdown in the second half of 2018, coupled with the problems in the implementation of the new Worldwide Harmonized Light-Duty Vehicles Test Procedure (WLTP).
- Over 75% of the automotive units manufactured in Germany are destined for international markets, which are mainly the United States, China, and other EU countries. The trade conflicts between the United States and China sapped away the global demand in 2019. This, coupled with the new EU-28 standard of CO2 emissions, which mandates carmakers to achieve average CO2 emissions of 95 grams per kilometer across newly-sold vehicles, has briefly restricted automotive production in the country.
- In 2020, the COVID-19 pandemic hit hard on the already declining automotive production. In 2020, automotive production fell by 24.5% Y-o-Y, and the supply chain constraints that quickly followed, coupled with the semiconductor chip shortage in 2021, have further declined automotive production by 10.8% compared to 2020 levels. The long-lasting effects of chip shortages and supply chain restrictions are expected to restrict automotive production in Germany in the forecast period. The German government's e-mobility plan aims to achieve 15 million EVs on the road by 2030. This is expected to drive up automotive production in the country. Due to all these factors, Germany's automotive production is expected to increase during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- New innovations in aircraft models by companies such as Boeing and Airbus, as well as the ramping up of commercial aircraft manufacturing to boost the aerospace industry
- In addition to the United States-China trade wars, being one of the largest footwear exporters, German footwear demand is likely to increase
- The government initiatives towards infrastructure including digital parks and hospitals to boost the construction industry
- Owing to the clear visualization and promotion of furniture through e-commerce websites, furniture demand is increasing
Segment Analysis: End User Industry
Packaging Segment in German Adhesives Market
The packaging segment dominates the German adhesives market, holding approximately 38% market share in 2024. This significant market position is driven by the rapid growth of the food and beverages industry, coupled with the expanding e-commerce sector in Germany. The country's packaging production reached over 203 million tons in recent years, with plastic packaging accounting for nearly 79% of the total production. The increasing focus on sustainable packaging solutions and recyclability has further boosted the demand for adhesives in this sector. Additionally, the German packaging industry's shift towards eco-friendly packaging standards, driven by the new Packaging Act, has created new opportunities for innovative adhesive solutions. The segment's growth is also supported by the rising demand for flexible packaging and the increasing adoption of advanced packaging technologies across various industries.
Packaging Segment in German Adhesives Market
The packaging segment is also projected to be the fastest-growing segment in the German adhesives market, with an expected growth rate of approximately 6% during 2024-2029. This growth is primarily driven by the increasing adoption of hot melt adhesives in packaging applications, particularly in the food and beverage sector. The segment's expansion is further supported by the rising demand for sustainable packaging solutions and the growing e-commerce industry, which has led to increased requirements for packaging materials. The German packaging industry's focus on innovation and technological advancements, particularly in areas such as smart packaging and recyclable solutions, is expected to create new opportunities for adhesive manufacturers. Additionally, the trend towards lightweight and efficient packaging solutions is driving the demand for specialized adhesive products in this segment.
Remaining Segments in End User Industry
The German adhesives market encompasses several other significant segments including building and construction, healthcare, woodworking and joinery, automotive, aerospace, and footwear industries. The building and construction segment benefits from ongoing infrastructure development and renovation projects across Germany. The healthcare segment is driven by the growing medical device manufacturing sector and increasing demand for specialized adhesive solutions in medical applications. The woodworking and joinery segment continues to grow due to the strong furniture manufacturing industry in Germany. The automotive sector, despite facing challenges, remains a crucial end-user due to the country's position as a leading automotive manufacturer. The aerospace segment, though smaller, provides high-value opportunities in specialized applications, while the footwear industry represents a niche but stable market for industrial adhesives products.
Segment Analysis: Technology
Water-borne Segment in German Adhesives Market
Water-borne adhesives dominate the German adhesives market, holding approximately 42% market share in 2024. These adhesives are designed as dispersions or emulsions with distributed polymer particles having a spherical form and a diameter of 50-300 nm. Their widespread adoption is driven by their environmentally friendly nature and versatility across multiple industries, including woodworking, footwear, and packaging. The segment's leadership position is particularly strong in acrylic-based applications, followed by polyurethane and EVA resins, due to their moderate strength, economic viability, and extensive use across building and construction, automotive, aerospace interior, and packaging industries. The growing consistency in production and increasing focus on sustainable solutions have further cemented water-borne adhesives' position as the preferred technology choice in the German market.
Hot Melt Segment in German Adhesives Market
The hot melt adhesives segment is experiencing robust growth in the German market, projected to grow at approximately 7% during 2024-2029. This growth is primarily driven by their increasing adoption across packaging, product assembly, woodworking, bookbinding, and product labeling applications. The segment's expansion is supported by hot melt adhesives' versatility in operating across a wide temperature range from 60 to 200°C, making them suitable for diverse industrial applications. EVA resin-based hot melt adhesives are particularly gaining traction due to their cost-effectiveness and lower VOC content compared to traditional adhesive technologies. The trend of customers migrating away from solvent-borne adhesives towards hot-melt alternatives is expected to further accelerate this segment's growth in the coming years.
Remaining Segments in Technology
The German adhesives market also encompasses reactive adhesives, UV-cured, and solvent-borne technologies, each serving specific industrial applications. Reactive adhesives are particularly crucial in high-tech applications and automotive production, offering substantial permanency and high-strength adherence. UV-cured adhesives have carved out a niche in specialized applications requiring quick curing times and are gaining prominence in electronics and medical device assembly. Meanwhile, solvent-borne adhesives, despite facing regulatory challenges due to VOC emissions, continue to maintain their presence in specific applications where their unique properties are essential. These segments collectively complement the market by providing specialized solutions for specific industrial requirements and applications.
Segment Analysis: Resin
Acrylic Segment in German Adhesives Market
The acrylic adhesives segment maintains its dominant position in the German adhesives market, holding approximately 20% market share in 2024. This significant market presence is attributed to acrylic adhesives' versatility and superior performance characteristics across various applications. These adhesives demonstrate exceptional bonding capabilities with multiple substrates, including metal, glass, and outdoor materials, while offering improved temperature, solvent, and UV resistance compared to conventional alternatives. The segment's strength is particularly evident in construction, electronics, and packaging industries where acrylic adhesives are preferred for their reliability and durability. The German electronics sector, being the largest in Europe and fifth globally, has been a major driver for acrylic adhesives consumption, especially in consumer electronics and medical devices manufacturing.
Epoxy Segment in German Adhesives Market
The epoxy adhesives segment is demonstrating remarkable growth potential in the German market, projected to grow at approximately 6% through 2024-2029. This growth trajectory is primarily driven by increasing demand from the automotive and aerospace industries, where epoxy adhesives compounds are essential for bonding, potting, filling, and repairing purposes. The segment's expansion is further supported by the development of specific grades that pass vertical and horizontal burn tests in accordance with FAR Standard 14 CFR 25.853 (a) and fulfill NASA's minimal outgassing parameters. The segment's growth is also bolstered by the increasing adoption of epoxy adhesives in high-performance formulations across both low- and high-viscosity applications, particularly in sectors requiring robust structural adhesives solutions.
Remaining Segments in Resin Segmentation
The German adhesives market features several other significant resin segments including polyurethane adhesives, cyanoacrylate, silicone, and VAE/EVA, each serving distinct industrial applications. Polyurethane adhesives are particularly valued for their durability and flexibility in automotive and construction applications. Cyanoacrylate adhesives have carved out a niche in electronics and medical device assembly due to their rapid curing properties. Silicone-based adhesives are preferred in applications requiring high temperature resistance and flexibility, while VAE/EVA adhesives dominate in packaging and woodworking applications. Each of these segments contributes uniquely to the market's diversity, offering specialized solutions for specific industrial requirements and maintaining their respective market positions through continuous innovation and application development.
Competitive Landscape
Top Companies in German Adhesives Market
The German adhesives market is characterized by continuous product innovation among major players, with a strong focus on sustainable and eco-friendly solutions. Companies are actively developing new adhesive technologies for specific industry applications, particularly in the automotive, construction, and packaging sectors. Strategic partnerships and collaborations have become increasingly common, especially for developing specialized solutions and expanding distribution networks. Operational agility is demonstrated through investments in research and development facilities, with companies maintaining dedicated technology centers to respond quickly to changing market demands. Market leaders are expanding their presence through both organic growth and strategic acquisitions, particularly focusing on strengthening their positions in high-growth segments like electronics and medical applications. The emphasis on developing smart adhesive solutions with improved efficiency, flexibility, and environmental compliance has become a key differentiator in the market.
Market Structure Shows Mixed Global-Local Presence
The German adhesives market exhibits a partly fragmented structure with a mix of global conglomerates and specialized local players. Global chemical companies maintain a significant market presence through their established manufacturing facilities and distribution networks across Germany, while local specialists focus on niche applications and regional customer relationships. The market demonstrates moderate consolidation, with the top five companies accounting for a substantial portion of the market share, while numerous smaller players serve specific industry segments or regional markets.
The market is characterized by ongoing merger and acquisition activities, particularly focused on acquiring technological capabilities and expanding product portfolios. Global players are strengthening their presence through strategic acquisitions of local companies to gain access to specific technologies or regional markets. Meanwhile, medium-sized companies are forming strategic alliances and partnerships to enhance their competitive position and expand their market reach. The industry shows a trend toward vertical integration, with companies acquiring businesses along the value chain to secure raw material supply and strengthen their market position.
Innovation and Sustainability Drive Future Success
For incumbent companies to maintain and increase their market share, focusing on sustainable product development and technological innovation is crucial. Companies need to invest in research and development to create adhesive solutions that meet increasingly stringent environmental regulations while maintaining high performance standards. Building strong relationships with key end-user industries through customized solutions and technical support services is becoming increasingly important. Additionally, developing efficient distribution networks and maintaining a strong local presence through manufacturing facilities and technical centers is essential for market success.
Market contenders can gain ground by focusing on niche applications and developing specialized solutions for specific industry segments. Companies need to address the growing demand for environmentally friendly products and invest in sustainable technologies to meet changing customer preferences and regulatory requirements. The ability to provide comprehensive technical support and maintain close customer relationships will be crucial for success. Future growth opportunities lie in developing innovative solutions for emerging applications in electronics, medical devices, and renewable energy sectors, while maintaining flexibility to adapt to changing market conditions and regulatory landscapes. Notably, the development of specialty adhesives and electronic adhesives is gaining traction, offering significant potential for growth in these sectors.
Germany Adhesives Industry Leaders
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3M
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H.B. Fuller Company
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Henkel AG & Co. KGaA
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Jowat SE
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Sika AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- May 2022: Henkel introduced new products, such as Loctite Liofol LA 7818 RE / 6231 RE and Loctite Liofol LA 7102 RE / 6902 RE, to promote recyclability in the packaging industry.
- April 2022: DELO Industries developed an innovative process technology in which the dosing and pre-activation of the adhesive take place in one process step, which gives users options for designing their products and processes while at the same time reducing their costs and CO2 emissions.
- March 2022: Bostik signed an agreement with DGE for distribution throughout Europe, Middle East & Africa. The agreement includes Born2BondTM engineering adhesives developed for 'by-the-dot' bonding applications in specific industries, such as automotive, electronics, luxury packaging, medical devices, and MRO.
Germany Adhesives Market Report Scope
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.
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 |
| 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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Market Definition
- End-user Industry - Building & Construction, Packaging, Automotive, Aerospace, Woodworking & Joinery, Footwear & Leather, Healthcare, and Others are the end-user industries considered under the adhesives market.
- Product - All adhesive products are considered in the market studied
- Resin - Under the scope of the study, resins like Polyurethane, Epoxy, Acrylic, Cyanoacrylate, VAE/EVA, and Silicone are considered
- Technology - For the purpose of this study, Water-borne, Solvent-borne, Reactive, Hot Melt, and UV Cured adhesive technologies are taken into consideration.
| Keyword | Definition |
|---|---|
| Hot-melt Adhesive | Hot melt adhesives are generally 100% solid formulations, based on thermoplastic polymers. They are solid at room temperature and are activated upon heating above their softening point, at which stage they are liquid, and hence, can be processed. |
| Reactive Adhesive | A reactive adhesive is made up of monomers that react in the adhesive curing process and do not evaporate from the film during use. Instead, these volatile components become chemically incorporated into the adhesive. |
| Solvent-borne Adhesive | Solvent-borne adhesives are mixtures of solvents and thermoplastic, or slightly cross-linked polymers, such as polychloroprene, polyurethane, acrylic, silicone, and natural and synthetic rubbers (elastomers). |
| Water-borne Adhesive | Water-borne adhesives use water as a carrier or diluting medium to disperse a resin. They are set by allowing the water to evaporate or be absorbed by the substrate. These adhesives are compounded with water as a diluent, rather than a volatile organic solvent. |
| UV Cured Adhesive | UV curing adhesives induce curing and create a permanent bond without heating by using ultraviolet (UV) light or other radiation sources. An aggregation of monomers and oligomers is cured or polymerized by ultraviolet (UV) or visible light in a UV adhesive. Because UV is a radiating energy source, UV adhesives are often referred to as radiation curing or rad-cure adhesives. |
| Heat-resistant Adhesive | Heat-resistant Adhesives refer to those that do not break down under high temperatures. One aspect of a complicated system of circumstances is the adhesive's capacity to withstand disintegration brought on by high temperatures. As the temperature rises, adhesives may liquefy. They can withstand stresses resulting from differing coefficients of expansion and contraction, which might be an additional advantage. |
| Reshoring | Reshoring is the practice of moving commodity production and manufacturing back to the nation where the business was founded. Onshoring, inshoring, and back shoring are further terms used. Offshoring, the practice of producing items abroad to lower labor and manufacturing costs, is the opposite of this. |
| Oleochemicals | Oleochemicals are compounds produced from biological oils or fats. They resemble petrochemicals, which are substances made from petroleum. The oleochemical business is built on the hydrolysis of oils or fats. |
| Nonporous Materials | Nonporous materials are substances that do not permit the passage of liquid or air. Nonporous materials are those that are not porous, such as glass, plastic, metal, and varnished wood. Since no air can get through, less airflow is required to raise these materials, negating the requirement for high airflow. |
| EU-Vietnam Free Trade Agreement | A trade agreement and an investment protection agreement were concluded between the European Union and Vietnam on June 30, 2019. |
| VOC content | Compounds with limited solubility in water and high vapor pressure are known as Volatile Organic Compounds (VOCs). Many VOCs are human-made chemicals that are used and produced in the manufacture of paints, pharmaceuticals, and refrigerants. |
| Emulsion Polymerization | Emulsion polymerization is a method of producing polymers or connected groups of smaller chemical chains known as monomers, in a water solution. The method is often used to make water-based paints, adhesives, and varnishes, in which the water stays with the polymer and is marketed as a liquid product. |
| 2025 National Packaging Targets | In 2018, the Australian Environment Ministry set the following 2025 National Packaging Targets: 100% of the packaging must be reusable, recyclable, or compostable by 2025, 70% of plastic packaging must be recycled or composted by 2025, 50% of average recycled content must be included in packaging by 2025, and problematic and unnecessary single-use plastic packaging must be phased out by 2025. |
| Russian Government’s Import Substitution Policy | The Western sanctions suspended the distribution of several high-tech items to Russia, including those required by the raw material export sectors and the military-industrial complex. In response, the government launched an "import substitution" scheme, appointing a special commission to oversee its implementation in early 2015. |
| Paper Substrate | Paper substrates are paper sheets, reels, or boards with a base weight of up to 400 g/m2 that has not been converted, printed or otherwise altered. |
| Insulation Material | A material that inhibits or blocks heat, sound, or electrical transmission is known as Insulation Material. The variety of insulation materials includes thick fibers like fiberglass, rock and slag wool, cellulose, and natural fibers as well as stiff foam boards and sleek foils. |
| Thermal Shock | A temperature change known as thermal shock generates stress in a material. It commonly results in material breakdown and is especially prevalent in brittle materials like ceramics. When there is a quick temperature change, either from hot to cold or vice versa, this process occurs abruptly. It occurs more frequently in materials with poor heat conductivity and insufficient structural integrity. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific product segment and country are selected from a group of relevant variables & factors based on desk research & literature review; along with primary expert inputs. These variables are further confirmed through regression modeling (wherever required).
- Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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