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India Adhesives and Sealants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The market is segmented by Adhesive Technology (Water-borne, Solvent-borne, Reactive, Hot Melt, and Other Technologies), Sealant Product Type (Silicone, Polyurethane, Plastisol, Emulsion, Butyl, Polysulfide, Silyl Modified, and Other Sealant Product Types), End-user Industry (Building and Construction, Paper, Board, and Packaging, Woodworking and Joinery, Transportation, Footwear and Leather, Healthcare, Electrical and Electronics, and Other End-user Industries). The report offers market size and forecast for Adhesives and Sealants in revenue (USD Million) and in volume (kilo tons) for all the above segments.

Market Snapshot

Study Period: 2016 - 2026
Base Year: 2020
CAGR: 8.07 %

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Market Overview

The Indian adhesives and sealants market is projected to reach USD 1,703.68 million by 2026, growing at an estimated CAGR of 8.07% over the forecast period (2021-2026). Major factors driving the market studied are increasing demand from the packaging industry and the growing construction industry in the country.

  • On the flip side, the slowdown of the automotive industry and the detrimental impact of COVID-19 are hindering the growth of the market studied.
  • Increasing electronic operations in India and increasing demand for bio-based adhesives are expected to offer various opportunities for the growth of the market studied over the forecast period.

Scope of the Report

The India adhesives and sealants market is segmented by Adhesive - by technology, Sealant - by product type, and end-user industry. On the basis of adhesive - by technology, the market is segmented into Water-borne, Solvent-borne, Reactive, Hot Melt, and Other Technologies. By sealant - by product type, the market is segmented into Silicone, Polyurethane, Plastisol, Emulsion, Butyl, Polysulfide, Silyl Modified, and Other Sealant Product Types. On the basis of end-user industry, the market is segmented into Building and Construction, Paper, Board, and Packaging, Woodworking and Joinery, Transportation, Footwear and Leather, Healthcare, Electrical and Electronics, and Other End-user Industries.

Adhesive - by Technology
Water-borne
Acrylics
Polyvinyl Acetate (PVA) Emulsion
Ethylene Vinyl Acetate (EVA) Emulsion
Polyurethane (PU) Dispersions
CR (Chloroprene Rubber) Latex
Other Water-borne Adhesives
Solvent-borne
Styrene-butadiene Rubber (SBR)
Chloroprene Rubber
Poly Acrylate (PA)
Polyurethane (PU)
Other Solvent-borne Adhesives
Reactive
Epoxy
Modified Acrylics and Cyanoacrylates
Silicone
Polyurethane
Anaerobic
Other Reactive Adhesives
Hot Melt
Thermoplastic Polyurethane
Ethyl Vinyl Acetate
Styrenic-butadiene Copolymers
Polyolefins
Polyamide
Other Hot Melt Adhesives
Other Adhesive Technologies
Sealants - by Product Type
Silicone
Polyurethane
Plastisol
Emulsion
Butyl
Polysulfide
Silyl Modified
Other Sealant Product Types
End-user Industry
Buildings and Construction
Paper, Board, and Packaging
Woodworking and Joinery
Transportation
Footwear and Leather
Healthcare
Electrical and Electronics
Other End-user Industries

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Key Market Trends

Increasing Usage of Acrylic Water Borne Adhesives

Water-borne acrylic adhesives are considered an environmentally friendly and economically feasible substitute to solvent-based adhesives. The major advantage of water-borne adhesives is the absence of volatile organic compounds. The properties of acrylics include durability, color retention, quick-drying, environmentally friendly, impact-resistant, etc. Acrylics are majorly used on exterior and interior surfaces, such as on frames, doors, wall surfaces, trim, etc.

Acrylics can be applied to areas, such as primed metals, direct-to-metal applications, wood, and masonry surfaces. Acrylics are also used directly to metal for many colors and gloss levels. The application of acrylics includes bonding wood, paper, wall panel bonding, sealing (grouts), textiles bonding, paper stamps, leather tile envelopes, labels, etc. Acrylics are used by various end-user industries, such as buildings and construction, woodworking and joinery, paper, board, packaging, etc. Furthermore, acrylics are majorly used by paper, board, and packaging industries. Packaging industry dominates the demand for acrylic adhesives with numerous applications in products, such as tapes, labels, cases, and cartons.

With the growing demand for paper, board, and packaging in India, the demand for acrylic based adhesives is also increasing. Such positive growth is likely to increase the demand of the acrylics in the forecast period. Factors, such as e-commerce, online food deliveries, and innovation and development in the packaging industry has been driving the growth of the packaging industry in the region. A new report of google and Boston consulting group has indicated that the rapid digitization, growth in both online buyer base and spending along with variety in cuisines have been pushing the country’s food packaging sector growth to new high. The food packaging sector is expected to grow by more than 20-25% which is expected to boost the demand for the acrylic based adhesives in the country. The companies manufacturing acrylics include 3M, Anabond, Arkema, Avery Dennison Corporation, Dow Corning Corporation, among others.

Electrcal and Electronics Segment to Drive the Market Growth

Due to their excellent characteristics and physical properties, such as good cohesion, adhesion, elasticity, high-cohesive strength, flexibility, and their role in improving peel strength by flexing with peel stress, the high elastic modulus of the substrate, resistance to thermal expansion, and environmental resistance from UV light, corrosion, saltwater, rain, and other weathering conditions, adhesive and sealants are extensively used in the electronic industry. Sealants are an integral part of electronic parts and are used to manufacture and assemble various electronic items. There is a steady rise in the demand for electronic sealants, primarily due to the growth and advancement of electronic goods and the high penetration of smartphone devices.

In the electronics industry, adhesives are used for various applications, such as conformal coatings, bonding of exterior plastic housings, bonding of surface mount devices (SMDs), bonding of heat sinks and potting, encapsulating electronic components, protecting terminal electrodes, sealing lids, and housing groves, conformal coating of circuit boards, and many other electronic gadgets. In the process of electrical and mechanical assembly, silicone sealants are highly flexible. They can be used as form-in-place gaskets to connect components inside electronic modules, close holes in the panel to exclude soil, water, or other contamination, and protect against exposure to harsh environmental conditions, such as high temperatures.

The electronics industry in India is one of the fastest and major end-user industries, contributing to the Indian economy. Many products, such as consumer electronics, communication equipment, and other equipment for military operations, contribute a major share of the electronics market. Several global producers of consumer electronic products are shifting or starting their manufacturing bases in India, due to the availability of cheap labor costs and easy access to raw material. This scenario has been observed for the past few years, and the trend is likely to increase at a faster rate, primarily due to the Make in India initiative launched by the Indian government. This has a direct impact on assembling different electronic components to produce a complete product before entering the market. Thus, this is estimated to propel the demand for adhesives and sealants in the electronics sector for various assembling applications. Despite the decrease in production in the electronics industry due to the COVID-19 pandemic, the electronics industry is likely to grow in the future, due to the growth in the electronics sector by increased consumer spending in the country.

According to the Ministry for Electronics and IT, the electronic products market in India had a total market size of INR 4,580 billion (USD 66 billion) and witnessed a CAGR of nearly 5.5 % over the last four years. The National Policy on Electronics, 2019, aimed to promote domestic manufacturing and export in the entire value-chain of Electronics System Design and Manufacturing (ESDM) to achieve a turnover of INR 26 trillion (USD 400 billion) by 2025. The government of India has taken several steps to promote the domestic electronics manufacturing industry and exports from the country. For instance, the Modified Special Incentive Package Scheme (M-SIPS) provides a 20-25% subsidy for investments in capital expenditure for setting up an electronics manufacturing facility. Therefore, 212 projects have been approved so far, with proposed investments of INR 551.82 billion. Therefore, this boom in electronic products in the country is quite instrumental in propelling the market demand for adhesives and sealants in the electronic industry over the forecast period

Competitive Landscape

India adhesives and sealants market is highly concentrated in terms of revenue. The top five players account for a combined share of more than 90%, thus making the market highly competitive. Pidilite Industries Limited is the market leader in the India Adhesives and sealants industry with a share of almost 48%, thus continuing its dominant position for the past few years. Other major companies include Henkel Adhesives Technologies India Private Limited, Sika AG, Arkema Group, and H.B. Fuller Company, amongst others.

Recent Developments

  • In Nov 2020, Pidilite Industries Ltd announced that it completed the acquisition of the US-based Huntsman Group's Indian subsidiary, Huntsman Advanced Materials Solutions Private Ltd (HAMSPL), for INR 2,100 crore. The deal also includes the company's Indian subcontinent business, apart from a trademark license for the Middle East, Africa, and ASEAN countries.
  • In Jul 2020, Arkema Group announced the proposed acquisition of Fixatti, a company specialized in high-performance thermobonding adhesive powders. This acquisition will enable Bostik to strengthen its global offering of hotmelt adhesive solutions for niche industrial applications in the construction, technical coating, battery, automotive, and textile printing markets.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Demand from Packaging Industry

      2. 4.1.2 Growing Construction Industry In the Country

    2. 4.2 Restraints

      1. 4.2.1 Slowdown of the Automotive Industry

      2. 4.2.2 Detrimental Impact of COVID-19

    3. 4.3 Industry Value-Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Adhesive - by Technology

      1. 5.1.1 Water-borne

        1. 5.1.1.1 Acrylics

        2. 5.1.1.2 Polyvinyl Acetate (PVA) Emulsion

        3. 5.1.1.3 Ethylene Vinyl Acetate (EVA) Emulsion

        4. 5.1.1.4 Polyurethane (PU) Dispersions

        5. 5.1.1.5 CR (Chloroprene Rubber) Latex

        6. 5.1.1.6 Other Water-borne Adhesives

      2. 5.1.2 Solvent-borne

        1. 5.1.2.1 Styrene-butadiene Rubber (SBR)

        2. 5.1.2.2 Chloroprene Rubber

        3. 5.1.2.3 Poly Acrylate (PA)

        4. 5.1.2.4 Polyurethane (PU)

        5. 5.1.2.5 Other Solvent-borne Adhesives

      3. 5.1.3 Reactive

        1. 5.1.3.1 Epoxy

        2. 5.1.3.2 Modified Acrylics and Cyanoacrylates

        3. 5.1.3.3 Silicone

        4. 5.1.3.4 Polyurethane

        5. 5.1.3.5 Anaerobic

        6. 5.1.3.6 Other Reactive Adhesives

      4. 5.1.4 Hot Melt

        1. 5.1.4.1 Thermoplastic Polyurethane

        2. 5.1.4.2 Ethyl Vinyl Acetate

        3. 5.1.4.3 Styrenic-butadiene Copolymers

        4. 5.1.4.4 Polyolefins

        5. 5.1.4.5 Polyamide

        6. 5.1.4.6 Other Hot Melt Adhesives

      5. 5.1.5 Other Adhesive Technologies

    2. 5.2 Sealants - by Product Type

      1. 5.2.1 Silicone

      2. 5.2.2 Polyurethane

      3. 5.2.3 Plastisol

      4. 5.2.4 Emulsion

      5. 5.2.5 Butyl

      6. 5.2.6 Polysulfide

      7. 5.2.7 Silyl Modified

      8. 5.2.8 Other Sealant Product Types

    3. 5.3 End-user Industry

      1. 5.3.1 Buildings and Construction

      2. 5.3.2 Paper, Board, and Packaging

      3. 5.3.3 Woodworking and Joinery

      4. 5.3.4 Transportation

      5. 5.3.5 Footwear and Leather

      6. 5.3.6 Healthcare

      7. 5.3.7 Electrical and Electronics

      8. 5.3.8 Other End-user Industries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 3M

      2. 6.4.2 Anabond

      3. 6.4.3 Arkema Group (Bostik)

      4. 6.4.4 ASTRAL ADHESIVES

      5. 6.4.5 Ashland

      6. 6.4.6 Atul Ltd

      7. 6.4.7 AVERY DENNISON CORPORATION

      8. 6.4.8 Benson Polymers Limited

      9. 6.4.9 Dow

      10. 6.4.10 H.B. Fuller Company

      11. 6.4.11 Henkel Adhesives Technologies India Private Limited

      12. 6.4.12 Huntsman International LLC

      13. 6.4.13 Jubilant Industries Ltd

      14. 6.4.14 LORD Corporation (Parker Hannifin Corp)

      15. 6.4.15 MAPEI SpA

      16. 6.4.16 Metlok Private Limited

      17. 6.4.17 Paramelt

      18. 6.4.18 Pidilite Industries Ltd

      19. 6.4.19 Sika AG

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Increasing Electronic Operations in India

    2. 7.2 Increasing demand for Bio-based Adhesives

**Subject to Availability

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Frequently Asked Questions

The India Adhesives and Sealants Market market is studied from 2016 - 2026.

The India Adhesives and Sealants Market is growing at a CAGR of 8.07% over the next 5 years.

Pidilite Industries Limited, H.B. Fuller Company, Arkema Group, Sika AG, Henkel Adhesives Technologies India Private Limited are the major companies operating in India Adhesives and Sealants Market.

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