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

India Adhesives Market Trends

Rising trend of cheap and lightweight packaging to drive the demand for flexible and rigid plastic packaging

• Packaging is one of the fast-growing industries in terms of design and technology for protecting and enhancing products’ safety and longevity. The rising demand for clean water, clean and fresh food, and pharmaceuticals, along with the rapid adoption of advanced technologies driving the packaging industry. Packaging has registered as the fifth-largest sector in the country’s economy over the past few years. The usage of packaging products has increased by over 200% in the past decade, which has registered consumption from 4.3 Kg per person per annum to 8.6 Kg per person per annum by the end of 2020. Owing to rising applications in agriculture production and the FMCG sector, India is likely to gain significant growth in the near future.
• Due to the COVID-19 pandemic, the country-wide lockdowns and partial suspension of manufacturing facilities caused disrupted supply-chain channels and imports and exports trade. As a result, the country's packaging production declined by 5% in 2020 but readily recovered in 2021, owing to rising demand for public health concerns. Packaging production is majorly driven by plastic packaging in the country, which nearly accounts for around 82% of the packaging produced in 2021. With the increasing demand for cheap and lightweight flexible and rigid packaging, the plastic production segment is likely to register the fastest growth of around 6.88% CAGR during the forecast period.
• The growth of the Indian packaging industry is mainly attributed to the rising middle-class population, improvement of the supply-chain system, and emerging e-commerce activities in recent years. Furthermore, the growing attention to food safety and quality across the nation is likely to drive the food processing industry, thus, propelling the packaging demand.

Rising government initiatives such as e-AMRIT and auto loan interest rates decrease by 2-3% to lead the automotive manufacturing

• The Indian automotive industry was the fourth largest in the Asia-Pacific by volume in 2020. With the government initiatives such as the expansion of roads in 2021 by allocation of funds of INR 4.32 trillion, the number of vehicles has also increased on roads. This trend of growth is expected to sustain in the coming years up to 2028.
• Due to the COVID-19 pandemic, there was a dip in sales of passenger vehicles from 3.38 million in 2019 to 2.39 million in 2021 because of nationwide lockdown, supply chain disruptions, and overall economic slowdown. But, with the government initiatives to support the automobile manufacturing sector, such as decreasing interest rates for auto loans by 2-3%, it moved up to 2.72 million vehicles by March 2022. Maruti Suzuki is the largest in the passenger vehicles segment, with a market share of 52% in 2021. This growth trend is expected to sustain in the forecast period, which is 2022-2028.
• In the case of commercial vehicles, Tata Motors is the largest vehicle producer by number, with a market share of nearly 43% in March 2022. The commercial vehicle sales increased from 568,560 in 2021 to 716570 by March 2022 because of recovering loss-ridden economy due to the impact of COVID-19 in 2020. With this growing post-pandemic economy, it is expected to increase in the mentioned period.
• The electric vehicle manufacturing push by the Indian government with initiatives such as e-AMRIT will lead increase in the production of electric vehicles in years up to 2028. The increase in the number of electric vehicles being sold in India increased by 108% in 2021 compared to 2020.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Packaging Segment in India Adhesives Market

The packaging segment dominates the Indian adhesives market, commanding approximately 51% market share in 2024, driven by the rapid growth of the packaging industry in India. This significant market position is supported by the increasing adoption of advanced packaging solutions across various industries, particularly in the food and beverage, pharmaceuticals, and e-commerce sectors. The segment's growth is further bolstered by the rising demand for flexible packaging solutions and sustainable packaging materials. India's packaging sector has emerged as one of the fastest-growing industries, with per capita packaging consumption showing substantial increases. The segment's dominance is reinforced by technological advancements in adhesive formulations specifically designed for packaging applications, including innovations in hot melt adhesives and water-based solutions that cater to different packaging requirements.

Aerospace Segment in India Adhesives Market

The aerospace segment is emerging as the fastest-growing segment in the Indian adhesives market, with projections indicating robust growth through 2024-2029. This exceptional growth is primarily driven by India's expanding aviation sector and increasing investments in aerospace manufacturing capabilities. The government's push towards indigenous aircraft production and maintenance, repair, and overhaul (MRO) activities is creating substantial demand for specialized aerospace adhesives. The segment's growth is further supported by the rising adoption of lightweight materials in aircraft manufacturing, which requires advanced adhesive solutions. Additionally, the increasing focus on electric and hybrid aircraft development is creating new opportunities for innovative adhesive applications in the aerospace sector.

Remaining Segments in End User Industry

The other significant segments in the Indian adhesives market include automotive, woodworking, building and construction, footwear and leather, and healthcare industries. The automotive sector represents a substantial portion of the market, driven by the growing vehicle production and increasing use of lightweight materials. The woodworking segment continues to be significant due to the expanding furniture manufacturing industry. The building and construction sector's demand is fueled by infrastructure development and residential construction activities. The footwear and leather segment maintains steady growth due to India's position as a major footwear manufacturer. The healthcare segment is gaining importance with increasing medical device manufacturing and healthcare infrastructure development.

Segment Analysis: Technology

Hot Melt Segment in India Adhesives Market

Hot melt adhesives dominate the Indian adhesives market, holding approximately 37% market share in 2024. These adhesives, commonly sold as solid cylindrical sticks of various diameters like 12mm, 15mm, or 43mm, are designed for application using hot glue guns. Their popularity stems from their versatile operating temperature range of 60-200 degrees centigrade, making them suitable for diverse applications across multiple industries. The segment's strength is particularly evident in packaging applications, where they are preferred for their economic benefits and easy-to-create bonding properties. Hot melt adhesives are gaining increased traction due to their fast curing process and the elimination of drying requirements, which has significantly boosted their adoption in plastics and paperboard packaging applications.

Hot Melt Segment in India Adhesives Market

The hot melt segment is also experiencing the fastest growth in the Indian adhesives market. This growth is driven by several factors including the increasing trend of consumers preferring hot-melt adhesives over water-borne or solvent-borne alternatives. The segment's expansion is particularly notable in EVA resin-based hot melt adhesives, which are widely adopted for different assemblies due to their affordability compared to other resin-based adhesives. The cost advantage is significant, with EVA resin-based hot melt adhesives being nearly half the price of other resin types. This cost-effectiveness, combined with their superior performance characteristics, positions hot melt adhesives for continued strong growth in the forecast period.

Remaining Segments in Technology

The other significant segments in the Indian adhesives market include water-borne, reactive adhesives, solvent-borne, and UV cured adhesives. Water-borne adhesives hold a substantial position due to their environmental friendliness and low VOC contents, making them particularly popular in wood adhesives applications. Reactive adhesives are valued for their high-strength adherence and are extensively used in high-tech devices and automotive applications. Solvent-borne adhesives, despite facing regulatory challenges due to VOC emissions, maintain their presence in specific applications where their unique properties are essential. UV cured adhesives, while representing the smallest segment, are gaining attention for their specialized applications in industries requiring rapid curing and precision bonding.

Segment Analysis: Resin

Polyurethane Segment in India Adhesives Market

Polyurethane adhesives have emerged as the dominant segment in the Indian adhesives market, commanding approximately 22% of the total market value in 2024. This significant market position is attributed to polyurethane's superior adhesion properties, particularly in sheet molding composites with a tensile strength of nearly 8.5 N/mm2. The segment's prominence is driven by its extensive application across multiple industries, particularly in the automotive sector for manufacturing high-resilience foam seating, rigid foam insulation panels, B-pillars, headliners, suspension insulators, and bumpers. Additionally, polyurethane adhesives are widely preferred in the footwear industry for sole attachment and sports footwear manufacturing, owing to their flexibility and durability across a wide operating temperature range of -40°C to 100°C.

VAE/EVA Segment in India Adhesives Market

The VAE/EVA segment is demonstrating remarkable growth potential in the Indian adhesives market, with an expected growth rate of approximately 8% during the forecast period 2024-2029. This impressive growth trajectory is primarily driven by the segment's expanding applications in sports footwear manufacturing and automotive applications. The versatility of VAE/EVA adhesives, particularly their high-temperature resistance capacity functioning in temperatures from -40°F to 160°F, along with their flexibility, lightweight properties, and shock absorption capabilities, has made them increasingly popular in various industrial applications. The segment's growth is further supported by their extensive use in automotive applications such as headlamps, interior and seating components, with viscosity ranges between 900 to 3,000 cPs offering excellent bonding properties.

Remaining Segments in Resin Segmentation

The Indian adhesives market encompasses several other significant resin segments including acrylic, epoxy, silicone, and cyanoacrylate adhesives. Acrylic adhesives are valued for their improved temperature, solvent, and UV resistance properties, making them crucial in automotive and construction applications. Epoxy adhesives have carved out a strong position in structural applications due to their high bond strength properties. Silicone adhesives are particularly important in specialized applications requiring extreme temperature resistance and flexibility, while cyanoacrylate adhesives are known for their rapid curing times and strong bonding capabilities across various substrates. Each of these segments contributes uniquely to the market's diversity, serving specific industrial needs and applications across different sectors.

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.