Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 687.32 Million |
| Market Size (2028) | USD 861.54 Million |
| Growth Rate (2024 - 2028) | 5.81% 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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Malaysia Adhesives Market Analysis by Mordor Intelligence
The Malaysia Adhesives Market size is estimated at 687.32 million USD in 2024, and is expected to reach 861.54 million USD by 2028, growing at a CAGR of 5.81% during the forecast period (2024-2028).
The Malaysian adhesives industry is experiencing significant transformation driven by an increasing focus on sustainable manufacturing practices and environmental regulations. Major manufacturers are investing in research and development to create eco-friendly adhesive solutions with lower volatile organic compound (VOC) emissions. This shift is particularly evident in the packaging sector, where flexible packaging adhesives have become essential for transporting consumer goods, electronics, cosmetics, and medical supplies. Leading companies like Ecoplas Sdn Bhd, Polymart, and Tomypak Pvt. Ltd are spearheading innovations in sustainable adhesive applications.
The robust growth of Malaysia's e-commerce sector, which registered a remarkable 24.7% growth in 2021, has created substantial demand for packaging adhesives. This digital commerce expansion has led to increased requirements for specialized adhesive solutions in various applications, from corrugated packaging to flexible materials. The trend has prompted manufacturers to develop advanced adhesive formulations that can withstand different environmental conditions while maintaining package integrity throughout the supply chain.
The construction sector represents a significant market for construction adhesives, supported by substantial government investment. In 2022, the Malaysian parliament approved a development expenditure of MYR 75.6 billion (USD 18.6 billion) as part of its infrastructure development initiatives. This investment has stimulated demand for construction-specific bonding agents, particularly in residential and commercial projects, while also driving innovations in high-performance construction adhesives for modern construction techniques.
The manufacturing sector's expansion, particularly in automotive production, has created new opportunities for automotive adhesives applications. Vehicle production in Malaysia increased by 8.5% in 2022 from 481.7 thousand units in 2021, reflecting the growing importance of advanced adhesive solutions in modern vehicle assembly. This growth has been accompanied by increasing demand for specialized industrial adhesives that can meet the stringent requirements of lightweight vehicle construction and electric vehicle manufacturing, pushing manufacturers to develop more sophisticated bonding solutions.
Malaysia Adhesives Market Trends and Insights
Significant growth in the e-commerce industry is likely to proliferate the industry size
- Packaging is one of the fastest-growing industries in terms of design and technology for protecting and enhancing products. The packaging industry of Malaysia has been majorly driven by the rapid growth of the food and beverages industry in recent years. The agri-food industry is the most promising sector in Malaysia. In today's competitive market of FMCG, it has become inevitable for companies to use attractive packaging and bring innovation to their packaging to stand out from their competitors and maintain their brand image in the market. This is likely to encourage the use of packaging adhesives in the market.
- Due to the COVID-19 pandemic, the country-wide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions in supply chains and imports and exports trade. As a result, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market. Packaging production is majorly driven by plastic in the country, which accounted for nearly 86% of the packaging produced in 2021. With the advancement of plastic recyclability, the plastic segment is likely to maintain its growth with a 4% CAGR during the forecast period.
- The growth of the packaging industry in Malaysia is significantly boosted by the growing demand for fresh food domestically. The increasing interest in public health issues during the post-pandemic period, along with the emerging e-commerce activities across the nation, is likely to boost the growth of the food processing industry, which will further drive the packaging demand in the forecast period.
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Growing demand for electric vehicles will influence the country's automotive industry
- Malaysia remains an appealing base for multinational automakers. Honda, Toyota, Nissan, Mercedes-Benz, and BMW are among the global automobile corporations that have established operations in the country to capitalize on growing customer demand. The industry is a crucial part of the country's industrial sector, contributing above 4% of its GDP and remaining the third-largest automotive market in ASEAN. Malaysia currently has 28 manufacturing and assembly plants for passenger vehicles, commercial vehicles, motorcycles, and scooters, as well as automotive parts and components.
- The industry has undoubtedly aided the growth of engineering, auxiliary, and supporting sectors. It also helps with skill development and the advancement of technology and engineering capabilities. The automotive industry in Malaysia will not be immune to the global trend of digitalization and the advent of new business models. In 2019, the country produced about 5,71,632 units of vehicles, which drastically reduced to 4,85,186 units in 2020, with a 15% decline due to the COVID-19 pandemic. Due to this, the variation in automotive production between 2019 and 2021 was about -16%, whereas it was recorded at -1% between 2020 and 2021.
- The electric vehicle (EV) is recognized as a critical technology for the future of automotive power systems in the country's automotive industry's roadmaps. EVs have just recently emerged as a significant influence in Malaysia. However, in Malaysia, the absence of EV infrastructure and the country's heavy reliance on fossil fuels creates a considerable obstacle.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The rise in investments will support a long-term development strategy for the Malaysian aerospace industry
- Initiatives taken by Malaysian government to promote the footwear industry will foster the demand
- Private and industrial investments along with the upcoming mega-construction projects will augment the industry size
- The Malaysian government will impute growth strategies to promote its local manufacturing capacity
Segment Analysis: End User Industry
Packaging Segment in Malaysian Adhesives Market
The packaging segment dominates the Malaysian adhesives market, commanding approximately 54% of the total market value in 2024. This significant market share is driven by the growing demand for packaged goods across pharmaceutical, food processing, manufacturing, FMCG, and healthcare industries. The rise of e-commerce and increasing consumer preference for convenience has resulted in higher delivery volumes of packaged goods, positively impacting the packaging adhesives segment. Major brands like Coca-Cola, PepsiCo, and Unilever are investing heavily in sustainable packaging solutions, with targets of achieving 100% sustainability by 2030, further driving innovation and demand in this segment. The segment's growth is particularly strong in flexible packaging applications, which serve as essential components in the transportation systems for consumer goods, electronics, cosmetics, and medical supplies.
Aerospace Segment in Malaysian Adhesives Market
The aerospace segment is emerging as the fastest-growing segment in the Malaysian adhesives market, with projections indicating robust growth through 2024-2029. This exceptional growth is driven by Malaysia's position as the second-largest aerospace hub in Southeast Asia, with both manufacturing and MRO (Maintenance, Repair, and Operations) facilities. The country's strategic position as Airbus's largest supplier base in Southeast Asia, coupled with government incentives offering 70% to 100% tax exemptions and import duty exemptions for aircraft manufacturers, is accelerating growth in this segment. Malaysia's ambitious goal to increase its share of MRO activities to 50% in the Southeast Asia region and account for 5% of the global market is further propelling the demand for aerospace adhesives, particularly in applications requiring high-performance bonding solutions.
Remaining Segments in End User Industry
The Malaysian adhesives market encompasses several other significant segments, including automotive, building and construction, healthcare, woodworking and joinery, and footwear and leather industries. The automotive segment maintains a strong presence due to Malaysia's position as a key automotive manufacturing hub in Southeast Asia. The building and construction segment is driven by ongoing infrastructure development and government investments in construction projects. The healthcare segment is growing due to increasing medical device manufacturing, while the woodworking and joinery segment benefits from Malaysia's position as one of the world's major exporters of wooden and furniture products. The footwear and leather segment, though smaller, continues to contribute to the market through specialized adhesive applications.
Segment Analysis: Technology
Water-borne Segment in Malaysian Adhesives Market
Water-borne adhesives dominate the Malaysian adhesives market, accounting for approximately 43% market share in 2024. These adhesives are designed as dispersions or emulsions with distributed polymer particles having a spherical form and diameter of 50-300 nm. Their popularity stems from clear operational advantages, including lower costs and higher production capacities, as they don't require specialized permits or handling charges compared to solvent-based alternatives. The segment's strength is particularly evident in the woodworking and footwear industries for bonding wood, paper, textiles, leather, and other porous substrates. Manufacturers strongly prefer water-based adhesives due to their relatively low VOC content and safer handling characteristics. Additionally, producers can easily adapt existing solvent-borne equipment for water-borne applications, making the transition straightforward and cost-effective.
UV Cured Segment in Malaysian Adhesives Market
The UV cured adhesives segment is projected to witness the fastest growth in the Malaysian adhesives market through 2024-2029. These single-component adhesives require no weighing or mixing before use, significantly simplifying production timelines by eliminating pot life issues. The technology offers unique advantages, being 100% reactive with no volatile losses during curing, resulting in a non-polluting procedure. The growth is primarily driven by increasing adoption in high-tech applications like touchscreens, laminates, and protective films. While UV-cure adhesives enable faster assembly speeds, their premium pricing has created an interesting market dynamic where volume growth remains steady but value growth accelerates due to rising raw material costs. The segment's expansion is particularly notable in electronics and precision assembly applications where rapid cure speeds and clean processing are essential.
Remaining Segments in Technology Segmentation
The Malaysian adhesives market features several other important technology segments, including hot melt adhesives, reactive adhesives, and solvent-borne adhesives. Hot melt adhesives have established a strong presence in packaging and woodworking applications due to their fast processing capabilities and versatile bonding properties. Reactive adhesives play a crucial role in applications requiring high-strength permanent bonds, particularly in the automotive and construction sectors. Meanwhile, solvent-borne adhesives, despite facing some regulatory pressure due to VOC content, continue to serve specific industrial applications where their unique properties are essential. Each of these technologies addresses distinct market needs and contributes to the overall diversity of adhesive solutions available in Malaysia.
Segment Analysis: Resin
Polyurethane Segment in Malaysian Adhesives Market
Polyurethane adhesives maintain their dominance in the Malaysian adhesives market, holding approximately 18% market share in 2024. These adhesives are highly preferred due to their exceptional flexibility and ability to form tough bonds with high peel strength and medium to high shear strength. Their superior adhesion properties to sheet molding composites make them increasingly popular in automotive and construction applications. The segment's growth is particularly driven by the rising demand in the electric vehicle sector, where polyurethane adhesives are essential for various bonding applications. Their versatility in bonding foils, films, and elastomers, combined with their solvent-free surface protection solutions, has established them as the preferred choice across multiple industries.
Silicone Segment in Malaysian Adhesives Market
The silicone adhesives segment is experiencing rapid growth in the Malaysian market, driven by its expanding applications across automotive, healthcare, construction, woodworking, and joinery industries. These adhesives are gaining significant traction due to their superior flexibility and ability to withstand extreme temperatures up to 600°F or 315°C. The segment's growth is particularly notable in the healthcare industry, where medical adhesives based on silicone are increasingly used in wound management applications, offering gentle and atraumatic adhesion to the skin while promoting the healing of hard-to-heal wounds. Their resistance to aging, vibrations, and shock, combined with excellent bonding strength to low surface energy substrates, makes them ideal for high-performance applications in various industries.
Remaining Segments in Resin Segmentation
The Malaysian adhesives market features several other significant resin segments, including VAE/EVA, acrylic, epoxy, and cyanoacrylate adhesives. VAE/EVA adhesives are particularly strong in packaging applications due to their cost-effectiveness and versatility. Acrylic adhesives dominate in applications requiring high durability and weather resistance. Epoxy adhesives are preferred in structural adhesives applications due to their high bond strength properties, while cyanoacrylate adhesives excel in applications requiring rapid bonding and high strength. Each of these segments serves specific market niches and contributes to the overall market dynamics through their unique properties and application advantages.
Competitive Landscape
Top Companies in Malaysia Adhesives Market
The Malaysian adhesives market is led by major players including Henkel AG & Co. KGaA, 3M, Arkema Group, Sika AG, and Avery Dennison Corporation, who collectively drive innovation and market development. These companies are heavily investing in research and development to create sustainable and eco-friendly adhesive solutions, particularly focusing on low-VOC and water-based technologies. Strategic partnerships with raw material suppliers and distributors have become increasingly important to ensure supply chain resilience and market penetration. The industry has seen a strong focus on expanding production capacities and modernizing manufacturing facilities to meet growing demand across various end-user industries. Companies are also emphasizing the development of specialized specialty adhesives solutions for emerging applications in the electronics, automotive, and aerospace sectors, while simultaneously strengthening their distribution networks to enhance market reach.
Market Structure Shows Mixed Global-Local Dynamics
The Malaysian adhesives market exhibits a fragmented structure with a mix of global conglomerates and local specialists competing for market share. Global players leverage their extensive research capabilities, established brand reputation, and technological expertise to maintain their market positions, while local companies like Vital Technical and Mohm Chemical capitalize on their understanding of regional requirements and established distribution networks. The market has witnessed increasing collaboration between international and local players through joint ventures and strategic partnerships, particularly in specialized segments like automotive and electronics adhesives.
The competitive landscape is characterized by ongoing consolidation efforts, with larger companies actively pursuing acquisitions to expand their product portfolios and geographic presence. Companies are establishing local manufacturing facilities and technical centers to better serve the Malaysian market and neighboring regions. The presence of numerous small and medium-sized enterprises specializing in specific application segments has created a diverse competitive environment, leading to increased focus on product differentiation and customer service excellence.
Innovation and Sustainability Drive Future Success
Success in the Malaysian adhesive industry increasingly depends on companies' ability to develop innovative, sustainable solutions while maintaining cost competitiveness. Market leaders are investing in digital technologies and automation to optimize production processes and enhance product quality. Companies are also focusing on developing strong relationships with key end-user industries, particularly in high-growth sectors like electronics and automotive, while expanding their presence in emerging application areas such as renewable energy and medical devices.
Future market success will require companies to navigate evolving regulatory requirements, particularly regarding environmental standards and safety regulations. Players must balance the development of eco-friendly products with maintaining competitive pricing structures. Building strong technical support capabilities and offering customized solutions for specific applications will become increasingly important differentiators. Companies are also expected to strengthen their local manufacturing presence and distribution networks to reduce dependency on imports and improve supply chain efficiency, while investing in research and development to address emerging market needs and technological advancements.
Malaysia Adhesives Industry Leaders
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3M
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Arkema Group
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AVERY DENNISON CORPORATION
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Henkel AG & Co. KGaA
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Sika AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2021: Under the Nuplaviva brand, Arkema introduced a new range of disposable hygiene adhesive solutions formulated with bio-based renewable content.
- October 2021: 3M introduced a new generation of acrylic adhesives, including 3M Scotch-Weld Low Odor Acrylic Adhesive 8700NS Series, 3M Scotch-Weld Flexible Acrylic Adhesive 8600NS Series, and 3M Scotch-Weld Nylon Bonder Structural Adhesive DP8910NS.
- September 2021: Henkel launched its newly developed solvent-free and zero-VOC adhesive range for rubber lining.
Malaysia 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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