Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 1.34 Billion |
| Market Size (2028) | USD 1.66 Billion |
| Growth Rate (2024 - 2028) | 5.62% 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. |
|
South Korea Adhesives Market Analysis by Mordor Intelligence
The South Korea Adhesives Market size is estimated at 1.34 billion USD in 2024, and is expected to reach 1.66 billion USD by 2028, growing at a CAGR of 5.62% during the forecast period (2024-2028).
South Korea's adhesives industry is experiencing significant transformation driven by the nation's strong focus on sustainable manufacturing practices and environmental regulations. The government has implemented a comprehensive policy framework promoting integrated waste and material management, incorporating pay-as-you-throw and Extended Producer Responsibility (EPR) principles. This shift towards sustainability is evidenced by the government's ambitious target to reduce plastic waste by 50% by 2030, alongside achieving a 70% recycling rate, up from the current 34%. These initiatives are reshaping manufacturing processes and product development strategies across the adhesives sector, with companies increasingly investing in sustainable adhesives formulations and sustainable production methods.
The automotive sector remains a crucial driver of the adhesives market, with the industry accounting for 13% of South Korea's manufacturing production and employing approximately 12% of the workforce. The sector is undergoing a significant transformation with Hyundai Motor Group's announcement in 2022 to invest KRW 63 trillion (USD 48 billion) by 2025, focusing on electric vehicle production and advanced manufacturing technologies. This transformation is further supported by the government's commitment to electrify 33% of all vehicles by 2030, backed by a substantial R&D investment of USD 125.9 million in alternative powertrains, which is driving innovation in automotive adhesives applications.
The healthcare and medical device sector is emerging as a significant growth area for specialized medical adhesives, with the medical device industry projected to reach USD 10.48 billion by 2027. This growth is driven by increasing demand for advanced medical devices, surgical equipment, and wound care products that require high-performance medical adhesives solutions. The industry's expansion is supported by substantial investments in research and development, focusing on developing biocompatible adhesives that meet stringent medical standards and regulations.
The packaging industry is witnessing a paradigm shift towards sustainable solutions, driven by both regulatory requirements and changing consumer preferences. South Korean manufacturers are increasingly adopting water-based and hot-melt packaging adhesives that offer improved environmental performance while maintaining high bonding efficiency. This transition is particularly evident in the food and beverage sector, where manufacturers are developing innovative packaging adhesives solutions that comply with strict safety standards while supporting the nation's circular economy objectives. The industry's focus on sustainability is complemented by investments in advanced manufacturing technologies and automation, enabling more precise application methods and reduced waste generation.
South Korea Adhesives Market Trends and Insights
Paper packaging having 33% of share in overall packaging production will propel the market
- South Korea is one of the major packaging industries in the Asia-Pacific region. The packaging industry contributes around 2.2% to the country's GDP. Trade exchange, employment, labor charges, and government policy support are the factors that are affecting the South Korean packaging industry.
- In 2020, an economic slowdown in the country was observed due to the impact of the COVID-19 pandemic. The production volume reduced by 4.75% in the same year compared to 2019 due to a supply chain disruption, labor shortages, and a lockdown in the country for nearly three months. However, economic recovery in the country was observed as international borders were opened in 2021, which resulted in a regular supply of raw materials for production that increased by 5,600 tons in 2021.
- In South Korea, paper is largely used for packaging, accounting for 33% of the total packaging production. Corrugated box packaging is also widely used in the country. The production of these boxes suddenly increased by 21% in 2020, producing 3373 million units in the same year. Production was raised due to online deliveries by the e-commerce industry in the country. Packaging is mainly used for food protection, healthcare, and beauty products in the country.
- Packaric, DAEDO, and Asia Korea Printing are the top packaging companies in South Korea. The trend of flexible packaging in the country is expected to boost the growth of the packaging industry. The flexible packaging market is expected to record a CAGR of 3.4% during 2022-2026.
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Rapid growth of electric vehicles to boost the automotive sector
- The South Korean automotive industry is the seventh-largest in the world, with a production share of over 4.5% in the first half of 2021. The automotive industry in the country is heavily dependent on exports. As exports decreased, automobile production decreased for the fourth straight year. In 2019, automotive production in the country declined by 1.9% to 3.95 million vehicles, compared to the previous year’s 4.03 million vehicles. The decline in production was due to a decrease in domestic and international sales. The automotive industry is expected to decline further due to COVID-19, impacting sales and production until early 2021.
- In 2019, the country recorded about 39,50,614 units of vehicles produced, which drastically reduced to 35,06,774 units in 2020, accounting for a decline of about 11% owing to the COVID-19 pandemic. The variation in automotive production between 2019 and 2021 recorded around 12%, whereas between 2020 and 2021, the variation recorded around -1%.
- Currently, there are several developments related to increasing electrification adoption in the country, due to which the country has largely focused on the production of EVs. The accumulated number of electric vehicles in South Korea surpassed the 300,000 mark in the second quarter of 2022, taking 1.2% of the total number of registered vehicles in the country. Hyundai Motor Group, one of the largest car manufacturers in the country, has taken steps to open new production facilities to increase EV production in the country. The growing adoption of sustainability in the country may boost the growth of the automotive sector in the coming years.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing MRO services for commercial and defense aircraft will drive the industry size
- Increasing popularity of trendy and performance shoes among the young population will foster the industry growth
- Rising investment in residential construction along with government initiatives will augment the sector
- Restoration of old furniture along with growing demand for smart solutions for office & storage units to thrive the industry growth
Segment Analysis: End User Industry
Packaging Segment in South Korean Adhesives Market
The packaging segment dominates the South Korean adhesives market, holding approximately 27% market share in 2024. This dominance is driven by robust growth in the country's packaging industry across the food and beverage, cosmetics, healthcare, and consumer goods sectors. The segment's leadership position is primarily attributed to the increasing adoption of rigid plastic packaging, which accounts for nearly 37% of the overall packaging industry in the country. Water-based adhesives are predominantly used in food packaging lamination as an effective and sustainable alternative to solvent-based systems, while hot-melt adhesives are gaining traction due to their economic benefits and easy-to-create bonding properties. The segment's growth is further supported by the rising demand for recyclable and sustainable packaging solutions across South Korea.
Footwear and Leather Segment in South Korean Adhesives Market
The footwear and leather segment is emerging as the fastest-growing segment in the South Korean adhesives market, with an expected growth rate of approximately 9% during 2024-2029. This remarkable growth is primarily driven by the increasing adoption of waterborne technology-based adhesives by South Korean footwear manufacturers, as these adhesives are more eco-friendly and have low VOC contents. The segment's growth is further supported by the rising preference for hot-melt adhesives, which account for about 25% of the market share due to their easy application and safety features. These adhesives are particularly valuable in joining parts to insoles and other applications, offering long-lasting performance in various weather conditions.
Remaining Segments in End User Industry
The South Korean adhesives market encompasses several other significant segments, including automotive, healthcare, building and construction, woodworking and joinery, and aerospace industries. The automotive sector maintains a strong presence due to the country's position as a global automotive manufacturing hub. The healthcare segment is driven by the growing medical device industry and increasing adoption of advanced adhesive solutions. The building and construction segment is supported by government infrastructure initiatives, while the woodworking and joinery segment caters to the furniture manufacturing industry. The aerospace segment, though smaller, serves specialized applications in aircraft manufacturing and maintenance operations, where aerospace adhesives play a crucial role.
Segment Analysis: Technology
Hot Melt Segment in South Korean Adhesives Market
Hot melt adhesives dominate the South Korean adhesives market, holding approximately 29% market share in 2024. The segment's prominence can be attributed to its widespread applications across packaging, disposable hygiene products, automotive, and bookbinding sectors. Within the hot-melt adhesives market, the styrene block copolymers (SBCs) segment maintains its position as the largest by polymer type, owing to superior properties like enhanced cohesion, strength, and heat resistance. These characteristics have made hot melt adhesives particularly valuable in the pressure-sensitive adhesives industry. The segment's strong performance is further supported by the growing demand in end-use industries like packaging and automotive, where fast processing and environmentally friendly properties are highly valued.
Water-borne Segment in South Korean Adhesives Market
The water-borne adhesives segment is experiencing the fastest growth in the South Korean market, with a projected growth rate of approximately 6% during 2024-2029. This rapid expansion is driven by manufacturers' increasing preference for water-based adhesives over solvent-based alternatives, primarily due to their lower operational costs and higher production capacities. These adhesives don't require specialized permits or handling charges, unlike solvent-borne adhesives, making them more cost-effective. The segment's growth is particularly strong in construction applications, where water-borne adhesives hold the second position among other technologies, with acrylic water-borne adhesives being the most commonly utilized in flooring, laminating, and ceramic tile applications. The environmentally friendly nature, low VOC levels, and worker safety benefits continue to drive the adoption of water-borne adhesives across various industries.
Remaining Segments in Technology Segmentation
The other significant segments in the South Korean adhesives market include reactive adhesives, solvent-borne, and UV-cured adhesives, each serving distinct industrial applications. Reactive adhesives are particularly valued in the automotive sector for their high-strength adherence and substantial permanency properties. Solvent-borne adhesives, while facing regulatory challenges due to VOC content, continue to maintain their presence in specific applications where their unique properties are essential. UV-cured adhesives have carved out a niche in the market, particularly in electronics and medical device manufacturing, where precision and rapid curing are crucial. These segments collectively contribute to the market's diversity, offering specialized solutions for specific industrial requirements and applications.
Segment Analysis: Resin
Polyurethane Segment in South Korea Adhesives Market
Polyurethane adhesives maintain their dominant position in the South Korean adhesives market, holding approximately 25% market share in 2024. The segment's leadership is primarily driven by its widespread applications across multiple industries, particularly in building construction, woodworking, and automotive sectors. These adhesives are especially preferred for exterior applications due to their superior bonding strength, flexibility, and excellent resistance to environmental factors. The segment's growth is further supported by increasing demand in the automotive industry, particularly in electric vehicle production, where polyurethane adhesives are essential for bonding various components. Additionally, the construction sector's steady growth and the increasing adoption of polyurethane-based adhesives in modern building techniques have contributed significantly to maintaining its market leadership.
VAE/EVA Segment in South Korea Adhesives Market
The VAE/EVA segment is emerging as the fastest-growing category in the South Korean adhesives market, with an expected growth rate of approximately 7% during 2024-2029. This remarkable growth is primarily attributed to its increasing adoption in the packaging industry, where these adhesives are extensively used for bonding various films in food packaging and boxes. The segment's growth is further accelerated by its expanding applications in the healthcare sector, where VAE/EVA adhesives are gaining popularity due to their versatility and performance characteristics. The increasing demand from the construction sector, particularly in applications such as edge banding, profile laminating, and insulation panel bonding, is also contributing to its rapid growth. Additionally, the segment benefits from these adhesives' ability to function across a wide temperature range and their competitive pricing compared to other adhesive types.
Remaining Segments in Resin Segmentation
The South Korean adhesives market encompasses several other significant resin segments, including acrylic adhesives, cyanoacrylate, epoxy adhesives, and silicone adhesives, each serving specific industrial applications. Acrylic adhesives are particularly valued in the construction and automotive sectors for their excellent weather resistance and durability. Cyanoacrylate adhesives have carved out a niche in the healthcare and electronics industries due to their rapid curing properties. Epoxy adhesives continue to be crucial in structural applications, offering high bond strength for automotive and construction uses. Silicone adhesives maintain their importance in applications requiring high temperature resistance and flexibility. These segments collectively contribute to the market's diversity and cater to specific industrial requirements, complementing the overall adhesives ecosystem in South Korea.
Competitive Landscape
Top Companies in South Korea Adhesives Market
The South Korean adhesives market is characterized by companies focusing on strategic initiatives to strengthen their market positions. Product innovation remains a key trend, with manufacturers developing sustainable and high-performance specialty adhesives for various industries, particularly in the packaging, automotive, and electronics sectors. Companies are emphasizing environmentally friendly solutions, including solvent-free and low-VOC bonding agents, to align with regulatory requirements and changing customer preferences. Operational agility is demonstrated through investments in R&D facilities and manufacturing capabilities, enabling quick responses to market demands. Strategic partnerships and collaborations, particularly in developing sustainable solutions and expanding distribution networks, have become increasingly important for market players. Companies are also expanding their presence through well-established distribution channels and offering customized solutions for specific industry needs.
Market Structure Shows Mixed Global-Local Presence
The South Korean adhesives market exhibits a fragmented structure with a mix of global conglomerates and local specialists competing for market share. Global players like Henkel AG & Co. KGaA maintain a significant presence through extensive product portfolios and established distribution networks, while local companies such as OKONG Corp. and Unitech Co. Ltd have carved out strong positions by focusing on specific industry segments and leveraging their understanding of local market dynamics. The market demonstrates a balanced competition between multinational corporations and domestic players, with local manufacturers particularly strong in sectors like woodworking and packaging.
The competitive landscape is characterized by ongoing consolidation efforts, though the market remains relatively fragmented with the top five companies occupying approximately one-quarter of the market share. Companies are strengthening their positions through strategic acquisitions and partnerships, particularly in specialized segments like electronic adhesives and automotive adhesives. Local players are increasingly focusing on technology partnerships and product development collaborations to enhance their competitive positions against global giants, while international companies are expanding their local manufacturing and R&D capabilities to better serve the Korean market.
Innovation and Sustainability Drive Future Success
Success in the South Korean adhesives market increasingly depends on companies' ability to innovate while meeting sustainability requirements. Incumbent players are focusing on developing eco-friendly products and investing in advanced manufacturing technologies to maintain their market positions. Companies are establishing strong relationships with key industries like electronics, automotive, and packaging, while also expanding their distribution networks to reach smaller customers. The ability to provide customized solutions for specific applications, combined with technical support and after-sales service, has become crucial for maintaining market share.
For contenders looking to gain ground, the focus needs to be on developing specialized products for high-growth segments while building a strong local presence through strategic partnerships. Companies must address the increasing demand for sustainable solutions while maintaining cost competitiveness. The market shows particular sensitivity to environmental regulations and end-user industry requirements, making regulatory compliance and certification crucial for success. Future growth opportunities lie in developing innovative solutions for emerging applications in electronics and sustainable packaging, while also maintaining strong relationships with key industrial customers.
South Korea Adhesives Industry Leaders
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3M
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BURIM CHEMICAL CO., LTD
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Henkel AG & Co. KGaA
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OKONG Corp.
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Unitech Co., Ltd
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- 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.
- July 2021: H.B. Fuller announced a strategic agreement with Covestro to offer sustainable adhesives in the market.
South Korea 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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