Indonesia Adhesives & Sealants Market - Segmented by Technology, Product Type, and End-User Industry - Growth, Trends, and Forecast (2018 - 2023)
The Indonesian adhesives & sealant market is expected to grow at CAGR of 5.47% during the forecast period (2018 - 2023), due to its rapid economic and industrial growth. The growth of the various end-user industries of adhesives and sealants in Indonesia is likely to fuel the growth of the market.
Increasing Adoption of Low-Cost Flexible Packaging
The demand for low-cost flexible packaging has been consistently increasing in Indonesia, owing to a steady rise in food export and a growth in the food processing sector. The shifting of the consumers’ preference towards modern food habits is boosting the demand for packaged food, thereby, increasing the usage of low-cost flexible packaging. Moreover, with technological advancements, companies are increasingly opting for flexible packaging over traditional rigid packaging. The benefits offered by rigid packaging can now be easily achieved by flexible packaging with greater flexibility and at a comparatively low cost. Many PSA manufacturers in the country are engaged in the manufacture of flexible and low-cost packaging items that are easy to use and are eco-friendly. Therefore, the increasing adoption of low-cost flexible packaging in the country is expected to drive the Indonesian adhesive market.
Moreover, the adhesives demand in the country is increasing gradually, thereby, boosting the country to import more raw materials, affecting the country export basket negatively.
Acrylics Dominates the Water-borne Adhesives Market
Acrylics have the highest market share in the Indonesian water-borne adhesive market. Owing to their high strength, acrylic adhesives are commonly used for building and construction applications, and a specialized variation is widely used for bonding implant prostheses to bones. They find a wide range of applications in the health and medical fields, electronic parts production, and appliance as well as automotive manufacturing.
The rapidly expanding automotive industry in Indonesia is resulting in an increased consumption of acrylic-based water-borne adhesives. Additionally, increasing industrial investment, robust income growth, and high GDP growth in the emerging economies are expected to drive the demand for acrylic adhesives in Indonesia.
Growing Scope for Building & Construction Industry
The Indonesian building & construction industry is currently experiencing a rise. As it is a developing economy, the Government of Indonesia is implementing various infrastructural projects to boost transport, logistics, and ICT in the country. Rail infrastructure, energy projects, airport upgradation projects, industrial construction, and construction of parks are the main focus of the government, which is expected to help in boosting the economy. The rise in the above-stated factors with the increase in the number of residential building and construction projects is expected to increase the demand for adhesives used for various purposes in the building & construction industry.
Notable Developments in the Market
January 2018: Henkel Indonesia opens its first-of-its-kind adhesive innovation hub in Bintaro, South Tamgerang.
The major players include - HENKEL-INDONESIA (PT. HENKEL INDONESIA), SIKA-INDONESIA, 3M IN INDONESIA (PT. 3M INDONESIA), H.B. FULLER IN INDONESIA, PT. DYNO INDRIA/PT. AICA INDRIA, and PT. INDOCHEMIE JELYNA LEMINDO PRIMA, amongst others.
Reasons to Purchase this Report
To understand the impact of end-user applications on the market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand the dominating technology in the market
Identify the latest developments, market shares, and strategies employed by the major market players
3-month analyst support, along with the Market Estimate sheet (in Excel)
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