Most of the raw materials for adhesives and sealants are petroleum-derived, whose price vary directly with the price of oil & gas and, currently, the low crude oil prices are driving the market. Primary factors driving the South East Asia market are the accelerating demand from the automotive industry, increasing demand from the packaging industry, and shifting focus towards composites.
The construction sector in Indonesia has been a signification contributor towards the country’s GDP. It grew from IDR 125.3 trillion in 2003 to IDR 907.3 trillion in 2013 and accounts for about 10% of the GDP, currently. This growth is expected to continue due to the demand for housing and the plans of the public sector. This is a positive sign signaling towards the increase in demand for adhesives. Also, the Malaysian construction industry outlook is quite impressive, though the global economic climate is volatile. The Malaysian economy is postulated to remain on steady growth, with an expansion of around 6 % towards 2020 and beyond.
However, this market faces certain drawbacks, such as stringent environmental regulations regarding VOC emissions, and economic slowdown in some countries of South East Asia. These factors may act as a roadblock to the growth of the market. The Thai economy faces challenges with consumer confidence remaining fragile and the economy under pressure from the rising oil prices, an over-valued Baht, a slow-down in demand from the key markets, a rising inflation rate, and declining work place competitiveness. Moreover, due to the political uncertainty present in Thailand for the past few years, the government’s expenditure has slowed down on various construction activities.
The South East Asia adhesives market has been segmented based on end-user industry into - building & construction, packaging, wood-work & joinery, transportation, footwear & leather, healthcare, electronics and other industries. The paper, board, & packaging segment accounted the highest share in the adhesives market, with about 20% in 2016.
The South East Asia adhesives market, based on technology, is broadly segmented into water-borne adhesives, solvent-borne adhesives, reactive adhesives, hot melt adhesives, and others. The reactive adhesives segment is expected to witness the highest growth rate during the forecast period, and the water-borne adhesives segment accounts for the highest share in the market, accounting for over 40% of the South East Asia market.
The water-based adhesives have been further segmented based on the product type into acrylic, polyvinyl acetate (PVA), ethylene vinyl acetate (EVA), latex and others. The solvent-borne adhesives market has been further segmented into - styrene buta-styrene (SBS), chloroprene rubber (CR), polyacrylate and others. The hot-melt adhesives market has been sub-segmented into ethylene vinyl acetate, synthetic rubbers and others.
The market has also been geographically segmented into Indonesia, Malaysia, Thailand, Vietnam, the Philippines, Singapore, Myanmar, and other ASEAN countries. Indonesia has the highest share in the market, in terms of volume and revenue, accounting for over 30% of the South East Asia market revenue and is expected to be the fastest-growing during the forecast period, owing to the presence of emerging and developing countries in the region.
Opportunities and Major Players
The increasing adoption of adhesive bonding technologies, instead of conventional bonding technologies, availability of high-performance materials and bio-based alternatives, and the increasing FDIs will offer numerous opportunities for the growth of the South East Asia adhesives market. Some of the major companies dominating this market for its products, services, and continuous product development are:
- Henkel AG & Co. KGaA
- HB Fuller
- Arkema Group (Bostik)
- ITW (Illinois Tools Works)
1.2 Research Methodology
1.3 Scope of the Report
2. Executive Summary
3. Market Insights
3.1 Current Market Scenario
3.2 Industry Value Chain Analysis
3.3 Industry Attractiveness - Porter's Five Force Analysis
3.3.1 Bargaining Power of Suppliers
3.3.2 Bargaining Power of Buyers
3.3.3 Threat of New Entrants
3.3.4 Threat of Substitute Products & Services
3.3.5 Degree of Competition
4. Market Dynamics
4.1.1 Increasing Adoption of Low-Cost Flexible Packaging Aids
4.1.2 Thriving Automotive Sector in Indonesia
4.1.3 Increased Consumer Spending in Thailand
4.2.1 Declining Automotive Production in Thailand and Malaysia
4.2.2 Decline in Commodity Exports
4.3.1 Rising Popularity of Bio-Based Alternatives
4.3.2 Growing Foreign Direct Investment in the Region
4.3.3 Expanding Construction in ASEAN Countries
5. Market Segmentation and Analysis
5.1 By Technology
18.104.22.168 Polyvinyl Acetate (PVA) Emulsion
22.214.171.124 Ethylene Vinyl Acetate (EVA) Emulsion
126.96.36.199 Polyurethane Dispersions (PU) & CR (Chloroprene Rubber) Latex
188.8.131.52 Styrene-Butadiene Rubber (SBR)
184.108.40.206 Chloroprene Rubber
220.127.116.11 Poly Acrylate (PA)
18.104.22.168 Modified Acrylics
22.214.171.124 Ethyl Vinyl Acetate
126.96.36.199 Synthetic Rubbers
188.8.131.52 Thermoplastic Polyurethanes
5.2 By End-User Industry
5.2.1 Building & Construction
5.2.2 Paper, Board, & Packaging
5.2.3 Woodworking & Joinery
5.2.5 Footwear & Leather
5.2.7 Electrical & Electronics
5.3 Pressure-Sensitive Adhesives
5.3.1 By Technology
184.108.40.206 Hot Melt
5.3.2 By Application
5.3.3 By Resins
220.127.116.11 Other (PU, Epoxies, Vinyl Acetates, etc.)
5.3.4 By Mode of Application
6. Regional Market Analysis
6.5 The Philipines
6.8 Other ASEAN Countries
7. Competitive Landscape
7.1 Mergers & Acquisitions
7.2 Joint Ventures Collaborations and Agreements
7.3 Market Share Analysis
7.4 Strategies Adopted by Leading Players
8. Company Profiles
8.1.2 Adtekin Malaysia
8.1.3 Henkel (Malaysia) Sdn. Bhd.
8.1.4 Jowat Manufacturing (Sea) Sdn. Bhd
8.1.5 H. B. Fuller Adhesives Malaysia Sdn. Bhd.
8.1.6 Wilron Products Sdn. Bhd.
8.1.7 Chemibond Enterprise Sdn. Bhd.
8.1.8 Malayan Adhesives & Chemicals Sdn. Bhd.
8.1.9 Rovski Sdn Bhd.
8.1.10 Mohm Chemical Sdn. Bhd.
8.1.11 Vital Technical Sdn Bhd
8.1.12 Affluent Cycle Industries Sdn. Bhd.
8.1.13 Mapei Malaysia Sdn. Bhd.
*list not exhaustive
8.2.1 Pt. Dyno Indria/ PT. Aica Indria
8.2.2 Pt. Indochemie Jelyna Lemindo Prima
8.2.3 PT Akr Corporindo Tbk, Through Its Subsidiary PT Arjuna Utama Imia (Aruki)
8.2.4 Lemindo Group
8.2.5 Makro Rekat Sekawan
8.2.7 Nan Pao Group
8.2.8 PT Arindco Pacific Chemicals - Indonesia
8.2.9 PT. Higo
8.2.10 PT Jowat
*list not exhaustive
8.3.1 Starbond (Thailand)
8.3.2 Oji Label (Thailand) Limited
8.3.3 Bond Chemicals (Thailand) Limited
8.3.4 Thai Mitsui Specialty Chemicals Co., Limited
8.3.5 Asia Cemedine Co Ltd (Acc)
* List not Exhaustive