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Brazil Adhesives - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2028

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  • 208 Pages
  • February 2024
  • Region: Brazil
  • Mordor Intelligence
  • ID: 5717122
The Brazil Adhesives Market size is estimated at USD 1.79 billion in 2024, and is expected to reach USD 2.16 billion by 2028, growing at a CAGR of 4.81% during the forecast period (2024-2028).

A spike in raw material prices in the coming years is expected to influence the demand for adhesives

  • Brazil is the highest consumption country for adhesives in South America. Packaging, construction, and other sectors rely heavily on adhesives. Volkswagen, Golabalpack, and MPD are among the country's top adhesive consumers. Packaging is the most important end-user industry for adhesives, accounting for USD 614.4 million of the country's overall adhesives market. Top water-based technological adhesives are commonly used in labeling applications in the packaging sector to produce a bind between plastic, metal, and paper substrates. Water-borne adhesives are the least expensive of all forms of adhesives, costing half as much.
  • Brazil's demand for construction adhesives and sealants is directly dependent on the construction activities in the country. The slow recovery from the 2015 recession and uncertainty in the country's macroeconomic policy framework restricted construction activities in Brazil till 2019. Brazil's building and construction industry registered a Y-o-Y growth of 2% in Q2 2019 because of strong demand from the civil construction sector. This growth came after 20 quarters of continuous decline.
  • In 2022, the growth was expected to decline from 10.99% in 2021 to 5.8% because of rising raw material prices. This has significantly increased the overall construction cost in Brazil and resulted in construction delays. The Brazilian government's mortgage subsidy, which has lowered the housing interest rates from 8.16% to 7.66% for low-budget homes, is expected to cushion the impact of raw material price hikes. All such factors are expected to boost the demand for adhesives across the country over the forecast period.

Brazil Adhesives Market Trends

Plastic packaging with the largest share of around 64% in overall production to drive the packaging industry

  • The packaging is mainly used for protection, containment, information, utility purpose, and promotion. The growing market of Brazil is expected to boost packaging usage and register a CAGR of 3.27% during the forecast period. In 2017, packaging usage accounted for 144.3 million tons of packaging, including paper and paperboard and plastic. Due to COVID-19 in 2020, the market registered a negative growth of -6.56%, this was due to disruption in the supply chain, shortage of packaging material, restrictions on the import and export of goods, and factories operating at low capacity.
  • In 2021, the market registered a positive growth of 3.72%, with 147.7 million tons of packaging material used for various purposes. It is expected that the packaging industry will keep growing as there has been a rise in the e-commerce sector which has given a significant boost to the packaging industry as special packaging is required for shipping goods. The Brazil e-commerce market grew by 31% in the first half of 2021, and in 2020, it had already grown by 40%. 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.
  • The Brazilian government has taken steps toward the use of plastic as regulations have been made to include recyclable plastics in their product packaging. Packaging production is majorly driven by plastic in the country, which nearly accounts for around 64% of the packaging produced in 2021. With the advancement of plastic recyclability, the plastic segment is likely to maintain a CAGR of around 3.50% during the projected period.

Increasing demand for electric vehicles will augment the industry’s growth

  • Brazil has a GDP of 8,570 USD per capita, with a growth rate of 0.8% Y-o-Y in 2022. The automotive industry sector contributes around 5.5% of the GDP. Brazil is the 8th largest producer of automotive vehicles in the world and the 2nd largest producer in Latin America after Mexico. The vehicle production comprised 76% passenger vehicles, 16% light commercial vehicles, 7% heavy trucks, and 1% buses in 2021.
  • The economic slowdown in the country was observed in 2020 because of the COVID-19 impact. This results in a reduction in vehicles in terms of production, sales, and exports. The production sharply decreased by 31%, and exports decreased by almost 25% in 2020 compared to 2019. The supply chain disruptions, lockdowns in the country, and chip shortage are the major reasons behind this decline in production. Despite these situations, Brazil is able to secure the 8th position in vehicle production in the same year.
  • The company has shown recovery in 2021 and onwards since the economy came back to normal through the regular supply of raw materials, imports and exports, and the opening of lockdowns. The production and exports increased by 10% and 29%, respectively, in 2021 compared to the year 2020. Electric vehicle registrations also increased by 77% in 2021 in Brazil, and it is expected to increase further in the coming years, which shows the future connectivity trend.
  • The production of automobiles is going to increase further due to the investments of multinational automotive manufacturers, such as BMW, Mercedes-Benz, Audi, and Volkswagen, in Brazil.

Brazil Adhesives Industry Overview

The Brazil Adhesives Market is fragmented, with the top five companies occupying 24.70%. The major players in this market are 3M, Arkema Group, AVERY DENNISON CORPORATION, H.B. Fuller Company and Henkel AG & Co. KGaA (sorted alphabetically).

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4.1 End User Trends
4.1.1 Aerospace
4.1.2 Automotive
4.1.3 Building and Construction
4.1.4 Footwear and Leather
4.1.5 Packaging
4.1.6 Woodworking and Joinery
4.2 Regulatory Framework
4.2.1 Brazil
4.3 Value Chain & Distribution Channel Analysis
5 MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2028 and analysis of growth prospects)
5.1 End User Industry
5.1.1 Aerospace
5.1.2 Automotive
5.1.3 Building and Construction
5.1.4 Footwear and Leather
5.1.5 Healthcare
5.1.6 Packaging
5.1.7 Woodworking and Joinery
5.1.8 Other End-user Industries
5.2 Technology
5.2.1 Hot Melt
5.2.2 Reactive
5.2.3 Solvent-borne
5.2.4 UV Cured Adhesives
5.2.5 Water-borne
5.3 Resin
5.3.1 Acrylic
5.3.2 Cyanoacrylate
5.3.3 Epoxy
5.3.4 Polyurethane
5.3.5 Silicone
5.3.6 VAE/EVA
5.3.7 Other Resins
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
6.4.1 3M
6.4.2 Arkema Group
6.4.4 Brascola
6.4.5 Dow
6.4.6 H.B. Fuller Company
6.4.7 Henkel AG & Co. KGaA
6.4.8 Poliplas Group
6.4.9 Saint-Gobain
6.4.10 Sika AG
8.1 Global Adhesives and Sealants Industry Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework (Industry Attractiveness Analysis)
8.1.3 Global Value Chain Analysis
8.1.4 Drivers, Restraints, and Opportunities
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • 3M
  • Arkema Group
  • Brascola
  • Dow
  • H.B. Fuller Company
  • Henkel AG & Co. KGaA
  • Poliplas Group
  • Saint-Gobain
  • Sika AG