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

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  • 200 Pages
  • February 2024
  • Region: Indonesia
  • Mordor Intelligence
  • ID: 5717124
The Indonesia Adhesives Market size is estimated at USD 0.82 billion in 2024, and is expected to reach USD 1.04 billion by 2028, growing at a CAGR of 6.12% during the forecast period (2024-2028).

The numerous ongoing and planned infrastructure projects in the country to have a key role in the growth of adhesive demand

  • The consumption of adhesives in Indonesia has shown a downward trend in 2020 due to the impact of COVID-19. The consumption was reduced by about 13% in terms of volume in the same year compared to 2019. The lockdown in the country has largely become the major reason for the shortage of adhesives in the country. Moreover, due to the shutdown of production facilities and supply chain disruption, the demand for these adhesives is largely being impacted.
  • The Indonesian packaging industry plays an important role in all industries and businesses. Therefore, the development of the packaging industry cannot be separated from the development of the national industry. In fact, packaging has become one of the determining factors for the competitiveness of national industrial products. In recent years, the packaging sector has grown by 6%-7% year-on-year, with a realized value of IDR 104,728 billion in 2021. In reality, as the COVID-19 epidemic began to spread, the packing business did not suffer considerably. The packaging industry is expected to increase at a 6%-8% annual rate, in conjunction with the growth of the major supporting sectors, such as food and beverage (Mamin), pharmaceutical, and retail.
  • On the other side, the industry is now investing in massive infrastructure projects to accelerate the country's growth. For example, Indonesia is planning to invest over USD 40 billion to expand Jakarta's metro network, which is expected to strengthen the country's construction industry. Indonesia is also planning ambitious construction projects worth more than USD 400 billion in the future years, including the construction of 25 airports and new power plants. All of these variables influence the demand for adhesives.

Indonesia Adhesives Market Trends

The government initiatives to promote paper and paperboard packaging will escalate the industry size

  • The packaging is mainly used for protection, containment, information, utility of use, and promotion. This makes packaging an integral part of most industries. The growing Indonesian market is expected to boost packaging usage and register a CAGR of 4.33% during the forecast period. In 2017, packaging usage accounted for 143.46 million tons of packaging, including paper and paperboard and plastic. Due to COVID-19, in 2020, the market registered a negative growth of -5.77%, and 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 4.28%, with 153.41 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 in the past few years as special packaging is required for shipping goods.
  • The government of Indonesia has taken steps toward the use of plastic, as Indonesia is the second-largest contributor of plastic waste in the ocean after China. The extended producer responsibility (EPR) regulation imposed by the Indonesian government will oblige producers and retailers to redesign their product packaging to have a higher proportion of recyclable material. This will encourage manufacturers to use paper and paperboard as the base material for the packaging, which will increase the volume of adhesives used in the packaging process.
  • In today's competitive market of consumer products, it has become inevitable for companies to use attractive packaging to stand out from their competitors and maintain their brand value in the market.

Considerable growth of export values for automotive parts & components will proliferate the industry growth

  • The automotive industry in Indonesia remains a promising sector that contributes significantly to the country's economic progress. According to Agus Gumiwang Kartasasmita, Minister of Sector Republic of Indonesia, the automobile industry in Indonesia witnessed tremendous growth in 2021, with a double-digit growth rate of 17.82%. In 2019, the country produced about 12,86,848 units of vehicles which drastically reduced to 6,90,176 units in 2020, accounting for a decline of about 46% owing to the COVID-19 pandemic. Due to this reason, the variation in automotive production between 2019 and 2021 resulted in about -13%, whereas between 2020 and 2021, the variation was about 63%.
  • The trade in the automotive sector in Indonesia showed a surplus in all years from 2019 to 2021. Both exports and imports fell in 2020 as a result of the global pandemic, which generated limitations and disruptions in economic activities, so impeding the global supply chain and hurting total production. However, in line with the robust output in 2021, both export and import values increased significantly, with a trade balance of USD 1.93 billion. Although 2021 had the highest level of commercial activity in the prior ten years, the trade balance surplus was the lowest in comparison to 2019 and 2020, which had balance values of USD 2 billion and USD 1.95 billion, respectively.
  • Globally, the development of EVs signaled a fundamental shift in the Indonesian transportation sector's policies. Given the country's nickel reserves, Indonesia is well-placed to become a major player in the global EV supply chain. To be a part of the region's EV future, Indonesia needs to invest in technology, talent resources, renewable energy, and infrastructure.

Indonesia Adhesives Industry Overview

The Indonesia Adhesives Market is fragmented, with the top five companies occupying 19.11%. The major players in this market are 3M, DEXTONE INDONESIA, H.B. Fuller Company, Henkel AG & Co. KGaA and Sika AG (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 Indonesia
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 ALTECO co., ltd.
6.4.4 H.B. Fuller Company
6.4.5 Henkel AG & Co. KGaA
6.4.6 Huntsman International LLC
6.4.7 MAPEI S.p.A.
6.4.8 Pidilite Industries Ltd.
6.4.9 PT. Pamolite Adhesive Industry
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
  • ALTECO co., ltd.
  • H.B. Fuller Company
  • Henkel AG & Co. KGaA
  • Huntsman International LLC
  • MAPEI S.p.A.
  • Pidilite Industries Ltd.
  • PT. Pamolite Adhesive Industry
  • Sika AG