India Contact Adhesive Market By Type (Neoprene, Polyurethane, Acrylic, Styrene Butadiene Copolymer & Others), By Technology (Solvent Based and Water Based), By End-User (Woodworking, Automotive, Leather and Footwear, Construction & Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Contact Adhesive Market By Type (Neoprene, Polyurethane, Acrylic, Styrene Butadiene Copolymer & Others), By Technology (Solvent Based and Water Based), By End-User (Woodworking, Automotive, Leather and Footwear, Construction & Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
| Forecast Period | 2026-2030 |
| Market Size (2024) | USD 390.13 Million |
| CAGR (2025-2030) | 4.26% |
| Fastest Growing Segment | Automotive |
| Largest Market | South India |
| Market Size (2030) | USD 495.37 Million |
Market Overview
India Contact Adhesive Market
There is an increasing focus on innovative adhesive formulations, including water-based and eco-friendly options. Manufacturers are prioritizing the development of adhesives that provide enhanced performance, lower VOC emissions, and greater durability. Compliance with environmental regulations and safety standards is playing a crucial role in shaping product development and market strategies, leading to a heightened demand for low-VOC and eco-friendly adhesives.
Fluctuations in raw material prices can impact the overall cost of contact adhesives and affect market growth. Additionally, there is a growing need for customized adhesive solutions tailored to specific applications, particularly in the automotive and construction sectors. The rise of e-commerce platforms is also making adhesive products more accessible, expanding market reach for manufacturers.
Key Market Drivers
Growing Construction Sector
According to CRISIL’s Infrastructure Yearbook 2023, India is projected to invest approximately USD 1,727.05 billion in infrastructure over the next seven fiscal years, more than double the USD 912.81 billion spent in the previous seven years.
The United Nations estimates that India's population will reach 1.64 billion by 2047, with around 51% expected to live in urban areas.
in March 2024, the Minister of Civil Aviation and Steel announced the launch of 15 airport projects valued at USD12.1 billion, set to be completed by 2028.
Many older structures require renovations to modernize facilities, enhance safety, and improve energy efficiency. This retrofitting often involves significant use of adhesives across various applications. Homeowners are increasingly focused on achieving contemporary aesthetics in older properties, driving up demand for adhesives used in remodeling projects.
The rise of prefabricated and modular construction methods allows for components to be manufactured off-site and assembled on-site, leading to reduced labor costs and shorter construction timelines. Contact adhesives play a critical role in the assembly of these prefabricated components, ensuring secure joints and adherence to quality standards.
Government initiatives like the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) aim to enhance urban infrastructure and housing, further stimulating construction activities.
As urbanization progresses and infrastructure projects expand, the demand for effective bonding solutions is expected to rise, encouraging innovation and growth within the adhesive industry. This dynamic market environment presents significant opportunities for manufacturers to meet a diverse range of applications and consumer needs.
Rising Consumer Electronics Production
India aims for electronics manufacturing worth USD 300 billion and exports of USD 120 billion by FY26.
in October 2023, Bostik, a leading global adhesive specialist, launched its new Thermal Conductive Adhesives (TCA) range at the India Battery Show 2023.
There is also a growing trend towards lighter and more compact electronic devices. Contact adhesives enable manufacturers to reduce weight without sacrificing strength, making them essential for modern electronics production. Additionally, consumer preferences are shifting towards sleek and visually appealing designs, and high-quality contact adhesives facilitate clean finishes and seamless appearances in electronic products, enhancing their market appeal.
As environmental awareness rises, manufacturers are increasingly seeking eco-friendly adhesive solutions, leading to higher demand for water-based and low-VOC contact adhesives and driving innovation in sustainable products. The expansion of e-commerce and retail channels in India further increases the demand for consumer electronics. As more products are produced to meet consumer needs, the requirement for effective bonding solutions in manufacturing grows.
Government initiatives like Make in India support local manufacturing in the electronics sector, promoting investment and production. This governmental backing contributes to the overall growth of the industry and, consequently, the adhesive market. As this sector continues to develop, the demand for high-quality adhesives is expected to rise, presenting substantial opportunities for manufacturers.
Key Market Challenges
Regulatory Compliance
Regulatory compliance poses significant challenges for the contact adhesive market in India, affecting manufacturers' operations and strategic decisions. The adhesive industry must navigate a complex array of regulations from various governmental agencies, including environmental, health, and safety standards. Understanding and adhering to these diverse requirements can be both complicated and time-consuming. Additionally, regulatory frameworks are subject to frequent changes, requiring manufacturers to stay informed and adapt their practices accordingly. This dynamic landscape can create uncertainty, necessitating ongoing training and investment.
Meeting stringent regulations often demands substantial investment in research and development to create formulations that comply with safety and environmental standards, which can strain resources, especially for small and medium-sized enterprises (SMEs). Compliance challenges can also lead to production delays if manufacturers need to reformulate products or implement new processes, potentially disrupting supply chains and impacting market responsiveness.
Manufacturers face increased scrutiny from regulatory bodies, which may conduct regular audits and inspections. Non-compliance can result in penalties, fines, or even business shutdowns, posing significant risks. Regulations often require manufacturers to adopt sustainable practices, which can entail substantial changes to production methods and materials, making it challenging to balance compliance with profitability.
Additionally, ensuring compliance typically requires a skilled workforce that understands regulatory requirements and can implement necessary changes. Finding and retaining such talent can be both difficult and costly. As a result, manufacturers must invest in compliance measures while navigating the complexities of evolving regulations to maintain competitiveness and achieve long-term success in the market.
Price Volatility in Raw Materials
Price volatility in raw materials presents a significant challenge for the contact adhesive market in India, influencing production costs and overall market stability. The prices of key raw materials, such as polymers, solvents, and additives, can fluctuate due to various factors, including geopolitical tensions, natural disasters, and supply chain disruptions. This unpredictability can result in inconsistent production costs. Additionally, shifts in demand across different industries can affect raw material prices. For instance, heightened demand in the automotive or construction sectors can create supply pressures, increasing costs for adhesive manufacturers. Many companies operate with fixed budgets for raw material procurement, and sudden price spikes may compel them to make difficult choices, such as compromising on quality or reducing production output.
The volatility in prices complicates financial planning and forecasting, making it difficult for manufacturers to implement stable pricing strategies. This can lead to potential losses if costs fluctuate unexpectedly. Furthermore, as many raw materials are imported, manufacturers face additional challenges from exchange rate fluctuations and international market dynamics, complicating cost management even further.
Key Market Trends
Focus on Performance and Reliability
The focus on performance and reliability is a key trend in the India contact adhesive market, driven by the requirements of various industries and changing consumer expectations. Sectors like construction, automotive, and electronics demand adhesives capable of withstanding challenging conditions such as temperature variations, moisture, and chemical exposure. As a result, manufacturers are prioritizing the development of high-performance adhesive formulations.
in June 2024, Pidilite Industries Ltd announced that its joint venture, ICA Pidilite Private Ltd, signed a licensing agreement with Industria Chimica Adriatica SPA (ICA) for specific UV technology.
To ensure reliability, manufacturers are implementing rigorous testing protocols to evaluate adhesive performance under various conditions. This commitment to quality assurance builds trust with consumers and businesses alike. As sustainability gains importance, there is a concurrent effort to develop high-performance, environmentally friendly adhesives, enabling compliance with regulatory standards while ensuring reliable performance.
Additionally, researchers at the Indian Institute of Science Education and Research Bhopal (IISER Bhopal) in October 2023, have developed a biodegradable and biocompatible synthetic biomedical adhesive that effectively seals and repairs injured tissues. This adhesive can bond diverse surfaces including tissues, bones, eggshells, and wood both in air and underwater, without the need for crosslinking agents or metal ions.
Consumer and business expectations for consistent adhesive performance over time are prompting manufacturers to uphold high-quality standards throughout their production processes. The rise of modular and prefabricated construction techniques further amplifies the need for strong, reliable adhesives to ensure the structural integrity of assembled components. Overall, this trend not only enhances manufacturer capabilities but also leads to improved outcomes across various applications and sectors.
Segmental Insights
Type Insights
Based on Type, the Neoprene emerged as the dominating segment in the Indian market for Contact Adhesive during the forecast period.
The rapid expansion of the construction industry in India, fueled by urbanization and infrastructure projects, has increased the demand for reliable bonding solutions. Neoprene adhesives are particularly favored for applications in flooring, roofing, and wall panels. In the automotive industry, they are commonly used for assembling various components, further enhancing their popularity in this growing market. Additionally, neoprene adhesives are readily found at through a wide network of distributors and suppliers, ensuring accessibility for manufacturers and consumers alike. Many companies have established brands in the market, fostering familiarity and consumer loyalty. These factors collectively reinforce neoprene's dominance in the India contact adhesive market.
End User Insights
Based on End User, Automotive emerged as the fastest growing segment in the Indian market for Contact Adhesive in 2024. The expanding middle class and rising disposable incomes in India are fueling the demand for automobiles, resulting in increased production rates. Government initiatives such as Make in India are promoting local manufacturing, further enhancing the automotive sector's growth. The industry is increasingly utilizing advanced materials that require high-performance adhesives for assembly, leading to a stronger reliance on contact adhesives.
As manufacturers focus on producing lighter vehicles for improved fuel efficiency, the demand for effective bonding solutions that ensure structural integrity is growing. Contact adhesives play a crucial role in bonding various vehicle components, including interior trims, dashboards, panels, and underbody parts, thus offering diverse applications within the automotive sector.
The automotive industry is actively pursuing environmentally friendly adhesives as part of its sustainability efforts, driving innovation and growth in the adhesive market. The expanding automotive aftermarket, which includes repairs and modifications, is also boosting the need for adhesives in applications like upholstery and aftermarket accessories. This trend is expected to persist as the automotive sector adapts to evolving consumer preferences and regulatory requirements, presenting significant opportunities for adhesive manufacturers.
Regional Insights
in August 2024, Roff, a tile adhesive brand under Pidilite Industries, launched a manufacturing facility in Jadcherla, near Hyderabad, to address the rising demand for quality tile adhesive products in the markets of Andhra Pradesh, Telangana, and northeastern Karnataka.
Many adhesive manufacturers have established operations in the south, enabling faster response times and reduced logistics costs. This local production strengthens the supply chain and ensures adhesives are more readily found at. Rapid urbanization in cities like Bengaluru, Chennai, and Hyderabad is contributing to a growing demand for both residential and commercial buildings, leading to heightened construction activity.
Additionally, the southern region has a vibrant consumer goods market, including furniture and home decor, which utilizes adhesives for applications such as woodworking, upholstery, and packaging, further increasing overall adhesive consumption. The textile and footwear industries, particularly prevalent in Tamil Nadu, also depend heavily on adhesives in their production processes, contributing to market growth.
Recent Development
- InSeptember 2024, Pidilite Industries Ltd signed a distribution agreement withCollTech Group. As part of this partnership, Pidilite will act as the exclusivedistributor for CollTech’s wide range of products in India. The collaborationaims to strengthen CollTech's market presence in the region.
- InJuly 2024, Henkel Adhesives Technologies India Private Limited (Henkel India)announced the completion of Phase III of its manufacturing facility inKurkumbh, near Pune, Maharashtra. Launched in 2020, this site addresses therising demand for high-performance adhesives, sealants, and surface treatmentproducts in Indian industries. The new Loctite plant, named after Henkel'swell-known brand, was inaugurated by Mark Dorn, Executive Vice President ofHenkel Adhesive Technologies. This facility aims to close the supply-demand gapfor high-performance adhesive solutions in the manufacturing, maintenance, repair,and overhaul (MRO), and automotive sectors. The facility complies with thehighest sustainability standards and has achieved LEED Gold certification.
- InJune 2024, SIAM Cement BigBloc Construction Technologies Pvt Ltd, a jointventure between Gujarat-based BigBloc Construction Ltd and Thailand's SCGInternational Corporation Co., Ltd., commenced operations in India with thecommercial production of its inaugural plant in Kheda, Gujarat. The jointventure has invested approximately USD 7.74 Million to establish a project witha capacity of 250,000 cubic meters per year, which includes India’s first AACWall Plant in the Kheda district near Ahmedabad. The AAC Wall products will bemarketed under the brand name 'ZMARTBUILD WALL by NXTBLOC.' The joint venturewill also produce AAC Blocks.
- InApril 2024, Toyo Ink India announced plans to enhance productioncapacity for solvent-based adhesives at its Gujarat manufacturing facility. Theexpansion includes the construction of a new production facility on-site toaddress increasing local demand. This new plant is expected to commenceoperations in April 2026, significantly increasing the adhesive capacity of theGujarat site by 3.5 times its current output.
Key Market Players
- Pidilite Industries Limited
- Parson Adhesives India Private Limited
- H.B. Fuller India Adhesives Pvt. Ltd.
- Sika India Pvt Ltd.
- Henkel Adhesives Technologies India Pvt.Ltd.
- Sonal Adhesives Limited
- Benson Polymers Limited
- Astral Limited
- Ester Chemical Industries Pvt. Ltd.
- Metlok Private Limited
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