Thailand Adhesives and Sealants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Thailand Adhesives and Sealants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Thailand adhesives and sealants market was valued at USD 284.11 million and is projected to grow at a CAGR of 6.02% during the forecast period (2021-2026).

The spread of covid-19 in the region impacted the automotive sector of the country due to long lockdowns and shortage of raw materials in the country. According to the Automotive Industry Association of Thailand and The Federation of Thai Industries, total vehicle production in the first half of 2020 decreased by about 40 percent compared to the same period in 2019 to around 100,000 units per month, while exports declined by 33 percent. Such decrease in demand from various end-use sectors due to Covid-19 is expected to hinder the demand for adhesives and sealants in the country during the short term.

Key Highlights

• Over the short term, major factors driving the market studied are increasing demand from the packaging industry and shifting focus towards adhesive bonding for composite materials in the country.
• On the flip side, stringent environmental regulations regarding VOC emissions and the negative impact of COVID-19 are hindering the market's growth.
• Increasing demand for bio-based adhesives is expected to offer various opportunities for the market's growth over the forecast period.

Key Market TrendsPaper, Board, and Packaging Segment to Dominate the Market

• Adhesives are used for various paper bonding applications, ranging from corrugated box construction to lamination of printed sheets and packaging materials used for all types of consumer products. They are also used in the production of large industrial tubes and cores that are used by manufacturers of role goods.​
• The packaging industry is one of the largest end-users of adhesives. Some of the applications include bags, cigarettes and filters, cartons’ side seams and closures, composite containers and tubes, disposables, envelopes, flexible packaging, remoistenable products, labels/signs/decals, specialty packaging, and corrugated boards, among others.​
• Paper board printing houses use adhesives for books. There are around 2,000 printing houses in Thailand, most of which are small- to medium-scale. Large-scale establishments account for less than 1% of the total number. Thousands of establishments are involved in the packaging industry. The big multinational manufacturers, such as Alcan Packaging, StrongpackCo. Ltd, SIG Combibloc, and Tetra Pak Manufacturing (Thailand) Ltd, dominate the flexible packaging, liquid carton, and glass packaging markets in Thailand. The food processing sector is the largest user of flexible packaging, accounting for more than 50% of the total demand.
• With the increasing population and the rising demand for packaged foods, several food manufacturing companies are setting up their manufacturing bases in the country, which, in turn, is increasing the demand for flexible packaging, thereby boosting the demand for adhesives.​ Eka Global, a Thai plastic packaging company, reported that it had doubled the production of its longevity flexible packaging to 20 million pieces per month, from 8 million pieces per month, due to the increasing demand in 2020. ​​
• According to Mordor Intelligence, the Thai folding carton and corrugated packaging market was valued at USD 1405.73 million in 2020, and it is expected to reach USD 2283.4 million by 2026, registering a CAGR of 4.4% during the period of 2021 - 2026. The growing demand for corrugated packaging in the country is mainly due to the continued and increasing demand for packaged food and beverages.​
• Additionally, there is a considerable increase in the demand for small-scale folding cartons and packaging from the beauty and personal care industry.According to export.gov, Thailand's beauty and personal care products market is expected to reach USD 8.0 billion by 2022. Such growth in the demand for adhesives used in expensive packaging, from beauty and cosmetics industry, is driving the studied market.​
• Overall, the demand growth for adhesives from the packaging industry is expected to be moderate to high during the forecast period

Silicone Segment to Dominate the Sealants Market

• Silicones are versatile polymers. Their chemical properties offer excellent bonding with enormous power. These are designed to provide permanent and temporary bonding to surfaces, such as glass, metal, and stone. ​Silicone-based sealants have been formulated as single and two-part systems that cure either by heating or at room temperature. Primers are required for the optimal adhesion of silicone sealants, although primers are often not necessary.​
• The nature of bonding depends on the applications for which they are used. These sealants work effectively in harsh environments, across a wide temperature range, in situations involving abrasion, and under climatic changes. Hence, they are water-, chemical-, and temperature-resistant, flexible, and deliver outstanding performance.
• Furthermore, these sealants are transparent, permeable to gas and water vapor, and they provide thermal and electrical conductivity. ​Silicone sealants can be differentiated by mixtures of fillers (like silica), silicone polymers, cross-linking components, and catalysts.​ Silicone sealants are solvent-less and have a low shrinkage characteristic, with applications across a wide temperature range of 40°F to 100°F. There needs to be between 5% and 95% humidity for the silicone to cure. Therefore, the product cannot be cured in deep sections. Conversely, it can take as little as 24 hours to cure, or it can take up to several days if the sealant is very thick.
• ​However, the condensation curing reaction of silicone sealants could be a matter of concern in certain applications, since it releases acetic acid as a byproduct. This can lead to the corrosion of several metallic components. This might act as a restraint to applying silicone sealants. ​
• Silicone sealants are used in numerous applications, due to the excellent properties that they offer. The major end-user industries for these sealants are electronics and electrical, automotive, aerospace, and building and construction. Some of the most common uses of silicone adhesives are for basic repairs around the house. For example, silicone sealants can be used for caulking cracks, leveling surfaces at home, and for sealing aquariums.
• Additionally, water-resistant silicone sealants are ideal for repairing areas around sinks and other places, where water is frequently found. Silicone sealants are widely used in sealing of exterior joints, metal-to-glass sealing, expansion joints, and bathtub sealing in building and construction industry. In electrical industry, silicone sealants are used for sealing cables and sensors to place.
• The demand for these sealants is expected to increase in the electronic automotive sector, construction and electronic devices, as silicone is used to seal cables and sensors into place, and due to its property to withstand extreme temperatures. Furthermore, in the building and construction sector, its usage is increasing as silicone sealants can be used even in extreme weather conditions.
• Thus, from the factors mentioned above, the demand for silicone sealants are expected to grow over the forecast period.

Competitive Landscape

Thailand adhesives and sealants market is consolidated in terms of revenue. The top five players account for a combined share of around 70%, making the market highly competitive. However, the presence of other local players is creating a competitive environment in the market. The major companies include Henkel (Thailand) Ltd, Selic Corp Public Company Limited, Covestro AG, Bostik (Arkem Group), and H.B. Fuller (Thailand) Co. Ltd., among others.

Additional Benefits:

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

Companies Mentioned

3M
Anabond Limited
AVERY DENNISON CORPORATION
Beardow Adams
Bond Chemicals Company Limited
Bostik
CEMEDINE Co. Ltd
Covestro AG
Dow
DUNLOP ADHESIVES (THAILAND) CO. LTD
H.B. Fuller (Thailand) Co. Ltd
Henkel (Thailand) Ltd
Huntsman International LLC
Jowat (Thailand) Co. Ltd
Lord Corporation (Parker Hannifin Corp)
MORESCO (THAILAND) CO. LTD
Selic Corp. Public Company Limited
Siam Industry Adhesive Tapes Co. Ltd
Sika Thailand
Star Bond (Thailand) Company Limited
Thai Mitsui Specialty Chemicals Co. Ltd
TOAGOSEI (THAILAND) CO. LTD
Wacker Chemie AG

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