Japan Adhesives Market Report 2020
Despite the Japan adhesive industry being the second largest adhesive market in Asia in terms of value, the performance of the industry has been worsening because of the ongoing stage of maturity of its industry lifecycle. The decreasing population of Japan along with mounting dependency ratio has further accelerated the decline of the industry. Japan adhesives market revenues has grown at a CAGR of ~% from USD ~billion in 2009 to USD ~ billion in 2014.
The revenues during the period have augmented on account of extensive growth from the end user industries, fueled by increased corporate earnings and higher household incomes. These trends have enhanced the demand for woodworking adhesives and packaging adhesives at a significant rate. The adhesive market has been transformed in the recent years, owing to its superiority over metals, which imparts high heat resistance to the end product and reduces the weight of the end products heavily. Adhesives have gradually replaced traditional bonding materials such as wood or metal in various applications.
With better properties such as lower weight and higher strength, engineering plastics are much easier to manufacture, especially in complicated shapes. The products manufactured in the Japan adhesive industry have multifaceted applications in woodworking, construction, packaging, transportation, textile, machinery, paper and bookbinding and footwear industries. The woodworking industry has contributed the highest proportion of revenue generated by the industry owing to the surging furniture industry in the country.
Japan adhesive industry comprises of formaldehyde type adhesives, solvent type adhesives, and water based adhesives, hot melt adhesives, reactive adhesives and pressure sensitive adhesives. In 2014, formaldehyde-type adhesives captured the highest revenue to extent of ~%, amounting to USD ~ billion. The percentage share of water based adhesives has been increasing in the industry due to rising environmental consciousness of consumers and limited environmental impacts of water based adhesives. In 2014, water based adhesives garnered a share of ~% of the overall adhesives market of Japan.
Formaldehyde type adhesives and water based adhesives have been the highest contributing category of adhesives in terms of volume during the period of 20092014. On an average formaldehyde type adhesives accounted for 26.4% of the output produced by the Japan adhesive industry from 2009 to 2014. In 2014, the usage of adhesives for plywood industry has contributed the largest share of adhesives market revenue. In 2014, plywood industry accounted for ~% of the total market revenue, amounting to USD ~ billion. The second largest end user segment of adhesives was the construction industry which incorporates real estate industries.
Adhesives produced for usage in industrial segment accounted for ~% of the overall adhesives market revenue. On the other hand, adhesives used by consumers for day to day residential purposes garnered ~% of the adhesives market revenue in Japan. In 2014, synthetic adhesives accounted for ~% of the overall adhesives market, amounting to revenues worth USD ~billion. On the other hand, natural adhesives contributed ~% of the overall adhesives revenues in 2015.
Although, the demand for natural adhesives had declined but in certain cases natural adhesives are used with wood and paper products, particularly in corrugated board, envelopes, bottle labels, book bindings, cartons, furniture, and laminated film and foils. In 2014, Japan’s structural adhesives achieved the revenue of USD ~ billion, with ~% contribution to overall adhesives market revenues. In addition, the non-structural adhesives contributed ~% of the overall adhesives revenue, amounting to USD ~ billion in 2014. The least contribution was made by semi-structural adhesives, with ~% contribution towards the overall market revenues.
The adhesives market revenues in the future are expected to augment at the CAGR of ~ % during 2015-2020, reaching revenue worth USD ~ billion in 2020. Formaldehyde type adhesives segment is likely to sustain its dominance in Japan’s adhesives market space during the period 2015-2020. Moreover, continuous efforts of the government to stir up demand will push the industry towards the stage of inclination.
The key drivers of the industry are increased applications in various niche end user industries and strict regulations regarding fuel economy. High volatility in the prices of raw-materials for adhesives is one of the major restraining factors that prevail in the market. A growing number of end-use applications have exhibited a marked shift from traditional mechanical fastener based technologies to adhesive based technologies, prominent among them being the automotive, mobile handheld electronic devices and medical sectors, which are expected to record faster than GDP growths over the coming few years.
In future, the shares of industrial sector in overall adhesives market of Japan is projected to inline further and reach ~% by 2020. Continued economic growth, government policies encouraging the expansion of renewable energy, high-speed rail and other high-tech sectors, and an ample supply of raw materials will be contributing to strong growth in the adhesives market in Japan. On the other hand, the consumer segment is expected to contribute ~% of the overall adhesives market in 2020 as against proportionate share of ~% in 2014
Furthermore, adhesives market players in Japan have started to seek overseas opportunities in order to enhance their sales. A long term scenario of the industry foretells an impending market expansion, with the leading categories to be the major revenue earners. Japan has matured market for adhesives and is expected to grow at a relatively sluggish rate over the next six years. High volatility in the prices of raw-materials for adhesives is one of the major restraining factors that prevail in the market.
Increased applications in building & construction industry and growing exterior and interior applications in the automobile industry have supplemented the industrial consumption in Japan.
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Source: https://www.kenresearch.com/metal-miningand-chemicals/chemicals/japan-adhesive-marketresearch-report/4479-101.html
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