Singapore Adhesives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028
Author:Cheshire View:23
The Singapore Adhesives Market size is estimated at 410.91 million USD in 2024, and is expected to reach 498.91 million USD by 2028, growing at a CAGR of 4.97% during the forecast period (2024-2028).
Singapore's strong manufacturing capacities across healthcare, packaging, and electronic industries and adhesives have found a growth opportunity in terms of bonding and assembling applications. The demand for adhesives declined in 2020 due to trade and supply chain restrictions because of the COVID-19 pandemic, which resulted in a decline of above 7.5% in comparison to that of 2019.
Adhesives are majorly consumed in the packaging industry in the country owing to their importance in bonding plastics, metals, and paper and cardboard packaging applications. Waterborne adhesives are highly consumed in the industry because of their cheaper cost and high bonding strength, which is required in these applications. It is seen that nearly 32 thousand tons of water-borne adhesives were consumed in the packaging industry of the country in 2021. Hot-melt adhesives are the fastest-growing technology in the packaging industry, with a CAGR of 5.58% during the period 2022-2028. Sustainable food packaging may assist ensure the safety of the food consumed while also reducing food waste and thus helping the adhesives demand to increase in the industry. These factors have highly motivated the demand for packaging in the food sector.
Singapore's adhesives are also largely being consumed across the healthcare industry. Singapore's healthcare system is regarded as one of the greatest in the world, offering some of the most cutting-edge medical treatments. This is due to robust regulatory oversight, a cost-sharing structure that includes both the commercial and public sectors and payments from medical savings accounts.
Packaging is mainly used for protection, containment, information, utility, and promotion. The growing Singaporean packaging market segment is expected to register a CAGR of 3.77% during the forecast period. In 2017, packaging usage accounted for 33.4 million ton of packaging, including paper, paperboard, and plastic packaging. Due to the COVID-19 outbreak in 2020, the market registered a negative growth of -5.54% due to disruptions 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 4.40%, with 35.6 million ton of packaging material used for various purposes. The packaging industry is expected to keep growing as there has been a rise in the e-commerce sector, which has significantly boosted the packaging industry as special packaging is required for shipping goods. In 2021, the Singaporean e-commerce market was valued at USD 5.9 billion, and it is expected to rise to USD 10 billion by 2026. In today's competitive FMCG market, 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 in the market.
The Singaporean government has implemented regulations to include recyclable plastics in products. 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 its growth and record a CAGR of around 4.75% during the forecast period.
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