Mumbai: Increasing income levels and infrastructure development in India are expected to drive the growth of building materials and related products including water-based adhesives that are categorized into acrylic emulsions and polyvinyl acetate (PVA). The former accounts for 66 percent of the total water-based adhesive market, while the latter contribute the rest. Widely used in the construction, furniture, and packaging industries, water-based adhesives are set to gain demand in the wake of the green building initiatives in India.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Indian Water-based Adhesive Market, finds that the total water-based adhesive market earned revenues of $328.9 million in 2009 and estimates this to reach $666.7 million in 2016.

“Utilizing water-based adhesive helps companies reduce the impact of their carbon footprints,” says Frost & Sullivan Research Analyst Swathi Sridharan. “As companies focus on developing better public relations, this can be a major factor affecting the market for water-based adhesives in the long run.”

While PVA caters to the furniture industry, acrylic emulsions cater to the paint industry. The replacement of wood furniture with alternatives such as steel, aluminum and glass poses a challenge for the market. Moreover, the PVA industry is highly dependent on distributors for growth, especially in rural areas.

Acrylic emulsion manufacturers need to import all the required raw materials, as none is produced in India because it is more economical to import them.

“The Indian paints industry is highly dependent on oil-based products for raw materials,” says Sridharan “With the fluctuating prices of crude oil and the shortage of certain raw materials; raw material suppliers have a high bargaining power with the adhesive manufacturers.”

With the Indian market being dominated by a few participants, price and the formulation of products are the two key differentiators in the water-based adhesive market. In response, large suppliers are spending more on branding to draw customers by increasing their awareness.

“There is immense scope for raw material manufacturers to set up a plant in India, which is likely to decrease the dependency of the acrylic emulsions producers on imported raw materials,” concludes Sridharan.

With the boom in the Indian construction industry and the flourishing furniture and packaging industries, there are immense possibilities for growth for the water-based adhesive market.

If you are interested in more information on this study, please send an e-mail to Anish Charles / Nimisha Iyer, Corporate Communications, at [email protected] / [email protected] , with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Indian Water-based Adhesive Market is part of the Chemicals & Materials Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of Indian Automotive Engine Lubricant Market, Evaluation of Opportunities in Indian Industrial Enzymes Markets, Strategic Analysis of Indian Personal Protective Equipment Market, and Strategic Analysis of Polypropylene in the Indian Passenger Vehicles Sector, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.