Brazil Adhesives Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028

Brazil Adhesives Market Trends

Plastic packaging with the largest share of around 64% in overall production to drive the packaging industry

• The packaging is mainly used for protection, containment, information, utility purpose, and promotion. The growing market of Brazil is expected to boost packaging usage and register a CAGR of 3.27% during the forecast period. In 2017, packaging usage accounted for 144.3 million tons of packaging, including paper and paperboard and plastic. Due to COVID-19 in 2020, the market registered a negative growth of -6.56%, this was due to disruption 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 3.72%, with 147.7 million tons of packaging material used for various purposes. It is expected that the packaging industry will keep growing as there has been a rise in the e-commerce sector which has given a significant boost to the packaging industry as special packaging is required for shipping goods. The Brazil e-commerce market grew by 31% in the first half of 2021, and in 2020, it had already grown by 40%. In today's competitive market of FMCG, 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 image in the market.
• The Brazilian government has taken steps toward the use of plastic as regulations have been made to include recyclable plastics in their product packaging. 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 a CAGR of around 3.50% during the projected period.

Increasing demand for electric vehicles will augment the industry’s growth

• Brazil has a GDP of 8,570 USD per capita, with a growth rate of 0.8% Y-o-Y in 2022. The automotive industry sector contributes around 5.5% of the GDP. Brazil is the 8th largest producer of automotive vehicles in the world and the 2nd largest producer in Latin America after Mexico. The vehicle production comprised 76% passenger vehicles, 16% light commercial vehicles, 7% heavy trucks, and 1% buses in 2021.
• The economic slowdown in the country was observed in 2020 because of the COVID-19 impact. This results in a reduction in vehicles in terms of production, sales, and exports. The production sharply decreased by 31%, and exports decreased by almost 25% in 2020 compared to 2019. The supply chain disruptions, lockdowns in the country, and chip shortage are the major reasons behind this decline in production. Despite these situations, Brazil is able to secure the 8th position in vehicle production in the same year.
• The company has shown recovery in 2021 and onwards since the economy came back to normal through the regular supply of raw materials, imports and exports, and the opening of lockdowns. The production and exports increased by 10% and 29%, respectively, in 2021 compared to the year 2020. Electric vehicle registrations also increased by 77% in 2021 in Brazil, and it is expected to increase further in the coming years, which shows the future connectivity trend.
• The production of automobiles is going to increase further due to the investments of multinational automotive manufacturers, such as BMW, Mercedes-Benz, Audi, and Volkswagen, in Brazil.  

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Packaging Segment in Brazil Adhesives Market

The packaging segment dominates the Brazil adhesives market, commanding approximately 42% market share in 2024. This significant market position is driven by the widespread applications of adhesives in various packaging uses, including labels, tapes, carton sealing, and joining operations. The segment's growth is further supported by the rapid expansion of e-commerce in Brazil, which has led to increased demand for packaging solutions. The Brazilian packaging industry has shown steady growth with innovations in sustainable packaging technology and increasing consumer demand for convenient packaging solutions. Water-borne adhesives hold the largest share in packaging applications due to their eco-friendly nature and lower VOC emissions, making them particularly suitable for food packaging applications through emulsion and dispersion systems. The use of laminating adhesives in packaging further enhances the durability and appeal of packaging solutions.

Aerospace Segment in Brazil Adhesives Market

The aerospace segment is projected to be the fastest-growing segment in the Brazil adhesives market during 2024-2029, with an expected growth rate of approximately 7%. This robust growth is attributed to Brazil's position as a prominent exporter of aircraft and related components to nations like the United States, China, and Japan. The increasing demand from developed nations and Brazil's strategic focus on aerospace manufacturing is driving this growth. The segment's expansion is further supported by the rising tourism sector and increasing air travel demand. Aerospace adhesives, particularly UV-cured adhesives, account for nearly one-third of the aerospace adhesives market share due to their precise application capabilities and strong adhesion properties, particularly valuable in aircraft manufacturing and maintenance operations.

Remaining Segments in End User Industry

The other significant segments in the Brazil adhesives market include building and construction, automotive, healthcare, footwear and leather, and woodworking and joinery industries. The building and construction segment maintains a strong presence due to ongoing infrastructure development and residential construction projects. The automotive sector benefits from Brazil's position as a major automotive manufacturing hub in Latin America. The healthcare segment is driven by the growing medical device manufacturing sector, where medical adhesives play a crucial role. The footwear and leather industry leverages Brazil's strong domestic footwear market. The woodworking and joinery segment continues to grow with the expanding furniture manufacturing sector and increasing demand for wood-based products, supported by the use of wood adhesives.

Segment Analysis: Technology

Water-borne Segment in Brazil Adhesives Market

Water-borne adhesives dominate the Brazilian adhesives market, commanding approximately 71% market share in 2024. These adhesives are formulated as polymeric dispersions or emulsions dissolved in an aqueous phase, with dispersed polymer particles typically ranging from 50-300 nm in diameter. Their widespread adoption is driven by several key advantages, including relatively lower costs compared to other technologies and ease of cleaning using water. The packaging industry represents the largest end-user segment for water-borne adhesives in Brazil, with manufacturers particularly valuing their cost-effectiveness and environmental compliance. Additionally, increasing applications in the footwear industry, driven by regulations restricting VOC emissions, have further strengthened the position of water-borne adhesives in the Brazilian market.

Hot Melt Segment in Brazil Adhesives Market

Hot melt adhesives are emerging as the fastest-growing technology segment in the Brazilian adhesives market through 2024-2029. These solvent-free, 100% solid adhesives based on thermoplastic resins are gaining significant traction due to their rapid assembly capabilities and versatile bonding properties across both polar and non-polar substrates. The segment's growth is primarily driven by increasing adoption in packaging, automotive, footwear, furniture, hygiene products manufacturing, and building and construction industries. The ability to formulate hot melt adhesives with various thermoplastics, including ethylene-vinyl acetate (EVA), styrene block copolymers (SBC), polyamides, and polyolefins, makes them highly adaptable for different application requirements. Their relatively fast setting speed and the dominance of EVA resins, which occupy about 40% of all resin types, further contribute to their growing market penetration.

Remaining Segments in Technology

The Brazilian adhesives market features several other important technology segments, including reactive adhesives, solvent-borne, and UV-cured adhesives. Reactive adhesives are valued for their high-strength permanent bonds and customizable properties, finding significant applications in automotive and high-end electronics. Solvent-borne adhesives, despite facing regulatory challenges due to VOC emissions, maintain their relevance in specific applications due to their superior environmental resistance properties. UV-cured adhesives, while representing a smaller market share, serve crucial roles in precision bonding applications, particularly in the automotive and electronics industries, offering advantages such as fast curing speeds and minimal shrinkage after curing.

Segment Analysis: Resin

Acrylic Segment in Brazil Adhesives Market

The acrylic adhesives segment dominates the Brazil adhesives market, holding approximately 29% market share in 2024. This significant market position is primarily driven by its widespread applications across multiple industries, particularly in the packaging sector, which accounts for over 57% of acrylic adhesive consumption. Acrylic adhesives are highly preferred due to their versatility and performance characteristics, including short curing time and ability to form strong bonds with polar substrates. These adhesives are particularly valued in assembly line operations as they achieve 80% of their strength within the first few hours of curing, enabling up to 37% lower mass of assembly and improving operational efficiency by up to 60%. The building and construction, automotive, and packaging industries remain the three major consumers of acrylic adhesives in Brazil, with manufacturers continuously developing innovative formulations to meet specific industry requirements.

Cyanoacrylate Segment in Brazil Adhesives Market

The cyanoacrylate segment is emerging as the fastest-growing segment in the Brazil adhesives market, projected to experience robust growth from 2024 to 2029. This growth is primarily driven by increasing demand from furniture, medical devices, electronics, and footwear manufacturing industries. Cyanoacrylate adhesives are particularly valued for their solvent-free, one-part, room-temperature-curing properties, enabling them to form strong bonds with almost any substrate in the presence of moisture. These adhesives offer remarkable versatility with viscosities ranging from water-thin liquids to thixotropic gels (5 cps to 1,000 cps), making them suitable for various applications. The footwear manufacturing industry, being the fifth-largest globally, represents a significant growth driver for cyanoacrylate adhesives in Brazil, particularly in applications such as shoe sole bonding and shoe repairing.

Remaining Segments in Resin

The Brazil adhesives market features several other important resin segments, including polyurethane adhesives, VAE/EVA, epoxy adhesives, and silicone adhesives, each serving specific industrial applications. Polyurethane adhesives are particularly valued in automotive and construction applications due to their durability and weather resistance. VAE/EVA adhesives dominate in packaging applications, offering excellent adhesion properties for carton sealing and labeling. Epoxy adhesives are crucial in structural applications, particularly in aerospace and automotive industries, while silicone adhesives are preferred for their temperature resistance and flexibility. These segments collectively contribute to the market's diversity, offering solutions for various bonding requirements across different industries and applications.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on various end-user production trends including automobile production, newly built construction floor area, packaging production, aircraft deliveries, footwear production, and regional data on adhesives and sealants demand, etc.