Russia Adhesives Market Forecasts from 2023 to 2028

The Russian adhesives market is predicted to grow at a CAGR of 3.48% from US$568.193 million in 2021 to US$722.107 million by 2028.

The major factors driving the market growth are rapid urbanization, rising construction activities, and increasing demand for adhesives from the packaging industry. Moreover, the growing demand for e-commerce shopping and online purchasing is providing huge opportunities to the players operating in the country’s adhesive market. Rising internet penetration and growing access to the internet have created lucrative market opportunities for e-commerce and packaging providers to set their foot in untapped markets and tap the huge potential.

Drivers responsible for the expansion of the market

It is projected that the expanding demand for retail flexible packaging by a variety of end-user sectors in Russia would increase demand for hot-melt adhesives, which will further propel the market's expansion. The country is considered as world’s ninth-largest e-commerce market and has a lot of potential for growth and is expected to significantly contribute to the overall market growth.

However, when adhesives and sealants are applied, significant amounts of chemical fumes are released that are toxic and harmful to breathe in. Their use is subject to stricter rules now. Moreover, manufacturers are increasingly concerned about consumers' growing concern for their health and the environment. The market for adhesives and sealants may have certain growth restrictions because of these issues.

Growing demand for water-based masking tapes

One of the prime reasons supporting the overall market growth is the increasing demand for water-based masking tape across the country. Growth in the building and construction sector of the country is anticipated to drive the demand for water-based masking tapes. Consequently, a thorough strategy for modernizing the major infrastructure projects has been prepared by the Russian government. The government released RUB 6.3 trillion (USD 96 billion) as part of this six-year modernization plan to upgrade the nation's roads, airports, railroads, ports, and other transportation infrastructure through 2024 which will have a positive impact on the overall market growth.

Additionally, more than RUB 160 billion was allocated for the construction and maintenance of road infrastructure in 2021. In contrast, more than EUR 14.35 billion of the GDP was spent on infrastructure for all means of transport in 2020. With 6.7 billion euros, road transport received the largest proportion of investments, followed by rail (46% of total investment), air (2.62%), inland water (1%), and sea (3.3%).

The rising demand for water-based tapes

Furthermore, rising demand for water-based tapes across the food and beverage industry is also expected to boost the demand for these adhesives during the forecast period. With a trading volume of 27.5 million tons, Russia is the eighth-largest market for packaged food items worldwide as per export.gov. The packaging industry will be driven by the processing of potatoes and vegetables as well as the rising manufacturing of alcoholic and soft drinks, which will result in a rise in adhesive demand.

The water-based solvent is projected to grow.

The water-based adhesive particularly the water-based masking tape is majorly used in building and construction, and the automotive sector as it is easy to remove from the equipment and reduces the risk of blockages.

The rapid development of construction and infrastructure in the country is driving the water-based adhesives market growth. The investment of 6.3 trillion rubles was done by the Russian government to initiate a six-year modernization plan for the construction of highways, airports, railways, transportation, and others by 2024. In June 2023, the Ministry of Construction of Russia planned to initiate the construction of a federal medical and biology agency in Moscow. The GDP from the Russian Construction sector increased from 1288.2 RUB in the third quarter of 2022 to 2092.10 RUB in the fourth quarter of 2022 as per the Federal State Statistics Service, Russia. Moreover, the rapid urbanization and technological advancements in the automotive sector in Russia are expected to boost the water-based adhesive market. For instance, the urbanization rate increased by 9.1% on a year-on-year basis in 2021 as per the World Bank.

The effectiveness of medical applications

Adhesives find high applicability in medical applications such as surgical instruments, catheters, and implantable devices owing to their ability to provide high bond strength, fast gap filling, and biocompatibility. The growing number of accidents and increase in surgical procedures coupled with the increasing imports of medical devices in Russia are majorly driving the adhesives market growth in the country. For instance, in April 2023, Russia’s Interior Ministry stated that the Western sanctions imposed on the country due to its Ukraine invasion resulted in an increase of 80% in road accidents as the sanctions shifted the traffic volume to Russia’s ill-equipped infrastructure in its eastern side.

The growing work-related and war injuries in Russia

The growing work-related and war injuries in Russia are further acting as an additional driving factor for the adhesives market growth. For instance, the April 2023 assessment done by the US Defense Intelligence Agency it was found that the total number of Russian soldiers wounded during the Russia-Ukraine war stood between 1, 54, 000 to 1, 80, 000, whereas the total number of casualties was recorded between 1, 89, 500 to 2, 23, 000.

Furthermore, according to a March 2021 report by the US Department of State, an estimated number of 23, 300 workers were injured because of industrial accidents in Russia. Also, increasing innovation in the adhesive segment is further projected to push the market growth. For instance, the State University of Scientific Research and Technology in Perm, Russia developed an ideal formula for biodegradable adhesives in June 2022 which can be used for medical patches and improved transdermal systems.

Key Developments

• In April 2023, Bostik launched a new water-based wash-off label adhesive named Flexcryl ClearyCycle 1000. It meets the Critical Guidance Criteria for compatibility with PET bottle labels and it is also approved by the Association of Plastic Recyclers (APR).’

Segmentation:

By Type

• Water-based
• Solvent-based
• Hot-Melt
• Reactive
• Others

By Application

• Consumer Appliances
• Automobiles
• General Transportation
• Medical
• Industrial
• Woodwokring and Plywood
• Textiles
• Household
• Others