US demand for adhesives and sealants will rise 2.2 percent per year to 9.8 billion pounds in 2017, valued at $11.9 billion. Natural adhesives and sealants will remain the largest product segment, while reactive and hot melt types grow the fastest. Solvent-based products will also do well based in part on reformulation efforts to lower VOC emissions.
This study analyzes the 8.8 billion pound US adhesives and sealants industry. It presents historical demand data for the years 2002, 2007 and 2012, with forecasts for 2017 and 2022 by product (e.g., natural adhesives and sealants, emulsion and dispersion, hot melt, reactive, solvent-based) and market (e.g., packaging, manufacturing and assembly, construction, consumer).
The study also considers market environment factors, details industry structure, evaluates company market share, and profiles 35 industry players such as Henkel, HB Fuller, and RPM International.
US demand to rise 2.2% annually through 2017
US demand for adhesives and sealants will grow 2.2 percent per annum to 9.8 billion pounds in 2017, valued at $11.8 billion. Gains will be driven by a better outlook for major adhesives and sealants markets such as paper packaging, motor vehicles, and building construction, following the recession-plagued 2007- 2012 period. Demand will also benefit from trends toward increased usage of adhesive bonding compared to alternative joining technologies, such as mechanical fasteners, in product assembly applications. However, advances will be limited by trends toward high solids formulations and lower application weights, as well as market maturity and sluggish growth in a number of leading applications.
Reactive adhesives, sealants to exhibit fastest advances
Natural adhesives and sealants will remain the largest product type through 2017, accounting for nearly 40 percent of demand. However, natural products will also see the weakest gains going forward, as the bulk of demand consists of low value starch adhesives used in corrugated cardboard production, a highly mature and slow growing application. The most rapid advances are expected for reactive adhesives and sealants, fueled by the rebounding manufacturing market, as well as product substitution trends toward higher value materials. Hot melts will also see healthy gains, as their amenability to fast processing speeds will promote opportunities in the packaging market, in addition to their lack of volatile organic compound (VOC) emissions. Despite decades of losing share to alternative formulations, solvent-based adhesives and sealants will see above average gains in demand, bolstered by a turnaround in the construction sector and product reformulation efforts to lower VOC emissions.
Construction to be most rapidly growing market
Among adhesives and sealants markets, the fastest growth is forecast for construction, which will rebound strongly from the sharp declines of the 2007-2012 period. Construction is a particularly important outlet for sealants, which are widely used in both building and nonbuilding applications. The large packaging market, which accounted for nearly 60 percent of adhesives and sealants demand in 2012, will exhibit the slowest gains, hampered by weakness in the dominant paper packaging segment. In the manufacturing and assembly market, fastest growth is expected for tapes and labels, motor vehicles, and machinery, while nonwoven disposables, furniture, and smaller volume outlets such as bookbinding will rise at a subpar rate. Nearly all markets, however, will see an improvement in adhesives and sealants demand from the performance of the 2007-2012 period.
Profiles for 34 players in the US industry such as Dow Chemical, HB Fuller, Henkel, RPM, and Total
This study examines the US market for adhesives and sealants by product (e.g., natural, emulsion and dispersion, hot melt, reactive, solvent-based) and market (e.g., packaging, manufacturing and assembly, construction, consumer). Binder resins, such as those used in the production of engineered wood products and to bond certain nonwoven fabrics together, are not considered adhesives for the purposes of this study and are excluded. Carpet and rug backing adhesives are also not included in market totals. Historical data for 2002, 2007, and 2012 and forecasts for the years 2017 and 2022 are provided for adhesives and sealants demand by formulated pounds (i.e., including the weight of water or solvents as well as additives and fillers). Value data (in US dollars) and pricing are also provided for product demand. In addition, the key strategic, competitive, and regulatory variables affecting the US adhesives and sealants industry are discussed, the industry’s key players are identified and profiled, and US sales are evaluated. The entire study is framed within the industry’s economic and market environments.
Information and data on adhesives and sealants were obtained from a variety of primary and secondary sources, including government and trade associations, industry participants, online databases, and other Freedonia studies. Primary information was gathered through consultations with officers and marketing personnel of participating companies and other industry specialists. Secondary data and background information were obtained from various trade publications including Adhesives & Sealants Industry, Chemical & Engineering News, and Chemical Week. Corporate annual reports, SEC Form 10-K filings, product catalogs, and other company information were also used extensively in framing the industry and market environments and as input for market size assessments.