Adhesives and Sealants Market Update
The adhesives and sealants market has rebounded somewhat this year, but
all indications are that it will take several more years before it gains the
levels seen before the recession.
BY KERRY PIANOFORTE
ASSOCIATE EDITOR
The adhesives and sealants mar- ket continues to be negatively impacted by a number of factors including the troubled automobile
industry, while consumer adhesives
and sealants are fairing slightly better. While volume levels were down in
North America, Asia-Pacific represents the best opportunity for growth.
According to a study by the consulting
firm Kusumgar, Nerlfi & Growney
(KN&G), the global consumption of formulated adhesives was 16. 6 billion
pounds in 2009 worth $20.6 billion.
Volume was down five percent compared
to 2008 while value was off six percent.
Volume in North America declined ten
percent from 2008 while Europe experienced an eight percent fall. Poundage
was up slightly in the Asia-Pacific region
as growth in China and India offset the
declines in most other countries. South
American consumption was down three
percent in 2009.
“In North America the recession
caused adhesives and sealants volume
to decline about ten percent in 2009
compared to 2008,” said Mike Growney
of KN&G. “Most of the fall-off occurred
in the first half of 2009. The end use
with the largest decline in 2009 was
automotive OEM. Other end uses with
large declines include construction and
woodworking. Aerospace, disposable
products and consumer adhesives and
sealants end uses came out the best in
2009. Pressure sensitive products is
the largest adhesive application and
results varied. Industrial pressure sen-
sitive products declined modestly
while consumer applications were off
only slightly.”
Indications are that the market for
adhesives and sealants is slowly
rebounding. “This year the market has
rebounded somewhat with end uses that
were off the most up the most,” said
Growney. “However, it will take several
more years before they gain the levels
seen before the recession.”
Residential construction continues to
be extremely slow compared to prior
years. “Commercial construction in the
privately funded sector has all but dis-
appeared,” said Michael J. Soeder, vice
president, marketing, NA, Tremco Inc.,
Commercial Sealants & Waterproofing.
“The result effect is less opportunities
for all facets dependent on these mar-
ket segments. The focus has shifted to
restoration and retrofit of structures.
As a result, hybrid technologies in
sealants offering enhanced perform-
ance, paintability, adhesion to a wide
variety of substrates and extended
warranties over traditional urethanes
are getting increased attention.”
Use of adhesives and sealants in con-
Photo: Tremco
struction markets represent approxi-
mately 25 percent of adhesive demand
globally, according to William Magee,
global director, strategy and marketing
at H.B. Fuller. “The recession dramati-
cally affected demand in these markets
particularly in mature economies,” he
said. “Use in electronics markets was
also affected but this market represents
less than ten percent of global adhesive
demand. Use in automotive markets
was also affected of course. Packaging
related markets, on the other hand, tend
to be more recession resistant along
with tapes/labels and other consumer
related markets.”
The consumer sector has also offered
opportunities for growth. “The greatest
opportunity for growth in the residential
arena has been offered by weatheriza-
tion in existing homes,” said Soeder. “If
the “Cash for Caulkers” initiative had
materialized, this would have been even
more significant. With tax credits on
windows, though, this has created a need
for the sealants used in their installation
