Coatings World - November 2011

tronics markets was also affected but this market represents less
than 10 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 economy has certainly caused a significant reduction in
demand across the consumer and commercial markets since late
2008,” said Dominik Slappnig, head corporate communications
and investor relations, Sika. “For the most part, demand has sta-
bilized and in some markets we are seeing some growth begin-
ning, but others remain more or less flat.”
Developments in Henkel’s markets for adhesives, sealants and
surface treatment technologies in 2010 were mixed, although over-
all the company registered growth in the mid single-digit percent-
age range, said the company. “Our balanced business, regional
portfolio and the launch of a number of new products, along with
growth in emerging economies in particular supported the positive
performance of the business sector,” said a Henkel spokesperson.
“Overall, we were able to consolidate or even extend our leading
positions globally, and in the individual regions we serve as well.”
In addition to the increase in demand for adhesives in the
growth regions, Henkel reports that further salient trends are
also expected to support growth of the adhesives market in the
future. These include the constant need for greater energy effi-
ciency and carbon emission reductions, which in turn will boost
demand for sustainable products.

“Indeed, there are many adhesive applications in the field
of renewable energies; and the increased use of light-weight
construction and manufacturing materials also points to
greater adhesive usage,” said the Henkel
spokesperson. “In addition to growth in
the already established spheres of appli-
cation for adhesives and sealants, more
and more new areas of use for these
products are opening up as is seen, for ex-
ample, in the manufacture of light-emit-
ting diodes or the further inroads being
made in drug delivery through the skin.”
While North America and Europe are
still struggling to recover from the grips of
the economic recession, emerging markets
in Africa, the Middle East and Asia-Pacific
represent areas of growth potential for ad-
hesives and sealants manufacturers.

Henkel reported that it was able to significantly increase sales in the first half in the packaging, consumer goods and construction adhesives businesses despite supply shortages at some of its suppliers, the highest growth rates being achieved in Africa, The Middle East and Asia-Pacific.

“From a macroeconomic point of view
this year there will be disproportionately
strong global growth in customer indus-
tries of importance to us, with the trans-
port sector expanding by between six and seven percent; elec-
tronics and electrical engineering by seven percent; and metal pro-
duction and processing by around nine percent,” said the Henkel
spokesperson. “With an expansion rate of about three percent,
the consumer-related packaging sector will, according to our fore-
cast, undergo below-average growth compared to industry as a
whole. Construction will remain in the doldrums. Even after sev-
eral years of absolute declines in output, growth in this sector is
likely to stay below two percent. Moreover, this moderate rise is
exclusively due to expansion in the emerging economies.”
According to H.B. Fuller’s Magee, use of adhesives in mar-
kets that are experiencing organic growth present opportunity.
“These include packaging, electronics, tape, label and nonwo-
vens,” he said. “However, the use of adhesives to replace me-
chanical fastening in many structural markets continues to
represent a growth opportunity for the adhesives industry.”
Opportunities for growth in the consumer markets exist in a
few areas, according to Slappnig. “As DIYers are more focused
on renovating existing homes, they are also turning to better
quality sealants and adhesives to achieve longer lasting renova-
tion projects. ‘Fix it Once’ as opposed to doing the project with
a lower quality/lower cost product that may have to be done over
again in the short-term appears to be the clear trend. Greener
and lower VOC products also continues to be the trend.”

Raw Material and Environmental Issues In order to take full advantage of growth opportunities adhesives and sealant manufacturers must find ways to deal with raw material issues.