slower than suppliers’ optimistic expectation.
The report features in-depth
analysis of the five key product
types, phosphorous, brominated, inorganic, chloride and other types of flame
retardant chemicals. The majority of fire
retardant chemical is used in plastics &
rubber industries as an important additive to PP, PE, PU, engineering plastics
for automobile and electronics, flexible
PVC, and they are closely followed by
the electrical & electronics, chemical
(mostly coatings) and electric wire manufacturing industries. Other key applications of consideration include chemical,
textile, wood processing, paper and
more, though size of demand is relatively
lower in these sectors.
This GCiS market study draws on a
three month in-depth primary survey of
58 of the market’s suppliers and channel
players. It is essential reading for any professional needing accurate and detailed
strategic information of this market.
Major areas covered include: market size
and shares, five-year projections, market
structure, pricing trends, distribution, an
assessment of key suppliers and more.
U.S. Demand for
Construction Chemicals to
Exceed $12 Billion in 2018
U.S. demand for construction chemicals
used in on-site applications is projected
to grow 8.2 percent per year through
2018 to $12.1 billion. Gains will be pri-
marily driven by double-digit increases in
building construction expenditures, sup-
ported by healthy economic growth and
an improved consumer financial outlook.
Increased economic activity and greater
government investment in the aging in-
frastructure of the U.S. will also support
healthy consumption of construction
chemicals in nonbuilding applications.
While overall growth will be underpinned
by the strong increases in construction
spending, the product mix will also con-
tinue to shift toward new, higher value
formulations and technologies as the
market adapts to environmental regula-
tions and more stringent building codes.
These and other trends are presented in
“Construction Chemicals,” a new study
from The Freedonia Group.
“Following several years of recovery, a
fully healed U.S. housing market will lead
to a jump in new residential construction
activity,” said analyst Nick Cunningham.
Nonresidential building construction activity is also expected to increase rapidly
through 2018. Economic growth will
support a rebound in both the industrial and office and commercial sectors.
Greater economic activity will also require increased investment in infrastructure, both public and private, particularly
for the U.S.’ aging transportation network. This will lead to healthy growth in
nonbuilding construction chemicals demand, especially for cement and asphalt
additives and coatings. Growing demand
for chemical additives and coatings will
also result from the increasing use of new
concrete technologies that offer superior
performance and ease of placement, such
as high performance concrete and self-consolidating concrete.
Higher value formulations will continue to gain share in many product segments in response to both environmental
and performance concerns. Volatile organic compound (VOC) regulations have
been enacted at both the federal and state
level. This trend will be further intensified
by consumer preferences for low odor
and easy cleanup water-based products.
The transition toward better performing, longer lasting products will boost the
value of the construction chemicals market going forward, though the decreased
replacement frequency and volume of
chemicals required will serve as a check
on further growth.
Kusumgar, Nerlfi &
Growney Report on
Formulated Adhesives
According to a soon to be released study
by the consulting firm Kusumgar, Nerlfi
& Growney, global consumption of for-
mulated adhesives was 10. 24 MM tons
in 2014 worth $29.4 billion. Volume has
increased modestly since the 2009 reces-
sion and a five percent annual rate of
growth is forecast through 2019. Growth
in Europe and North America is forecast
at a mature two percent annual rate while
the Asia-Pacific region, led by China, is
forecast to expand at an eight percent an-
nual rate.
China represented two-thirds of the
formulated adhesive volume in the Asia-Pacific region in 2014 and 32 percent
of the global share. Adhesive growth in
China is moderating but a still robust
eight percent annual rate of increase
is forecast through 2019. Japan is the
second largest consumer in Asia-Pacific
with eight percent of the volume with
growth forecast at one percent/yr. India
is third in the region with six percent of
the volume but will surpass Japan by
2019 owing to its forecast double digit
rate of growth.
Brazil is the leading consumer of adhesives in South and Central American
countries accounting for 60 percent of
the region’s volume. A five percent annual rate of growth is forecast for Brazil
and the region. Pressure sensitive products (tapes, labels, decals, etc.) are the
largest end use for formulated adhesives
representing 27% of the volume in 2014
(Figure 2). Packaging tapes is the largest end use with modest growth prospects
but many specialized applications are
growing faster. Packaging is the second
largest adhesive end use with 22 percent
of the volume and a four percent yearly
rate of growth is forecast. Flexible packaging was 15 percent of the packaging
volume and one-quarter of the value and
is growing six percent/yr.
Woodworking was an outlet for 19
percent of the adhesive tons and includes
furniture, building products and other
applications. Construction was the other
larger volume adhesive end use with 14
percent of the volume. The top four formulated adhesive end uses combined for
82 percent of the volume in 2014 and 63
percent of the dollars. Smaller, higher
dollar value, end uses include aerospace,
electronic, disposable products, windmill
blades, etc.
The information will be part of
Kusumgar, Nerlfi & Growney’s soon
to be released multiclient study, “The
Global Adhesives Industry, 2014-2019.”
Further information can be obtained at
201-773-0785; e-mail: nerlfikng@cs.com
and on the company’s website at www.
kusumgar-nerlfi-growney.com. CW
