Adhesives and Sealants Market
November 2016 www.coatingsworld.com Coatings World | 41
efforts to improve fuel efficiency through weight reduction, as
metal components are replaced with composites that can be
bonded with adhesives.
A growing middle class in Asia-Pacific (particularly China)
has generated strong demand for adhesives and sealants,
while Europe has been relatively weaker due to a more challenging economic backdrop.
On the cost side, falling oil prices have contributed to
lower costs for some raw materials, offering a tailwind in
recent quarters for many adhesive and sealant formulators.
However, many formulators are expecting raw material prices to begin firming in the months ahead as oil prices have
rebounded from their early 2016 lows. Key commodity raw
materials used in adhesives, such as ethylene, propylene, and
vinyl acetate monomer (VAM), have been moving significantly higher in recent months.
CW: What consumer markets offer the most opportunity for
growth?
Hinz: The engineering adhesives market, a $12 billion market
that includes adhesives for electronics, energy, and automotive/
transportation applications, is rapidly growing and has be-
come a key focus area for formulators. Several of the major
adhesive formulators, including H.B. Fuller, have made recent
acquisitions in this market to enhance their position.
The ongoing recovery in the North American construction
market also represents a source of strength for both adhesives
and sealants.
Geographically, emerging markets represent a major growth
opportunity for formulators due to increasing levels of industrialization and consumption. A growing middle class in these
geographies should drive growth in end market such as packaging, hygiene, and assembly.
CW: Who are the major players and how do they keep their
competitive edge?
Hinz: The top ten adhesive and sealant formulators, which account for almost half of the global market, include Henkel, H.B.
Fuller, Bostik, Sika, 3M, Dow and Royal. Operating in a high-ly-competitive market, major formulators maintain their edge
through both sales-based and cost-focused efforts.
On the product and sales side, companies are investing in
innovation/R&D, brand building, and fostering strong relationships with customers to support their competitive position.
For example, Henkel spent more than $300 million in 2015
on R&D in its Adhesive Technologies segment, and generates
roughly 30 percent of its adhesive sales from products launched
over the past five years. Another example is Bostik, which is
