The adhesives and sealants industry is made up of two chemically similar but functionally different groups of formulated products. Adhesive products are used to create a bond between two different or similar materials. Sealants are used to create an impenetrable barrier to gas or moisture. Adhesives and sealants are made from precise blends of petroleum-derived plastic resins, synthetic rubber elastomers, and agents or additives used to enhance certain characteristics.
The adhesives and sealants industry consists primarily of manufacturers of industrial and household adhesives, glues, caulking compounds, sealants, and linoleum, tile, and rubber cements from vegetable, animal, or synthetic plastics materials, purchased or produced within the same company.
It has been another normal year for the adhesives and sealants industry. As industrial sectors and the housing market all continue to grow at a nominal rate, manufacturers of adhesives and sealants have also reported normal demand. The major markets for adhesives and sealants, transportation and construction, are behaving normally.
Although major markets have stabilized, the current demand generated by major industrial customers remains almost at the same level as in 2018. The global manufacturing output among major industrial customers has remained static and this has stabilized the development of the specialty adhesives and surface treatment segment.
The Far East continues to represent the highest growth region. Four countries are highlighted as representing opportunities for significant growth China, South Korea, Taiwan, and Vietnam. A smaller regional market, Eastern Europe, has three major markets showing above-average demand growth? Poland, Hungary and Russia. With growing investment in its industrial base, India has also become a major growth area in the Asian region and has the potential to develop into a significant market for adhesive and sealant products.
Increased demand for adhesives and sealants is driven by the emergence of new market applications that have resulted from evolving and improving assembly processes. Growth opportunities have been brought about by a shift from major forms of industrial joining such as welding and mechanical fastening to adhesive bonding in major industries such as automobiles. Similarly, miniaturization of components in the electronics industries has enabled the use of adhesives to replace soldering and brazing in these industries. Nano-engineered adhesives and sealants that combine superior mechanical properties with wear resistance and dimensional stability are increasing the demand for adhesives in various industries.
One of the factors that affects the growth of the adhesives and sealants industry is the variability in oil prices and the consequent effect on raw material prices. When prices of oil and intermediate materials rise sharply, prices of finished goods move up, thus leading to a high degree of uncertainty about higher inflation in the pipeline due to such a disparity.