U.S. demand for adhesives and sealants is forecast to increase 2.8 percent per year to 6.4 billion pounds in 2019, valued at $12.8 billion.
A turnaround in construction activity, combined with the expanding use of adhesives and sealants in manufacturing and assembly, will underpin demand gains. Analyst Carolyn Zulandt found: “Adhesive bonding technologies will make further inroads in applications historically dominated by mechanical fasteners and other alternative joining systems.”
Advances will be limited by trends toward high solids formulations and lower application weights. Market maturity and sluggish growth in paper packaging and other key markets will further restrain increases. These and other trends are presented in Adhesives & Sealants, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Emulsion and dispersion adhesives and sealants will remain the leading product type. The ongoing displacement of solvent-based products is expected to support increases as end users strive to meet emissions regulations through the adoption of water-based and higher solids formulations. The fastest annual growth through 2019 is expected for reactive adhesives and sealants, driven by rising demand in major markets and trends favoring higher value materials. Silicone and polyurethane adhesives and sealants will post the most rapid gains among reactive types, supported by their superior performance characteristics.
Among adhesives and sealants markets, the fastest annual gains are projected for construction, which will recover from the declines of the 2004-2014 period. Accelerated new building construction will fuel gains, as will increased improvement and repair activity and rising infrastructure spending. Faster gains will be prevented by the development of higher performance products with longer replacement cycles. The slowest annual gains are projected for the packaging market, which will be hampered by weakness in the paper and paperboard packaging segment.
Manufacturing and assembly will continue to be the largest market for adhesives and sealants. Within this market, the tapes and labels segment is expected to remain the leading outlet for adhesives, driven by healthy advances in the production of pressure sensitive tapes and labels. Among other segments, solid increases are expected in the aerospace, machinery, motor vehicle, and electrical and electronic markets, where adhesives and sealants will continue to displace alternative fasteners.
