SPECIALTY ADHESIVES (US industry forecasts for 2013 & 2018)

Abstract

US demand for specialty adhesives is expected to increase to $3 billion in 2013, with volume exceeding 700 million pounds. Overall demand will benefit from real (inflation-adjusted) growth in durable goods output following a period of decline between 1998 and 2008. In terms of market volume, specialty adhesives are a small component of the overall adhesive industry, representing about five percent of US adhesive demand in 2008. However, specialty adhesives are more significant with respect to market value, accounting for nearly 30 percent of overall adhesive demand due to their relatively high prices.

Manufacturing and assembly operations represent the largest major market for specialty adhesives, accounting for more than three-quarters of demand in 2008. Advances will be fueled by continued strong growth in the medical market, where specialty adhesives find use in the manufacture of medical devices, transdermal patches and medical tape. Particularly rapid growth will be achieved by specialty adhesives used in medical tissue bonding applications. The automotive market will also drive gains as motor vehicle output rebounds from the significant declines of the 2003-2008 period. Further promoting advances will be the continued displacement of mechanical fasteners in motor vehicle applications as auto manufacturers shift toward aluminum, plastics and composites in vehicle manufacture at the expense of steel and other materials. Additionally, increased motor vehicle output will benefit the laminated glass market, as this type of glass is used in windshields. The packaging and converting market will also achieve healthy gains based on the use of specialty adhesives in the growing flexible packaging segment.

The consumer and household market for specialty adhesives is expected to advance moderately through 2013. This market encompasses the use of specialty adhesives in automotive repair, construction repair or remodeling, and miscellaneous household uses. Gains will be led by the repair and remodeling segment, which will benefit from an acceleration in home improvement and repair activity. However, growth in the auto repair segment will be limited by the improved durability of vehicles that have entered the market in the past decade or so.

The on-site construction market is forecast to increase rapidly through 2013, supported by a rebound in construction activity. Specialty adhesives find use in both building and nonbuilding construction. Growth will be fueled by new housing activity, which is forecast to achieve double-digit annual gains as it rebounds from the significant declines of the 2003-2008 period. Further promoting advances will be the continued displacement of mechanical fasteners with structural adhesives. However, a substantial deceleration in spending dedicated to the construction of nonresidential and nonbuilding structures will serve to limit specialty adhesive demand in this market.

Study coverage

Specialty Adhesives, a new Freedonia industry study, presents historical demand data (1998, 2003, 2008) plus forecasts for 2013 and 2018 by type (e.g., anaerobic, epoxy, cyanoacrylate, polyamide, polyimide, polyisobutylene, polyurethane, polyvinyl butyral, radiation-cured acrylic, thermoplastic polyester and silicone) and market (manufacturing and assembly, on-site construction, consumer and household). The study also analyzes market environment factors, assesses industry structure, evaluates company market share data and profiles 25 US industry competitors.

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• Establishing consistent economic and market forecasts
• Using input/output ratios, flow charts and other economic methods to quantify data
• Employing in-house analysts who meet stringent quality standards
• Interviewing key industry participants, experts and end users
• Researching a proprietary database that includes trade publications, government reports and corporate literature