Stiff competition is looming between Europe and the APAC region over who rules The Global Adhesives and Sealants Market.
Up until recently, Europe dominated the market, but the APAC region’s rapidly expanding packaging, construction and transportation industries has created a surge in demand from countries like China, who already accounts for 16-18 percent of the global market. In addition, China holds a 58.3 percent of APAC market shares in terms of revenue and 46.7 percent in terms of volume. These factors are expected to play a huge role in the global market’s anticipated CAGR of 3.86 percent for the 2012-2016 period.
While China vies for top spot in the adhesives and sealants market, the number one slot for vendors is secured by Henkel, who dominates the competition holding a market share 24-26 percent, leaving a good 20 percent lead over their rivals.
Henkel has been continuously restructuring their business and increasing their R&D spending to create innovative and creative products that can be used for new applications, like more eco-friendly options. These developments have helped combat market challenges like raw material shortages and high prices which has attracted developing APAC markets like China to invest in their products.
Other vendors like H.B. Fuller have opened new manufacturing facilities in countries like China and India to take advantage of the profit potential and high production capabilities. This will help to offset manufacturing costs and allow vendors to manage production effectively.
Recently, the adhesives and sealants market has witnessed a decline in consumer spending due to economic instability which is hindering market growth. Like many industries during the recession, vendors in the adhesives and sealants market have experienced profit losses as countries continue tightening their purse strings. However, growth is still expected in the APAC region as countries in the region are willing to spend a little more for products. This should help to offset profit loss for vendors and contribute to market growth, and as countries in the APAC region continue to develop, adhesive and sealant products will always be needed. All things considered, we believe that growth in the Global Adhesives and Sealants Market is one trend that will stick around for the years to come.
For more information, view our 2012-2016 Global Adhesives and Sealants Market report.
