Introduction of Innovative Products Could Potentially Increase the Market of Adhesives and Sealants Market
The market of adhesive and sealants have faced several challenges after recession. Failing to acquire raw materials with an adequate profit margin had disturbed the production of adhesives and sealants. To get the lead on the market, adhesives and sealants have entered the construction industry. The adhesives and sealants market have integrated with the construction market with a staggering 25%. They are trying to get a hold on the automotive markets to stabilize their market. Allied Market Research have estimated that if this progress remains constant, the adhesives and sealants market would garner up to $66,876 million at 3.7% CAGR by 2020.
Frank Sullivan, RPM’s chairman and CEO stated that the market conditions have remained low with comparatively flat consumer takeaway. As the construction market has softened, the growth of adhesives and sealants market seem bleak. The consumer business of RPM has gained a renewed vigor after it has introduced higher-end products. After recession, the usage of adhesives and sealants in the electronic market has reduced to 10% of the global demand. The only market that remained unaffected by recession was the packaging-related market.
The market of renewable resources also benefits the market of adhesives and sealants. These renewable resources markets require adhesives and sealants that are light in weight and durable. Companies that manufacture products like light-emitting diodes (LEDs) demand use of adhesives and sealants on a large scale. A spokesperson from Henkel have forecasted that this market will expand at the rate of 3% in the consumer-related market sector.
The key driver of adhesives and sealants market is the DIY market. This market is focused on renovating the existing establishments and they require better quality products of adhesives and sealants for better durability. As Greener and other VOC products remain trending, they continue to drive the market for adhesives and sealants.
As to deal with the problems related to raw materials, H.B. Fuller has decided to develop an innovative method for the use of raw materials. This integrates the market and the customer with volatility of raw materials. By appropriately pricing the adhesives, the issues with the shortage of the raw materials can be eliminated. Through implementation of Six Sigma principles, the prices can be easily decided for the products with respect to their application and usability. RPM has offered more flexibility and agility to the pricing in the industrial segment rather than in the consumer segment. They expect that this balanced pricing could decline the costs of raw materials while increasing the prices of their end products. Sika has decided to take costs out of their operations and process in more effective ways to deal with increasing problems of the costs of raw materials and energy.
Alongside the problems from raw material pricing, the adhesives and sealants market also need to deal with the environmental regulations. These regulations and protocols are amended constantly, which forces the manufacturers to develop upgraded or new products to meet those demands. One such regulation that presents as a challenge is REACH. This regulation adds costs for most of the chemical producers and also affects the adhesive manufacturers. It forces the industry to develop and innovate solutions that address these changes.
To deal with these challenges, H.B. Fuller have introduced innovative products. Advantra Encore and Liquamelt adhesive are some of them. They offer consumers an alternative that follows the regulations and is environment-friendly. It requires less energy and produces less waste. It is more conveniently available to the packaging markets. Flextra Fast and Flextra Quiet adhesive technologies have been introduced for the flexible packaging customers. They take less time to process and use bio-based films to improve the satisfaction of the consumer. To aid the market of case and cartons, Clean Melt LT is a hot-melt adhesive that reduces the cost of maintenance. It offers high mileage and reduces the consumption of energy. Furthermore, it improves the safety by lowering the temperatures during its application.
Adhesives and sealants have increased their reach in the sectors of military and research applications. Masterbond has innovated an adhesive that offers thermal stability and meets the military standards. They have designed this adhesive by keeping the variants such as thermal cycling speed and temperature thermal range in mind. It can potentially be used in lasers, satellites, oil-drilling equipment, automobile, and other electronic devices. It is specially developed to withstand extreme conditions to satisfy the military-grade standards.
Another company developing in the markets of adhesives and sealants, 3M, have released a new spray cup system for the applications like coating. This system reduces the process of preparation and reduces the time for cleaning by half. Furthermore, it enables the user to spray at an angle to reach secluded areas. It features a spout adapter which is wide and consists of four-point connection. This offers stability during the usage and reduces the amount of mess created by irregular spray.
The market of adhesives and sealants have great potential and will increase at a steady space as new technologies and innovative products are introduced in this market.
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.
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