Adhesive refers to a binding substance applied to the surface of materials to avoid separation. Adhesives are available in natural and synthetic form and can be classified as reactive and non-reactive types. Sealants are available in the form of a viscous material with little or no flow to allow easy penetration of substrate. Although the basic application is the same, sealants differ from adhesives as they lack strength and elongation. Sealants are preferred if they are insoluble, resistant to corrosion and provide appropriate adhesion.
The adhesives and sealants market in Latin America is expected to be driven by the growth in end user industries such as automobiles and construction where adhesives and sealants are used in panel laminating, flooring, insulation, facades, coating, and lamination amongst other functionalities. Moreover, developing technology coupled with a wide range of applications of adhesives and sealants is expected to boost the market growth in the coming future.
Acrylic based adhesives emerged as the largest consumed adhesive in almost all industries including electronics, medical, construction and packaging among others, owing to its fast curing nature. These additives accounted for 29.8% of the total adhesives consumed in 2012. Ethyl vinyl acetate (EVA) based adhesives are expected to be the fastest growing market owing to its fast setting characteristics and ability to bind wide range of surfaces including wood, plastics and metal foil among others. EVA adhesives are expected to grow at an estimated CAGR of 5.6% from 2013 to 2019. Silicone based sealants were the leading sealants consumed in Latin America and accounted for approximately 30% of the total market in 2012. Silicone based sealants are also expected to be the fastest growing sealants growing at a CAGR of 5.3% from 2013 to 2019. The growth in demand for silicone-based sealants is mainly due to increasing innovative product development catering to the growing automobile and packaging industries where sealants are extensively used for lamination and protection.
Pressure sensitive applications (PSA) dominated the Latin American adhesives market and accounted for 27% of the total market in 2012. Furniture is expected to be the fastest growing market for adhesives at a CAGR of 6.1% from 2013 to 2019. The growing disposable income in Brazil and Argentina is one of the major factors driving the demand for furniture and further demand for adhesives. Construction emerged as the leading market for sealants and accounted for 28% of the total sealants consumed in 2012. Sealants usage in the construction industry was followed by the automotive and packaging industry, which together accounted for approximately 35% of the total market in 2012. The automotive industry is expected to be the fastest growing market for sealants at an estimated CAGR of 5.7% from 2013 to 2019. The growing auto production in Brazil, Mexico and Argentina is expected to drive the demand for sealants in the automobile industry.
Brazil continued dominating the adhesives market in Latin America and accounted for more than 50% of the total volume in 2012. Brazil along with being the largest market is also the fastest growing market for adhesives and sealants at an estimated CAGR of 5.5% from 2013 to 2019. Brazil is all set to host the FIFA World Cup in 2014 and the Olympics in 2016. These events have been prompting the growth of construction activities in Brazil, which is expected to drive the market for adhesives and sealants over the forecast period. Brazil also emerged as the leading market for sealants in Latin America and accounted for 75% of the total volume in 2012. Rapid development of the Brazilian automotive industry is expected to drive the market for sealants in the country. Brazil along with being the largest market is also the fastest growing market for sealants at an estimated CAGR of 5.1% from 2013 to 2019. Brazil was followed by Mexico and Argentina, which together accounted for over 20% of the total market in 2012.
Growing demand from key end-use applications such as construction and automotive industries is expected to boost the demand in Latin America. These industrial sectors are witnessing rapid growth in Brazil, Chile, Peru, Argentina, Colombia and other regions, thus fuelling the demand for adhesives and sealants. However, growing environmental concerns and volatile raw material prices of crude oil are expected to hinder market growth. Bio-based adhesives and sealants are expected to catch up in the near future owing to their eco friendly characteristics.
This report gives a detailed description of the Latin American adhesives and sealants market based on volume share (kilo tons) and revenue (USD million) for the period 2012 to 2019. The report highlights the factors contributing towards the growth of the market and the restraints that impede the market. Detailed forecasts for the years 2013-2019 for both adhesives and sealants have been given separately, for better understanding of the individual market scenario. The adhesives and sealants market is described with respect to their various segments along with the opportunities that are expected in the coming six years.
For geographic analysis, the Latin American market has been segmented into countries such as Brazil, Mexico, Argentina and Rest of Latin America - The adhesives market has been segmented based on the following product types - PVA (polyvinyl acetate), polyurethanes, styrenic block, epoxy, EVA and others. Similarly, the sealants market has been segmented on the basis of product types comprising silicones, polyurethanes, acrylic, polyvinyl acetate and others including polysulfide and EVA. The study also analyses market attractiveness for all product segments of adhesives and sealants with the help of the market attractiveness tool.
The study segments the market on an application basis, provides forecasts and estimates for each application segment in terms of revenue and volume over the forecast period from 2013 to 2019.
For a more comprehensive view of the market, a value chain analysis and Porter’s five forces model is provided to throw light on the specifics of the industry structure besides giving an overview of the degree of competitiveness. The report also includes detailed profiles of key players such as 3M Company, Henkel AG, BASF SA, The Dow Chemical Company, Avery Dennison and Ellsworth Adhesives among others. The detailed description of players includes parameters such as company overview, financial overview, business strategies and SWOT analysis and recent developments of the company.
The report segments the Latin America Adhesives market as:
Adhesives Market: Product Segment Analysis
- Styrenic block
- Other (including silicones, polyisobutylene)
Adhesives Market: Application Segment Analysis
- Pressure sensitive applications
- Other (aerospace, electronics, etc)
Adhesives Market: Regional Analysis
- Rest of the Latin America
The report segments the Latin America Sealants market as:
Sealants Market: Product Segment Analysis
- Polyvinyl acetate
- Other (including polysulphide, EVA, etc)
Sealants Market: Application Segment Analysis
- Pressure sensitive tapes
- Other (aerospace, electronics, etc)
Sealants Market: Regional Analysis
- Rest of the Latin America