Plastic Adhesives Market : Henkel AG (Germany), H.B. Fuller (US) are Leading Players
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The key players operating in the market are Henkel AG (Germany), H.B. Fuller (US), Arkema (Bostik SA) (France), 3M Company (US), Sika AG (Switzerland). These players have adopted various strategies, such as merger & acquisition, investment & expansion, new product launch, and partnership & agreement to grow in the market. New product launch was the key strategy adopted by the major players between 2016 and 2020. This strategy helped companies enhance their product portfolio.
Henkel AG (US) operates globally with a well-balanced and diversified portfolio. It manufactures and distributes homecare, laundry, cosmetics, and adhesive products, globally. The company operates through four main business segments, namely, adhesive technologies, laundry & home care, beauty care, and corporate. Plastic adhesives are produced under the adhesive technologies segment. Henkel offers a multitude of applications to cater to the needs of different target groups: consumers, craftsmen, and industrial businesses. Henkel Adhesive Technologies is the global leader in adhesives, sealants, and functional coatings worldwide.
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In February 2020, Henkel Adhesives Technology invested around USD 55 million in its new manufacturing facility in Kurkumbh near Pune. The 400-crore facility will primarily cater to the growing demand of Indian industries for high-performance solutions in adhesives, sealants, and surface treatment plants and will also export to other countries.
H.B. Fuller is a global adhesives manufacturer, formulator, and marketer. The company has five operating segments, namely, Americas adhesives, engineering adhesives, construction adhesives, and EIMEA (Europe, India, the Middle East, and Africa), and Asia-Pacific. It is active in the field of adhesives for various applications such as assembly of electronics devices, vehicle assembly, packaging, and flexible packaging. In October 2017, HB Fuller finalized its acquisition of Royal Adhesives & Sealants from affiliates of American Securities for USD 1.575 billion. The acquisition enables HB Fuller to enhance its expertise in a specialty and high-value applications. In addition, the merger allows the company to expand its product offering in engineering, durable assembly, and construction adhesives.
COVID-19 Impact on the Global Plastic adhesives Market
COVID-19 has posed many challenges for the automotive sector. The US, Germany, the UK, Italy, South Korea, Spain, and Japan are among the adversely affected major industrialized economies. More than 90% of automotive and related companies report that COVID-19 will have a direct impact on their 2020 sales revenues. The outbreak of COVID-19 and resulting economic uncertainty may reduce consumer demand in the short term. This would possibly hamper new vehicle sales and delay spending on non-essential maintenance. In the long run, these factors could influence consumer preferences.
COVID-19 has posed many challenges in the construction sector. Major economies across the world, such as the US, Germany, the UK, Italy, South Korea, Spain, and Japan, are among the severely affected countries by the pandemic. Social distancing measures, supply chain disruptions, and workforce dislocation have led to the suspension of construction activities in most countries due to the disruptions in supply chains and shortage of raw materials and labor. Construction companies with high debts and lower cash reserves faced a liquidity crisis. However, the construction of temporary hospitals and quarantine centers increased with this outbreak of coronavirus.
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