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Latin America Adhesives and Sealants Market is Projected to Represent Incremental Opportunity by 2020
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Economic growth and government expenditure on infrastructure development in emerging economies such as Brazil, Colombia, Mexico and Argentina are likely to boost the market for adhesives and sealants during the forecast period. However, the volatility in raw material prices coupled with environmental concerns regarding the use of synthetic (petroleum-based) adhesives and sealants could to hinder the market growth over the forecast period. In order to reduce the reliance on synthetic adhesives and sealants, major manufacturers such as The Dow Chemical Company, Henkel and Danimer Scientific LLC among others have been shifting their focus towards developing bio-based adhesives and sealants over the past few years.
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Acrylic and polyvinyl acetate (PVA) based adhesives together accounted for more than 40% of the total Latin America adhesives market for building and construction in 2013. These adhesives find wide applications in the construction industry for roofing, paneling, laminates, structural as well as non-structural assemblies among others. Owing to its fast setting properties, acrylic-based adhesives are anticipated to be the fastest growing market and are likely to grow at an estimated CAGR of 6.3% between 2014 and 2020. The sealants market was dominated by acrylic-based sealants and accounted for over 20% of the total regional demand in 2013. Growing construction activities, mainly in Brazil and Argentina, are expected to fuel the market for sealants in Latin America over the forecast period.
Water proofing systems emerged as the largest consumer of adhesives as well as sealants in the Latin America building and construction market in 2013. It is also expected to be the fastest growing market for both adhesives and sealants over the forecast period. Growing foreign investments into Brazil have spurred the growth in infrastructure development in the Latin American countries. Brazil hosted FIFA World Cup 2014 and is scheduled to host the Olympics in 2016. These global sporting events are likely to ensure continuous demand for sealants from the construction industry in Brazil.
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Brazil dominated the adhesives and the sealants market with majority shares in the Latin America market in 2013. Along with being the largest market, Brazil is also expected to be the fastest growing market due to increasing infrastructure activities. Other Latin American countries such as Mexico and Argentina are expected to witness moderate growth rate in the near future.
Some of the key manufacturers of adhesives and sealants include 3M Company, Henkel AG., H.B Fuller Company, BASF SE, Bostik SA, UNISEAL Inc., Ellsworth Adhesives and Dow Chemical Company among others.
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