Latin America has been the fastest growing market for adhesives and sealants market over the past five years on account of strong growth in end-use industries such as automotive, construction and packaging. Increasing automobiles demand in Brazil is anticipated to augment the market growth over the forecast period. Adhesives and sealants provide large number of applications in manufacturing industries. Growing manufacturing industries on account of rapid industrialization in developing nations such as Brazil and Argentina is anticipated to boost adhesives and sealants market over the next five years. Increasing government spending in construction activities on account of infrastructure development in this region is further anticipated to boost the demand in this region. Brazil was the host for FIFA world cup in 2014 which resulted in strong demand for adhesives and sealants from end-use industries such as construction, packaging and furniture. Brazil is going to host for next Olympics in 2016. Olympics is the large scale international event, which is expected to boost adhesives and sealants demand from end-use industries over the next two years.
Stringent government regulations regarding usage of adhesives and sealants coupled with increasing environmental concerns is anticipated to hinder the market growth over the forecast period. Moreover, volatile prices coupled with scarcity of crude oil, which is used as a raw material in manufacturing adhesives and sealants is also expected to impact adhesives and sealants market growth negatively.
Solvent based, water based, hot melt and reactive are the different forms adhesives and sealants manufactured differently using various technologies. Water based adhesives and sealant emerged as widely used technology in Latin America region followed by hot melt in 2013. Water based market has been witnessing strong growth on account of its environmental friendliness. In addition, rising environmental concerns coupled with stringent regulations from EPA is anticipated to fuel water based adhesives & sealants market growth over the forecast period. Solvent based and hot melt adhesives & sealants market is expected to witness huge growth over the foreseeable period.
Acrylic adhesives & sealants was the largest product segment in this region followed by PVA adhesives. Acrylic adhesives possess high adhesive property, high environmental resistance and fast setting time. Construction and automotive industries are the extensive users of acrylic adhesives and sealants. Strong growth of these end-use industries in Brazil is the key factor to drive the market in this region. Moreover, silicone sealants are expected to witness considerable growth rate over the foreseeable period.
Pressure sensitive applications emerged as the major market for adhesives and sealants in 2013. Construction is the second major market owing to increasing infrastructure development projects in Brazil. In addition, strong growth of end-use industries including packaging and automotive in this region is anticipated to fuel the market growth over the next five years. Increasing consumer’s spending on furniture in Brazil and Argentina coupled with upcoming Olympics event which is to be hosted in Brazil is anticipated to witness lucrative growth in furniture industry in this region. Growth in furniture is anticipated to fuel adhesives and sealants market in this region over the next five years.
Brazil has been the largest market for adhesives and sealants over the past few years on account of strong growth of end-use industries such as automotive, construction and packaging among others. Rapid industrialization in Brazil is also the key factor to drive the market. Argentina and Mexico followed by Brazil are expected to witness considerable growth rates over the forecast period.
Research Support Specialist, USA