US demand for adhesives and sealants is forecast to increase 2.8 percent per year to 6.4 billion pounds in 2019, valued at 12.8 billion USD, according to a new report from Freedonia Group.

The Adhesives & Sealants report has projected the market from 2014 to 2019 and found that a turnaround in construction activity, combined with the expanding use of adhesives and sealants in manufacturing and assembly, will underpin demand gains.

Manufacturing and assembly will continue to be the largest market for adhesives and sealants.  Within this market, the tapes and labels segment is expected to remain the leading outlet for adhesives, driven by healthy advances in the production of pressure-sensitive tapes and labels.

Among other segments, solid increases are expected in the aerospace, machinery, motor vehicle, and electrical and electronic markets, where adhesives and sealants will continue to displace alternative fasteners.

Construction will see the biggest upturn, from negative annual growth across the 2009-2014 period to the biggest annual growth, 6.1 percent, of the four adhesive and sealant markets covered by the report.

Emulsion and dispersion adhesives and sealants will remain the leading product type. The ongoing displacement of solvent-based products is expected to support increases as end users strive to meet emissions regulations through the adoption of water-based and higher solids formulations.

The fastest annual growth through 2019 is expected for reactive adhesives and sealants, driven by rising demand in major markets and trends favoring higher value materials.  Silicone and polyurethane adhesives and sealants will post the most rapid gains among reactive types, supported by their superior performance characteristics.

However, the Adhesives & Sealants report has warned that advances across the board will be limited by trends toward high solids formulations and lower application weights.

Market maturity and sluggish growth in paper packaging and other key markets will further restrain increases, with the slowest annual gains, just one percent between 2014 and 2019, projected for the packaging market, which will be hampered by weakness in the paper and paperboard packaging segment.

Written for: Labels and Labeling Magazine

February 2015

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