Latin America Adhesives And Sealants Market Analysis

The demand for adhesives and sealants in Latin America has been primarily driven by Brazil, which is one of the fastest growing economies in the world. Organizing such large-scale international events is likely to stimulate continuous demand for adhesives and sealants from various end-use industries such as construction, packaging, and furniture. In addition, Brazil is also emerging as one of the fastest growing markets for automobiles and is expected to be included in the top five auto markets of the world. Other Latin American countries such as Mexico and Argentina are also emerging as automobile manufacturing hubs of the West.


Industry Insights

Major auto manufacturers in Brazil are shifting their manufacturing bases to Latin American countries to harness the benefits of cheap labor and flexible regulations in the region. However, volatility in raw material prices coupled with growing environmental concerns regarding the use of petrochemical based adhesives and sealants is expected to hinder market growth over the next six years. In order to minimize such effects, the industry has shifted its focus towards developing bio-based alternatives to adhesives and sealants which provides an environmental friendly substitute to synthetic adhesives and sealants.

 

Technology Insights

Water-based adhesives emerged as the leading technology used in Latin America and accounted for 48.3% of total market volume. Along with being the largest technology segment, water-based adhesive is also expected to be the fastest growing technology in Latin America at an estimated CAGR of 6.6% from to 2020. Hot melt adhesives followed water-based adhesives and accounted for 21.1% of total market volume. Solvent-based adhesives technology is expected to reach a market worth USD 225.4 million by 2020, growing at an estimated CAGR of 4% from to 2020.

 

 

Application Insights

Pressure sensitive applications emerged as the leading application segment in the region for adhesives and accounted for 26.9% of total market volume. However, owing to increasing disposable income level mainly in Brazil and Argentina is expected to push the demand for adhesives from furniture, making it the most lucrative market in the region. Demand for adhesives from furniture is expected to grow at an estimated CAGR of 6.6% from to 2020. On the other hand, construction dominated the regional sealants demand and accounted for 28.1% of total market volume. However, automotive is expected to be the fastest growing application segment in the region for sealants at an estimated CAGR of 5.9% to 2020.

 

Regional Insights

Brazil emerged as the leading market for both adhesives and sealants. Brazilian market for adhesives is expected to reach a market worth USD 1,168.6 million by 2020, growing at an estimated CAGR of 6.6% to 2020. Brazil is followed by Argentina and Mexico which accounts for considerable amount of share in the regional market. 



SOURCE:https://www.grandviewresearch.com/industry-analysis/latin-america-adhesives-and-sealants-market