Latin America Adhesives and Sealants Market to Grow 6.6%
A recent report from Hexa Research indicates that increasing automobile demand in Brazil is anticipated to augment the market growth over the forecast period. Latin America has been the fastest growing market for adhesives and sealants over the past five years, reportedly due to strong growth in end-use industries such as automotive, construction, and packaging. 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.
Increased government spending in construction activities on account of infrastructure development in this region is further anticipated to boost the demand. 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 will to host the next Olympics in 2016; the event 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.
Water based adhesives and sealant emerged as widely used technology in Latin America region followed by hot-melt in 2013, according to the report. Water-based market has been witnessing strong growth on account of its environmental friendliness. Rising environmental concerns, paired with stringent regulations from the EPA, is anticipated to fuel water-based adhesives and sealants market growth over the forecast period. The solvent-based and hot-melt adhesives and sealants market is expected to witness huge growth over the foreseeable period.
Acrylic adhesives and sealants was the largest product segment in this region, followed by PVA adhesives. Construction and automotive industries are the extensive users of acrylic adhesives and sealants. Strong growth of these end-use industries in Brazil is reportedly the key factor to drive the market in this region. Silicone sealants are also 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. 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 consumers’ spending on furniture in Brazil and Argentina, as well as upcoming Olympic events taking place 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.
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