In many applications adhesives demand grew faster than the application market, but this is expected to change in the future.
In the past 10 years, adhesives demand grew by 4.4% p.a. and while key application industries are projected a CAGR of 4% for the next 5 years, the adhesive demand growth will slow down to 3.5%.
Why will this change and how can the A&S industry react?
One key application that experienced a steady growth in consumption of adhesives and is now expected to grow more slowly or even decline is the Disposable Hygiene sector. Premium brands started to reduce their adhesives demand by using more precise application methods or by using ultrasonic bonding, while budget brands show a slight increase in using more adhesives for their more sophisticated chassis designs.
In Automotive, adhesives offer unique properties such as bonding steel to aluminum in exterior applications which will further increase the demand in the future, while demand in interior applications is declining, because of various alternatives with superior properties like faster cycle or no VOC issues like direct molding, clipping or ultrasonic bonding.
Especially the A&S raw material sector can react on these trends by an earlier and deeper understanding of the drivers of the application industries, e.g. cost and performance positioning of adhesives to the alternatives, to further support their customers in selling their products.