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Frost + Sullivan Reports Widespread Usage of Industrial Adhesives in South Africa

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Mar 12 2010

Research and Markets(http://www.researchandmarkets.com/research/92500c/south_african_mark) has announced the addition of Frost & Sullivan's new report "South African Market for Industrial Adhesives" to their offering.

Research was carried out on the industrial adhesives market in South Africa. The research focuses on polyurethane, epoxy, silicone, acrylic and polyvinyl acetate technologies. Market sizes for these and the total industrial adhesives market where established. In addition market dynamics such as challenges, drivers and restraints were also identified. Main end user markets analysed were the packaging, automotive, construction and the tape market.

This Frost & Sullivan research service titled South African Market for Industrial Adhesives provides an overview of the South African market for industrial adhesives with insights into the market drivers, market restraints and industry challenges and determines the impact on the future market demand for industrial adhesives. It provides the overall market revenues along with revenue forecasts of major adhesive technologies. The study also offers an overview of the key end-user markets and an opportunity analysis for these segments, with strategic recommendations based on the market assessment to suppliers of industrial adhesives. In this research, Frost & Sullivan's analysts thoroughly examine the following end-user markets: packaging, construction, automotive, tapes, and furniture. The technologies covered in this research are: silicones, epoxies, polyurethanes, polyvinyl acetate and acrylics.

Market Overview

Industrial Adhesives in South Africa are Fast Replacing Traditional Joining and Bonding Techniques

Industrial adhesives are at present more widely used in South Africa than consumer adhesives. Structural adhesives are currently taking over where mechanical fasteners were once used on a large scale. Besides diverse applications in the manufacturing process, industrial adhesives also offer several functional and economic advantages over the traditional methods. Most of these advanced adhesive technologies are transferred to these developing economies through multinational corporations. "The use of industrial adhesives is fast becoming the joining and bonding method of choice in place of traditional methods such as rivets, welding and bolting," notes the analyst of this research. "This trend is in line with advancements in the material science space, which have seen new substrates being developed." Industrial adhesives are slowly assuming the functions that used to be reserved for fasteners, such as rivets, welding, soldering and nuts and bolts. In some applications, these adhesives are utilised alongside fasteners, necessitated by the development of new substrates requiring innovative ways of joining.

Apart from the uptake of industrial adhesives in favour of the traditional joining methods, there is also a gradual movement towards the use of water-based production processes over solvent processes across the world. The replacement rates of chemical solvents with water-based processes are low in South Africa. Consequently, there has not been a significant shift away from solvent-based industrial adhesives. However, with more industries becoming environmentally friendly, there is likely to be an increased demand for water-based adhesives. Despite the prevailing economic downturn, the demand for industrial adhesives is dependant on the growth in the end-user application markets. The major end-user markets for industrial adhesives in South Africa are the packaging and construction industries. The food and beverage industry is a major consumer of packaging and utilises adhesives for labelling and sealing. Increased consumption in such industries has a positive domino effect on the industrial adhesives market.

Industrial Adhesive Suppliers to Balance Production Costs with the Prices of Their Products

The rise in oil prices has resulted in a consequent increase in the prices of industrial adhesives raw materials such as polypropylene and ethylene that are derived from oil. Some raw materials used in the manufacture of industrial adhesives are also used in making applications other than adhesives, thereby increasing the competition for the raw materials and consequently, their prices. The South African manufacturers must compete with international companies in the market for adhesives, as the demand for adhesive raw materials is not localised. "The current economic downturn has brought to the fore the price-sensitive nature of the industrial adhesives market," notes the analyst. "The end-user markets are willing to use industrial adhesives that are moderately less expensive as long as their performance is similar to the more expensive ones."

Manufacturers and suppliers of adhesives should ensure that they provide value to their customers for a continued market demand for their products. Given the influx of less expensive products from the Middle East and Far East, suppliers of industrial adhesives should streamline their processes to strike a balance between costs of production and prices of their products, so that there is sustained competitiveness. "Suppliers need to align their production technologies to those in the developed countries to be able to position themselves for the movement away from chemical solvents," concludes the analyst. "The focus should be on emerging sub-Saharan African countries in order to expand into these markets and ensure sustained growth."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By end user: