PUdaily, Shanghai– In recent years, the output of adhesives in China has shown an upward trend. At present, domestically produced adhesives are mainly middle- and low-end products, with capacities for some adhesive products exceeding the market demands. Therefore, market competition is fierce.
The size of global adhesive market is expected to reach over $50 billion in 2019. Multinationals such as Henkel, Arkema, Dow DuPont, Sika, Fuller, 3M, ITW, Huntsman, Wacker and Mapei capture an over 50% share of global market.
With its adhesives output growing at a CAGR of about 9%, China has become a major adhesives producer and consumer in the world. Its output makes up 30% of the global output.
Meanwhile, with the introduction of environmental policies and the increasing environmental awareness of downstream users, adhesives produced in China are shifting to environmentally-friendly and performance products that are solvent-free, water-based, reactive and hot-melt, so as to replace products that generate high VOC emissions and are toxic. The output of hot-melt and reactive adhesives will grow at a rate of over 12%.
Currently, the main applications of adhesives in China are construction, packaging/labeling and woodworking. Building/construction and decoration account for nearly 30% of the total adhesives consumption; packaging/labeling account for 20%; woodworking and joinery make up 14% and; transportation represents nearly 8%.
Therefore, the demand for adhesives will continue to increase due to the recovery in demand from downstream sectors such as real estate, infrastructure and automobiles.
At present, most adhesives producers in China are small- and medium-sized businesses, and some are even operating as workshops. Most of their products are low-end ones manufactured through mass production. And they rely on the sales strategy of small profits but quick turnover to make meagre profits.
Faced with increasing raw materials and labor costs, the adhesives industry is accelerating restructuring. Through merger and acquisition, the industry is shifting towards large-scale production by several big manufacturers.
Post time: Sep-04-2019