South America Contact Adhesives - Segmented by Technology, Polymer, End-User Industry, and Geography - Growth, Trends and Forecast (2018 - 2023)
The South America contact adhesives market is expected to witness a CAGR of ~3.19%, during the forecast period, 2018 - 2023. Brazil dominated the South America contact adhesives market in 2017, with a market share of around 48%.
Accelerating Demand from the Automotive Industry to Drive the Market
Over the past few years, contact adhesives have become a significant technology component of automotive applications, as they are continuously replacing traditional bonding or adhesion methods. Unlike traditional manufacturing methods, adhesives offer the advantage of flexibility during the production process of automotive components. In addition, they also aid in reducing the processing and set up time, as they can be applied easily and at a relatively high speed. Automotive production in South America increased by more than 20% in 2017, with around 541 thousand units produced in 2017. Brazil registered the highest growth of more than 25%, while countries, such as Colombia and Venezuela registered declining demand.
As per the National Federation of Automotive Distributors, new automobile sales increased by 23.14% in January, 2018, in Brazil. This is primarily due to the renewed expectations due to improvement of the economic indexes directly influences consumer confidence and favor the automotive industry. Thus, with the recovering automotive industry due to the growing exports and the stabilizing economy, the market for contact adhesives is expected to grow at a good rate during the forecast period.
Footwear Leather – The Dominating End-user Industry Segment
Contact adhesives, as they are fluid and flexible in nature and environment-resistant, are used in shoe manufacturing and leatherwork, which is used in making sports equipment, apparel, accessories, amongst others. These are used for bonding all parts of shoes, including outsoles, insoles, uppers, amongst others. The South America footwear industry is experiencing rapid expansion due to demand for new and innovative footwear products, increasing sports activities and increased demand for sports footwear, sports equipment, and apparels (made up of leather).
Brazil – the Largest Market amongst Countries
The Brazilian government is investing heavily in the R&D sector, with public universities and research institutes carrying out such activities. This made Brazil the technological center of South America and its R&D is gaining global recognition. Brazil, which is facing a recession in the current period, has slowly started to climb the path of recovery. The construction sector in the country has started to recover, the automotive industry is growing at a significant pace, shoe-manufacturing industry has started to grow at a steady pace, and there is even continuous demand from the packaging and furniture industries. Such growth in end-user industries is expected to drive the South America market through the forecast period.
Major players: Henkel AG & Co. KGaA, 3M, H.B. Fuller, Sika AG, and Arkema Group (Bostik SA), amongst others.
Reason to Purchase this Report
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand, which technology, polymer, and end-user Industry is dominating the market
Information about the countries, which are expected to witness the fastest growth during the forecast period
Identifying the latest developments, market shares, and strategies employed by the major market players.
3-month analyst support, along with the Market Estimate sheet in excel
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