South America Adhesives & Sealants Market Outlook 2027

The rising demand for adhesive & sealants along with its exquisite qualities is expected to boost the demand further in South America. Bio based adhesive & sealants are being developed due to rising governmental restrictions with VOC emissions. These products are cost effective at the same time lower the carbon footprint. These adhesives & sealants will further bolster the market growth in the region. Raw materials required for manufacture of adhesive & sealants are mostly obtained from crude oil and petrochemicals, the prices of which are highly volatile. This volatility in prices is a major market hindrance. However, companies in the region are unlocking opportunities in medical device industry and wound care applications. Companies are also entering into new partnerships in recycling products to a circular economy in future years.

According to the research report “South America Adhesives & Sealants Market Outlook, 2027”, the adhesive & sealants market is expected to grow further at a CAGR of 5.54% during the forecast period. Brazil has over 50% share in South America Adhesive & sealant market. Paper & packaging, Building & construction and healthcare form the major users of these adhesives & sealants. The region’s growth is anticipated to grow tremendously driven by the demand for adhesives from healthcare and automotive industries. Sealants growth would be driven by consumer DIY segment with increased lieu to self-repair & restore things with easy applicable sealants. Acrylic sealants are expected to grow at an expected CAGR of 7.21% during the forecast years. This is mainly due to reduced VOC emissions from acrylic sealants. Development of renewable resources as an alternative to petroleum-derived chemicals is expected to act as an opportunity in the future. Hot melt adhesives are expected to grow rapidly at a CAGR of 6.89% during the forecast years due to large scale use in automotive industry. Water based adhesives has largest market share globally in South America due to its extensive use.

Healthcare industry is expected to be the fastest growing end user for adhesives & sealants during the forecast period with the number of chronic diseases on the rise among the populace. The rising number of surgeries that result in blood loss and the use of technological innovation are driving the growth of the market. Any surgery demands for the use of sealants & adhesive to aid tissue healing. Due to unhealthy eating habits the populace is increasingly facing chronic diseases rapidly which further pushes the demand for healthcare adhesive & sealants. These are also in manufacturing and assembly of various medical devices and equipment’s to make them light weight. Due to the rise in sophisticated value based healthcare procedures South America is likely to have fast development.

Some of the major automotive manufacturers are shifting their base to South America countries lured by low wages of labourers and flexible government regulations. Brazil is one of the major automotive spares exporters to the world markets. Brazil is emerging as fastest growing market for automobile and was also in top 5 auto markets of 2015. With the economy improving , rise in credit availability, growing investment in country and strong demand for exports is bolstering the growth of the automotive industry in Brazil. Other countries like Argentina and Columbia have also emerged as hubs for manufacturing vehicles. Argentina is home to world renowned car brand Mercedes Benz which has been manufacturing cars since 70 Years in the country. With the industry moving towards a more sustainable production, the research in electrification of vehicles has made the region a hot spot for investments which is expected to further the growth for adhesives & sealants.

Hot melt adhesives growth is directly proportionate to the demands arising from the automotive industry as the vehicles are assembled together with the use of hot melt adhesives. They can withstand extreme temperatures and gives an appealing look to the vehicle. The use of hot melts make the vehicles body light weight replacing welding, nut bolts that rust easily over a period of time. Hot melts are used not only in exterior and spares but also in the interior of the vehicles. Water based adhesives are dominant and are expected to hold at its position in lieu of rising demands from various industries and specifically from the construction industry. Adhesives & sealants are used due to their strength, flexibility, solubility and corrosion resistant properties.

Acrylic based sealants emerged as the fastest growing adhesive in almost all industries including electronics, medical, construction and packaging among others, owing to its fast curing nature. Acrylics are cost effective and easily paintable however they have a shorter lifespan than silicone sealants. Ethyl vinyl acetate based sealants are other sealants expected to growing further owing to its fast setting characteristics and ability to bind wide range of surfaces including wood, plastics and metal foil among others. The growth in demand for silicone based sealants is mainly due to increasing innovative product development catering to the growing automobile and packaging industries where sealants are extensively used for lamination and protection. Silicone sealants create a long lasting bonding between two substrates.

The Pandemic hit the demand and supply chains severely affecting the adhesives & sealants market in the region. The raw materials were not soured in time that delayed production activities across industries. Construction and automotive sectors faced large scale workforce shortage due to immobility of labourers. However, the construction of temporary hospitals and quarantine centres increased with this outbreak of coronavirus. Certain adhesive products witnessed strong demand due to their applications in the paper and packaging, as well as healthcare industry. However, dependence of adhesive & sealant on healthcare and packaging sector is expected to lead the adhesives and sealants market to recover soon post the pandemic.

Major Companies present in the market:

Henkel AG, 3m Inc. , Sika AG, H.B. Fuller Company, Arkema S.A., Huntsman Corporation, Illinois Tool Works Inc., Wacker Chemie AG, DuPont De Nemours, Inc., Pidilite Industries Limited, Avery Dennison Corporation, Dow Inc., Ashland Global Specialty Chemicals Inc.

Considered in this report

• Geography: South America
• Historic Year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

Aspects covered in this report

• South America Adhesive & Sealant market with its value and forecast along with its segments
• Country wise market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• Brazil
• Argentina
• Columbia

By Type in the report:

• Adhesive
• Sealant

By Formulating Technology in the report:

• Water-based
• Solvent-based
• Hot-melt
• Reactive & Others

By Resin Type in the report:

• Silicone
• Polyurethane
• Acrylic
• Polyvinyl Acetate
• Other Sealant Product

By Application Type in the report:

• Paper, Board, and Packaging
• Buildings and Construction
• Automotive & Transportation
• Woodworking and Joinery
• Footwear and Leather
• Healthcare
• Electrical and Electronics
• Consumer & DIY
• Other End-user Industries

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning. Post this we have started doing primary calls to industry people by equally segmenting in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry manufactures, consultants, Key vendors related to Adhesive & Sealant industry. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.