Table of Contents
•The total industrial adhesives market in South Africa and Kenya was worth $ x million in 2013 and it is expected to reach $ x million by 2018.
•Although Kenya’s contribution to the overall market is comparatively small, it is expected to grow at a compound annual growth rate (CAGR) of x % from 2013 to 2018, much faster than the South African market which is expected to grow at a CAGR of x %.
•The packaging industry emerged as the largest end user in South Africa, while in Kenya, the market is driven by a thriving construction industry.
•The automotive industry is expected to grow rapidly and present more opportunity for adhesive manufacturers in the medium- to long-term.
•Up to x % of adhesives in South Africa are manufactured locally, whereas more than x % of adhesives used in Kenya are imports.
•Influx of cheap imports from Asia and the Middle East brings down prices and intensifies competition.
•The main competitors, with physical presence in both markets, are Henkel AG, 3M Company, and Sika AG.
•Fluctuations in raw material pricing and availability are currently the biggest concern among adhesives manufactures.
•Adhesive manufacturers are at backward integration and forming strategic relationships with raw material suppliers as means to minimise the impact of raw materials shortages and fluctuations.
•In the long-term, manufacturers are also looking to replace petroleum-based raw materials with more sustainable raw materials.
•As the adhesives industry is technologically driven, there is an increasing demand for low-cost, high-performance raw materials to improve functionality, safety, and environmental friendliness.
•The increasing emphasis on reducing waste and environmental impact, customer requirements, and social issues influence the direction of product development and innovation.
To minimise the impact of shortages and price fluctuations, industrial adhesives manufacturers and suppliers will have to establish strategic relationships with upstream suppliers of raw materials.
Manufacturers and suppliers of industrial adhesives will have to strengthen cooperation with end users to obtain first-hand feedback on customer satisfaction and on-site quality performance of products.
The adhesives industry is technologically driven; building a reputation through continuous research and development coupled with customer education is essential to stay competitive.
The adhesives industry is set to experience increased consolidation in the long-term as customers are looking to work with fewer and more capable suppliers with technical expertise.
•Adhesive products are polymers or a blend of polymers that are used to bind materials or objects permanently or semi-permanently. They are composed of resins derived from petroleum or synthetic rubbers, and additives which are used to enhance functional properties.
•The formulation ultimately depends on the application. Industries that use adhesives include packaging and paper conversion, electronics automotive assembly and repair, and construction.
•The global adhesives industry has so far shown steady growth, reaching $ x billion in 2013. It is expected to grow at a CAGR of x % to reach $ x billion in revenues in 2018.
•Progress in the adhesives industry can best be explained by a global transition from conventional materials (glass, stone, wood, and metal) to lighter and more economical materials, primarily petroleum-based plastics.
•These new materials mandate new methods of assembly and suitable bonding components. Therefore, the use of adhesives is increasing rapidly.
•Adhesives are generally classified in x ways: according to their chemical composition; their physical form, such as paste or pellets; or their load carrying capability such as structural, semi-structural, or non-structural.
•For the purposes of this study, adhesives were categorised according to x main chemical groups. They are: acrylics, epoxies, polyurethanes, vinyl acetates (PVA and EVA ), and silicones.
•South Africa and Kenya were identified as key markets well-positioned to harness the available growth potential in industrial adhesives. These countries are the largest and most sophisticated economies in their geographic regions and respective economic blocs, the Southern African Development Community (SADC) for South Africa and Eastern African Community (EAC) for Kenya.
•South Africa is the second-largest economy in the continent, while Kenya continues to show notable economic progress and has been recently classified as a middle-income country. Both countries serve as strategic entry points for investors into their respective regions.
•Kenya and South Africa currently belong to different trading blocs, therefore firms engaging in cross-border business do not enjoy tariff concessions. However, the restraints will decrease when the free trade area that brings together SADC, EAC, and COMESA.
Key Questions This Study Will Answer
What is the size of the South African and Kenyan industrial adhesives market and how do they compare? Are the markets growing and at what rate?
What are the major trends, market drivers, market restraints, and industry challenges and how will they impact the future demand for industrial adhesives?
What are the overall revenues and revenue forecasts for industrial adhesives in South Africa and Kenya?
How does the consumption of industrial adhesives vary among end users? Which end-user industries present opportunity during the forecast period?
What is the current structure of the competition? How are business models changing during the forecast period?
What role does technology play in the industrial adhesives and how will this affect the market in the next x years?
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