1. Market Research
  2. > Chemical Market Trends

Investment Analysis of the North American Adhesives and Sealants Market : Specialty Adhesives Segment is the Key Focus for Investment

  • December 2014
  • 48 pages
  • Frost & Sullivan
Report ID: 2575141


Table of Contents

Executive Summary

•The North American adhesives and sealants market has been gradually recovering from the 2008 financial crisis. Three end-user industries—construction, automotive, and packaging— have been fueling demand.
•Hazard-free and sustainable products are in demand because of growing concerns about health and wellness and the environment. Sustainability is increasingly being mandated; companies are developing products that meet standards globally.
•Most product segments are commoditizing. Companies are focusing on specialty, high-performance adhesives to differentiate themselves and improve customer retention.
•Horizontal mergers and acquisitions (M&As) have helped large companies bring about industry consolidation and hedge against competition. Many small manufacturers of specialty adhesives were acquired by larger companies during the study period.
•M&As have been an important exit option for private equity (PE) and venture capital (VC) investors.
•Although well-entrenched companies have created high entry barriers, foreign competitors undertook many cross-border acquisitions to enter the North American market during the study period.
•Key financial ratios remained stable during the study period. Gross margins varied between x % and x % depending on the extent of commoditization in a product segment. Selling, general, and administrative (SG&A) expenses have been the biggest constraint on net margins. Labor costs are highest in North America, further shrinking net margins compared with the global average.
•The industry is capital intensive, but given its stable revenue the return on these assets depends on process control and managerial efficiencies. Since most companies have a global presence, they are able to hedge against domestic economic cycles and generate stable revenue throughout the year.
•Working capital management is a key factor for financial success given the strong bargaining power of both suppliers and buyers. Most companies in this industry rely on their large cash reserves rather than on contractual hedging to manage their working capital requirements.

Key Terms and Definitions

•Adhesive: Any chemical compound that fastens 2 or more surfaces together.
•Sealant*: A chemical compound used to seal gaps between substrates to make them airtight or watertight.
•Growth Capital/PE: A private placement transaction in which an investment is made in a mature or middle-market stage company with the purpose of aiding its growth.
•VC: A private placement transaction that involves an investment in an incubation or start-up, early, mid, late, or emerging stage company
•M&As: An aspect of corporate strategy, corporate finance, and management by which corporations legally unify ownership of assets formerly subject to separate controls.
•Volatile Organic Compound (VOC): A chemical compound that easily evaporates at low temperature. VOCs are considered hazardous to human health and the environment
•Silane Modified Polymer (SMP): A water-curable, hybrid polymer comprising a polyurethane base and silicone compounds. SMPs are high-performance, structural adhesives that are shock and impact resistant, and are also known as silyl-modified polymers.
•Corporate Average Fuel Economy (CAFE): US regulations to improve vehicle fuel economy.
•Body-in-white (BIW): The automotive manufacturing stage in which basic metal components are welded together to make the vehicle frame.
•ASTM International: An organization that develops and publishes international technical standards for a wide rage of materials, products, processes, systems, and services.
•US Environmental Protection Agency (EPA): A federal agency created to protect health and the environment.
•Product Stewardship: A voluntary initiative in which every entity involved in a product’s life cycle ensures the least impact on environment, health, and safety.

Who Will Benefit?

•Adhesive and sealant manufacturers
•Chemical companies
•PE investors
•VC investors
•Fund managers
•Retail investors
•Sovereign wealth funds
•Hedge funds
•Insurance funds
•Other members in the investing community

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you find the right report:


The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Hot Melt Adhesives Market, Polyamide, Polyurethane, and Styrene Block Copolymers; End User - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024

  • $ 5795
  • Industry report
  • May 2017
  • by Transparency Market Research

Global Hot Melt Adhesives Market: Overview Hot melt adhesives provide a strong, nearly invisible bond and work with everything from foams & fabrics to plastics, wood and light-gauge metals. Rising construction ...

Carbon Fiber Tape Market by Form Type, End-use Industry, Region - Global Forecast to 2022

  • $ 5650
  • Industry report
  • August 2017
  • by MarketsandMarkets

“Increasing demand for advanced materials such as carbon fiber tapes from the aerospace industry is expected to drive the carbon fiber tape market” The global carbon fiber tape market is projected ...

Bonding Films Market by Type, Technology, End-Use Industry, Region - Global Forecast to 2022

  • $ 5650
  • Industry report
  • August 2017
  • by MarketsandMarkets

“The bonding films market is projected to grow at a CAGR of 8.2% from 2017 to 2022.” The bonding films market was valued at USD 613.5 million in 2016 and is projected to reach USD 985.5 million by ...

Download Unlimited Documents from Trusted Public Sources

Global Chemical Demand Forecast Statistics

  • August 2017
    10 pages
  • Chemical  

  • World  


    United Arab Emi...  

View report >

Chemical Markets in Saudi Arabia

  • August 2017
    2 pages
  • Isocyanates  

  • Saudi Arabia  


View report >

The future of the PET Industry in Europe

  • August 2017
    3 pages
  • Thermoplastic  



  • Europe  



View report >

Global Xylene Industry

2 months ago

Related Market Segments :



Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.