Market Trends of Tackifier Industry
Building and Construction Industry to Dominate the Market
- Among the end-user industries, building and construction accounts for a significant share of the global tackifiers market currently.
- Pressure-sensitive and water-borne adhesives are in significant demand for various purposes in the building and construction industry for heating, ventilation, air conditioning, concrete, joint cement, manufactured housing, resilient flooring, etc.
- These adhesives use a significant percentage of tackifiers to improve the tack, peel, and bonding of the surface. The growing construction industry across the world is providing growth prospects to the market studied, which is likely to lead to an increasing demand for tackifiers in the adhesive market.
- Rapid urbanization during this time has boosted the construction activities. According to the National Bureau of Statistics of China, China's construction output peaked in 2022 at about CNY 31.20 (USD 4.61 trillion). Thus, it is expected to increase the market demand.
- Further, according to the United States Census Bureau, construction spending in September 2023 was estimated at a seasonally adjusted annual rate of USD 1,996.5 billion, registering a growth of 0.4 % from the revised August estimate of USD 1,988.3 billion.
- In July 2023, compared with June 2023, seasonally adjusted production in the construction sector increased by 0.8% in the euro area and by 0.7% in the EU, according to the initial estimates from Eurostat, the statistical office of the European Union. Conversely, in June 2023, production in construction declined by 1.2% in the euro area and by 1.0% in the EU.
- Hence, owing to the factors mentioned above, the building and construction industry is expected to dominate the market studied during the forecast period.
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Asia-Pacific to Dominate the Market
- Continuous improvement in the economic conditions of the Asia-Pacific region has enhanced the financial status of the consumers, which, in turn, has increased the demand for electronic appliances, buildings, automobiles, and textiles in the region.
- China is also one of the largest manufacturers and exporters of adhesives to many countries and occupies a significant share of the Asia-Pacific tackifier market.
- The major adhesive manufacturing companies, such as Henkel AG & Company, KGaA, H B Fuller Company, Ashland, and Evonik Industries AG, have their manufacturing plants in this region, and they are planning to build more manufacturing plants, which likely will increase the production of adhesives. The increase in the production of adhesives and their outputs is expected to drive the consumption of tackifiers.
- In June 2023, Henkel Announced the addition of a New adhesive Manufacturing Facility in China. The new manufacturing facility of Henkel Adhesive Technologies in the Yantai chemical industry park in Shandong province, China. The new plant, 'Kunpeng,’ will cost approximately CNY 870 million (USD 119 million). The new plant will increase Henkel’s production capacity of high-impact adhesive products in China and further optimize the supply chain to meet the increasing demand from domestic and foreign markets.
- Further, in March 2023, Pidilite announced the manufacture of Jowat’s hot melt adhesive in India. The adhesives will be produced at Pidilite's manufacturing plant in Vapi, Gujarat.
- In Japan, according to the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) Japan, in 2022, approximately 859.5 thousand housing developments were initiated, which represented an increase of 0.4% compared to the previous year.
- Furthermore, India is expanding its commercial sector. Several projects have been going on in the country. For instance, the CommerzIII Commercial Office Complex construction worth USD 900 million started in Q1 2022. The project involves the construction of a 43-story commercial office complex with a permissible floor area of 2,60,128 square meters in Goregaon, Mumbai. The project is expected to be completed in Q4 2027, thus benefitting the market growth during the forecast period.
- Thus, the Asia-Pacific region is expected to dominate the tackifier market during the forecast period.
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