The adhesive and sealant sector is forecast to experience consistent expansion over the next few years, according to new study.
A report released by RnR Market Research has predicted the industry will develop at a compound annual growth rate of 4.4 per cent until 2018.
One of the main reasons for this positive outlook is a rising trend in demand for eco-friendly and 'green' adhesives or similar products, along with those that are recognised as having a low volatile organic compound (VOC).
Another driving factor is that manufacturing technology is becoming increasingly advanced, allowing suppliers to increase their production capabilities and improve the quality of their wares. This has allowed for the creation of adhesives that are quicker and easier to apply, while their cost has also been reduced.
However, contrasting with this is the volatile nature of the prices of some of the raw materials used in the fabrication of these products, which the report highlighted as being the major hurdle that the sector needs to overcome if it does not want its growth to be inhibited in the future.
While the adhesives and sealant industry struggled like many other markets during the global financial crisis in 2011, RnR found it recovered at a reasonably high rate in 2012. This was the case in Europe and the US in particular.
In terms of where the sector is experiencing its sharpest levels of growth at the moment, China and India are considered to be the biggest consumers of the market, which the report put down to "rapid industrialisation and infrastructure growth".
At Fine Cut, we're constantly looking to stay ahead of the pack when it comes to using the latest technology and components to produce high quality labels. Using the best adhesives is part of this ethos, which is why we always keep a close eye on industry developments.
Posted by Simon Tourle