The overall UK adhesive market
is estimated to be some £722m at manufacturers selling prices (MSP)
in 2004. The market fell to a trough in 2000 from which it
robustly rebounded the following year. Since then, demand has
steadily increased and by 2008 is expected to reach some £790m
at MSP, reflecting annual growth of around 2-3% from 2004.
Market growth reflects the
continued dominance of the paper and packaging sector – boosted
by demand from e-commerce and associated distribution; increased
demand from DIY and home improvements; and the development of
new products opening up a wider range of applications in the
medical and manufacturing sectors.
Imports from low cost sources
in East Europe and Asia will continue to take markets from
producers in the developed economies, who are likely to
increasingly invest in new technologies to develop products at
the high-end of the market.
However, the major current and future threat will
come from the high costs of compliance with increasingly
stringent environmental regulations that will most certainly
render the operations of some producers uneconomic, resulting in
the loss of raw materials and therefore adhesive and sealant
products. Conversely, this pressure will also stimulate the
development of innovative products and raw materials that are
environmentally friendly – although the lead-time to the
production of economically viable products may be extensive.
