SUMMARY OF REPORT CONTENTS

   Trade Adhesives and Sealants Market 2006-2011

For the purposes of this report, the trade adhesives market consists of three key product categories, Adhesives, Sealants, and fillers. The market includes those products which are used on site for building and construction and those used in DIY which are distributed via retail and trade channels. It excludes adhesives used in the manufacture of building and construction products, and those products supplied direct by manufacturers.

The adhesives market is a mature market and, as such, is hugely reliant on the performance of the economy overall and the building and construction industries for market growth.

From the end of 2007, the house building market started to react to the first signs of the credit crunch.  In 2009, the market for adhesives fell further, as overall market conditions deteriorated and the non domestic construction market, which had previously been supported by existing large scale projects, saw expenditure cut back.  However, the market remained supported by both the public sector construction and the day to day RMI market, therefore this decline was not as steep as falls seen in other construction markets.  From 2010, it is expected that trading conditions will start to show some improvement, although the market remains cautious about growth.

Key factors underpinning market performance in recent years include:

• The performance of the overall economy.

• Domestic RMI expenditure.

• The performance of non domestic construction, particularly within the public sector.

• Performance of the housing market

Product development in the trade adhesives market has focused on green and sustainable products in recent years, as consumer focus and legislation places more importance on these issues.  However, developments have also been made in terms of packaging, branding, usability of products, aerosol and clear containers.  This continual development has enabled manufacturers to stimulate demand for new products and will provide continued opportunity for market growth in the long term.

Distribution within the market has continued to shift towards larger retail outlets such as DIY Multiples, merchants and specialist retailers. These larger retailers are able to stock greater ranges of products and, due to their buying power, are able to offer lower prices.

Bostik, Henkel and Akzo Nobel are significant suppliers in this market. There are a large number of other players active in the market including 3M, Huntsman and Dow Corning as well as a large number of white label suppliers and own brand products.