In the modern wave of industrialization pertaining to lightweight automotive, complex designed and energy-efficient infrastructures, and convenient packaging for various logistics owing to rampant e-commerce, numerous adjacent industries across the global market has leveraged such developments, and generated wholesome revenue. According to latest business intelligence report by IndustyARC, Latin America adhesives market is gaining substantial traction owing to  wide range of applications of adhesives in automotive, construction, marine, aviation, energy, and electronics industries. Large scope of application is set to drive the market size as $5.4 billion by 2023 and volume of production is calculated to escalate from 1,043 KT in 2018 to 1,268 by 2023. As quoted by the analyst, “In Latin America adhesives market, Brazil, Mexico and Argentina are the frontrunners in application of adhesives. Mexico is leading owing to its export value of automotive followed by ongoing construction and refurbishment projects. Rapidly growing flexible packaging industry in Latin America is also a disruptive force aiding the growth of packaging adhesives.” All these factors have influenced the market to be progressing at a CAGR of 3.87% during the forecast period 2018-2023.

The report is titled, “Latin America Adhesives Market: By Raw Materials (Natural, semi synthetic and synthetic); By Type (Structural adhesives, pressure sensitive adhesives, reactive adhesives); By Component (one component, two component); By Formulation (water based, solvent based, radiation cured, hot melt based, solvent less, others); By Substrate (polymer, composites, metals, wood, others); By End Use (automotive and transportation, industrial assembly, packaging and paper, building, construction and furniture) & By Country - Forecast (2018-2023).” The report comprises of forecast of market size, an overview of competitive structure, market share of competitors, recent trends, demands, drivers, and challenges and others.

Latin America Adhesives Market – Leading Segments:

Automotive Industry in Mexico, Brazil and Argentina to be the Principal Growth Factor –

Economies all over the globe are bound to reassess their automotive manufactory and R&D to inhibit the dependency of transportation on petroleum. With OEMs diverting towards lightweight to diminish carbon footprints and escalate fuel efficiency, application of plastic in automotive parts has increased, further augmenting the use of adhesives in automotive. Hence, Mexico with cars, vehicle parts and trucks as its top 3 export subjects, is a lucrative country in terms of revenue in Latin America adhesives market. Similarly, delivery trucks are the 4th most exported item from Argentina and cars in Brazil are the 5th most exported product. As per the OEC (The Observatory of Economic Complexity), in terms of global exports of cars, Mexico holds the 5th position with value recorded to be $45.1 billion in 2017. According to the analyst, Mexico adhesives market will have a revenue of $1.6 billion by 2023.

Analyzing the market in terms of revenue from end-user verticals, Latin America adhesives market is dominated by packaging & paper and, building, construction & furniture industry. Both these industries are in an avid competition to secure the lead with an estimated revenue of $1.4 billion and $1.6 billion respectively by 2023. The dominance of these sectors is attributed to the investments made by China in Latin America in various verticals such as contsruction, transport and energy. According to Americas Quarterly Organization, lending by the China Development Bank and China’s Eximbank to Latin America has remained bigger than lending from the World Bank, Inter-American Development Bank (IDB) and CAF Development Bank of Latin America combined. Previously, as Chinese investors were channeling resources towards construction, modern investors are in pursuit of opportunities in transport, finance, electricity generation and transmission, and alternative energy services.

Latin America Adhesives Market Growth Drivers and Trends:

· Renewables Sector Renewing Demand:

Bourgeoning renewable energy sector in Latin America is a major growth driver disrupting the adhesives market, owing to application of adhesives in wind turbines and blades, photovoltaic, solar thermal and concentrating solar power systems. International Renewable Energy Agency is supporting Latin America with several favorable policies such Clean Energy Corridor of Central America (CECCA) and Renewables Readiness Assessment (RRA). Total investment in renewable energy of this region reached almost $120 billion in 2015, with further foreign investors as mentioned earlier, the segment will flourish. 

· Monetary Assistance by World’s Economic Superpowers (China and United States):

Latin America is witnessing a constant influx of funds and sanctions from elite organizations such as the World Bank, Inter-American Development Bank (IDB) and CAF Development Bank of Latin America. Well, the incoming of fund is not just restricted to organizations but several super economies such as the U.S and China are also investing in Latin America. For example, for FY 2017, the U.S. Government allocated $1.7 billion to this region by its State Department and the U.S. Agency for International Development (USAID). These funds have clearly impacted industrialization, making room for progress in several sectors such as construction, mining and energy directly influencing the adhesives market. Several projects funded by China in Latin America includes, Chauchari solar plant (largest in the region), Space mission control in Bajada del Agrio, Marcona iron mine and Las Bambas copper mine.

Latin America Adhesives Market – Competitive Landscape:

Major market players dealing in adhesives in Latin America are Henkel AG & Co. Avery Dennison, 3M Company, Arkema Group (Bostik), H.B.Fuller Company, DOWDupont Inc., Huntsman Corporation and Avery dennsion Corporation.

Company Developments-

· BASF partnered with Avery Dennison in 2017 to develop a product segment called acrylic film adhesives in Brazil and Argentina. Acrylic adhesives are used in wood, glass, metal, and waterproof products. With increasing volume of operations in  the flourishing construction sector, demand for such adhesives in glass centric construction projects will add further revenue in Latin American market, adding to the market share.

· H.B Fuller, one of the foremost participant in the adhesives market acquired Adecol Ind. Química, Limitada, a manufacturer of quality adhesive technologies in Brazil, and has strengthened its Latin America adhesive segment, and hence, its outreach.


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Related Reports:

A.        South America Laminating Adhesives Market     

https://industryarc.com/Report/18928/south-america-laminating-adhesives-market


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