The European Market for
Adhesives and Sealants
FEICA
Bernard Ghyoot
Secretary General
October 20, 2010
ARAC conference
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Global A&S Demand 2010
ca. 12.000 Tons / 30 Billion €
AsiaPacific+
Australia
29%
Row
13%
North
America
27%
Source: CHEM/DPNA
Europe
32%
Source: DPNA International/CHEM Research
October 20, 2010
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European Market
• Western Europe and Central Eastern
Europe(CEE) have a still about a 1/3 of the
global market
• The European market can be divided up
in three main sub-regions
– Western Europe (EU15+Switzerland and Norway)
– Central Europe (EU12 New member States)
– CIS+Turkey
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EU 27 – CIS- Turkey
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Europe A&S Demand 2010
4.000 Tons - Value: 10,5 Billion €
Central
Europe
(EU12)
11%
CIS + Turkey
16%
W. Europe
(EU15+)
73%
Source: CHEM Research/FEICA
October 20, 2010
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European Demographics
Adhesive/Sealant Demand
A&S Market
Growth
Region
W. Europe
(EU-15+)
Central Europe
(EU 12)
CIS + Turkey
GDP
Popul. Growth
M. 2009 `09-`10
Estimated 2010 A&S Demand
(Formulated Products)
% AGR
`09-'10
% AGR
`10-`11
1.000 T.
Billion €
Kg/
Capita
368
1,6%
8,9%
2,5%
2.900
8,3
7,9
132
4,0%
5,6%
5,0%
450
1,0
3,4
298
5,0%
7,9%
8,0%
650
1,2
2,2
Source: U.N. Statistics/ CHEM Research GmbH
October 20, 2010
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Europe A&S Demand 2006-2011
Total demand 2010: 4.000 Tons - Value: 10,5 Billion €
CEE
W. Europe
3.000
1.000 Tons
2.500
2.000
1.500
1.000
2006
2007
2008
Source: CHEM Research / FEICA
October 20, 2010
ARAC conference
2009
2010 Est.
2011
Projected
7
Market Growth 2006-2011
• The recession affected the A&S demand in Western
Europe more than in the CEE region
• Strong recovery in 2010 (8%<)
• Moderate growth expected in Western Europe in
2011 (<3%), but more sustained growth anticipated
in the CEE area (6%<),
• CIS has been severly hitted by the recession but a
moderate growth started mid year while Turkey
resisted well to the recession and is growing at
average for the next 3 years rate >8%.
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ARAC conference
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Geographic Growth 2010-2011 (volume)
Projected Growth: 3.7%
Incremental Demand: ca. 160 Thousand Tonnes
100
Incremental Growth (1.000 T.)
90
80
W. Europe
(EU15+)
70
CIS + Turkey
60
50
40
30
Central Europe
(EU12)
20
10
0
0
2
Source: CHEM Research/FEICA
October 20, 2010
4
6
8
10
Annual Growth %
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A&S Market Segments 2010 (Volume)
Total demand: 4.5 Million Metric Tons
Sealants
Adhesives
1.000 T.
1500
1000
500
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Source: CHEM Research/FEICA
October 20, 2010
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A&S Segment Growth 2010-2011(volume)
Projected Growth: 3.7%
Incremental Demand: ca. 160 Thousand Tonnes
80
Incremental Growth (1.000 T.)
70
Paper, Board
and Related
Products
60
Building
Construction,
Civil
Engineering,
Craftsmen
50
40
30
20
Footwear and
10
Leather
Woodworking
and Joinery
Consumer/DIY
(retail)
0
0
1
Source: CHEM Research / FEICA
October 20, 2010
2
3
4
5
6
Annual Growth %
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Market Segment Growth
• Converting/Packaging:
A dynamic market supported by the food
industry and exports of industrial goods
• Building/Construction:
Stimulated by infrastructure development in
the CEE region and renovation activities in
Western Europe
• Consumer demand remaining stable
12
Market Segment Growth (2)
• Industrial Assembly:
Recovery supported by export activities
• Woodworking and leather & shoe
manufacture:
Moderate recovery, experiencing significant
offshoring to Asia and Africa.
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European Market Drivers
 Key drivers in Western Europe
• A&S demand stimulated by EU
production of goods for export,
• Strong Euro,
• Banking sector is paintfully recovering
with some limitation on credit (SME‘s).
• Governments spending cuts 
reducing their deficits,
October 20, 2010
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European Market Drivers (2)
• Intensifying regulatory activities:
i.e. REACH, CLP, environment, public health
protections,
• Rising costs (raw materials, energy)
• Raw material supply disruptions,
• New Innovations in product technologies,
services or new applications.
October 20, 2010
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European Market Drivers (3)
Key drivers in Eastern Europe
• Economic growth and industrial
development continue in many countries
– GDP growth forecast 2010-2011
greater 4%
• Disposable income continues increasing
• Rising costs (raw materials, energy, labor)
October 20, 2010
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Market Opportunities - Europe
• Energy efficiency – Renewable Energy.
– Housing
– Automotive
– Industrial
– Power generation
• Infrastructure rehabilitation and expansion,
• Food production and packaging,
• Economic/financial crisis has boost Innovation
and new applications.
October 20, 2010
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