The industrial glues and adhesives market - France

1.2 The global market

The global adhesives market is in good shape, valued in **** at US$** billion according to factmr. It is expected to grow at an average annual growth rate (***) of *% over the period ****-****, reaching sales of ***.* billion in ****.

evolution of adhesives market size World, ****-****, in billions of US dollars CAGR = *% Source: ****

According to Aficam data, Europe's adhesive market will generate sales of ** billion euros in ****, for a production output of * million tons. The sector employed **,*** people in the same year, in *** companies. [***]

1.3 The domestic market

According toAficam, the French glue market will represent sales of *.* billion euros by ****.

The graph below shows a certain stagnation in the glue manufacturing market over the period ****-****, with variations of no more than +/- *%. In ****, the market saw a stronger increase in sales than in the previous period, recording +/- *%. However, **** saw a drop of *%, which was more than made up for in ****, when the market grew by around **%.

glue manufacturing market sales index trend France, ****-****, base *** in **** Source: ****

1.4 Foreign trade

In order to study France's foreign trade in glues and adhesives, we have used customs code ****, which defines "products of all kinds used as glues or adhesives, put up for retail sale as glues or adhesives".products of all kinds for use as glues or adhesives, packaged for retail sale as glues or adhesives...".

trends in French imports of products of all kinds for use as glues or adhesives, packaged for retail sale as glues or adhesives France, ****-****, in thousands of US dollars Source: ****

French imports of products of all kinds for use as glues or adhesives, packaged for retail sale as glues or adhesives, increased between **** and ****. The latter rose by **% between these two years, with a slight drop in ****, surely due to the health crisis.

evolution of French exports of products of all kinds for use as glues or adhesives, packaged for retail sale as glues or adhesives France, ****-****, in millions of US dollars Source: ****

conversely, French exports of Products of all kinds for use as glues or adhesives, put up for retail sale as glues or adhesives have fallen since ****, with a sharp drop of around **% between **** and ****. However, the difference between **** and **** is not so ...

2.1 Market demand for glues and adhesives depends on the health of certain sectors

Demand for glues and adhesives is highly dependent on the shape of several sectors. These include industrial production in general, or more specifically the automotive sector, the cardboard and plastic packaging sector, and the housing construction, repair and maintenance sector. On the other hand, the glue market is mainly linked to manufacturing production within industry.

Source: ****

Insee thus informs us of the good shape of the manufacturing industry at the start of ****. Production rose by *.*% compared with December ****. However,Insee reports that year-on-year, manufacturing output fell by *.*% (***). The good shape of the beginning of the year may still give hope to the glue and adhesives market.

2.2 Demand for building construction/repair/maintenance

Maintenance-renovation work drives the glue and adhesives market

In the maintenance-renovation segment, household spending has risen by **.*% in **** compared with ****, to **.* billion euros. [SDESsince ****, this market has grown by **. *%.

Household spending on home maintenance and renovation France, ****-****, € million and % Source: ****

Several factors may explain this growth. On the one hand, the number of existing home transactions has risen steadily over the last five years: from ***,*** in February **** to *,***,*** at the end of May **** (***), *.*% VAT for energy improvements, and the zero-rate eco-loan. [***]

We can also mention the energy-saving certificate scheme (***).

A mixed outlook for construction

According to statistical data and studies for climate change, energy, environment, housing and transport, housing authorizations for construction were up from June to August ****, (***). [***]

Between September **** and August ****, ***,*** housing units obtained the right to be built, **,*** more than in the previous ** months (***).

Number of housing units authorized and started France, ****-****, in thousands of units and cumulative ** months Source: ****

New housing

In terms of new housing sales, we've seen a significant drop in the number of starts and sales since the start of ****, coinciding with the arrival of the pandemic. What's more, in the first quarter of ****, the new housing market has still not returned to ...

2.3 Demand from the automotive industry

The automotive market relies heavily on glues and adhesives to assemble a large number of vehicle components.

Production (***) in the motor vehicle and parts market France, ****-****, € billion Source: Euromonitor Applying the same definition to the market scope as in section *.*, we see that the French automotive market has grown steadily since ****. Indeed, between **** and ****, the market grew at an average annual rate of *.**%.

However, as we'll see in the graph below, production volume has fallen. This implies that foreign cars have become more common in France, but could also be explained by premiumization. In other words, the French are buying more top-of-the-range cars (***), which increases market revenues.

Automobile production volume in France France, ****-****, in millions of units Source: KNOEMA In ****, *.* million cars were produced in France, down **% on ****. This decline can be explained by the fact that more French production is taking place abroad, as we'll see in more detail in section *.*.

The automotive maintenance market: another opportunity for glues and adhesives

The automotive repair and maintenance sector represents a great opportunity for adhesives and glues. In order to establish trends in this market, we're going to look at sales linked to automotive maintenance and repair in France. To ...

2.4 Demand from plastic and cardboard packaging

Plastic packaging

The French glues and adhesives market depends in part on the plastic packaging market, which in turn depends on the outlook for the following customer segments:

Cosmetics Food industry Cleaning products

Food industry products are particularly important, since the segment accounts for **.*% of packaging sold. [***]

Market growth is much weaker in France than in Europe, averaging just *.*% per year over the period **** - ****.[***]

plastic packaging market trends France, ****-****, in billions of euros CAGR from **** to ****: +*.** Source: ****

Average annual production of plastic packaging rose slightly between **** and ****, by an average of *.*% each year. However, it fell between **** and ****, demonstrating the uncertainties that weighed on the sector even before the crisis of ****.

In ****, there was a very slight recovery, but the results are still far from the **** peak.

Average annual industrial production of plastic packaging France, ****-****, base *** in **** source : INSEE

Cardboard packaging

The carton packaging market appears to be in good shape, which bodes well for the adhesives market. Indeed, the graph below shows us an explosion in the sector's sales index, which registers an increase of over ** percentage points between **** and ****. It's easy to imagine that this trend is set to continue, given the numerous regulations that restrict ...

3.1 Industry forces and organization

In order to determine the players present on the industrial glues and adhesives market, we will study the data relating to NAF code ****Z, which defines: "Manufacture of glues". This aggregate covers the manufacture of prepared glues and adhesives, including rubber-based glues and adhesives. It does not include the manufacture of gelatins and their derivatives.

number of companies in the glue manufacturing sector France, ****-****, in units Source: ****

The graph above shows that the number of companies in the glue manufacturing sector has fallen since ****, from ** to **. What's more, this number has not changed between **** and ****, suggesting a degree of stability since ****.

The number of salaried employees is also relatively stable. Since ****, they have fluctuated between *,*** and *,***, with an increase in **** compared to the initial date. The biggest increase was between **** and ****.

change in the number of employees in the glue manufacturing sector France, ****-****, in units Source: ****

The map below shows the concentration of glue production activities in the Hauts-de-France and Ile-de-France regions, which respectively account for **% and **% of the sector's total workforce, i.e. more than half between them. However, Ile-de-France has * fewer establishments than Hauts-de-France, which has *. Only the Grand Est region also has * production units.

3.2 The different types of products and the sectors they affect

Glue

Glue is a liquid or gel-like substance used to join parts together. Glue is applied to the surface of the parts to be joined, which may be made of identical or different materials. Glue also has the property of being able to bond rough parts. Whether in aqueous or solvent-based form, as resin or melt, a wide range of adhesives is now available to meet the different bonding requirements of industry, packaging, construction and the general public.

As adhesive applications have expanded, the industry has developed formulations that take full advantage of the properties of chemical and non-chemical raw materials. The main technologies used are cyanoacrylates, neoprene, epoxies, silicones, acrylates, vinyls, polyurethanes, silanes, caseins, cements...

To really understand the use of different types of glue, you need to understand the vocabulary associated with them. Here are just a few of the terms associated with the use of glue.

Docking: This operation involves bringing the parts to be assembled into their final positions. Open time: This term is self-explanatory. It defines the period between the opening of the pot and the start of glue setting. Gumming time: Period during which the spread adhesive thickens and increases its adhesive effect. The parts ...

3.3 A market concentrated around a few major players

The glue and adhesives market is highly concentrated around a few major players, such as the *M group and France's Arkema. The * biggest groups in the sector account for **.*% of market share, which means that these players are over-dominated.

Weight of the * largest groups in the adhesive manufacturing market France, ****, in Source: ****

When we look at companies rather than groups, the top * companies in the sector account for **.*% of market share, i.e. almost **% less than when we talk about groups. This proportion rises to **.*% for the top * companies and **.*% for the top **. This shows that the market is highly concentrated around a few players.

Market share of companies in the glue manufacturing sector France, ****, in Source: ****

4.1 Types of glue offer

There are many different types of adhesive for many different uses. Let's take a look at them and their characteristics.

Physical setting adhesives

Physical-setting adhesives are adhesives in which the polymer is already present. It simply has to be present in molten or liquid form in water or solvent prior to application. There is no chemical reaction.

Source: ****

Chemical setting adhesives

Chemical setting adhesives are adhesives in which the polymer is formed by a chemical reaction. This reaction is called polymerization. This chemical reaction is triggered by UV radiation, temperature, humidity and hardeners.

Source: ****

4.2 Adhesives product range typology

The main adhesives:

Rubber adhesive: Can be synthetic: synthetic resin and adhesive tape obtained by melting thermoplastic rubber. Or natural rubber with solvent: made from natural rubber and resin diluted with solvent. Main applications are masking (***), packaging, office, temporary bonding...Its main properties are : High versatility, low cost High initial tack and adhesion Limited durability, low resistance to chemical attack Low resistance to low and high temperatures Interior application, low resistance to plasticizers

Acrylic adhesiveWater-based: adhesive composed of acrylic resins in water dispersion.Solvent-based: adhesive composed of acrylic resins in solvent solution. Either one or the other, these adhesives are designed for high-performance applications.Its main properties are : Average initial adhesion, but high final adhesion Resistance to solvents, UV and humidity, chemical stresses Temperature from -**°c to + ***°c, transparency Outdoor application, high resistance to ageing High mechanical strength

Silicone adhesive: composed of silicone resins in solvent solutionIts main properties are : Excellent adhesion to silicone-coated materials Excellent resistance to extreme temperatures (***) Low resistance to hydrocarbons and plasticizers Generally low initial adhesion

Different adhesive substrates:

Substrates can be grouped into * families

Polymeric film substrates: polypropylene (***), EVA. Paper substrates Woven substrates - glass cloth, etc. Polyethylene foam (***), acrylic... Metal substrates - aluminum, ...

4.3 Production cost trends

Glue and adhesive production costs have been rising steadily over the past ** years. In fact, the graph below shows the evolution of the glue production price index, which has been rising steadily and consistently. Between **** and ****, the index rose by around **%. Only in ****, over the first * months, is there a noticeable drop in the index.

adhesive producer price index trends France, ****-****, base *** in **** Source: ****

From the start of ****, certain prices of chemical compounds (***) used in the manufacture of glues and adhesives have seen unprecedented price rises of between **% and **%. As we saw earlier, certain plastics in primary forms, such as vinyl acetate polymers, epoxy resins and polyurethanes, are used in the manufacture of glues and adhesives. As can be seen from the graph below, the producer price index for these primary plastics has soared by **% in ****. This sharp rise in prices for these primary materials looks set to continue, with an increase of around **% over the first * months compared with ****.

evolution of the production price index for plastics in primary forms France, ****-****, base *** in **** Source: ****

5.1 Regulations

The Globally Harmonized System

The Globally Harmonized System(***) is an international labeling system for hazardous substances recommended by the United Nations. It enables each region of the world that chooses to apply it to classify chemicals as hazardous, using the same technical criteria and symbols. The harmonization introduced by the GHS covers workplace safety, consumer protection and environmental protection. The recommendations were first published in **** and have since been revised every two years.

The CLP Regulation

Regulation n°****/****, known as "CLP" (***), published on December **, ****, implements the GHS recommendations within the European Union. It defines the requirements for the classification, labeling and packaging of chemical substances and mixtures corresponding to the CLP acronym.

In ****, the CLP Regulation replaced the previous EU legislation, which consisted of * directives:

Directive **/***/EC on the classification, labeling and packaging of hazardous substances (***) Directive ****/**/EC relating to the classification, labeling and packaging of dangerous preparations (***).

It came into force progressively: on December *, **** for substances and on June *, **** for mixtures. All players in the supply chain are concerned: manufacturers, importers, downstream users and distributors of chemical products. An inventory of classifications and labels for all hazardous substances is maintained by the European Chemicals Agency (***).

emissions labelling

At the beginning ...

6.1 Segmentation

• 3M France
• Arkema Adhesives
• Sika
• H.B. FULLER
• Henkel
• Bostik
• Leroy Merlin France (Adeo)
• ITM Equipement (Bricorama, Bricomarché, Brico Cash)
• Mr. Bricolage
• Gorilla Glue
• Ardemat
• Foresa France
• Vencorex
• Hexis