The European Market for Adhesives and
Sealants
October 20, 2010 ARAC conference 1
FEICABernard GhyootSecretary General
2
Global A&S Demand 2010ca. 12.000 Tons / 30 Billion €
Source: CHEM/DPNA
North America
27%
Europe32%
Asia-Pacific+
Australia29%
Row13%
Source: DPNA International/CHEM ResearchOctober 20, 2010 ARAC conference
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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
October 20, 2010 ARAC conference
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Europe A&S Demand 20104.000 Tons - Value: 10,5 Billion €
Central Europe (EU12)
11%
CIS + Turkey16%
W. Europe (EU15+)
73%
Source: CHEM Research/FEICA
October 20, 2010 ARAC conference
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European DemographicsAdhesive/Sealant Demand
Source: U.N. Statistics/ CHEM Research GmbH
RegionPopul.
M. 2009
GDP Growth `09-`10
% AGR `09-'10
% AGR `10-`11 1.000 T. Billion €
Kg/ Capita
W. Europe (EU-15+)
368 1,6% 8,9% 2,5% 2.900 8,3 7,9
Central Europe (EU 12)
132 4,0% 5,6% 5,0% 450 1,0 3,4
CIS + Turkey 298 5,0% 7,9% 8,0% 650 1,2 2,2
A&S Market
Growth
Estimated 2010 A&S Demand
(Formulated Products)
October 20, 2010 ARAC conference
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Europe A&S Demand 2006-2011 Total demand 2010: 4.000 Tons - Value: 10,5 Billion €
1.000
1.500
2.000
2.500
3.000
2006 2007 2008 2009 2010 Est. 2011 Projected
1.00
0 To
ns
CEE W. Europe
Source: CHEM Research / FEICA
October 20, 2010 ARAC conference
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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%.
October 20, 2010 ARAC conference
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Geographic Growth 2010-2011 (volume)
W. Europe (EU15+)
Central Europe (EU12)
CIS + Turkey
0
10
20
30
40
50
60
70
80
90
100
0 2 4 6 8 10Annual Growth %
Incr
emen
tal G
row
th (
1.00
0 T
.)
Source: CHEM Research/FEICA
Projected Growth: 3.7% Incremental Demand: ca. 160 Thousand Tonnes
October 20, 2010 ARAC conference
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A&S Market Segments 2010 (Volume)
Source: CHEM Research/FEICA
Total demand: 4.5 Million Metric Tons
0
500
1000
1500
1.00
0 T.
Packaging/C
onverting
Transporta
tion
Footw
ear
Consumer/D
IY
Building/C
onstructi
on
Woodworking
Assembly/O
ther
SealantsAdhesives
October 20, 2010 ARAC conference
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A&S Segment Growth 2010-2011(volume)
Paper, Board and Related
Products
Footwear and Leather
Consumer/DIY (retail)
Building Construction,
Civil Engineering,
Craftsmen
Woodworking and Joinery
0
10
20
30
40
50
60
70
80
0 1 2 3 4 5 6
Annual Growth %
Incr
emen
tal
Gro
wth
(1.
000
T.)
Source: CHEM Research / FEICA
Projected Growth: 3.7% Incremental Demand: ca. 160 Thousand Tonnes
October 20, 2010 ARAC conference
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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
13
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.
October 20, 2010 ARAC conference
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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 ARAC conference
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.
15October 20, 2010 ARAC conference
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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 ARAC conference
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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 ARAC conference
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