Sector: Sealants

Market Overview: Strong growth rates in the construction industry, specifically the residential housing market, along with worldwide legislation on solvent emissions will continue driving global demand for construction sealants. In the United States, demand is expected to grow at a rate of 2.8% yearly and by 2019 equate to a $12.8 billion dollar industry. 

Demand for sealants is expected to outpace that for adhesives in the near term, enhancing both OEM production levels and associated supply opportunities.

Sealant use in construction continues to steadily increase due to its importance in forming ever critical air/water barriers. The barriers not only are energy efficient, but also serve to improve occupants’ health by blocking out pests and pollution. As public interest in green building grows, so does the use of sealants.

More than 75 percent of sealants used in all construction are silicone based partially because of its inherent low VOC’s (volatile organic compounds) and subsequent qualification for LEED credits from the U.S. Green Building Council toward certification of a structure as a green entity. 

Water based sealants are dominating the market with the concern over toxins from solvents.  Additionally, manufacturers are moving to develop renewable alternatives for the petrochemical base of sealants. Vegetable oils are one base currently in use.

Within the sealant market, raw materials continue to be the single largest cost factor representing some 53 to 63 percent of costs of goods sold. However, manufacturers are seeing increased profit margins thanks to the declines in oil and gas prices.

Large multinational companies—both domestic and foreign—dominate the market with Henkel, 3M, H.B. Fuller and Dow together having nearly 50 percent market share. Mergers and acquisitions in the sealant and chemical industries continue at a rapid pace. This can lead to some disruption in production as supplier product lists are consolidated and OEM manufacturers have to reformulate. 

Transnational corporations also tailor compositions to local market conditions, reflecting regulations on content. Restrictions on the use of toxic substances vary greatly between states, countries and content.

Many smaller companies have been purchased by private equity firms, and third-party manufacturers in Europe and Asia are supplying brand-name sealants companies in North America.

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Company Location
3M Industrial Adhesives and Tapes Division St. Paul, Minnesota
3M Industrial Adhesives and Tapes Division Springfield, Missouri
AB Specialty Silicones Waukegan, Illinois
Accella Polyurethane Systems Maryland Heights, Missouri
Accella Polyurethane Systems Berea, Ohio
Accella Polyurethane Systems Chattanooga, Tennessee
Accella Polyurethane Systems Rancho Cucamonga, California
Active Minerals International LLC Climax, Georgia
Active Minerals International LLC Gordon, Georgia
Active Minerals International LLC Sparks, Maryland
Active Minerals International LLC Quincy, Florida
Active Minerals International LLC Aiken, South Carolina
Air Products and Chemicals Inc. Los Angeles, California
Air Products and Chemicals Inc. Allentown, Pennsylvania
Air Products and Chemicals Inc. Haysville, Kansas
Air Products and Chemicals Inc. Milton, Wisconsin
Air Products and Chemicals Inc. Calvert City, Kentucky
Air Products and Chemicals Inc. Reserve, Louisiana
AkzoNobel Specialty Chemistry Chicago, Illinois
AkzoNobel Specialty Chemistry Morris, Illinois
AkzoNobel Specialty Chemistry Pasadena, Texas
AkzoNobel Specialty Chemistry Axis, Alabama
American eChem Inc. Lufkin, Texas
American Sealants Inc. Fort Wayne, Indiana
Arctic Minerals LLC Jeffersonville, Indiana
Arctic Minerals LLC Chattanooga, Tennessee
Arkema Coating Resins Alsip, Illinois
Ashland Inc. Ashland, Ohio
Ashland Inc. Lima, Ohio
Ashland Inc. Covington, Kentucky
Ashland Inc. Hopewell, Virginia
Ashland Inc. Parlin, New Jersey
BASF Construction Chemicals Shakopee, Minnesota
BASF Construction Chemicals Brighton, Colorado
BASF Construction Chemicals Mattawan, Michigan
BASF Corporation Kankakee, Illinois
BASF Corporation Cincinnati, Ohio
BASF Corporation Freeport, Texas
BASF Corporation Geismar, Louisiana
BASF Corporation Monaca, Pennsylvania
BASF Corporation Pasadena, Texas
BASF Corporation Wyandotte, Michigan
BASF Corporation Chattanooga, Tennessee
BASF Corporation West Memphis, Arkansas
BASF Corporation Florham Park, New Jersey
BASF Corporation Chattanooga, Tennessee
Best Sand Corporation Chardon, Ohio
Bluestar Silicones East Brunswick, New Jersey
Bluestar Silicones York, South Carolina
Bostik Inc. Conyers, Georgia