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
BASF Corporation Monaca, Pennsylvania
BASF Corporation Pasadena, Texas
Bluestar Silicones East Brunswick, New Jersey
Bluestar Silicones York, South Carolina
Bostik Inc. Wauwatosa, Wisconsin
Bostik Inc. Temecula, California
Bostik Inc. Conyers, Georgia
Bostik Inc. Paulsboro, New Jersey
C.E.D. Process Minerals Inc. Akron, Ohio
C.E.D. Process Minerals Inc. Gore, Virginia
Cathay Industries USA Valparaiso, Indiana
Celanese Bay City Bay City, Texas
Celanese Clear Lake Pasadena, Texas
Celanese Corporation Irving, Texas
Celanese Emulsions Enoree, South Carolina
Central Fiber Wellsville, Kansas
Central Fiber Canton, Ohio
Central Fiber Tyler, Texas
Central MN Renewables (CMR) Little Falls, Minnesota
Chem Link Inc. Schoolcraft, Michigan
Chemionics Corporation Tallmadge, Ohio
Chemours Company The Belle, West Virginia
Chemours Company The Pass Christian, Mississippi
Chemours Company The Washington, West Virginia
Chemours Company The Fayetteville, North Carolina
Chemours Company The New Johnsville, Tennessee
Chemours Company The Wilmington, Delaware
Chemours Company The Gregory, Texas
Chemours Company The Starke, Florida
Chevron Phillips Chemical The Woodlands, Texas
Chevron Phillips Chemical Pascagoula, Mississippi
Chevron Phillips Chemical The Woodlands, Texas
Chevron Phillips Chemical Baytown, Texas
Chevron Phillips Chemical Port Arthur, Texas
Chevron Phillips Chemical Sweeny, Texas
Chromaflo Technologies Corporation Ashtabula, Ohio
Chromaflo Technologies Corporation Lockland, Ohio
Chromatech Inc. Canton, Michigan
Coating Resins Torrance, California
Coating Resins Alsip, Illinois
Coating Resins Hahnville, Louisiana
Coating Resins Cary, North Carolina
Color Rite Yukon, Oklahoma
Columbia River Carbonates Woodland, Washington
Conklin Company Inc. Shakopee, Minnesota
Conklin Company Inc. Kansas City, Missouri
Convenience Products Fenton, Missouri
Convenience Products Pacific, Missouri
Cortec Corporation St. Paul, Minnesota
Covestro LLC Channelview, Texas