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
Emerald Performance Materials Cuyahoga Falls, Ohio
Epmar Corporation Santa Fe Springs, California
EPS Materials Kankakee, Illinois
EPS Materials Marengo, Illinois
EPS Materials Williamsport, Maryland
EPS Materials Los Angeles, California
EPS Materials Garland, Texas
Everkem Diversified Products Winston-Salem, North Carolina
Evonik Cyro LLC Wallingford, Connecticut
Evonik Cyro LLC Westwego, Louisiana
Evonik Cyro LLC Sanford, Maine
Evonik Cyro LLC Osceola, Arkansas
Evonik Industries Waterford, New York
Evonik Industries Parsippany, New Jersey
Evonik Industries Chester, Pennsylvania
Evonik Industries Theodore, Alabama
Evonik Industries Hopewell, Virginia
Evonik Silco Materials Portland, Oregon
Excalibar Minerals LLC Houston, Texas
Excalibar Minerals LLC Katy, Texas
Excalibar Minerals LLC Dyersburg, Tennessee
ExxonMobil Baton Rouge Chemical Plant Baton Rouge, Louisiana
ExxonMobil Baytown Complex Baytown, Texas
ExxonMobil Beaumont Plant Beaumont, Texas
ExxonMobil Chemical Company Spring, Texas
Fortifiber Fernley, Nevada
FP Pigments Rome, Georgia
Gardner-Gibson Inc. Tampa, Florida
Gardner-Gibson Inc. Ennis, Texas
Garland Company The Cleveland, Ohio
GE Construction Sealants Huntersville, North Carolina
Geocel Products Group Elkhart, Indiana
Green Biologics Inc. Ashland, Virginia
Green Biologics Inc. Columbus, Ohio
H.B. Fuller Blue Ash, Ohio
H.B. Fuller Covington, Georgia
H.B. Fuller Morris, Illinois
H.B. Fuller St. Paul, Minnesota
Henkel Corporation Elgin, Illinois
Henkel Corporation Delaware, Ohio
Henkel Corporation Warren, Michigan
Henkel Corporation Saba Grande, Puerto Rico
Henkel Corporation Rocky Hill, Connecticut
Henkel Corporation Richmond, Missouri
Henkel Corporation Greenville, South Carolina
Henkel Corporation Calhoun, Georgia
Henkel Corporation Cleveland, Ohio
Henkel Corporation Oak Creek, Wisconsin
Henry Company El Segundo, California
Henry Company Ontario, California