Industry And Competitor Analysis

Industrial tapes are typically used for binding and stickering in a variety of industrial procedures.
These tapes are mostly employed in packing, conducting, and masking.By 2027, it is expected
that the size of the global industrial tapes market will increase by a CAGR of 5.7% to $15,029
billion.
The market for industrial tape is primarily driven by rising demand from the construction and
packaging industries. Another factor driving the demand for industrial tapes is the expansion of
the auto industry. Industrial tapes are widely used in automobile assembly processes including
attaching trim panels and airbag covers. Even , price variations in raw materials could limit the
market's ability to expand and reach a certain scale.
Because of various advantageous properties including shock/water resistance, tensile strength,
and high peel, industrial tapes are extensively used in the automotive, packaging, construction,
and medical industries. This is the main driver driving the global market.

Business Model of Key Players

1. 3M Company
Innovation, according to 3M, "is our business strategy. “Corporate Research Laboratory
technologies are at the heart of the 3M business (CRL). To propel or assist 3M's future
companies, CRL creates distinctive technologies that are in line with the need in high growth
industries. These technologies are transformed into distinctive goods with the aid of corporate
leadership. For 3M, this fusion of business and technology has proven extremely fruitful.
Products introduced within the previous five years accounted for 33% of the company's sales.

$32.7 billion in total revenue, or 10.3 billion dollars, came from the Industrial sector.

2. Dow Chemical Company

With a specific consumer base, Dow has a niche market business model. The business targets
producers of goods using plastics, sophisticated materials, and specialty chemicals with its
offers. Businesses in the food, transportation, medical, personal care, and construction industries,
adhesives are among them.
Cost Framework
With a cost-driven organization, Dow seeks to reduce costs by offering low-cost value offers.
Cost of sales, a variable expense, is the main cost factor. Other significant factors are the fixed
expenditures of administration, research & development, and sales and marketing.

3. Arkema
 The organization Arkema is the outcome of significant modifications made in recent years to
improve the Group's position as a pioneer in specialty materials.

The following factors contribute to the strength of each industry sector:

 On the majority of its activities, it holds top market positions.
 An excellent potential for innovation focused on environmental protection and
sustainable growth.
 worldwide geographic coverage with an equal distribution of North America, Europe,
and Asia.

4. Sika AG ( Adhesives )
Sika has become a technology leader in the fields of acoustics, adhesives, and sealants. The
strategic core competencies of Sika, which include solutions for production, assembly, and
maintenance, underpin its performance across a wide range of applications.

Markets that Sika serves include those for marine vessels, industrial lamination, renewable
energy (solar and wind), home appliances, facade engineering, and automobile and commercial
vehicle assembly (structural bonding, direct glazing, acoustic systems, and reinforcing systems)
(structural glazing, sealing of insulating glass units). Serving the top industrial manufacturers in
the world, Sika is a technical leader in elastic bonding, structural adhesives, sealants, reinforcing,
and acoustic applications.
New Market Selection and Analysis

The U.S.A Market

According to the Grand View Research, the U.S. Adhesives and Sealants Market Size, Share &
Trends Analysis Report By Technology, By End-use, By Region (Northeast, Midwest, West,
South), And Segment Forecasts, 2022 – 2030. The U.S. adhesives and sealants market size was
valued at USD 8.4 billion in 2021 and is expected to expand at a compound annual growth rate
(CAGR) of 4.7% from 2022 to 2030.

In terms of value, the end-use market for paper and packaging accounted for more than 29.0% of
all adhesives sales in the United States in 2021. The segment is expanding due to rising packaged
food demand and e-expanding commerce's market share. For instance, the total e-commerce
sales in Q1 2022 increased 6.7% from Q1 2021, according to the U.S. Census Bureau.

Country Recommendation : One of the world's biggest markets for adhesives and sealants is
the United States. The American economy expanded by 5.7% in 2021, the most since 1984. The

government's increased investment in a variety of sectors, including manufacturing,

transportation, energy, infrastructure, and construction, is credited with the rise. This increased
investment had a beneficial impact on consumer demand in 2021.

Due to the detrimental effects of the COVID-19 pandemic in 2020, the U.S. government is
investing a lot in the building and infrastructure sectors in order to revitalize the economy, which
is anticipated to have a favorable impact on market growth in the nation.

The rising investment by government and private players in the building and construction
industry is expected to propel market growth. For instance, the government declared a USD
170.0 billion investment in affordable housing in November 2021. By 2026, the US government
aims to construct or maintain more than 1.0 million affordable houses.
Market Characteristics

Geopolitical Turbulence

The Russia-Ukraine conflict, rising inflation, and the detrimental effects of the COVID-19
outbreak are all projected to have an adverse effect on the country's GDP growth in 2022. This
can have a short-term effect on the market expansion.

Legislative Standards and Regulations

Both human health and the environment are in danger from volatile organic compound (VOC)
emissions that occur during the industrial and commercial application of adhesives and sealants.
Due to this, these items are constantly under careful review in the United States.

The Environment Protection Agency (EPA) is the independent protection agency of the United
States Federal government in charge of environmental protection matters. The Department of
Environmental Protection defines Adhesive as “any chemical substance that is applied for the
purpose of bonding two surfaces together other than by mechanical means.”

The Environmental Protection Agency requires industry suppliers and manufacturers to adhere to
the set VOC levels. The U.S. EPA regulates VOCs at the Federal level in 40 CFR 59, which is
the National Volatile Organic Compound Emission Standards For Consumer And Commercial
Products.

Market Entry Expenses

Laws for analyzing and controlling the hazards associated with the production, transportation,
and disposal of chemicals have grown in the adhesives sector historically. Complex rules
governing the labeling, handling, production, shipping, and storage of the product must be
complied with. According to The Business Research Company, for adhesive tape companies,
increase in compliance costs brought on by eco-friendly regulations were a significant barrier to
new market such as the United States.

Competitors and Market Share Insights

Key manufacturers in the adhesives and sealants market have been compelled to adopt strategic
initiatives like merger & acquisition and capacity expansion due to the rising demand for
adhesives and sealants in a variety of industries including construction, infrastructure,
automotive, footwear, and leather. For instance, the Scott Bader Company Ltd. purchased a
brand-new manufacturing facility for adhesives and gelcoats in North Carolina, United States.

The acquisition of American Chemical, a local provider of adhesives, was announced by

APPLIED Adhesives in 2021, a manufacturer and distributor of adhesives in the United States.
With enhanced technical assistance and a large customer base, this acquisition is anticipated to
help the business increase sales in the area as APPLIED Adhesives is a crucial supply chain
partner to top manufa

Market Entry Mode

Since Cellux is involved in the adhesive industry, it is established with a wide range of clients
serving its products with quality and has always been the key player in the market . So , Direct
exporting would be the best option for new market entry due to following reasons :

1. More Profits
If Cellux enter into joint venture or establish a agreement with subsidiary , then company
has to share profits with firm ,which reduce revenue for the parent firm Cellux firm ,so
through direct exporting can earn more profits

2. Better Control

Cellux, while entering into a new international market, has to exercise better control in
the market so that it can easily gain competitive advantage by understanding the customer
perspectives and serving them according to customer needs.

3. Better knowledge of market conditions

Going direct could give the manufacturer complete knowledge of marketing

opportunities, trends, rivals, product acceptance, and other important information.
 4. Smaller Distribution Channel The chain of distribution for indirect exporting is
shortened since some middlemen are completely removed. It might lead to earlier and
more affordable delivery of goods to consumers abroad.

5. First hand Information

Direct exporters like Cellux can interact with overseas clients and markets directly. They
learn about their needs and demands directly, which enables them to efficiently meet
them.

REFERENCES (to be modified to APA-6 style)

Impact of COVID-19 Pandemic on Adhesive Tapes Market

https://www.globenewswire.com/en/news-release/2022/08/18/2500832/0/en/Adhesive-Tapes-
Market-Size-US-89-44-Billion-by-2028-at-a-CAGR-of-5-1-Global-Analysis-of-18-Countries-
across-5-Key-Regions-50-Companies-Scrutinized-by-The-Insight-Partners.html

Global Market on Adhesive Tape Report

https://www.thebusinessresearchcompany.com/report/adhesive-tapes-global-market-report

Regulations on VOC

https://www.ul.com/news/volatile-organic-compounds-vocs-brief-regulatory-
overview#:~:text=The%20U.S.%20EPA%20regulates%20VOCs,Architectural%20Coatings

U.S. Adhesives And Sealants Market Size, Share & Trends Analysis Report By
Technology, By End-use, By Region (Northeast, Midwest, West, South), And Segment
Forecasts, 2022 - 2030

https://www.grandviewresearch.com/industry-analysis/us-adhesives-sealants-market-
report#:~:text=The%20U.S.%20adhesives%20and%20sealants,4.7%25%20from%202022%20to
%202030

Adhesive Tapes Market Size, Share, Growth: Report, 2030

Market Research Future

https://www.marketresearchfuture.com/reports/adhesive-tapes-market-1718
How 3M Makes Money? Understanding 3M Business Model

Visnji

https://revenuesandprofits.com/how-3m-makes-money-understanding-3m-business-model/

Arkema strategy

https://www.arkema.com/global/en/arkema-group/strategy/

Dow Chemical

https://www.cleverism.com/company/dow-chemical/#:~:text=The%20Dow%20Chemical
%20Company%20is,management%20solutions%2C%20and%20healthy%20oils.

Adhesive Systems

https://www.sika.com/en/innovation/technologies/adhesive-systems.html

US - Market Entry Strategies

https://www.ceintelligence.com/content_manager/contentPages/view/us-market-entry-
strategies

What to Consider Before Choosing Adhesives and Sealants

Newton

https://www.pcimag.com/articles/109660-what-to-consider-before-choosing-adhesives-and-
sealants