Melbourne, Australia (PRWEB) September 08, 2012
The Adhesives, Cleaning and Other Chemical Product Manufacturing industry in Australia performed poorly over much of the past five years. Industry revenue is expected to grow by 1.9% to reach $1.84 billion in 2012-13, compared with $1.99 billion five years earlier. This equates to an annualised contraction of 1.6% over the five years. During 2012-13, domestic demand is expected to be worth an estimated $2.41 billion, reflecting the dominant role that imports play in the industry. The outlook for the industry in the short to medium term is primarily dependent on developments in domestic and international markets and the level of import penetration. In addition, year-on-year growth rates will be influenced by construction cycles and changes in the level of activity in the general economy. According to IBISWorld industry analyst Arna Richardson, “weak to moderate growth is expected to continue over the next five years”.
The industry's performance will be influenced by the growing demand for green products (including environmentally friendly adhesives and cleaning products) and the increasing adoption of sustainable production, consumption and environmental management systems by both the industry and its end customers. “This will boost production of products with environmentally friendly properties derived from sustainable raw materials, as well as those manufactured via environmentally friendly processes”, says Richardson.
The Adhesives, Cleaning and Other Chemical Product Manufacturing industry displays a low level of market share concentration, which is mainly associated with the fragmented nature of the products manufactured in the industry. However, concentration is high within certain individual market segments. For example, the household care product segment is dominated by major international players that operate on a global scale, often with global brands, as is the adhesives product segment. Concentration levels have gradually increased over the past five years in line with the move by players to either divest non-core activities or leave the industry entirely. This process is expected to continue, though concentration levels will remain low in the next five years. The top three players are Momentive Specialty Chemicals, Duluxgroup and Nuplex Operations.
For more information, visit IBISWorld’s Adhesives, Cleaning and Other Chemical Product Manufacturing report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry primarily manufacture or formulate polishes or cleaners (except abrasive), waxes, dry cleaning preparations, essential oils (refined or crude), adhesives (except bituminous) or other chemical products not elsewhere classified. Inputs are often sourced from other components of the chemical industry then sold to various industrial segments and the household market.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.