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World Pressure Sensitive Tape Demand to Rise

The study, "World Pressure Sensitive Tapes," indicates tape sales will rise 5.3 percent annually to $26.5 billion as raw material costs stabilize following the 2004-2006 run-up.Opportunities exist across an array of tape-using industries, ranging from corrugated packaging and nonresidential construction to motor vehicle and electronics manufacturing. Self-adhesive tapes' cost and performance advantages will allow them to capture a greater share of joining, sealing and bonding applications from competitive technologies. Further advances will be limited by a slowdown in the construction sectors of North America and China, and by maturity of key developed world markets.

Corrugated carton sealing tapes will remain the most widely used tape type, accounting for over two-thirds of aggregate sales volume. Tapes will make further inroads at the expense of competitive carton sealing media such as glues and mechanical fasteners. Rising corrugated box sales will also bode favorably for packaging tape demand, although a slowdown in processed food and beverage output will limit potential gains.

The U.S. accounts for over one-fifth of global demand, although its share of the world market will continue to decline, as bedrock applications such as corrugated shipping and paint masking are now largely mature. The same can be said for other developed countries—West European nations, Japan, Canada, Australia—where annual demand growth will be in the low single digits.

By contrast, there is substantial room for additional market penetration in the world's developing countries, with India, China and Eastern Europe in particular enjoying favorable prospects. China is expected to surpass the U.S. as the world's largest tape user by the end of the decade, with gains driven by explosive economic growth, rising consumer incomes, swift development of tape-intensive industries and greater availability of high quality, domestically produced tapes, especially industrial and specialty types. China is also developing a strong export position. East Asia is the leading global market for advanced electronic fabrication tapes.

SOURCE: The Freedonia Group
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