Adhesive Tape Manufacturing

Business for Sale Industry Economics

$194,000,000

Revenue

-4.36%

Projected CAGR

2002 - 2020

Historical

2020 - 2026

Projection

-3.75%

CAGR

$9,000,000

Profit

Quick Scroll

Summary

The Adhesive Tape Manufacturing company manufactures a wide range of adhesive tapes for use in a number of industries. They include commonplace items like office tape and rubber electrical tape, as well as commercial items like box-sealing tape and fluorescent road marking tape.

Physical operations in the sector are likely to stagnate over the next five years, as imports continue to overtake a growing share of domestic demand.

Furthermore, as a result of global economic slowdowns and supply chain uncertainties triggered by the COVID-19  pandemic, market income is expected to fall 24.5 percent in 2020 alone.

Overall, Research predicts that market sales will fall at a 4.1 percent annualized pace to $193.9 million in the five years to 2020.

Performance

For the five years leading up to 2020, revenue for the Adhesive Tape Manufacturing market has fluctuated. As a result, many industry players were forced to restructure their businesses by cutting jobs and exporting manufacturing to foreign factories.

Nonetheless, recovering demand for downstream goods has resulted in sales gains for the majority of the five-year cycle. Overall, Research expects market sales to fall at a 4.1 percent annualized rate to $193.9 million in the five years to 2020.

Due to economic slowdowns caused by the COVID-19 (coronavirus) pandemic, the market is expected to undergo a drastic decline in 2020 alone.

Outlook

Since the COVID-19 (coronavirus) pandemic is suppressed, the Adhesive Tape Production sector is expected to recover along with the overall economy within the next five years, to 2025.

While structural problems will continue to be a long-term threat for the industry, increasing customer sentiment and increased investment will likely improve the industry over the next five years.

With adhesive tape being used in too many sectors, increased market interest and company operation would result in consistent demand for industry goods. Profitability has been hard to sustain for industry owners.

However, operators will continue to face pressure to merge or offshore activities in order to preserve profitability. As long as global economic growth remains stable, the sector is projected to witness sustained, although moderate, growth over the next five years. As a result, market revenue is forecast to grow at a 3.6 percent annualized rate to $231.3 million over the next five years.

production unit at tesa plant

Industry

This company produces a variety of tapes, such as gummed sealing tape, paper base and reinforced adhesive tapes, as well as other similar products. A variety of pressure-sensitive materials and adhesives are also produced by the industry.

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