Hot Melt Adhesives Market
Global Market Study on Hot Melt Adhesives: Ethylene Vinyl Acetate to Remain Key Resin in this Marketplace
Hot Melt Adhesives Market Segmented By Ethylene Vinyl Acetate, Styrenic Block Copolymers, Metallocene Polyolefin, Amorphous Polyalphaolefins, Polyolefins, Polyamides, Polyurethane Resin type
Newly-released industry analysis on hot melt adhesives reveals that global demand for styrenic block copolymers (SBC) is expected to witness year-on-year (YoY) growth of 4.5% in 2021 to total 586.5 KT. Polyurethane (PU)-based hot melt adhesives are expected to rise at 5% CAGR to 262.5 KT, while demand for ethylene vinyl acetate is estimated to expand at 5.9% CAGR to 785.2 KT.
As per the research, Persistence Market Research has anticipated that hot melt adhesive sales across the globe are set to witness a growth rate of 6.2% CAGR during the forecast period of 2021 and 2031. North America is anticipated to remain a key regional market, which is estimated to progress at a CAGR of 6% during the same period.
Find Out More about the Report Coverage
- 3M Company
- Avery Dennison Corporation
- Beardow & Adams (Adhesives) Ltd.
- DOW Inc.
- HB Fuller Company
- Henkel AG & Co. KGaA
- Jowat Se
- Sika AG
- Tex Year Industries Inc.
- Adhesive Direct UK
- Adtek Malaysia SDN BHD
- Buhnen GmbH & Co. Kg
- Cherng Tay Technology Co., Ltd.
- Evonik Industries AG
Valuable Insights Offered in Hot Melt Adhesives Industry Survey:
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Assessment by Resin Type Standards
- Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
- Certifications and Compliance Requirements
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Hot Melt Adhesive Sales and How to Navigate
- Recommendation on Key Winning Strategies
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Consumption Analysis of Hot Melt Adhesives from 2016 to 2020 Vs Market Outlook for 2021 to 2031
In the hot melt adhesives space, packaging solutions, disposable hygiene products, and automotive & transportation revenue is estimated to reach US$ 4.2 Bn for 2021, according to the annual market analysis conducted by Persistence Market Research.
The market has witnessed considerable growth over the past few years. However, the COVID-19 pandemic crisis has impacted the industry to a substantial extent. Overall growth during the period of 2016 and 2020 has been estimated to be around 1.4% due to significant fall of YoY growth in 2020.
However, rising demand for solvent-free, bio-based, and enhanced properties-based hot melt adhesives for packaging solutions, disposable hygiene products, furniture & woodwork, automotive & transportation, and footwear is expected to boost market expansion during the forecast period.
Because of rise in nonwoven and packaging applications in Asia and South America, these two regions are set to offer the highest development potential. Growing demand for biodegradable hot melt adhesives is likely to propel the market forward.
Biodegradable hot melt adhesives as well as compostable hot melt adhesives are now available in the market, and they are expected to give a significant boost to overall market growth over the coming years.
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What are the Key Opportunities for Hot Melt Adhesive Manufacturers across the Globe?
Demand for non-woven fibers is creating significant opportunities for manufacturers of hot melt adhesives. The benefits of HMAs for non-woven fibers are that the glue does not degrade product quality; it stays soft and textile-like. It's a more cost-effective technique of bonding than other approaches. It is more efficient, cheaper, and ecologically friendly than conventional bonding methods since there is no drying or curing stage.
The hot melt adhesives industry in Asia Pacific is expected to grow substantially over the forecast period and represents high potential opportunity for players in the industry. This market is projected to register almost double-digit CAGR, primarily due to increasing infrastructure activities in electronics, transportation, energy, automotive, and industrial sectors in countries such as India and China.
Many key players are focusing on developing bio-based hot melt adhesives to meet consumer expectations.
- For instance, Henkel forged an alliance with DaniMer Scientific LLC, one of the world's largest players in bio-based materials, to create hot melt adhesions that employ bio-based raw materials.
Starting with consumer packaging applications such as end-of-line and labelling, bio-based hot melt adhesives will be targeted in the market.
All these factors are creating significant opportunity for hot melt adhesive manufacturers. Major players in the market are also entering into collaborations to expand their global footprint, product portfolio, and technological base.
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What are the Restraints That Hot Melt Adhesive Manufacturers Face?
To remain competitive, suppliers must deliver innovations that enable formulators to develop products that satisfy consumer demand. Stringent regulations are imposed by governments against the manufacturing and use of chemicals.
Europe and North America are strictly regulated by environmental laws regarding the production of chemical and petro-based products. Agencies such as the Epoxy Resin Committee (ERC) and the European Commission (EC) are governing the manufacturing of solvent-based products in these regions.
While the underlying health and environmental benefits of these reform measures are hard to dispute, higher costs associated with compliance and raw materials are real and can be substantial – particularly for smaller companies
This factor is affecting the production capacities of manufacturers in the European and North American regions. Stringent environmental regulations are compelling manufacturers to focus on producing eco-friendly adhesives such as water-based adhesives.
The U.S. EPA and other organizations have worked diligently to institute measures designed to reduce the impact of VOCs and other potentially hazardous materials on the environment, workers in manufacturing environments, and end users.
Properties such as low thermal resistance is impacting demand for hot melt adhesives. Some of the disadvantages involve thermal load of the substrate, limiting use to substrates not sensitive to higher temperatures, loss of bond strength at higher temperatures, and complete melting of the adhesive. All these factors are expected to impact market growth to a certain extent.
Will Increase in Demand for Bio-based Adhesives Create Opportunities for Market Participants?
Hot melt adhesives have negligible or no volatile organic compounds compared to solvent-based adhesives. This has resulted in greater demand from North America and European countries as these regions are concentrating on emission control.
Regulatory authorities such as Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) and Environment Protection Agency (EPA) are continuously taking measures to restrict the usage of solvent-based adhesives in order to reduce the adverse effects on the environment, thus supporting growth of the hot melt adhesives sector.
Hot melt adhesives based on renewable resources are priced relatively lower and exhibit properties similar or better than polymer-based adhesives in order to be used as substitutes for petroleum-derived products. Many companies are focusing on developing bio-based hot melt adhesives to meet consumer expectations. Companies are also entering into alliances to cater to increasing demand for bio based adhesives.
- For instance, Henkel released the LOCTITE HHD 3544F, a bio-based polyurethane reactive (PUR) hot melt for consumer electronics assembly. Approximately two-thirds of the adhesive's composition (60 percent) is derived from renewable, plant-based feedstocks.
Why is China a Highly Lucrative Market for Hot Melt Adhesives?
In 2021, hot melt adhesive demand in China is anticipated to grow 5.7% year-on-year, bucking initial scepticism about how the market would perform during a global pandemic. Across the whole of China, total sales of hot melt adhesives are expected to reach US$ 3.06 Bn by 2031.
China has become a profitable market for hot melt adhesive suppliers due to increased demand from industries such as footwear, packaging solutions, disposable hygiene products, textiles, and automotive & transportation, as well as the country's fast developing population and economy.
Increased purchasing power in China along with changing consumption patterns has resulted in more diversified, sophisticated, single-serve pack sizes, which has fuelled the business.
Increased consumption in the domestic market has also helped the hygiene goods business. Product standards and expectations are less stringent in China. Availability of low-cost raw materials and less rigorous regulations are also allowing firms to invest more in this space.
The industry is also growing due to the existence of big hot melt adhesive producers. In China's HMA sector, there are over 185 suppliers, majority of which are privately held Chinese businesses. Foreign firms will continue to dominate the more profitable high-end market due to greater R&D and supply chain efficiency that make high-quality raw materials more accessible.
What Makes the U.S. a Demand Hub for Hot Melt Adhesives?
The U.S. market is anticipated to witness a CAGR of around 6% during the forecast period. The country is also anticipated to be a prominent market in the business of hot melt adhesives due to the presence of several key manufacturers. Increasing adoption of advanced technology in North America is contributing to the growth of the market in the region.
Growing production and demand for bio-based and compostable hot melt adhesives in the country has made the U.S. sustain its dominant position in hot melt adhesive consumption. Due to the presence of major packaging manufacturers, such as Ball Corporation, International Paper, and Owens-Illinois, the U.S. packaging industry is expected to be a key driver for market expansion.
During the projected period, the market is anticipated to be driven by growing packaging demand and rising environmental concerns about solvent-borne adhesives. In the future years, market development is expected to be aided by the use of bio-based hot-melt adhesives.
Because of all of these factors, the United States is anticipated to dominate the global market throughout the projection period.
Which Resin Generates Considerable Demand for Hot Melt Adhesives?
Revenue from the ethylene vinyl acetate (EVA) segment is expected to increase at a robust 6.9% year-over-year in 2021. Demand for polyamide is projected to increase 4.9% through 2031, giving the combined hot melt adhesives market year-over-year growth of 5.7% in 2021, according to the Persistence Market Research report.
EVA hot melt adhesives are utilised in a wide range of industries for a number of applications due to their adaptability, reliability, and durability. Paper, woodworking, assembly, and automotive industries are among these.
EVA adheres to the biggest range of surfaces, operates at one of the widest temperature ranges for hot melt adhesives, and is the most cost-effective. Depending on the formulation, EVA adhesives can work at temperatures as low as -40 degrees F and as high as 160 degrees F. These properties makes it a tough contender in the market.
Why is Demand for Hot Melt Adhesives Surging for Use in Packaging Solutions?
Packaging solutions are expected to expand at around 6.9% CAGR in the South Asia & Pacific region in this market over the decade. Significant amount of hot melt adhesives all over the globe is used in packaging solutions. Hot melt adhesives are perfect for sealing bottles, corrugated boxes, and paper board cartons, among other packaging items, because to their exceptional speed, bonding, and adhesion characteristics.
Use of bio-based hot melt adhesives in the packaging sector is increasing rapidly. The main element driving market expansion in South Asia & Pacific is the region's quickly expanding packaging production base, which is paired with constantly increasing demand for nonwoven goods.
Has COVID-19 Dented the Sales Prospects of Hot Melt Adhesives?
Emergence of COVID-19 in 2020 significantly impacted sales of hot melt adhesives owing to reduction in demand from many end-use industries. COVID-19 hasn't had a significant impact on raw material supply for hot melt adhesives, aside from transportation delays caused by travel restrictions and minor driver shortage concerns.
Due to the pandemic and huge drops in oil costs, sectors that employ hot melt adhesives are seeing variable degrees of demand. The pandemic had the greatest impact on the furniture and woodworking industries, as well as the automotive and transportation industries. The DIY industry was mostly unaffected by the shutdown.
Hot melt adhesives were also in great demand in the packaging industry, particularly for use in beverage packages and containers, flexible packaging, and pet food packaging. In certain regions, the post-pandemic period will bring in more opportunities for market players.
Major players are focused on entering into long-term agreements with raw material suppliers in order to ensure continuous supply and increase in profitability. In addition, manufacturers are partnering with distributors, especially in developing countries, to cater to increasing demand.
Certain key players are focused on mergers and acquisitions with local players in emerging markets to enhance their global footprints.
Some of the key developments are:
- In May 2021, For instance, Bostik acquired Prochimir and Fixatti. It helped the company to vertically-integrated resin formulation abilities and a unique global supply chain, the organization believes it can play a leading role in the industry.
- In November 2020, Applied Adhesives acquired Premier Packaging Solutions, a distributor of hot-melt and water-based adhesives based in Chattanooga, TN. The purchase of Premier by Applied enhances their North American sales and service presence, as well as their commitment to deliver local technical assistance, problem-solving support, and product solutions to its clients.
- In December 2020, Bodo Möller Chemie collaborated with Henkel Adhesives Technologies to expand their partnership for pan-European sales and distribution of Henkel’s adhesive 4.0 solutions in automotive, metal, packaging, wood, electronics, medical technology and aerospace sectors.
Similarly, recent developments related to companies manufacturing hot melt adhesives have been tracked by the team at Persistence Market Research, which are available in the full report.
Hot Melt Adhesives Industry Report Scope
Historical Data Available for
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Available upon Request
Key Segments Covered in Hot Melt Adhesives Industry Research
By Resin Type
- Ethylene Vinyl Acetate (EVA)
- Styrenic Block Copolymers (SBC)
- Metallocene Polyolefin (MPO)
- Amorphous Polyalphaolefins (APAO)
- Polyurethane (PU)
By End Use
- Packaging Solutions
- Disposable Hygiene Products
- Furniture & Woodwork
- Automotive & Transportation
FAQs Answered in Market Study
- How much is the current global market value of hot melt adhesives?
The global hot melt adhesives market is estimated to be valued at over US$ 8.1 Bn.
- What is the main factor driving demand for hot melt adhesives?
Competitive advantage over solvent-based and water-based adhesive types is a major factor driving market expansion.
- What will be the consumption outlook for hot melt adhesives through 2031?
Consumption of hot melt adhesives is projected to increase at 6.2% CAGR and will be valued at around US$ 14.85 Bn by 2031.
- What are the key trends being witnessed in the global marketplace?
Acquisitions, partnerships, collaborations, and investments in R&D by key players are being witnessed in the global market.
- Who are the key players manufacturing hot melt adhesives?
According to the market research analysis, 3M Company, Arkema, Avery Dennison Corporation, Beardow & Adams (Adhesives) Ltd., DOW Inc., HB Fuller Company, and Henkel AG & Co. KGaA are key manufacturers of hot melt adhesives.
- What is the market share of the top 5 suppliers of hot melt adhesives?
Top 5 market participants are estimated to account for around 52.7% market share, according to ratings on the basis of market share, market reach, clientele, and others.
- Which are the top 5 countries driving most of the demand for hot melt adhesives?
China, the U.S., Germany, India, and Brazil are key demand centres across the globe for hot melt adhesives.
- Which countries are key producers and exporters of hot melt adhesives?
China, the U.S., ASEAN, India, and Germany are key producers and exporters of hot melt adhesives.
- How is the hot melt adhesives market faring in India?
The hot melt adhesives business in India is projected to witness a growth rate of around 7.5% CAGR over the decade.
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