TAGS: Hot-melt Adhesives Sustainability / Natural Adhesives
Research and Markets (RM) anticipates that the global hot melt adhesives market is expected to grow at a CAGR of over 5.57% during the forecast period 2020-2026.
Hot melt adhesives are witnessing high growth due to the rising demand in packaging, assembly, bookbinding, woodworking, and other applications industries. The high end-user variability of the industry makes the hot melt adhesives market one of the high-growth industries with high opportunities for vendors with different product categories.
Rapid Growth in APAC Region
APAC is one of the major contributors to the rapid growth of the adhesive market due rise in end-user industries that prefer hot melt adhesives due to their longer shelf life. The manufacturing sector is estimated to grow by around 10% over the next 5 years, which is expected to boost the demand for hot melt adhesives across the globe.
The following factors are likely to contribute to the growth of the hot melt adhesives market during the forecast period:
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Increased usage of hot melt adhesive in DIY activities
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Rise in use of holt melt adhesives in automobile
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Development of bio-based hot melt adhesives
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High acceptance of hot melt adhesives in construction industry
More Opportunities for Bio-based Hot-melt Adhesives
The ongoing trend of eco-friendly products is likely to create more opportunities for bio-based hot-melt adhesives in the upcoming years. Players are continuously focusing on introducing environment-friendly products in the global hot melt adhesives market. EVA hot melt adhesives are flexible and compatible with various other polymers and additives which makes the procedure easy. It is one of the raw materials used in hot melt adhesive that have application in the high-performance packaging industry.
Hot melt adhesives also come in pellet form are made up of chemical compounds that help in quick adhesion on permeable and impermeable surfaces. These hot melt adhesives in pellets is available in form of slugs, sachets, firm, powder, and tablets. It is most suitable for application in the manufacturing process where rapid melting is required. The pellets segment is expected to grow at a CAGR of 5.66% between 2020 and 2026.
Increased Demand for Consumer Flexible Packaging
The demand for consumer flexible packaging is high in the food and beverage, healthcare, and pet food segments. The demand for industrial packaging is expected to increase in the pharmaceutical industry due to the robust demand for drugs and PPE manufacturing due to COVID-19 pandemic. The industrial flexible packaging market is expected to witness high growth in the APAC region. There is high market demand in countries such as Singapore, Hong Kong, and New Zealand due to cost-effective labor, growing infrastructure, and established logistics.
The industrial end-user of the hot melt adhesives market is expected to witness incremental revenues of USD 3,421.55 million and absolute growth of 39% between 2020 to 2026. The automotive, aerospace, and electronics, are the early adopters of new adhesive technologies as they explore more robust weight-reducing materials.
The packaging market in North America is at a mature stage and provides constant demand for hot melt adhesives. The hot melt adhesives are used in the construction market during the repair and installation of floors, tiles, and ceilings. Residential use of hot melt adhesive includes the individual purchase of adhesives which is used for residential purposes such as DIY and other home improvement activities.
The adhesive industry is an offline intensive market that accounts for a significant share of purchasing time and product price. Offline distribution of adhesives is majorly done through wholesalers, distributors, and direct selling.
Source: Research and Markets