TAGS: Sustainability / Natural Adhesives Hot-melt Adhesives Reactive Adhesives Polyurethane Adhesives
Research and Markets (RM) anticipates that the reactive hot melt adhesives global market is projected to reach USD 1.75 billion by 2027 at a CAGR of 8.4% from USD 1.27 billion in 2023.
Reactive hot melt adhesive is a type of adhesive that forms a bond by reacting with the surface of the material being adhered to. It is important because it can create a strong, durable bond even under extreme conditions.
Suitable for Assemble & Automotive Applications
The main types of reactive hot melt adhesives are high temperature and low temperature. A high temperature is described as 38 degrees Celsius or higher which is used in the reactive hot melt adhesives in doing melt or reflow of the thermoplastic. The substrate involved are plastic, wood, and others. The resin types involved are polyurethane, and polyolefin which are used for automotive and transportation, doors and windows, upholstery, lamination, textile, and assembly applications.
The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The reactive hot melt adhesives market is expected to grow to $1.75 billion in 2027 at a CAGR of 8.4%.
Key Trend: Technological Advancements
Technological advancements have emerged as a key trend gaining popularity in the reactive hot melt adhesives market. Major companies operating in the reactive hot melt adhesives market are focused on innovating new technologies to sustain their position in the market. For instance, in February 2021, Henkel AG & Co., a Germany-based company that is into chemical and consumer goods industries launched Technomelt Supra ECO. This technology involved in this new hot melt adhesive range provides higher sustainability and fewer CO
2 emissions while maintaining the Supra range's performance. As a result, the new ECO materials provide the same adhesion, set and open time, and heat resistance capabilities as the previous Technomelt Supra range while also providing a sustainable and low-carbon option for consumer goods and packaging.
In February 2022, Arkema, a France-based specialty chemicals and advanced materials company acquired Shanghai Zhiguan Polymer Materials (PMP) for an undisclosed amount. Through this acquisition, Arkema aims to build a strong position in the attractive engineering adhesives market and accelerate its development in the fast-growing electronics market in Asia. Shanghai Zhiguan Polymer Materials (PMP) is a China-based company that specializes in hot-melt adhesives for the consumer electronics market.
Asia-Pacific was the largest region in the reactive hot melt adhesives market in 2022.
Increased Demand from Packaging Industry
The rise in demand in the packaging industry is expected to propel the demand for the reactive hot melt adhesives market going forward. Packaging refers to enclosing or covering a product with a container to aid in its distribution, identification, storage, promotion, and usage.
The packaging industry is involved in the packaging of goods for their manufacturers. The hot-melt adhesives sector has a diverse set of criteria to meet the ever-changing needs of the packaging industry with strong and durable packaging solutions. For instance, according to Smithers, a UK-based provider of testing, consulting, information, and certification services, demand for the global packaging sector will reach $1.05 trillion by 2024.
Furthermore, according to the Indian Institute of Packaging (IIP), an India-based autonomous body that was set up by the packaging and allied industries and the Ministry of Commerce, Packaging consumption in India has increased 200% in the past decade, rising from 4.3 kg per person per annum (pppa) to 8.6 kg pppa as on FY20. Therefore, the rise in demand in the packaging industry is driving the demand for reactive hot melt adhesives.
The reactive hot-melt adhesives market consist of sales of ethylene-vinyl acetate (EVA) and polyolefin, or metallocene reactive hot-melt adhesives. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
Source: Research and Markets