Industry News

Growth of End-user Industries Boosts Global Hot-melt Adhesives Market: Frost & Sullivan

Published on 2013-12-25. Author : SpecialChem

LONDON -- Increasing industrial activity following the economic downturn is boosting demand for hot melt adhesives (HMAs) globally. Growing markets in the Asia-Pacific, in particular, will give momentum to the mature market. Greater confidence in the benefits of HMAs - lower logistic and maintenance costs, high impact resistance, longer service life and easier processability - too will fuel market expansion.

New analysis from Frost & Sullivan, Global Analysis of the Hot Melt Adhesives Market, finds that the market earned revenues of $3.56 billion in 2012 and estimates this to reach $5.01 billion in 2019. Tapes, artificial turfs and rigid bonding are likely to remain the dominant applications for HMAs, followed by packaging and construction. HMA use in transportation and woodworking, however, will witness sluggish growth owing to the slowdown in automobile sales and the rising popularity of metals and plastics over wood materials.

"Environmental concerns associated with the use of solvent-based adhesives are in effect creating a replacement market for hot melt adhesives," said Frost & Sullivan Chemicals, Materials & Food Research Director Dr Leonidas Dokos.

Moreover, the implementation of stringent legislations to enhance environmental well-being and manage occupational health hazards will strengthen the adoption of HMAs. The advent of bio-based hot melts that improve sustainability also augurs well with the market.

Despite these advantages, the high raw material costs associated with HMAs restrict their large-scale use in many applications. As most of these raw materials are derived from petroleum, the constant fluctuations in crude oil prices affect supply and price.

Competitors are seeking ways to overcome the limitations posed by the heavy dependence on crude oil. Technological advancements in cracking and the development of innovative products can play a pivotal role in mitigating risks related to supply imbalance.

"In addition, market participants will do well to forge strong relationships with customers and develop cost-effective products that best fit end-user requirements," noted Dokos. "They will need to focus on improving operating and supply efficiency to optimise costs and stay competitive in the market."

Global Analysis of the Hot Melt Adhesives Market is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan’s related research services include: Global Markets for Adhesives and Coatings in High-speed Rail, Analysis of the North American Medical Adhesives and Sealants Market, Strategic Analysis of the Southeast Asian Construction Adhesives Market, and European Construction Chemicals Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, the company has been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Source: Frost & Sullivan

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