TAGS: Hot-melt Adhesives Sustainability / Natural Adhesives Sealants
ReportLinker anticipates that the global hot melt adhesives (HMAs) market size was valued at USD 7.53 billion in 2020 at a CAGR of 5.98 % and is projected to surpass USD 13.47 billion by 2030, growing at a CAGR of 8.37% from 2021 to 2030.
Increase Demand from Packaging Industry
Surging demand for hot melt adhesives from the packaging industry and non-woven products application is driving the growth of the market. Hot melt adhesives (HMAs) do not need drying or curing, unlike their solvent- or water-based counterparts.
They can be applied in their molten state and can hence be bonded immediately after application, giving them the distinct benefit of faster processing times in different applications, including packaging, nonwovens (diapers and hygiene products for women), furniture, and industrial products. All these factors are expected to deliver attractive growth opportunities to the global hot melt adhesives market during the projected period.
Recent Highlights
In July 2020, Arkema Group acquired Fixatti NV, a company producing thermobonding adhesive powder. Fixatti NV owns two production sites in Europe and one in China. The transaction would support Arkema Group strengthen its hot melt adhesives product portfolio and is in line with the company’s vision to become a pure specialty materials player by 2024.
In October 2017, Avery Dennison commissioned a hot melt adhesive coating line in Malaysia to expand its market position by leveraging the growth potential of Southeast Asia.
Ethylene Vinyl Acetate Segment to Grow with Highest CAGR
Global hot melt adhesives is segmented by product type into ethylene-vinyl acetate, styrene block copolymer, polyurethane, polyamide, amorphous polyalphaolefins, metallocene polyolefins, and polyester.
Ethylene Vinyl Acetate, the segment held the largest market share in the year 2020 because of their durability, and versatility and it holds strong adhesion properties which makes it suitable for packaging and woodworking sectors. In addition, supportive government regulations in regard with the usage of low VOC adhesives is boosting the growth of the segment.
Global hot melt adhesives are divided by Application into packaging, disposables, pressure-sensitive products, bookbinding, furniture, footwear, automobile, textile, electronics, and others.
Packaging segment held the largest market share in the year 2020 and will continue to dominate the market in the coming years. The growth of the segment of the market is driven by the bonding, superior speed, and adhesion ability of hot melt adhesives which make them suitable for products in corrugated cases, sealing bottles and paper board cartons, and other packaging products.
Drivers of HMAs
In recent years, packaging industry is flourishing at a rapid pace owing to the surging demand for packaged food and beverages globally. Hot melt adhesives are extensively used in the paper, board, and packaging industry as packaged products require flexible as well as rigid packaging.
Hot melt adhesives have a range of applications from printed sheets lamination and corrugated box construction to packaging materials which is used for all types of consumer products and the manufacturing of large industrial cores and tubes. Furthermore, the expanding e-commerce industry is bolstering the demand for packaging solutions. An increase in online shopping and rising consumption of packaged food products is expected to surge the demand for hot melt adhesives.
Hot melt adhesives are considered an ideal material for DIY applications since they can bind to a wide range of materials and surfaces such as papers, ceramic, fabric plastics, cardboard, and metal.
While in developed economies such as North America and Europe DIY is common, it is a relatively new notion. The DIY applications include art, woodworking, packaging of general products, and others. In DIY application hot melt adhesives are commonly used in stick form due to their easy usage and easy accessibility of hot melt adhesives guns.
Unstable Prices of Raw Material
Varying prices of raw materials is the major factor that is likely to hamper the global Hot Melt Adhesives market in the near future. Raw materials used in the adhesives have volatile prices and such volatility can impact the profit margins of the manufacturers. It is difficult for the manufacturers maintain a balance between production costs and selling prices which is likely to impede the growth of the hot melt adhesive market. Additionally, strict regulations in the developing economies is expected to hamper the growth of the global demand for hot melt adhesives in the coming years.
Global Hot Melt Adhesives is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, Asia Pacific, and Middle East, and Africa. Global Hot Melt Adhesives in Asia Pacific held the largest market share in the year 2020.
Highest Growth in Asia Pacific Region
Asia Pacific will continue to dominate the global Hot Melt Adhesives. The growth of the segment is driven by the growing demand for packaging and disposable hygiene products and the presence of major market players in the region. Besides, growing consumer awareness regarding hygiene and the escalating demand for nonwoven hygiene products is contributing to the growth of the region. In addition to this, the substantial impact of western culture on the region has also propelled several attractive applications that positively impact the market growth in the region.
Source: ReportLinker