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Hot Melt Adhesives Market Overview
The global hot melt adhesives market was valued at $7,353.1 million in 2017 and is expected to reach $10,259.7 million in 2023, advancing at a CAGR of 5.7% during the forecast period. The market growth is mainly driven by increase in consumer spending power in emerging economies and rapid expansion of the packaging industry.
GLOBAL HOT MELT ADHESIVES MARKET, BY PRODUCT, KILO TONS (2013-2023)
Hot melt adhesives, also known as hot glue, and are in the form of thermoplastic adhesive which is applied using a hot glue gun. The variety of polymers in this class is wide and includes both natural and synthetic ones. It is commonly sold as solid cylindrical sticks of various diameters and can also be applied by spraying or dipping.
On the basis of product, the hot melt adhesives market has been categorized into ethylene vinyl acetate (EVA), Styrenic block copolymer (SBC), polyurethane (PU), polyamide (PA), amorphous polyalphaolefins (APAO), metallocene polyolefins (MPO), and polyester. Of these, the EVA category recorded the largest volumes sales in the market, with more than 40.0% contribution in 2017. The market for EVA is driven by its advantageous properties, such as quicker setting time, durability, and suitability in wide range of temperature. With the rapid rise in the construction and automotive industries, the demand for EVA is expected to rise in the coming years.
Based on application, the hot melt adhesives market has been segmented into packaging products, diapers, furniture, footwear, textile, automobile, bookbinding, and others. During the forecast period, the volume sales of these adhesives are expected to witness the highest growth for the automobile application, growing at a CAGR of 5.5%, during the forecast period. Owing to increasing use of hot melts in the component assembly of personal and commercial vehicles in the countries of emerging economies, the demand for these adhesives will continue to rise in the automobile industry during the forecast period.
Europe was the largest regional-level market for these products, accounting for more than 32.0% volume sales share in 2017. The dominance of the region is due to the high spending habits of European individuals which continue to generate significant demand for adhesives used in packaging. Further, European countries are among the leading producers as well as consumers of automobiles in the world, which continues to aid the growth of the hot melt adhesives market in the region.
Hot Melt Adhesives Market Dynamics
The major trend witnessed in the global hot melt adhesives market is the shift from traditional techniques to new automotive assembly techniques. Increasing spending power in emerging economies and rapid expansion of the packaging industry are the major drivers identified in the market.
The major trend witnessed in the hot melt adhesives market is the switch from traditional techniques to new assembly methods by automobile manufacturers are switching. Generally, traditional ways have been used to bond the different parts in automobiles, using mechanical fasteners or welds that offer high performance and strength. However, the preferences of consumers for vehicle designs are changing, leading to the development of new and more sophisticated vehicle designs using lighter gauge metals, plastics, nonferrous metals, and coated steels; thereby creating the need for new assembly methods. This is resulting in the increasing use of hot melts for joining automobile parts.
One of the main drivers identified in the hot melt adhesives market is the increasing spending power of consumers in emerging economies. Countries such as India, China, and Indonesia have undergone rapid economic growth which is characterized by rise in per capita and disposable income. This in turn has led to increased demand of different products such as clothes, footwear, and electronics, all of which use hot melt adhesives. For example, in electronic products, hot melt is used for fixing the two substrates together.
Another driver identified in the hot melt adhesives market is the rapid industrialization and expansion of the packaging industry. The emerging economies of Asia Pacific are witnessing substantial increase in the use of hot melt adhesives, especially in the automotive and packaging industries. Increasing purchasing power of individuals and changing consumption trends have led to the development of more varied, complex, and eco-friendly products, thereby calling for higher consumption of these adhesives.
A major restraint faced by the producers of these products is the fluctuating raw material prices. The price of the raw materials used in adhesives are highly volatile in nature, and the manufacturers need to minimize any negative impact on their profit margins due to such volatility in raw material prices. Hence, it becomes difficult for producers to maintain a balance between the cost of production and selling price, which serves as a major restraint for the hot melt adhesives market growth.
Hot Melt Adhesives Market Competitive Landscape
Some of the major players operating in the global hot melt adhesives market are Henkel & Co. KGaA, Jowat SE, Sika AG, 3M Company, Bostik Inc., Avery Dennison Corporation, H.B. Fuller Company, Arkema Group, Westlake Chemical Corporation, Beardow & Adams (Adhesives) Limited., and DowDuPont Inc.