Hot Melt Adhesives Market: A concise synopsis of the geographical trends impacting the industry landscape
Published Date: June 16, 2017 Author: Saipriya Iyer
Boasting of a widespread application landscape, encompassing the packaging, automobiles, electronics, & furniture sectors, hot melt adhesives market is slated to carve out a rather profitable roadmap over the years ahead. Hot melt adhesives are basically thermoplastic materials that are available in the form of cylindrical sticks which are melted in a hot glue gun. These adhesives include stabilizers, pigments, and resins that possess aesthetic & adhesive properties, owing to which they are massively used across the packaging and automotive sectors. The escalating growth of the aforementioned sectors is expected to drive global hot melt adhesives over the next few years.
Scientifically, hot melt adhesives are deemed safe for human usage, are environment friendly, and are also free of volatile organic compounds. In addition, they dry faster, can be used without degradation, and are cost-effective and easily disposable, which will generate a huge demand for the product, thereby impelling hot melt adhesives industry. Unlike their solvent-based counterparts, HMAs do not require to undergo any drying or curing process, and they do not lose their thickness after solidifying. Subject to their numerous benefits, they are best suited to be used for packaging applications across numerous sectors. With flexible packaging market estimated to grow at a CAGR of 5% over 2016-2024, having held a revenue of USD 150 billion in 2015, hot melt adhesives industry is expected to witness substantial gains over the coming years.
Worldwide global hot melt adhesives market is rather concentrated, with the top names holding a chunk of the overall revenue share. These players ae known to focus on manufacturing innovative products and reduce raw material prices to attract a wider consumer base. In addition, HMA manufacturers have also been concentrating on collaborating with glue manufacturers to manufacture bio-based products, thereby expanding their global presence and augmenting hot melt adhesives industry share.
According to hot melt adhesives market report by Global Market Insights, Inc., this industry is likely to cross a valuation of USD 10 billion by 2024, with a CAGR estimation of 6% over 2016-2024. This figure is almost double than that of the market valuation of USD 5.5. billion in 2015, which is deemed by research analysts to be a positive indicator for the growth of this industry across various geographies.
North America hot melt adhesives market
North America has always been at the forefront of hot melt adhesives industry, given that the region houses the maximum number of market players. Regulatory bodies such as REACH and EPA have mandated stringent regulations regarding the usage of harmful packaging material to promote the adoption of environment friendly product. This is likely to increase the demand for eco-friendly materials, which will fuel the regional hot melt adhesives industry.
The packaging sector across North America has witnessed a considerable adoption of solvent and water-based HMAs over the last few years. There has been an increase in the deployment of hot melt technologies across this sector, pertaining to the product usage in case, label, and carton applications. There has been a surging demand for these products in the aforementioned applications from companies such as DHL and Fed Ex. It is therefore, undeniable that the growth of end-users such as the case, carton, & label sectors will influence the regional hot melt adhesives industry. As per reliable statistics, North America hot melt adhesives industry share from packaging applications is expected to grow at a steady pace, and very much in line with the GDP.
The textile and footwear sectors are anticipated to grow at a remarkable CAGR, pertaining to the rising fashion trends and the presence of famed international brands across this region. These sectors demand the usage of HMAs, subject to which North America hot melt adhesives industry will register a remarkable revenue by 2024. Hot melt adhesives market from footwear applications is forecast to grow at a rate of 4% over 2016-2024, owing to the rise in the demand for high quality footwear, which in turn will positively influence the regional hot melt adhesives industry.
The extensive usage of HMAs in footwear, fabrics, and automobiles will propel U.S hot melt adhesives market from polyester products, slated to grow at a rate of 5% over 2016-2024. As per research, this growth can be primarily attributed to the growing demand for protective clothing and light weight automobiles.
The United States houses numerous companies operating in hot melt adhesives industry, such as 3M Company, H.B. Fuller, Dow Chemicals, Bostik, Avery Dennison, Jowat, Ashland, and Hunstman Corporation. These players frequently launch new, advanced products with superior features to expand their product portfolio and increase the application landscape. For instance, Jowat Adhesives has recently launched an unfilled polyurethane hot melt adhesive in granulate form. This product possesses excellent thermal stability and adhesion property and has been introduced to meet the high demands for edge banding in modern furniture applications. Considering that the furniture sector is in a rather progressive stage in the United States, this move is expected to spur the regional hot melt adhesives industry from the furniture sector. In addition, the expanding polyurethanes (PU) market will also act as a driver to stimulate the regional revenue.
Avery Dennison, the renowned packaging materials manufacturer has also recently commissioned a high-speed speed hot melt adhesive coating line at Bangi, Selangor, where its manufacturing facility is located. The company has stated that this coating line has been designed to serve consumers across New Zealand, South-east Asia, and Australia.
Furthermore, popular hot melt adhesives industry player Bostik, has recently launched a hot melt pressure sensitive adhesives production unit in the city of Bangalore, India. This plant comprises two production facilities that are designed to adapt the latest manufacturing techniques and will ensure efficiency, quality, and safety standards.
With a rise in the number of companies undertaking supportive initiatives, North America hot melt adhesives industry is sure to witness an upswing in the years to come.
Europe hot melt adhesives market
The continent of Europe, especially Western Europe, has held the reputation of being the second-largest growth avenue for global hot melt adhesives industry.
Europe packaging market held more than 30% of the overall demand in 2015 and is anticipated to rise significantly over the years ahead, which in turn will propel the regional hot melt adhesives industry. Pertaining to the rise in the usage of HMAs across the F&B, footwear, and agricultural sectors, increasing disposable incomes, and consumer consciousness toward sustainable packaging, Europe hot melt adhesives market is forecast to grow at a CAGR of 4.5% over 2016-2024.
Germany hot melt adhesives industry size from disposables applications is anticipated to grow at a rate of 5% over the forecast timeframe. This growth can be attributed to the positive outlook toward adult incontinence, baby care, and female hygiene. In addition, Germany being the automotive center of the world, will experience a surge in hot melt adhesives market from automotive applications. This growth can be credited to the government norms regarding VOC emissions and the usage of bio-based products across various applications.
One of the most renowned players in hot melt adhesives industry is Henkel AG, a chemical and consumer goods company headquartered in Germany, recently experienced a sales growth of 5.5% in its adhesives unit.
Asia Pacific hot melt adhesives market
HMA products such as PUR, polyamides, and EVA are extensively used in the furniture and construction sectors, pertaining to which APAC hot melt adhesive industry will grow at a remarkable rate over 2016-2024.
Chinese manufacturers have been developing products with low VOC content in compliance with the regulatory norms, that are being used across the automotive, packaging, hygiene, and furniture sectors.
EVA is heavily used for woodworking and architectural applications, subject to the bond strength it provides for metal, glass and wood, its versatility, adhesion, and durability. Pertaining to the product benefits, EVA hot melt adhesives market size is anticipated to exceed USD 3.5 billion by 2024, growing at a rate of 5% over 2016-2024. The massive growth of this segment will propel China hot melt adhesive industry size.
Since EVA, PUR, and polyamides are used for woodworking and architectural applications, hot melt adhesives market from furniture applications will observe a growth of 4% over 2016-2024.
Global automotive industry was valued for more than 90 million units in 2015 and is likely to surpass 115 million units by 2024, in terms of volume. HMAs are used in the automotive sector for trim bonding, seating, door sealants, water shields, headliner attachment, package tray attachment, and auto seat upholstery owing to the product’s bond flexibility features. The heavy growth of the automotive sector across China will lead regional hot melt adhesives market from automobile applications to cross a revenue of USD 50 million by 2024.
The product’s usage across F&B packaging and electronics will also lead a surge in APAC hot melt adhesives industry growth. This regional market is also characterized by collaborations. A couple of years earlier, Lintec Corporation, the Tokyo-based adhesives manufacturer purchased MACtac Americas LLC from Platinum Equity, for a valuation of USD 375 million, to expand their product portfolio.
Hot melt adhesives market has already established a strong foothold across various geographies across the world. With the expansion of its application sectors, it is no longer a supposition that this industry is slated to carve out an even more profitable path for itself over the next few years.
Global Market Insights, Inc. has a report titled “Hot Melt Adhesives Market Size By Product (EVA, SBC, Amorphous Polyolefin, MPO, PU, Polyamide, Polyester), By Application (Packaging, Disposables, Pressure Sensitive Products, Bookbinding, Furniture, Footwear, Automobiles, Textiles, Electronics), Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Poland, China, India, Japan, South Korea, Malaysia, Thailand, Australia, Brazil, Argentina, Mexico, Saudi Arabia, UAE, South Africa, Tanzania, Kuwait), Price Trend, Competitive Market Share & Forecast, 2016 – 2024” available at https://www.gminsights.com/industry-analysis/hot-melt-adhesives-market