HOT MELT ADHESIVES INDUSTRY INSIGHTS
The global hot melt adhesives market size to reach revenue of USD 14.29 billion by 2026, growing at a CAGR of 5.57% during the forecast period. Hot melt adhesives are witnessing high growth due to the rising demand in packaging, assembly, bookbinding, woodworking, and other applications industries. The high end-user variability of the industry makes the hot melt adhesives market one of the high-growth industries with high opportunities for vendors with different product categories. APAC is one of the major contributors to the rapid growth of the adhesive market due to the rise in end-user industries that prefer hot melt adhesives due to their longer shelf life. The manufacturing sector is estimated to grow by around 10% over the next five years, which is expected to boost the demand for hot melt adhesives across the globe.
With the high acceptance of sustainable products, bio-based adhesives are gaining high attraction in the hot melt adhesives market. The rising trend towards sustainability in the market has increased the demand for use of bio-based products which are made up of bio-renewable and waste feedstock. The food industry is witnessing multiple investments to incorporate the usage of recyclable packaging materials by 2025. The food industry contributes accounts for more than 70% of the revenue of the hot melt packaging industry.
The rise in Do-it-yourself activities among children and youngsters for home decoration and aesthetics is increasing the use of paper, fabric, metal, plastic, cardboard, glue, and strong adhesives. Hot melt adhesives are cost-effective and witnessing high attraction in various regions of North America and Europe. In the advent of COVID-19, DIY activities are gaining popularity among the population, thereby, boosting the demand for hot melt adhesives.
- Around 35% to 40% of the industrial adhesives market is controlled by the top 6 to 8 companies while the remaining 60% is distributed among the companies in small to the mid-sized range.
- Europe holds the largest hot melt adhesives market share and is expected to witness an absolute growth of 36% between 2020 to 2026.
- APAC is one of the major contributors to the rapid growth of the adhesive market and will reach USD 4874.49 million by 2026.
- Henkel offers one of the popular and oldest polyurethane-based hot melt adhesives named as TECHNOMELT PUR adhesive which has high bond strength and is gaining popularity in the global market.
HOT MELT ADHESIVES INDUSTRY GROWTH FACTORS
- The expansion of packaging and automotive sectors in the European countries are boosting the growth opportunities for hot-melt adhesives in the region.
- The growth drivers of the hot-melt adhesive-based packaging include healthcare, e-commerce, food and beverage, and personal care products.
- The M&A activities in the industrial adhesives is high due to the highly fragmented industry and the demand is expected to grow positively during the forecast period.
- The rising application of hot melt adhesive in the construction industry is surging the market growth across the regions.
HOT MELT ADHESIVES MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Raw Material
- Product Form
INSIGHTS BY RAW MATERIAL
The Ethylene-vinyl Acetate (EVA) segment is expected to witness an incremental growth of USD 1,920.24 million by 2026.
The ongoing trend of eco-friendly products is likely to create more opportunities for bio-based hot-melt adhesives in the upcoming years. Players are continuously focusing on introducing environment-friendly products in the global hot melt adhesives market. EVA hot melt adhesives are flexible and compatible with various other polymers and additives which makes the procedure easy. It is one of the raw materials used in hot melt adhesive that have application in the high-performance packaging industry.
INSIGHTS BY PRODUCT FORM
In 2020, the global pellet hot melt adhesives market holds the highest share of over 55.64%.
Hot melt adhesives also come in pellet form are made up of chemical compounds that help in quick adhesion on permeable and impermeable surfaces. These hot melt adhesives in pellets is available in form of slugs, sachets, firm, powder, and tablets. It is most suitable for application in the manufacturing process where rapid melting is required. The pellets segment is expected to grow at a CAGR of 5.66% between 2020 and 2026.
INSIGHTS BY APPLICATIONS
In 2020, the paper & packaging segment accounted for the highest CAGR growth of 5.96% during the forecast period.
The demand for consumer flexible packaging is high in the food and beverage, healthcare, and pet food segments. The demand for industrial packaging is expected to increase in the pharmaceutical industry due to the robust demand for drugs and PPE manufacturing. The industrial flexible packaging market is expected to witness high growth in the APAC region. There is high market demand in countries such as Singapore, Hong Kong, and New Zealand due to cost-effective labor, growing infrastructure, and established logistics.
INSIGHTS BY END-USER
Healthcare end-user for hot melt adhesives in Europe is expected to reach USD 256.96 million by 2026.
The industrial end-user of the hot melt adhesives market is expected to witness incremental revenues of USD 3,421.55 million and absolute growth of 39% between 2020 to 2026. The automotive, aerospace, and electronics, are the early adopters of new adhesive technologies as they explore more robust weight-reducing materials. The packaging market in North America is at a mature stage and provides constant demand for hot melt adhesives. The hot melt adhesives are used in the construction market during the repair and installation of floors, tiles, and ceilings. Residential use of hot melt adhesive includes the individual purchase of adhesives which is used for residential purposes such as DIY and other home improvement activities.
INSIGHTS BY DISTRIBUTION
The offline market in APAC and Europe together contributes 65% of the market with a CAGR of 5.26% and 6.03% during the forecast period.
The adhesive industry is an offline intensive market that accounts for a significant share of purchasing time and product price. Offline distribution of adhesives is majorly done through wholesalers, distributors, and direct selling.
With the advent of COVID-19, the market is shifting towards online distribution channels. Digital sales are a major contributor to the overall revenue generated by the company in the hot melt adhesives market and will continue to grow during the forecast period.
INSIGHTS BY GEOGRAPHY
In 2020, the hot melt adhesives market in North America was valued at USD 2,257.11 million.
In North America, the demand for adhesives is majorly driven by the packaging industry and is likely to enable the hot melt adhesives market growth during the forecast period. The US is the highest revenue generator in the region during the forecast period. North America has the highest number of airports, which are currently undergoing infrastructure expansion and modernization, worth more than USD 120 billion. The opportunity in this area alone is expected to provide a major boost to the market.
The emergence of new construction in the US is likely to drive the adhesives market specifically for application in the construction and furniture segment. The adoption of smart packaging and the high consumption of food, beverages, and medicines are also fueling the growth of the market in the country.
A majority of the share is captured by the global hot melt adhesive companies such as Arkema, Henkel, H. B. Fuller, and others.
The global hot melt adhesives market is highly competitive with global, regional, and local players. Global hot melt adhesive companies have come up with new strategies such as the introduction of new products, marketing, and promotional activities, investing in joint ventures, and following dual-brand strategies in some regions to capture higher shares.
3M is investing heavily in R&D activities with frequent investments is acting as a smart move in unlocking the potential to capture new markets for its product segments. 3M has a global reach, meeting up a wide variety of audiences and creating opportunities to grow in the market.
The hot melt adhesives market research report includes in-depth coverage of industry analysis with revenue and forecast insights for the following:
Segmentation by Raw Materials
- Ethylene-Vinyl Acetate
- Styrenic Block Copolymers
- Amorphous Ploy-Alpha Olefin
- Metallocene Polyolefin
Segmentation by Product Form
Segmentation by Application
- Paper & Packaging
- Nonwoven & Disposable
- Book Binding
Segmented by End-User
- Electric & Electronics
Segmentation by Distribution Channel
Segmentation by Geography
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa