Global hot-melt adhesives market size was estimated close to 1.5 million tons in 2014. This market is likely to be worth more than USD 8 billion by 2023 growing with an estimated CAGR of close to 6%.
Ethylene-vinyl acetate (EVA) was the leading product segment and accounted for more than 50% of the total demand in 2014. Styrenics block copolymer (SBC) market was the second largest product category and is likely to witness steady growth rates over the forecast period. Packaging was the largest application segment and accounted for more than 33% of the total demand in 2014 and is likely to continue this dominance up to 2023.
North America hot-melt adhesives market was the dominant region and accounted approximately 30% of the total demand in 2014. Asia Pacific is likely to witness higher growth rates over the forecast period.
Tremendous growth observed in the packaging industry over the past few years is likely to drive hot-melt adhesives market growth. They are used in packaging applications such as corrugated case and cartoon sealing. Can, bottle and glass labeling are among other major packaging application which this adhesive caters. North America & Europe represents a mature market for packaging application and robust growth is expected in emerging economies of Asia Pacific & Latin America.
Increasing hygiene awareness among consumers is likely to positively influence disposable product demand. Hot-melt adhesives find major application in disposable application such as baby diapers, feminine hygiene and adult incontinence products. Baby diapers in disposables segment were the major consumers of this product over the past few years whereas adult incontinence product represents a smaller fraction of the demand.
Increasing investment in construction particularly in Asia Pacific and Middle East & Africa is likely to boost demand. It is used in various construction applications such as windows & doors, carpet seaming tape, plywood manufacture and panel bonding. Asia Pacific was led by China hot-melt adhesives market, with a total construction spending estimated at USD 1.78 trillion in 2013 Japan and India spending was amounted to USD 742 billion and USD 427 billion in 2013 Asia Pacific is likely to overtake construction market share and be a dominant region by 2018. This provides a huge opportunity for hot melt adhesives industry growth over the forecast period.
Other major applications include textiles, automotives, footwear and consumer products. Textile applications include apparel assembly, interlinings and panel bonding. Automotive applications include headliner assembly, fabric edge turns, door panel fabric attachment and seat laminations. Consumer applications include general assembly products and craft & apparel products.
On the basis of polymer type, hot melt adhesives market can be segregated into EVA, SBC, polyester, polyurethane (PU), polyolefin and polyamides.
Global PU based hot melt adhesive market size was worth more than USD 750 million in 2014 and is anticipated to grow with an estimated CAGR of over 6.5% from 2016 to 2023. North America was the dominant region consuming PU based adhesives. Europe is likely to witness sluggish growth rate for this particular polymer type. Asia Pacific is likely to witness highest gains over the forecast period with China accounting for major market share in this region.
Global polyester hot-melt market size was estimated at over 85 kilo tons in 2014 and is likely to reach over 130 kilo tons by 2023 with an estimated gains of over 5% from 2016 to 2023. Textile was the largest application for this particular polymer type and accounted for more than 30% of the total volume in 2014. Increasing demand for high-end textile for specialty segment such as luggage, protective apparel and footwear is likely to drive the market. Growth of electronics & electrical and automotive industry is also likely to compliment market growth.
Key regions such as North America and Europe are likely to witness moderate growth rates up to 2023. Increasing packaging demand for end-use industries such as food & beverages is likely to drive the market in these regions. Asia Pacific is likely to witness robust growth rates over the forecast period owing to growth in end-use industries such as packaging, footwear, electronics, construction and automobiles. Countries in this region such as China, India, Vietnam, Thailand and Indonesia are likely to witness an increase in hot-melt adhesives consumption.
The global hot-melt adhesives market share is fragmented and is characterized by presence of large scale and small scale manufacturers across the value chain. Key companies operating include Dow Corning, Avery Dennison Corporation, 3M Company and Ashland. Other prominent companies include Henkel AG, American Chemical Inc., Jowat AG, Bostik Inc., Huntsman Corp, SIKA AG, BEMIS Associates Inc., H.B. Fuller Company and Dynea OY.
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