May 18, 2024
Hot Melt Adhesives Market

Hot Melt Adhesives Market Is Expected To Be Flourished By Growing Demand From Packaging Industry

Hot melt adhesives are regularly used to bond packaging materials such as carton boards and corrugated boxes. They provide good adhesion to a wide range of substrates including plastics and paper. The global packaging industry has been growing substantially owing to the increasing demand for packaged food and online shopping. The shift towards flexible packaging solutions has also driven the consumption of hot melt adhesives in recent years. Various properties of hot melt adhesives such as instantaneous setting, high bonding strength, and easy operation have made them preferred adhesives for packaging applications.

The global hot melt adhesives market is estimated to be valued at US$ 7.84 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the key drivers for the growth of the market includes the growing demand from the packaging industry. As mentioned earlier, hot melt adhesives are widely used in bonding and assembling of various packaging materials owing to their advantages over other adhesives. According to statistics, the global packaging industry reached a value of over US$ 1 trillion in 2021 and is anticipated to grow at a CAGR of around 4% during the forecast period. This robust expansion of the packaging sector will consistently drive the consumption of hot melt adhesives.

Another factor boosting the hot melt adhesives market is the increasing penetration of e-commerce and growing demand for flexible packaging. Over the last few years, there has been tremendous growth in online shopping, especially after the outbreak of COVID-19 pandemic. This has augmented the need for effective packaging solutions that can protect products during shipping & transportation via online channels. Flexible packaging finds widespread usage in e-commerce as it provides cushioning and is easy to use. Therefore, proliferation of e-commerce is estimated to fuel the sales of hot melt adhesives in the upcoming decade.

Segment Analysis
The global Hot Melt Adhesives Market Share can be segmented into polyurethane, ethylene-vinyl acetate, styrenic block copolymer and others. The polyurethane segment currently dominates the market and is expected to continue its dominance over the forecast period. Polyurethane hot melt adhesives provide excellent adhesion to various surfaces along with high chemical and heat resistance. These properties have resulted in their wide usage in various applications.

PEST Analysis
Political: There are no significant political factors impacting the hot melt adhesives market.
Economic: The growth of end-use industries such as packaging, automotive, furniture and footwear is driving the demand for hot melt adhesives. Developing economies are presenting new opportunities for market expansion.
Social: Population growth and rising disposable incomes are increasing consumption, which is positively impacting the packaging and other end-use industries.
Technological: Manufacturers are focusing on developing hot melt adhesives with improved properties like heat resistance, bonding flexibility and reduced toxicity. Adhesives with minimal volatile organic compound emissions are also gaining popularity.

Key Takeaways
The global hot melt adhesives market is expected to witness high growth over the forecast period. The Asia Pacific region currently dominates the market and is expected to maintain its position over 2023-2030. Strong growth of end-use industries in China and India is driving demand.

Regional analysis: The Asia Pacific region accounts for around half of the global hot melt adhesives market share. China, India, Japan and other Southeast Asian countries are major consumers due to the presence of vast packaging, footwear, furniture and automotive industries. North America is another major region bolstered by ongoing demand from the packaging sector.

Key players operating in the hot melt adhesives market are Zoetis Inc., Elanco, Merck & Co., Inc., Boehringer Ingelheim GmbH. Key players like Zoetis and Elanco are focusing on strengthening their product portfolios through investments in research and development.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it