Global Hot Melt Adhesives Market - 2024-2031

Overview

Global Hot Melt Adhesives Market reached US$ 6.9 billion in 2023 and is expected to reach US$ 9.8 billion by 2031, growing with a CAGR of 4.5% during the forecast period 2024-2031.

The packaging sector is a major user of hot melt adhesives. The adhesives are commonly used to bond packaging materials like paperboard, corrugated cardboard, plastic films and foils in applications like case and carton sealing, tray forming, labeling and laminating. The industry's widespread use of hot melt adhesives produces enormous demand and market dominance.

Hot melt adhesives (HMAs) adhere to a wide range of materials and surfaces, including fabric, paper, porcelain, metal, cardboard and plastics, making them ideal for DIY applications. Furthermore, in October 2020, Pidilite Industries Ltd. paid US$ 257 million for Huntsman Group's Indian subsidiary Huntsman Advanced Materials Solutions Private Limited in order to broaden its product range for the do-it-yourself consumer adhesives market. It allows the company to exploit market expansion.

In 2023, North America is expected to be the second-dominant region with over 20% of the global Hot Melt Adhesives market. The presence of some of the top packaging manufacturers in the region, such as International Paper, Ball Corporation and Owens-Illinois, is expected to be a crucial factor in market expansion. Mergers and acquisitions are the primary strategies of the market's leading players. In September 2021, Meridian Adhesives Group, a prominent manufacturer and formulator of water-based and hot-melt adhesives and coatings, bought Prime Blend LLC.

Dynamics

Growing Demand for Paper Packaging

The rapid increase of e-commerce has led to a huge increase in demand for packaging materials. Hot melt adhesives are crucial in packing applications such carton sealing, labeling and assembly because they provide strong and quick bonding solutions. Furthermore, the Statistisches Bundesamt estimates that in 2023, the German packaging industry will earn around US$ 37.94 billion in sales. It was an increase over the previous year, totaling US$ 32.09 billion.

Since 2008, China has been the world's largest producer of paper packaging and cardboard. According to a survey performed by the China Paper Association, the total number of paper and paperboard manufacturing businesses in China stood at 2,500 in 2023, with a nationwide paper and paperboard output of 129.65 million tons, a 4.35% increase over the previous year.

Rising Concerns About Sustainability

There is an increasing demand for ecological and recyclable packaging solutions. Hot melt adhesives are used in the packaging sector because they can bond a wide range of materials and are compatible with recycling processes. Manufacturers are developing environmentally friendly hot melt adhesives to address the growing need for sustainable packaging choices.

The market is being driven by rising demand for bio-based hot melt adhesives in U.S., which are becoming more sustainable. For example, Jowat, an adhesive manufacturer, has introduced solutions derived from renewable raw materials that have acquired approval from U.S. Department of Agriculture, particularly for the North American market.

Volatility of Raw Material Price and Environmental Concerns

Hot melt adhesives are largely composed of petrochemical derivatives like ethylene-vinyl acetate (EVA), polyethylene and polypropylene. Prices for these basic materials are extremely variable, impacted by shifts in crude oil prices, geopolitical tensions and supply-demand imbalances. The volatility has a substantial impact on the production costs of hot melt adhesives, which makes it difficult for manufacturers to maintain steady pricing and profitability.

The production and usage of hot melt adhesives can create environmental concerns, notably over adhesive product disposal and the potential environmental impact. The is especially true for adhesives that aren't biodegradable or recyclable. Increasing awareness and demand for sustainable and eco-friendly products has led to increased scrutiny of traditional hot melt adhesives, forcing producers to find greener alternatives.

Segment Analysis

The global hot melt adhesives market is segmented based on product, material, application and region.

Rising Demand for Paper Packaging Drives the Segment Growth

Packaging is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Hot melt adhesives are becoming more popular in the packaging industry as food consumption rises and new applications emerge. For example, packaging is one of India's fastest-growing sectors. The sector has grown steadily over the last few years and is predicted to expand further, notably in the export sector.

For example, from April to December 2023, paper imports in India increased by 37% to 1.47 million tons, according to data from the Indian Paper Manufacturers Association. Furthermore, according to an estimate provided by the Statistisches Bundesamt in March 2023, paper packaging accounted for around 46% of packaging sector sales in Germany in 2022. Almost 34% consisted of plastic packaging.

Geographical Penetration

Rapid Investments in Infrastructure Drives Demand in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global hot melt adhesives market covering over 30% of the market. Governments and the business sector in Asia-Pacific are investing in infrastructure projects such as transportation, utilities and residential and commercial building. Hot melt adhesives are utilized in a variety of construction applications, such as paneling, flooring installation, insulation bonding and roofing, which increases demand for adhesives in the industry.

In accordance to the Indian Brand Equity Foundation, capital investment in infrastructure is expected to expand by 33%, to around US$ 122 billion, for the fiscal year 2023-24, accounting for 3% of GDP. Furthermore, the Indian government has created a number of strategies to attract private investment in the sectors of roads and highways, airports, business parks and higher education and skill development. Private equity and venture capital firms spent US$ 3.5 billion in Indian enterprises between May 2023, with 71 agreements.

Competitive Landscape

The major global players in the market include Henkel AG & Co. KGaA, H.B. Fuller Company, Dow, Sika AG, Jowat SE, Arkema Group, Ashland, 3M, Avery Dennison Corporation and Beardow Adams.

COVID-19 Impact Analysis

The pandemic significantly disrupted supply chains for raw materials used in hot melt adhesives, including ethylene-vinyl acetate, polyethylene and other petrochemicals. Lockdowns and limitations in key manufacturing countries resulted in shortages and higher raw material prices. Transportation limitations and reduced staff availability during lockdowns caused disruptions in the globally logistics network. Delays in shipment and increasing freight costs further disrupted the supply chain of hot melt glue manufacturers.

It boosted demand for packing materials, which was driven by a boom in e-commerce and home delivery. Hot melt adhesives are used extensively in the packaging sector for carton sealing, labeling and other purposes. On the other hand, the automotive and construction industries, which are major users of hot melt adhesives, experienced downturns due to suspended production and decreased economic activity. It caused a temporary decrease in demand for adhesives used in these industries.

Russia-Ukraine War Impact

The conflict has affected the availability of critical raw materials used in the production of hot melt glue. Russia and Ukraine are large exporters of a variety of chemicals and raw materials, especially petroleum derivatives, which are required for adhesive production. The battle has caused a surge in global energy prices, particularly for oil and natural gas. Due to the manufacturing of hot melt adhesives is energy-intensive, growing energy costs have greatly raised the entire production costs.

The conflict has resulted in variations in demand across various businesses. Manufacturers are facing greater operational costs, which are frequently passed on to customers in the form of higher pricing for hot melt adhesive. Prices for important raw materials like ethylene-vinyl acetate and polyolefins have risen due to supply problems and rising demand. It has increased the financial pressure on glue manufacturers.

By Product

• Glue Guns
• Sprayable Adhesives
• Others

By Material

• Ethylene-vinyl acetate
• Thermoplastic rubber
• Polyolefin
• Polyamide
• Others

By Application

• Packaging
• Assembly
• Woodworking
• Automotive
• Nonwovens
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, Avery Dennison and Dow cooperated to create a novel and sustainable hot melt label adhesive solution. It allows polyolefin film labels and polypropylene (PP) or polyethylene (PE) packaging to be technically recycled in the same stream. Avery Dennison sells CF3050 throughout Europe, Middle East and North Africa (EMENA) region, based on Dow's AFFINITY(TM) GA polymers.
• In June 2022, Henkel has expanded its hot melt adhesive manufacturing capacity by building a plant in Nuevo Leon, Mexico.

Why Purchase the Report?

• To visualize the global hot melt adhesives market segmentation based on product, material, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of hot melt adhesives market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global hot melt adhesives market report would provide approximately 62 tables, 57 figures and 205 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies