Hot Melt Adhesives Market Size, Share & Industry Analysis, By Raw Material (Ethylene Vinyl Acetate (EVA), Polyolefin, Styrenic Block Copolymers (SBC), Polyurethane (PU), Polyester, and Others), By Application (Packaging, Assembly, Woodworking, Transportation, Building & Construction, Footwear & Leather, Nonwovens, Bookbinding, and Others), and Regional Forecast, 2024-2032

The global hot melt adhesives market size was valued at USD 7.49 billion in 2023 and is projected to grow from USD 7.89 billion in 2024 to USD 11.76 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period. The hot melt adhesives market in the U.S. is projected to grow significantly, reaching an estimated value of USD 3.06 billion by 2032, driven by high demand from packaging applications.

Hot melt adhesives are polymer-based thermoplastic adhesives used in mechanical anchorage. The global market is projected to witness substantial growth due to the increasing demand for advanced and improved products from various end-use industries, such as automobile, manufacturing, packaging, furniture, and non-woven/hygiene. Another main driver expected to drive the global market is the increasing cognizance of non-woven/hygiene products among buyers. Moreover, favorable government policies and heavy investment in advanced HMAs will contribute positively to the market.

The effect of the COVID-19 pandemic on adhesives & sealants can differ across industries, such as automotive, medical, and hygiene. Fast-growing sectors, such as medical and hygiene products and food packaging, dominated the market during the COVID-19 pandemic. Producers extended their production bases to benefit from the low manufacturing rates.

Due to the COVID-19 outbreak, European carmakers had to shut down their manufacturing facilities. To deal with the coronavirus outbreak, PSA, Renault, and Fiat Chrysler had to cut production at European plants. Renault halted manufacturing at 12 production sites, affecting about 18,000 workers in France. However, increasing capital spending for roads and highways by the government to back businesses amid the coronavirus is likely to boost the building & construction industry, which will drive the market. The middle class and young population will further contribute to the demand for adhesives & sealants in the coming years for consumer goods.

Hot Melt Adhesives Market Trends

Rising Shift Toward Online Shopping to Drive the Market Growth

E-commerce has transformed the way people shop and has turned out to be an essential part of daily lives. Online shopping has gained enormous popularity in recent years, and the trend is expected to continue in future. The convenience of shopping from anywhere, anytime, coupled with the accessibility to a vast range of products, has fascinated a huge number of consumers to e-commerce platforms. Moreover, this shift toward online shopping has been augmented by the COVID-19 pandemic, which required people to stay indoors and bank on online shopping to meet their daily needs. This led to a noteworthy increase in online sales. According to the International Trade Administration, global B2C e-commerce revenue will surpass USD 4,865.2 billion by 2025. Despite slowing growth in online shopping, when sellers provide discounts or coupons, and more than 35% of shoppers regularly look for deals online, an increasing number of people save money by shopping. As customer behavior moves toward store-to-door distribution, demand for this type of adhesive is also growing. This growth is attributable to HMAs for box assembly and shipping components are the common go-to bonding choice. They are suitable for production lines that have to fulfill high-performance specifications with a fast fixed pace.

The fast rise and acceleration in e-commerce have been the greatest retail shift in this transition year. E-commerce has become the favored shopping option for shoppers, particularly for those who are hesitant to go out and prefer home delivery. For e-commerce, these adhesives are used in shipping labels on bags and boxes, corrugated box sealing, and others.

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Hot Melt Adhesives Market Growth Factors

Change from Solvent Adhesives to Hot Melt Adhesives to Promote Market

Hot melt adhesive (HMA) is expected to experience a high growth rate relative to the current solvent-based adhesive. Its advantages include high productivity induced by process automation, a wide variety of applicability, eco-friendliness, and re-adhesion possibility. As opposed to a solvent-based or water-based adhesive, these products allow a limited working space and have high-speed adhesion without a drying phase. The HMA's high-speed adhesion allows for production line automation. HMAs may not lose thickness; solvent-based hot melt adhesives during drying can lose up to 50-70% of layer thickness. Therefore, they have major economic benefits such as improving efficiency, reducing the amount of material usage generated by spread control, lowering labor costs, and others. These products demonstrate major advantages relative to conventional solvent-based adhesives that typically require evaporation and removal of solvents or polymerization to bind substrates together. For instance, the lack of carrier fluid or solvent in HMAs formulations overcomes the dangers involved with the use of solvents and volatile organic compound (VOC) pollutants. It allows for higher processing rates and lower transport/inventory maintenance costs.

Hot melt adhesives have no solvents. The HMAs dissolve the polymer using water. This factor is another reason several different solvent-based goods sectors are transitioning to HMAs. For example, In September 2020, SABA announced modern HMAs and launched Sabamelt 4732 for pocket coil unit manufacturing. SABA reaffirms its pioneering role as the solvent-free foam bonding specialist, with more products being released later this year. Due to the increasing demand for environmentally friendly adhesives from consumers. HMAs cause negligible emissions, which have little or no effect on the environment. There is no requirement for extra ventilation, unlike adhesives with solvents, nor are they flammable. The price point is very low as it holds prices down for packaging and manufacturing with high-volume operations. Therefore, the use of HMAs over solvent-based adhesives is supported by regulatory agencies, governments, and environmental organizations. Governments worldwide devise supportive strategies to continue helping adoption, thereby boosting the hot melt adhesives market growth during the forecast period.

Growing Demand for Polyurethane HMAs from Various End-use Industries to Drive the Hot Melt Adhesives Market

The increasing demand for polyurethane is another driver for the rise in demand for polymer-based HMAs. Polyurethane is a low-volatile organic compound that also makes it popular as it can be used to manufacture HMAs as some raw materials. Polyurethane adhesives are specifically designed to hold together non-porous materials such as metal and wood, making them suitable for bookbinding, shoemaking, and product packaging applications. PUR is ideal for a broad range of woodworking applications, finish carpentry, shoe repair, furniture repair, broken glassware repair, laminate countertops, construction and remodeling, ceramic ceiling tiles, and others due to its higher strength, short set time, and durability. For instance, in February 2020, Jowat announced the introduction of an exceptional product at the world-leading trade fair for the windows industry. Jowatherm-Reaktant MR 604.90 is the first PUR HMAs with a reduced monomer content, with hazard-free marking approved according to RAL-GZ 716 for the wrapping of PVC window profiles.

Generally, polyurethane HMAs create a tighter bond than conventional products. This factor is attributed to the tight initial bond formed by the PUR HMAs and then strengthened as the adhesive interacts in the air with moisture. It is a chemical method known as cross-linking in which the PUR HMAs bind to the glued object and form a solid, permanent bond of its own. PUR HMAs absorb moisture from the substrates and the environment and cure it to create a tighter bond than most other adhesives, including adhesives dependent on water and other formulations of HMAs. Since polyurethane are applied like most HMAs, using glue guns or related tools, operators can easily get up to speed on enforcing best practices without having to learn all new techniques and equipment.

RESTRAINING FACTORS

Low Thermal Resistance of HMAs May Hamper the Market

HMA are thermoplastics and more 'fragile' at low temperatures and 'smoother' at high temperatures. The thermal load of the substrate restricts its application to substrates that are not susceptible to high temperatures, and the lack of adhesion at elevated temperatures or those capable of melting the adhesive, are some of the drawbacks.

A variety of drawbacks include thermal loading of the substrate, limiting the use of substrates that are not vulnerable to higher temperatures, and lack of bond strength at higher temperatures before the adhesive is fully melted. Any hot melt adhesives may not be immune to weather and chemical attacks. A key factor limiting the market growth includes HMAs being susceptible to higher temperatures, which can lose bond strength at higher temperatures.

Hot Melt Adhesives Market Segmentation Analysis

By Raw Material Analysis

EVA Segment to Generate High Revenue Due to Tremendous Growth from Packaging Industry

Based on raw material, the market is segmented into Ethylene Vinyl Acetate (EVA), polyolefin, Styrenic Block Copolymer (SBC), polyurethane (PU), polyester, and others.

EVA segment has the largest share in the market. EVA fits well with paper and cellulosic products and has a wide formulation variety. These adhesives are easy to set, give high resistance properties, and perform at a moderate temperature. They are used in the packing, converting, paper, automotive, and assembly industries and are a very hot melt adhesive that is typically cheaper.

Polyolefin is produced with a catalyzed foundation of metallocene and has excellent adhesive properties with a quicker set pace. It is also highly resistant and provides a wide variety of temperatures. In the packaging, converting, and assembly industries, these adhesives are still used but are constrained in their variety of available formulations. Polyurethane adhesives are especially ideal for heat-sensitive materials since the melting point is reached at a comparatively low temperature. This factor makes urethane a widely used polymer for adhesives in the furniture, shipping, and packaging industries.

By Application Analysis

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Packaging Segment to Hold a Significant Share Due to Growth Within the Packaging Industry

The market is segmented into packaging, assembly, woodworking, transportation, building & construction, footwear & leather, nonwovens, bookbinding, and others in terms of application.

The packaging application segment constituted the primary market share. Growing demand for the application of packaging and non-woven goods is a critical factor in driving market growth. HMAs do not need drying or curing, unlike their solvent- or water-based counterparts. Owing to the rising need for adult incontinence products, infant diapers, and female safety products globally, the market for superior performance hygiene adhesives is increasing. Strong demand for HMA in the construction and packaging industry is a major factor driving growth. Besides, the use of HMA for endpoint fixing in the automotive industry and increased demand for HMA in pressure-sensitive industries are expected to drive the market growth.

REGIONAL INSIGHTS

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The Asia Pacific hot melt adhesives market size stood at USD 3.53 billion in 2023. Asia Pacific dominated the market and is likely to maintain its position during the forecast period. Emerging economies, such as India, Japan, and China, are high-growth markets for the use of HMA. The furniture and building industries are projected to drive the market's growth, combined with continued investment in infrastructure and manufacturing. The region's rapidly expanding packaging manufacturing base, combined with the rapidly rising demand for nonwoven goods, is crucial to consumer growth in the Asia Pacific region.

Europe is expected to witness sluggish growth in terms of volume. In the near term, the halting of development activities due to the COVID-19 pandemic in many developed economies in Western Europe, such as Germany, Italy, the U.K., Spain, and France, is expected to affect the hot melt adhesives demand dramatically.

The packaging industry in North America is anticipated to be a significant driver for the market due to the involvement of some of the largest packaging producers, such as Ball Company, International Paper, and Owens-Illinois.

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Brazil, Mexico, Argentina, Columbia, and Chile are the major growth countries for the market due to their robust manufacturing sector. Packaging, electronics, automotive, textiles, and footwear are the leading market segments. It is projected that Brazil, Uruguay, and Argentina are witnessing a strong surge in demand due to rapid manufacturing and production of polyurethane units in heavy-end industries.

Population growth and growing tourism due to the hosting of mega-events are key growth factors for the construction industry. Investments in infrastructure, affordable accommodation, healthcare, education, and hospitality are expected to encourage tourism. This factor is projected to play a key role in addressing the rising population's needs in the Middle East & African government's agendas. The UAE and Qatar are expected to be lucrative countries for the building industry as they move on with initiatives ahead of the Expo 2020 and FIFA World Cup 2022. The building & construction industry is anticipated to drive the growth of the market.

List of Key Companies in Hot Melt Adhesives Market

Key Companies to Adopt Strategies and Broaden their Market Presence

With a few key market players capturing a significant share, the global market is concentrated in nature. Henkel AG & Co. KGaA, 3M, H.B. Fuller Company, Bostik, Sika AG, Arkema Group, and Dow Inc. are some of the market's key players.

Industry players operate principally based on the product's price and application characteristics. Several major players are engaged in numerous strategic alliances to boost their market share and achieve a competitive advantage. For instance, the potential of Exxon Mobil Corporation for silane-modified amorphous poly-alpha-olefins has been greatly increased. Exxon Mobil Corporation can manufacture 30% more of this unique adhesive raw material by finishing the plant expansion in the Marl Chemical Park. Amorphous poly-alpha-olefins sold under the VESTOPLAST 206 brand name are silane-modified specialties. They are ideally suited for the formulation of high-quality adhesives, especially suitable for bonding polar substrates that are difficult to bind such as glass, ceramics, and metals.

LIST OF KEY COMPANIES PROFILED:

• Exxon Mobil Corporation (U.S.)


• Dow Inc. (U.S.)


• 3M (U.S.)


• Henkel AG & Co. KGaA (Germany)


• MELER (Navarra)


• Sanyhot Adhesivos, S.A. (Spain)


• TEX YEAR INDUSTRIES INC. (Taiwan)


• H.B. Fuller Company (U.S.)


• Arkema Group (U.S.)


• Sika AG (Switzerland)


• Bostik (U.S.)


• Jowat SE (U.S.)


• AVERY DENNISON CORPORATION (U.S.)


• LyondellBasell Industries Holdings B.V. (Netherlands)


• Embagrap SA (Spain)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 - With the Technomelt E-COM portfolio for e-commerce packaging, Henkel Adhesive Technologies expanded its product portfolio of hot melt adhesive solutions for right-sized cartons and envelopes. This product is anticipated to increase the productivity of on-demand packaging technologies suggestively.


• April 2023 - Dow Inc. and Avery Dennison Corporation co-developed an innovative and sustainable new hotmelt label adhesive solution. This product enables polyolefin filmic labels and polypropylene or polyethylene packaging to be mechanically recycled together in one stream. It is the first of its kind product in the label market and is permitted by Recyclass for recycling in the HDPE colored stream - Class B.


• February 2022 - H.B. Fuller Company acquired the Belgium-based company Fourny NV, a provider of construction adhesives with experience in technologies focused on commercial roofing, construction, and other private label industrial specialties. According to the company, Fourny’s position in the commercial roofing business will allow the localization of products imported from the U.S.


• January 2022 - H.B. Fuller Company acquired Apollo, the U.K.-based independent maker of liquid adhesives, coatings, and primers for the roofing, industrial, and construction sectors. The addition of this firm will increase the company's share of important construction markets in the U.K. and across Europe.


• February 2020 – Jowat SE announced Jowatherm-Reaktant MR 604.90 as the first PUR hot melt adhesive with reduced monomer content and hazard-free marking, approved according to RAL-GZ 716 for the wrapping of PVC window profiles.

REPORT COVERAGE

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The report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. Also, the report offers insights into market hot melt adhesive market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth in recent years.

This report includes historical data and forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

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