Hot Melt Adhesives Market Research Report Information By Resin Type (Ethylene Vinyl Acetate (EVA), Polyolefins, Styrene Butadiene Copolymer (SBC), Polyamide, Polyurethane, Others) End-Use (Building and Construction, Paper, Board and Packaging, Woodwork and Joinery, Automotive & Transportation, Footwear and Leather, Healthcare, Electronics, Others) Forecast 2030

Hot Melt Adhesives Market Overview

The global hot melt adhesives market size was USD 8.8 billion in 2021 and is estimated to reach USD 14.2 billion by 2030, growing at a CAGR of 6.04% from 2022 to 2030.

Hot melt adhesives or hot glue is typically a form of thermoplastic adhesive which are commercially available as cylindrical sticks of vivid range of diameters fitting hot adhesive gun.

In the industrial sector hot melt adhesives are broadly used to eliminate volatile organic compounds and more. Hot melt adhesives find numerous applications across end use markets including packaging, automotive, construction, healthcare and more globally.

COVID-19 Impact on the Hot Melt Adhesives Market:

The supply chain throughout the globe was negatively impacted. The closure of international borders and integration of stringent regulatory norms for the trade affected the sales of hot-melt adhesive products. This also affected the procurement of supplies and transport of finished goods. However, the global business showed a gradual increase in sales after the restrictive regulations were dissolved. The restrictions were uplifted in several stages to prevent the spread of disease. The demand and supply gap still existed but was narrowed down to fewer delivery days. Moreover, in the second quarter of 2020, the industry verticals such as semiconductors, electronics, automotive, and many more experienced shortages in the availability of raw materials and production were substantially impacted due to supply and capacity bottlenecks. These industries are the major sectors that utilize hot-melt adhesives to develop their final product. This, in turn, has affected the market growth of the gluing products.

In 2021, the market started full-fledged production as the situation returned to normal. The year experienced high demand for electronic products, and the automobile sector documented the record-breaking sales of the decade. The packaging industry demanded better hot-glue adhesives as the delivery packages had to undergo viral checks, and sanitizing solutions were applied to minimize the risk of contamination. The usage of solutions might affect the gluing quality of wrapping; hence the mandate for a better solution created new opportunities for the market players. Such aspects augmented the demand for high-quality hot-glue adhesives worldwide.

Market Dynamics

• Significant growth in automotive production: The automotive industry is a highly progressive sector and is driven by factors such as the rising purchasing power of individuals and the growing availability of different financial options. Automobile sales have boosted over the years and are significantly growing due to continuous evolution in technology, built quality, and luxury essence. The rising demand for automotive has created parallel demand for hot-melt adhesives for various vehicle-related pasting applications. The industry players offer hot-melt adhesives with properties such as low VOC, good adhesion, low atomization, and excellent heat resistance for automotive production. Moreover, the hot-melt adhesives are highly consumed in the interior lamination of automotive floors, seats, side panels, and roofs of the vehicle. Similarly, high-quality hot-met adhesives are used in gluing decors in the central console area, emblem of car keys and hub caps, and fastening clips on all internal cladding.


• Surging demand from packaging industry: The growing prevalence of smart, sustainable, consumer-based, and environment-friendly packaging solutions is driving the demand for high-quality hot-melt adhesives. Other factors strengthening the market demand include the growing prevalence of paper packaging to reduce the carbon footprint, rising demand for customized wrapping, and growing industry of pre-packed foods & beverages. Moreover, the packaging industry uses delicate materials such as cardboard, paper, carton, and plastics for wrapping applications. These delicate materials require low-temperature hot-melt adhesives for efficient gluing. The low-temperature hot-melt glues are highly recommended as it is cost-efficient, energy-efficient, and reduce the maintenance costs of production equipment as wear and tear of the machinery are minimized. Such aspects are likely to propel the market growth in the assessed time period.


• Growing demand for adhesives for circuit boards: The increasing mandate of integration for circuit boards across various sectors, including automotive, manufacturing, aerospace, and IT, is fueling the demand for hot-glue adhesive. Other factors propelling the demand for hot melt adhesives include increasing investment in R&D activities and the evolution of chipsets in the electronics and telecom industries. The adhesive is used for encapsulating electronic components, mounting components, wire tracking, and conformal coating on the circuit board. Moreover, the major materials used to manufacture circuit board hot-melt adhesive include ethylene/vinyl acetate (EVA) polymer, rosin resin, or petroleum resin. Furthermore, the companies such as Henkel Adhesives Technologies India Private Limited, 3M, and Vitrochem Technology offer hot-melt adhesives for circuit boards.

• Lower thermal resistance: High adoption of hot-melt adhesives for gluing applications across different sectors has augmented the demand for the product. However, concerns pertaining to thermal resistance have hampered the market growth. Hot-melt adhesives with high thermal conductivity and low thermal resistance have hindered the adoption rate in recent years. The products glued with hot-melt adhesives with lower thermal resistance face high heat loss. Such loss of heat might affect the glue capacity of the adhesive, thereby affecting the demand for hot melt adhesives market demand across the globe.

• Rising development of bio-based hot melt adhesives: The emergence of bio-based hot-melt adhesives has disrupted the hot-melt adhesive industry. These adhesives are made from natural resources, have good thermal stability, and have versatile temperature performance. Bio-based hot-melt adhesives are generally made from 70%-80% natural components. The manufacturers use biodegradable materials obtained from the marine environment and other natural resources to produce hot-melt adhesives. Additionally, the manufacturers prefer biodegradable raw material over chemical raw components, reducing CO2 output and minimizing the overall carbon footprint. For instance, in November 2021, Henkel launched a range of hot-melt adhesives (Technomelt Supra ECO) with a high amount of bio-based raw material. The company aims to offer 80% bio-based raw components with enhanced performance and higher sustainability. The launch of such products is expected to augment the demand for bio-based hot-melt adhesives in the forecast timeline.


• Increasing packaging and non-woven application in asia-pacific and latin america: The Asia-Pacific is a market with huge potential in terms of packaging. The region is experiencing huge demand in the fast-moving consumer goods sector, thereby strengthening the packaging industry. Other factors influencing the Asia-Pacific packaging industry include increasing sales of the wide range of products on e-commerce and online platforms and a rising number of single-person households purchasing more single-value packs. As per the data published by The Association for Packaging and Processing Technologies, the Asia-Pacific packaging industry sold products worth USD 1,724 billion in 2020. The growth was attributed to the growing demand for small and extremely large packages coupled with progression in leisure activities. Moreover, Latin America has high potential in packaging and non-woven application. The region is using sustainable materials for packaging applications. Additionally, the organizations are adopting new models to reduce carbon footprint across the region.

• Difficulty in usage on hard-to-bond substances: Hot-melt adhesives are used in commercial and residential gluing applications. However, a few challenges prevent the utilization of the hot-melt glues in adhering substances. Few surfaces are hard to bond, such as silicone, wax, metal, vinyl, wet and greasy surfaces. Additionally, other hard-to-hard substrate combinations include rubber to metals, metals to glass, ceramics to plastics, and glass to plastics. These combinations do not support the binding using hot-melt adhesives, limiting the market growth. However, the market players are performing R&D activities to develop new products to overcome the above-mentioned challenges.

Segmentation

By Resin Type of Hot Melt Adhesives Market

• Ethylene Vinyl Acetate (EVA)


• Polyolefins


• Styrene Butadiene Copolymer (SBC)


• Polyamide


• Polyurethane


• Others

By End-Use of Hot Melt Adhesives Market

• Building and Construction


• Paper, Board and Packaging


• Woodwork and Joinery


• Automotive & Transportation


• Footwear and Leather


• Healthcare


• Electronics


• Others

 By Region of Hot Melt Adhesives Market

• North America


• Europe


• Asia-Pacific


• South America


• Middle East


• Africa 

Regional Analysis

Asia-Pacific accounted for the largest market share of 44.92% in 2021, with a market value of USD 3,993.82 million; it is expected to register a CAGR of 6.45% during the forecast period. The market across Asia Pacific is estimated to grow at the fastest pace due to increasing intervention of various electronic product manufacturing companies in the region across countries such as China, South Korea, India, Japan and more. Further, on a global scale, increased innovations in the automotive sector and growing number of vehicles on road globally is poised to reflect steady growth in demand for hot melt adhesives industry worldwide over the foreseeable future.

In North America, The US is the leading country in the region owing to the increasing construction & buildings market. North America accounted for the second largest market share in 2021, valued at USD 2,106.19 million; it is projected to register the highest CAGR of 5.35%.

The European is largely attributed to the growth in automotive industry in the region. Germany accounted for the largest market share of 22.5% in 2021, with a market value of USD 455.65 million; the market is expected to register the highest CAGR of 6.20% during the forecast period.

The Latin American market is divided into Brazil, Mexico, Argentina and Rest of Latin America are the major contributors in the region.The growth in the region are attributed to has significant potential for use in packaging and non-woven applications Sustainable materials are being used in the region for packaging applications. Furthermore, the organisations are implementing new models to reduce the region's carbon footprint..  

In Middle East & Africa Turkey accounted for the largest market share of 36.35% in 2021, with a market value of USD 160.53 million; the market is expected to register a CAGR of 5.75% during the forecast period. The growth is attributed to the growth in construction & buildings, and woodworks markets.

Competitive Landscape

In developing markets such as India and China, the global market for hot melt adhesives is highly fragmented. The industry is likely to become more competitive as partnerships, mergers, and acquisitions increase. Furthermore, a growing number of players will enter the market within the estimated assessment period, boosting competition in the market. The major players in the market include 3M, Arkema group, Henkel AG & Co. KGaA, Beardow Adams, DOW INC, AVERY DENNISON CORPORATION, H.B. Fuller, Jowat SE, SIKA AG, Adhesive Direct UK.

Some of the key developments include:

• In February 2022 Arkema announced the acquisition of PMP in China Shanghai Zhiguan Polymer Materials (PMP), which specialized in hot-melt adhesives for the consumer electronics market.


• In April 2021 B. Fuller has introduced two compostable adhesive solutions for the flexible packaging market. The products include SF1000CP/XR2000CP and WB1200CP/XR2200CP solutions to its Flextra Evolution brand.


• In March 2021B. Fuller announced the launch of a series of products free of epoxy silane, commonly known as, e.g., Glymo, within its Flextra range of adhesives for flexible packaging. The leading adhesive provider confirmed that this range does not contain organotin or BPA, and specific grades are free of cyclic esters.


• In March 2019 H.B. Fuller established H.B. Fuller Japan G.K. in Japan, which will strengthen its engineering adhesive businesses in Japan by focusing on high-performance adhesives, including reactive adhesive chemistries and applications.

Report Overview:

The Hot Melt Adhesives market is segmented by resin type, end-use and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Hot Melt Adhesives market is emerging and fast-growing segments, regions, and countries.

Objectives of the Study

• To get a comprehensive overview of the global hot melt adhesives market report


• To get wide-ranging information about the key factors driving the market and market opportunities


• To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments


• To gain insights about the key country/region in which the market is growing

Intended Audience

• Industrial sector


• Broadcast sector


• Enterprise sector


• digital communication


• Automotive Industries