California hot melt adhesives market size was 105.11 million lbs in 2014. Trend in substitution of conventional fasteners by hot melt technology in packaging, disposable products and pressure sensitive products are a vital determinant for industry development.
HMAs such as EVA, styrenic block copolymers, and polyolefins are largely used in industrial applications to foster faster processing times, high chemical & UV resistance, and improved structural integrity. Regulations aimed at vehicular weight reduction have been instrumental in driving adhesives consumption in component bonding. Adhesives now make up almost 12kgs of overall passenger car weight, and they significantly aid in weight reduction as substitutes to metal fasteners and welded joints.
Regulatory policies play a vital role in shaping industry dynamics. Numerous agencies such as the California EPA, U.S. FDA, ATSM and Air Resources Board of California have implemented stringent regulations regarding environmental impact of industrial products.
California has taken the lead in formulating new VOC limits for several consumer goods by creating around 13 Air Quality Management Districts (AQMD) with a set of limits prescribed by each body. Article 2 of the California Code of Regulations (CCR), Title 17, Division 3, Sub-chapter 8.5- Consumer Products provides guidelines regarding adhesives application and associated VOC emissions.
Similar federal level policies from U.S. EPA and the U.S. Chemical Safety Board pertaining to phthalates and plasticizers presence in various additives have also impacted the production technology and process landscape.
California government is increasingly taking initiatives to encourage and support the manufacturing sector with the provision of varied subsidies and incentives. Increasing preference for individually packaged goods owing to nuclear family patterns and high per capita income is likely to boost adhesion products in packaging and labeling sectors.
Fluctuating petrochemical prices, environmental concerns regarding GHG emissions, disposability and toxicity are major challenges the industry has been facing during the recent times. Companies in order to offset such challenges have invested in development of bio-based adhesives. This trend is crucial in determining the future development trends.
On the basis of product, the market has been segmented into ethylene vinyl acetate (EVA), styrenic block copolymers (SBC), polyolefins, polyamide, polyurethane (PU) and other hot melts. EVA emerged as the leading segment and accounted for over 37% of the overall volume in 2014.
EVA adhesives were traditionally utilized in packaging applications; however, evolving formulation standards have created lucrative opportunities for EVA in appliance bonding and general purpose applications. Ability to adhere to non-porous substrates such as glass, processed metals, leather and most plastics is further likely to boost segment growth.
PU adhesives are set at a working temperature of 120° C as compared to EVA which is at 170 °C, providing greater application scope for PU hot melts. The segment is expected to account for 13.5% market volume by 2022, growing at highest CAGR of 3.9% from 2015 to 2022.
Application segments covered in the report include packaging, disposables, pressures sensitive products, bookbinding, furniture, automotive, and construction along with other niche applications such as consumer goods, textiles and footwear.
Packaging was the leading application segment and accounted for over 29% of the overall volume in 2014. Hot melts are largely used in carton sealing, labeling, product wrapping and other packaging applications. The segment is expected to benefit from increasing processed food & beverages consumption and shortening meal preparation times.
Hot melts are widely used in disposable products such as baby diapers, feminine hygiene products, adult incontinence products and medical hygiene products. Influx of migrant population and ageing populace are expected to drive disposable hygiene products demand, thus providing greater scope for hot melts in disposables.
California hot melt adhesives market share is reasonably split among domestic manufacturers and multinational corporations. The industry is characterized high integration levels from multinational companies that are also involved in adhesive formulation along with raw material production. Key companies include Bostik, Evonik, 3M, Avery Dennison, H.B. Fuller, Dow Chemical Company, BASF, Henkel and Ashland. Domestic companies with considerable presence include Palmetto, Wisdom Adhesives Worldwide, Pacific Adhesives, and Evans Adhesive Corporation.
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