The global hot melt adhesives market size was valued at USD 6.7 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2027. Increasing demand from the packaging and non-woven products application is a significant factor in driving the market growth. Unlike their solvent- or water-based counterparts, hot melt adhesives (HMAs) do not require drying or curing. They can be applied in their molten state and, therefore, can be bonded immediately after the application; this gives them the distinct advantage of faster processing times in various applications including packaging, nonwovens (diapers, and female hygiene products), furniture, industrial assembly, and others. The U.S. market is likely to witness a significant decline in 2020 owing to the supply chain disruption and diminishing demand caused by the COVID-19 pandemic. However, the market is likely to take a sharp upward turn in 2021 and reach to pre COVID-19 level owing to a recovery in demand from the packaging, industrial assembly, and nonwovens industries.
The demand for HMAs from the packaging industry in the U.S. is expected to witness moderate growth in 2020 amidst the COVID-19 pandemic owing to a significant uptick in demand for packaged food & beverages. This was due to a sudden shift in consumers’ buying patterns after the announcement of the government-enforced lockdown in the country.
The product demand in the U.S. from the industrial assembly applications is predicted to witness a strong decline in 2020 owing to factory closures. However, the product witnessed significant demand from the healthcare sector as medical device manufacturers are rapidly scaling production to accommodate the sudden rise in demand from healthcare providers.
Ethylene-Vinyl Acetate (EVA) led the market in 2019 and accounted for the global revenue share of more than 40.0% in 2019. EVA is highly durable, versatile, and possesses strong adhesion properties, due to which, it is extensively used in packaging and woodworking sectors.
Rubber (styrene block copolymer) segment is predicted to witness the fastest CAGR of 5.6%, in terms of revenue, from 2020 to 2027. The product is mainly used to manufacture pressure-sensitive products like tapes, labels, and graphics. The rising demand for tapes and labels from the packaging sector is likely to aid segment growth over the coming years.
Polyolefin hot melts are also among the widely used product categories. The excellent chemical resistance, good barrier properties, and low moisture permeability are the main drivers of the segment. Owing to the aforementioned properties of the product, it is largely used in nonwoven product manufacturing and packaging industries.
Packaging led the market and accounted for more than 34.0% share of the global revenue in 2019. The superior speed, bonding, and adhesion capabilities of HMAs make them an ideal product in sealing bottles, corrugated cases, and paper board cartons among other packaging products.
The nonwovens segment is expected to experience the fastest growth from 2020 to 2027. Rising disposable income levels and increasing awareness regarding personal hygiene are likely to boost the demand for nonwoven products like diapers and female hygiene products, which, in turn, is expected to drive the segment growth. In woodworking, HMAs are used as general-purpose adhesives for bonding wooden substrates in furniture.
An increasing number of refurbishment & restoration projects in the developed economies coupled with new construction activities in emerging economies are likely to propel product demand in woodworking applications. In assembly application, the product is used in a variety of industries including medical, electrical & electronics, and other industrial manufacturing. The fast setting speed and wide temperature range of HMAs are the crucial factors that drive the segment growth.
Asia Pacific dominated the market and accounted for more than 48% in 2019. It is also expected to be the fastest-growing regional market with a CAGR of 5.6%, in terms of revenue, from 2020 to 2027. Rapidly expanding packaging manufacturing base in the region coupled with rapidly increasing demand for nonwoven products is the prominent factor driving the market growth in the Asia Pacific.
North America is estimated to register a CAGR of 4.1%, in terms of revenue, from 2020 to 2027. North America packaging sector is likely to be the crucial driver for the market growth due to the presence of some of the largest packaging manufacturers, such as Ball Corporation, International Paper, and Owens-Illinois.
Europe is predicted to witness sluggish growth, in terms of volume, from 2020 to 2027. The halt in the manufacturing activities due to the COVID-19 pandemic across several developed economies in Western Europe, such as Germany, the U.K., Italy, Spain, and France, is likely to drastically affect the product demand in the short term.
The global market is consolidated in nature with a few global players capturing the major share. Industry players compete mainly on the basis of price and application characteristics of the product. The global market is characterized by facility expansions and strategic mergers and acquisitions. For instance, in October 2017, Avery Dennison commissioned a hot melt adhesive coating line in Malaysia to increase its market position by leveraging the growth potential of Southeast Asia. Some of the prominent players in the hot melt adhesives market include:
Henkel AG & Co. KGaA
Arkema Group
H.B. Fuller Company
Dow
Jowat SE
Sika AG
Avery Dennison Corporation
3M
Ashland
Beardow Adams
Report Attribute |
Details |
Market size value in 2020 |
USD 6.6 billion |
Revenue forecast in 2027 |
USD 10.1 billion |
Growth Rate |
CAGR of 5.2% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Volume in kilotons, revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; MEA |
Country scope |
The U.S.; Canada; Mexico; Germany; The U.K.; France; China; India; Japan; Brazil |
Key companies profiled |
Dow; Sika AG; Henkel AG & Co. KGaA; 3M; H.B. Fuller Company |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global hot melt adhesives market report on the basis of material, application, and region
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
EVA
Polyurethane
Rubber
Polyolefin
Others
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Packaging
Assembly
Woodworking
Automotive
Nonwovens
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Mexico
Europe
Germany
The U.K.
France
Asia Pacific
China
India
Japan
Central & South America
Brazil
Middle East & Africa
b. The hot melt adhesives market size was estimated at USD 6.72 billion in 2019 and is expected to reach USD 6.64 billion in 2020.
b. The hot melt adhesives market is expected to grow at a compound annual growth rate of 5.2% from 2020 to 2027 to reach USD 10.10 billion by 2027.
b. EVA dominated the hot melt adhesives market and accounted for a share of 40.3% in 2019, owing to its extensive utilization in the packaging industry.
b. Some of the key players operating in the hot melt adhesives market include Dow, Sika AG, Henkel AG & Co. KGaA, 3M, and H.B. Fuller Company.
b. The key factors that are driving the hot melt adhesives market include rising demand for nonwoven products and expanding the packaging industry.
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The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics. The report will account for Covid19 as a key market contributor.