Hot Melt Adhesives Market Size, Share & Trends Analysis Report By Product (Rubber, EVA), By Application (Packaging, Nonwovens), By Region (APAC, North America), And Segment Forecasts, 2020 - 2027

Report Overview

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.

Product Insights

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.

Application Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

Hot Melt Adhesives Market Report Scope

Segments Covered in the Report

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