Polyester Hot Melt Adhesives Market Size, Share & Trends Analysis Report By Application (Packaging, Textiles & Fabrics, Automotive, Electrical & Electronics), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global polyester hot melt adhesives market size was valued at USD 355.9 million in 2019. It is expected to expand at a compound annual growth rate (CAGR) of 8.7%, in terms of revenue, from 2020 to 2027. Growing demand from the packaging industry is projected to drive market growth. The packaging application segment is projected to remain the fastest-growing segment over the forecast period. Need to support flexible packaging demand in the food and beverage sector and increasing demand from online businesses such as e-commerce, and food deliveries are projected to contribute to the demand for polyester hot melt adhesives. Advancements in packaging materials and technologies have been boosting the demand for corrugated packaging for food and beverages.

The increased usage of corrugated packaging in non-durable products is mainly due to their cost-effective and environment-friendly properties. Medicine, food, consumer durables, rubber, and petroleum are the predominant end users of corrugated packaging materials. The textile sector is projected to remain a key contributing sector in the growth of the U.S. polyester hot melt adhesive market. As per the National Council of Textile Organizations (NCTO), the revenue of the textile sector in the country increased to USD 76.8 billion in 2018 from USD 73 billion in 2017. Home furnishings, fabrics, yarns, carpets, and other non-apparel products accounted for over 60% of revenue in 2018.

The U.S. textile industry is highly dependent on imports from Asian countries such as China, Vietnam, Bangladesh, and India. These countries have witnessed a considerable amount of disruptions across the value chain during the ongoing COVID-19 pandemic.

This has resulted in manufacturers working at low production capacities and ultimately decline in exports and production during the first 3 quarters of 2020. For instance, in April 2020, The Shanghai New Union Textra Import and Export Co. reported a massive decline in new orders for textile exporters. This is likely to result in a slump of around 50% in profits in FY 2020.

Application Insights

The textiles and fabrics application segment held the largest revenue share of over 30% in 2019. Adhesives used in textiles ensure effective and durable bonds even for high water-repellent textiles pre-treated with hydrophobic polymers. The increasing need for breathability and water resistance properties, e.g. in the footwear industry, requires innovative technologies. The rising textile industry in emerging economies such as China and India is anticipated to augment product demand over the next eight years.

The textiles and fabrics application segment is likely to witness a decline of 8.8% in terms of revenue amid the COVID-19 pandemic. Numerous textile companies in China and India were operating at low production capacities from March to May 2020. However, the industry has started gaining its momentum in the second quarter of 2020 on account of increasing orders from vendors.

The interior design is an important decision criterion for purchasing a car. Bonding technology for lamination processes helps to ensure pleasant and soft surfaces in textile applications. Furthermore, the application of adhesive assists market vendors to meet the customer requirement and ensure technical specifications. Large volume production, particularly in North America and Asia Pacific, is projected to drive the automotive sector around the world.

Regional Insights

Asia Pacific accounted for a revenue share of over 42% in 2019. Asia Pacific witnessed the highest demand for polyester hot melt adhesives in 2019 owing to the constant demand from the textiles and fabrics industry and the presence of large packaging, automotive, and electronics sectors. India and China currently dominate the production of textiles and fabrics.

COVID-19 has created a severe impact on the Asia Pacific textile and garments industry in the first half of 2020, wherein exports were also largely affected. Currently, the market has shown positive signs of recovery. However, some of the manufacturers are concerned about the second wave of COVID-19. As per the government data, the textile trade between India and China witnessed a y-o-y decline of 12.4% in January and February 2020 from 2019.

Flexible packaging is projected to provide opportunities for market vendors in European countries over the short term. Increasing spending on healthcare has positively affected the packaging sector in the first half of 2020 on account of demand for surgical masks, PPE kits, and other healthcare products. The packaging application segment in Europe is poised to grow at a CAGR of 9.0% from 2020 to 2027.

Key Companies & Market Share Insights

The global polyester hot melt adhesives market is fragmented in nature with the presence of various key players such as HB Fuller, Arkema Group, Sika AG, and 3M as well as a few small and medium regional players operating in different parts of the world. The international companies face strong competition from each other as well as from the local players who have solid distribution channels and internal knowledge for local supply chains.

The market belongs to a niche category and no recent merger and acquisitions have been observed in the recent past. However, with strong and consistent demand, in the long run, some of the key adhesive manufacturers are equipped with all the resources to acquire small and medium-sized businesses. Some prominent players in the global polyester hot melt adhesives market include:

• Bostik

• H.B. Fuller

• 3M

• Avery Dennison Corporation

• Dow Inc.

• Sika AG

Polyester Hot Melt Adhesives Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global polyester hot melt adhesives market report based on application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Packaging

  • Textiles & fabrics

  • Automotive

  • Electrical & electronics

  • Polymer films & foils

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa