The global hot-melt adhesives market is estimated to grow by U.S. $4,396.66 million by 2027, exhibiting a CAGR of 7.28%, according to Technavio.
Hot melts are thermoplastic adhesives that are solid at-room temperature but become molten and fluid when heated. They’re widely used in various industries and applications for bonding, sealing, and assembling substrates. They’re also favored for their fast-setting time, strong bonding performance, ease of application, and versatility in bonding various materials.
The global market includes end-use industries such as packaging, automotive, electronics, woodworking, textiles, construction, medical, and others. However, growth depends on several factors, including an increased focus on sustainable, environment-friendly materials and collaboration among key players.
Technavio researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The ethylene-vinyl acetate (EVA) segment is estimated to witness significant growth during the forecast period. Ethylene-vinyl Acetate holds the largest share of the global hot-melt adhesive market owing to its excellent adhesive properties and relatively low melting point.
The EVA segment was the largest segment and was valued at USD 3,288.69 million in 2017. EVAs provide good bonding strength and flexibility, making them ideal for applications where the bonding material is subject to movement or stress. They also offer excellent thermal stability whereby the adhesive bonds remain effective even when exposed to moderate temperatures during transportation, storage, or end-use.
The versatility and performance characteristics EVA-based hot melts have found applications in various industries. These industries include paper, mattress manufacturing, woodworking, assembly, automotive, and others.
The demand for EVA will increase, which will drive the growth of the global hot-melt adhesives market during the forecast period.
The primary trend in the global hot-melt adhesives market is driven by the growing demand in the express delivery industry. The increasing popularity of online shopping has resulted in a higher volume of express items and orders that need efficient packaging and delivery. Hot melt adhesives find extensive use in the express delivery sector, sealing various courier bags, gluing courier paper, securing bubble bags, and adhering brown paper envelopes.
These adhesives also play a vital role in assembling and bonding crates, trays, and other packaging containers used for e-commerce shipments.
Additionally, hot melts are crucial for carton sealing and box forming applications that require secure packaging and rapid binding to meet the demands of online shipping. As a result, the global market is expected to witness significant growth during the forecast period.
Adding to this growth is the demand for these adhesives in the production of sanitary materials. The sanitary industry includes products such as hygiene and medical products. Manufacturers in the sanitary and medical materials industry are looking for adhesive solutions that not only meet performance requirements but also contribute to the comfort, safety, and effectiveness of the end products.
The primary challenge affecting the growth of the global hot-melt adhesives market is the volatility in raw material prices. Adhesives are commonly manufactured using polymeric materials like acrylic, silicone, polyurethane, EVA, and others — most of which are downstream products of crude oil. The fluctuations in crude oil prices directly impact the costs of these raw materials, consequently affecting the production costs of hot melt adhesives.
According to the EIA, Brent crude oil prices are projected to reach USD 80 per barrel by the end of 2024, compared to the average of USD 75 per barrel in June 2023. Such fluctuations in crude oil prices will have a significant impact on adhesive production costs due to the corresponding changes in raw material prices.
As a result, the volatility in commodity prices is expected to impede the growth of the global hot melt adhesives market during the forecast period.
The hot-melt adhesive market also experienced a negative impact in 2020 due to the COVID-19 pandemic. However, the situation improved in 2021 with the implementation of large-scale vaccination drives, leading to the lifting of lockdowns and travel restrictions and the resumption of supply chain activities. These factors are expected to further drive market growth during the forecast period.
This report extensively covers market segmentation by:
- Products: Ethylene-vinyl acetate, rubber, polyolefin, polyurethane, and others
- Application: packaging, non-woven hygiene products, furniture and woodworking, automobile, and footwear and others
- Geography: APAC, North America, Europe, South America, and Middle East and Africa
- 3M: offers hot-melt adhesives, such as 3M 3792 and 3M hot-melt 3792LM adhesives
- Arkema Group: offers hot-melt adhesives, such as Platamid hot melts
- Double Fish: offers hot-melt adhesive films, such as the CH series, EH series, and PH series
Technavio is a global technology research and advisory company. Its research and analysis focus on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
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