The rising per capita income is leading to a massively increasing consumer spending, especially in developing countries. This factor is projected to propel the global hot-melt adhesives market at a 6.1% CAGR between 2020 and 2030. At this rate, the industry revenue will surge from $7,717.0 million in 2019 to $12,761.3 million by 2030, according to P&S Intelligence, a market research firm.
Sales of footwear, electronics, and automobiles are increasing rapidly, as people now have more to spare. This is why the hot-melt adhesives market is growing, as such materials are widely used during the manufacturing process. Moreover, developing countries are also witnessing an increase in the number of production plants due to the availability of cost-effective labor and raw materials, which is leading to the rising consumption of such adhesives.
The COVID-19 situation is somewhat restraining the growth of the hot-melt adhesives market on account of plant closures. During the pandemic, the movement of people has been restricted, there is widespread unemployment, and consumers are not spending on non-essential goods. Therefore, owing to the declining demand for end products, the requirement for such adhesives has also gone down in 2020.
The ethylene vinyl acetate (EVA) category generated the highest demand in the adhesives market, on the basis of resin type. EVA adhesives offer easy application, short setting time, and compatibility with a wide temperature range, which is why they are preferred in the furniture, automotive, packaging, and electronics industries.
In the coming years, the furniture category will witness the highest revenue CAGR in the hot melt adhesives market, of 6.8%, under the application segment. Apart from being environment-friendly, hot-melt adhesives offer furniture durability and stability. Additionally, such materials are used during edging and veneering and to fill holes in wooden boards. With the increasing demand for packaged goods, automobiles, and electronics, the consumption of such adhesives continues to grow.
Sika AG, Henkel AG & Co. KGaA, H.B. Fuller Company, 3M Company, Ashland Global Holdings Inc., The Dow Chemical Company, Huntsman Corporation, DuPont de Nemours Inc., Avery Dennison Corporation, Evonik Industries AG, Westlake Chemical Corporation, Arkema Group, Jowat SE, Bostik SA, and Beardow & Adams (Adhesives) Limited are the largest global hot-melt adhesives market players.