Hot Melt Adhesives Market Size, Share & Trends Analysis Report By Product (Ethylene-vinyl Acetate (EVA), Rubber), By Application (Packing, Assembly), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global hot melt adhesives market size was valued at USD 7.37 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2021 to 2028. Increasing usage of hot glue adhesives in the packaging industry for various applications such as sealing of boxes and cartons for food and general consumer packaging is propelling the market growth. Hot melt adhesives (HMAs) offer adhesion to a wide variety of materials and surfaces, such as fabric, papers, ceramic, metal, cardboard, and plastics, which makes them suitable for DIY applications. Although DIY is leading in developed economies such as North America and Europe, it is a relatively new concept. The DIY applications include craft, general goods packaging, and wood working.

The U.S. is a prominent manufacturer and consumer of hot melt adhesives. The product demand increased drastically on account of the lockdown that occurred due to the COVID-19 outbreak. The shutdown led to the growth of e-commerce product delivery services, which augmented both production and consumption activities as hot melt adhesives are widely used in the packaging of parcel boxes.

However, the manufacturing companies faced a shortage in supply of raw materials, such as additives, polymers, and resins, as there was a hike in prices owing to the disruptions caused by the pandemic. The impact of the pandemic was not limited to the raw material side but had an adverse effect on the end-use industries.

Increasing demand for bio-based hot melt adhesives in the U.S. owing to their sustainability is driving the market. For instance, Jowat, a company engaged in manufacturing adhesives, has introduced products made from renewable raw materials, which has received certification from the United States Department of Agriculture (USDA), particularly for the North American market.

Growing construction activities and renovation of the existing buildings are propelling the demand for hot melt adhesives owing to their multiple applications, including the installation of floors, carpets, ceramic tiles, and glasses. The usage of HMA increases the aesthetic appearance of the floor compared to staples and nails.

Product Insights

The Ethylene-vinyl Acetate (EVA) segment held the largest volume share of more than 40.0% in 2020. EVA is a copolymer adhesive, deployed in various industries including packaging, assembly, paper, and automotive. Excellent adhesion, strong mechanical strength, paraffin solubility, and superior flexibility are the key features propelling the segment growth.

The rubber segment is anticipated to register a CAGR of 5.4%, in terms of revenue, from 2021 to 2028. The product is mainly used in the adhesion of pressure-sensitive products such as labels, tapes, and graphics. The immediate bonding offered by the product makes the manufacturing process faster, which saves time and labor cost; thus impelling the market growth.

Polyolefin hot melts are widely used in product assembly applications. The good barrier properties, excellent chemical resistance, and low moisture permeability are the prominent factors driving the segment. The aforementioned properties are leading to the deployment of these products in nonwoven product manufacturing and packaging industries, which helps drive the market.

Application Insights

The packaging segment accounted for the largest revenue share of more than 30.0% in 2020. HMA meets extreme challenges and thus is highly preferred in the packaged industry. It is used in closing the flaps of corrugated boxes and paperboard cartons in the packaging industry. Many electronic device manufacturers use HMA to affix parts and wires to insulate and protect the device components.

The nonwovens segment is expected to witness significant growth from 2021 to 2028. Rising concerns over personal hygiene and increasing disposable income are the key factors boosting the demand for nonwoven products, such as female hygiene goods, diapers, and personal care products, which, in turn, is anticipated to enhance the segment growth.

Hot melt adhesives are extensively used by car and truck manufacturers for the adhesion of carpets, headliners, radiators, and batteries. In addition, polyolefin is used for the coating of electronic components and insulation of wires; thus strengthening the demand for HMA in the automotive industry owing to its safety, quality, and reliability.

Regional Insights

In terms of revenue, Asia Pacific held the largest share of over 45.0% in 2020. Significant growth of e-commerce services in the region, along with swiftly rising demand for nonwoven products, is the key factor boosting the market growth in the region. The competitive business is bringing more opportunities owing to hot melt adhesives’ vast application, which helps propel the product demand.

North America is estimated to register a CAGR of 4.3%, in terms of revenue, from 2021 to 2028. The packaging sector in the region is anticipated to be the key factor for the market growth owing to the presence of some of the largest packaging manufacturers, including International Paper, Ball Corporation, and Owens-Illinois.

Europe is predicted to witness steady growth across the forecast period. Increasing construction activities, growing automotive sector, and increased online product delivery services across developed countries in Western Europe including Italy, the U.K., Germany, France, and Spain will positively influence the market growth in the region.

Key Companies & Market Share Insights

The major companies operating in the market are primarily focusing on regional expansion, mergers & acquisitions, and high profit-margin segments. For instance, in September 2021, Meridian Adhesives Group, a leading manufacturer and formulator of water-based and hot-melt adhesives and coatings, had acquired Prime Blend LLC.

In addition, in October 2020, Pidilite Industries Ltd. had acquired Huntsman Group’sIndian subsidiary Huntsman Advanced Materials Solutions Private Limited (HAMSPL) worth USD 257 million (rupees 2,100 crores) with an aim to expand its product offering for do-it-yourself (DIY) consumer adhesives business. This enables the company to leverage the market growth. Some prominent players in the global hot melt adhesives market include:

• Henkel AG & Co. KGaA

• H.B. Fuller Company

• Dow

• Sika AG

• Jowat SE

• Arkema Group

• Ashland

• 3M

• Avery Dennison Corporation

• Beardow Adams

Hot Melt Adhesives Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global hot melt adhesives market report on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Ethylene-vinyl Acetate (EVA)

  • Polyurethane

  • Rubber

  • Polyolefin

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Packaging

  • Assembly

  • Woodworking

  • Automotive

  • Nonwovens

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Colombia

    • Argentina

  • Middle East & Africa

    • GCC