The hot melt adhesives market is projected to grow at a CAGR of 4.66% during the forecast period to reach US$11.048 billion by 2027, from US$8.030 billion in 2020.
Industrial grade adhesives that are thermally melted and then allowed to cool to obtain their adhesive characteristics are known as hot melt adhesives. They are typically composed of one or more polymers, as well as a variety of additives such as resins and pigments that give individual adhesives their distinct features. Packaging, product assembly, carpentry, bookbinding, and product labelling are among the sectors and applications where they are used.
The global Hot Melt Adhesives market is expected to grow substantially, mainly due to its increasing adoption in packaging and the automotive industry. The demand for hot melt adhesives has also increased due to the innovations in automotive technology, leading to an increase in the market size. However, the environmental concerns over such adhesives may decrease demand. The Asia Pacific region has been reported to have the largest market share, due to the rapid developments in countries like China, India, and Japan, and is expected to continue leading the market in the forecasted period.
Increase in online shopping and delivery
The COVID-19 pandemic resulted in worldwide lockdowns and social distancing regulations, which led to a decrease in the spending of people. However, the e-commerce sector saw a huge increase in demand during this time. People have started opting for online purchase and delivery options, owing to the lockdowns and increasing infection rates. Hot-melt adhesives are utilized in applications including corrugated box building and printed sheet lamination, as well as packaging materials for a variety of consumer items. This increase in online shopping led to an increase in the usage of packaging equipment and processes and increased demand for the hot melt adhesive market. According to the UK’s Office for National Statistics, 28.1% of the total retail sales were internet sales, which was an increase of almost 9% from the previous year. In the year 2021, internet sales accounted for 30.7% of total retail sales, which was an increase of more than 2%. According to Barclaycard UK, the takeaway sector recorded an increase in expenditure of 11.4%, due to the pandemic. The packaging sector has grown substantially with the prevalence of online shopping and food delivery, which is expected to increase the demand for the hot melt adhesive market.
Industrial adhesives are used by manufacturers and distributors all over the world. Using a trustworthy adhesive is important, whether for binding books, packing items, applying labels, or manufacturing paper products. However, hot melt adhesives are not environmentally friendly, and since more industries are now exploring plastic-free glue alternatives, as they evaluate the impact of utilizing plastics in their products, the demand for hot melt adhesives may suffer. Industries like packaging have already started to implement environmentally friendly alternatives to hot melt adhesives.
Gelatin-based glue is biodegradable and comes from sustainable sources, such as recycled pharmaceutical capsule netting. Most hot melts, on the other hand, are neither biodegradable nor environmentally friendly, since they use substances like polyurethane, EVA, and polyolefins. Manufacturers are increasing their use of natural glues and other plastic-free raw materials in response to customer demand. Companies that have introduced gelatine-based glues are now experiencing a surge in demand for such products, which might, in turn, reduce the demand for hot melt adhesives.
Moreover, hot melt adhesives are expensive and owing to the recent price hike in raw materials for hot melt adhesives, the prices are yet to increase. The hike in prices is due to the global shortage of raw materials in various sectors. This has also led to a shortage of adhesives on a global scale and has affected many industries and also the global economy. Most companies have reported an increase of about 4% - 20% in their product prices. Additionally, with the introduction of better alternatives for traditional hot melt glues, the market may face a serious decline. LD Davis, a gelatine-based glue manufacturer, has claimed that the usage of gelatin-based glues would be substantially more economical and efficient, as compared to the usage of traditional hot melt adhesives.
The COVID-19 pandemic led to a massive slowdown in the hot melt adhesive market. The hot melt adhesive market suffered. With most major industries having been forced to close down,. However, the market has started to re-emerge, as other industries have returned to normalcy. With the introduction of advancements like environment-friendly adhesives, and with the industries such as the automotive and packaging sector on the rise, the hot melt adhesive market is expected to substantially increase in demand.
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Frequently Asked Questions (FAQs)
Q1. What will be the hot melt adhesives market size by 2027?
A1. The hot melt adhesives market is projected to reach a total market size of US$11.048 billion in 2027.
Q2. What are the growth prospects for the hot melt adhesives market?
A2. The global hot melt adhesives market is projected to grow at a CAGR of 4.66% during the forecast period.
Q3. What is the size of the global hot melt adhesives market?
A3. Hot Melt Adhesives Market is evaluated at US$8.030 billion for the year 2020.
Q4. What factors are anticipated to drive the hot melt adhesives market growth?
A4. The global Hot Melt Adhesives market is expected to grow substantially, mainly due to its increasing adoption in packaging and the automotive industry.
Q5. Which region holds the largest market share in the hot melt adhesives market?
A5. The Asia Pacific region has been reported to have the largest share in the hot melt adhesives market, due to the rapid developments in countries like China, India, and Japan.
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