May 23, 2024
Hot Melt Adhesives Market

The Hot Melt Adhesives Market is poised for growth owing to rising demand from packaging industry

The hot melt adhesives market is a versatile market that finds extensive usage across various end-use industries like packaging, furniture, construction, bookbinding, nonwoven disposables and others. Hot melt adhesives offer advantages like fast setting time, moisture resistance and suitability for high-speed production lines. They are predominantly used in packaging applications for case and carton sealing due to their ability to provide high-speed packaging on automated lines.

Global Hot Melt Adhesives Market is estimated to be valued at US$ 9.04 Mn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the Hot Melt Adhesives Market Demand are Zoetis Inc., Elanco, Merck & Co., Inc., Boehringer Ingelheim GmbH, Ceva, Bayer AG, Evonik Industries AG, and Archer Daniels Midland Company. The demand for hot melt adhesives is growing due to their rising usage in various packaging applications like carton sealing and case sealing. Their ability to offer high speed production capabilities makes them suitable for automated packaging lines. Geographically, the Asia Pacific region dominates the global hot melt adhesives market and the market is witnessing high growth in the region owing to expanding packaging sector in countries like China and India.

Market key trends

Sustainable and bio-based hot melt adhesives are witnessing increasing demand owing to rising focus on green and sustainable products across end-use industries. Major hot melt adhesive manufacturers are focus on developing bio-based and biodegradable adhesive variants using renewable sources like plant-based materials to cater to the growing needs of environmentally conscious consumers worldwide. These sustainable adhesive variants offer similar performance as compared to traditional ptotroleum-based adhesives but have lesser environmental footprint.

Porter’s Analysis

Threat of new entrants: Low barrier to enter the market but established brands have hold over distribution channels and customer loyalty.

Bargaining power of buyers: Large buyers have more bargaining power due to the consolidated nature of the buyers market which influence pricing.

Bargaining power of suppliers: Few manufacturers control the supply which gives them higher bargaining power.

Threat of new substitutes: Adhesive technologies like pressure sensitive tapes pose threat though hot melt adhesives have advantage of being solvent free and recyclable.

Competitive rivalry: Intense competition among global as well as regional players to gain market share and create brand loyalty.

Geographical Regions

North America leads the global market with a share of over 35% in 2023 attributed to high demand from packaging and construction industries in the US and Canada.

Asia Pacific projected to grow at the fastest pace during the forecast period driven by growing packaging and footwear industries in China and India along with construction activities across Southeast Asian economies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it