Hot melt adhesives are a molten state plastic polymer. During application, hot melt adhesives need to have a good flow and be able to cool quickly to form a tough adhesion. Industrial segment dominates the market followed by construction and do-it-yourself segment. Asia coupled with rest of the World holds majority of the market followed by Europe and North America. Adhesives has numerous applications across transportation, construction, electronics, flexible packaging, packaging, tapes & labels, diapers, hygiene, and tissues. Under construction and do-it-yourself segment, adhesives and sealants is used in floor preparation, hard and soft flooring, tiling, sealants, waterproofing, do-it-yourself, etc.
Adhesive per capita consumption is growing across the globe. Need for replacement of mechanical fastening, lighter material, bonding of dissimilar materials, growth in the emerging market, improving standard of living, and urbanization are among the key drivers uplifting the global adhesives market.
Key Market Drivers and Restraints:
Growing demand from tape verticals
There are 5 different business groups covering up to 95% of the adhesive tape used globally on the market. This groups consists of food and beverage, building and construction, electrical and electronics, automotive, and hygiene and healthcare products. Gigantic population in the Asia Pacific is driving the demand of adhesive tapes in the food and beverage industry followed by building and construction. Most of the adhesive market is currently driven in the Asia Pacific region. However, healthcare and hygiene market is led by North America and Europe.
For the tape production business, raw materials are essentially the biggest component. The raw material quality accounts for almost 82 percent of the finished product's cost. Environmental and financial concerns drive most of these activities.
The adhesive accounts for the greater part of the adhesive tape costs. The major players in the industry are investing in solvent recovery systems to slow down the transition to aqueous formulations. In particular, the adhesive tape industry will see increased use of hot-melt adhesives due to their environmental benefits. For instance, lower production cost, low energy requirements, and considerable reduction in investment.
Regional Market Scenario:
Asia-Pacific to dominate the hot melt adhesives market
North America is expected to perform somewhat below the global average. The demand for adhesive tape is strong, with the US holding around more than 70% per cent of the share. Mexico would outstrip development in the country by a small margin. Smaller but more rapidly growing niche applications such as foams, cloths, and non-woven is projected to see faster growth.
Europe is projected to show modest growth partly because of resources transfer from Western Europe to Eastern Europe. Germany has the largest regional market share with more than 20% of the total hot melt adhesives market. UK, Spain, Italy, and France is projected to account for nearly 10% each. Italy is projected to remain the largest national producer, providing large quantities both to Eastern and Western Europe.
Western Europe is expected to preserve its competitive edge in specialty tapes, because it has the equipment it needs that is missing in other parts of the world. Businesses that invest in specialty tapes in particular will gain an edge in those segments. Second, solvent-based adhesives will continue to be replaced by ecologically friendly forms of water and hot melt. In terms of the forms and quantities of investment in this transition, this particular segment will be very different to what the industry has seen in the past.
Asia Pacific remains the largest global hot melt adhesives market also, this region is the leading region in adhesive tape market. Continued expansion across economies such as India, Japan, and China is projected to drive the foreseeable growth. We'll also see increased consumption and production of packaged goods linked to rising per capita income. As we are already seeing in India through Zomato and Swiggy.
In Middle East & Africa, the best opportunities are expected from countries like Saudi Arabia, Israel, South Africa, and Turkey. The demand for adhesive tape in Iran and Turkey will be boosted by the motor vehicle industry. The major markets to see a significant growth in the Central & South Africa hot melt adhesives market consists of Argentina, Venezuela, Colombia, and Brazil. Expansion in the Brazil’s manufacturing and construction activities will boost the regional demand for electronics, electrical, specialty, and double-sided tapes.
Key Market Players
• Avery Dennison Corporation
• Beardow & Adams (Adhesives) Ltd.
• DOW Corning Corporation
• HB Fuller Company
• Henkel AG & Co. KGaA
• Jowat Se
• Sika AG
• Tex Year Industries Inc.
• Other Players
Market Segments: Lithium Derivatives Market
- By Product
- Ethylene Vinyl Acetate (EVA)
- Styrene Block Copolymer (SBC)
- Amorphous poly-alpha-olefin (AMOP)
- Metallocene Polyolefin (MPO)
- Polyurethane (PU)
- Polyamide (PA)
- By Application
- Furniture & Woodwork
- By Region (tentative)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Central & South America
- Middle East & Africa
- North America
• Industry Associations
• Patent Websites
• Company Annual Reports
• Company Websites
• Key industry leaders
• Technology consultants
• Battery Associations
• Un Comrade
• E-commerce websites
Key Questions Answered
• What are the key growth regions and countries?
• What are the important types and technologies being used?
• What are the market players doing, in terms of research and development?
• Which are the new applications for this market?
• What are the integrations happening?
• What are the recent news, developments, mergers, or large value deals?
• Raw material suppliers
• Adhesive tape suppliers
• Food packaging companies
• E-commerce platforms
• Tech companies
• Regulatory Authorities
• Research and Innovation Organizations
• Suppliers and Distributors
• Other Channel Partners
• Quality Control Organizations
• Environmental Authorities
• Automotive companies