Global Polyurethane (PU) Hot-melt Adhesive Market Grows Steadily at a CAGR of 7.61%

Introduction

Polyurethane hot melt is an adhesive that is heated and dispensed from a cartridge or slug, unlike traditional hot melt, which is in stick or pellet form. PU is particularly distinctive because it forms a super-strong bond that will not re-melt by solidifying through moisture in the air. PU is perfect for various applications, including woodworking, finish carpentry, shoe repair, furniture repair, glassware repair, laminate countertops, construction and renovation, ceramic ceiling tiles, and more; its strength, durability, and quick set time.

Market Dynamics

Rising Environmental Concerns Regarding Solvent-based Adhesives Drives the Global Market

Solvent-based adhesives were previously employed in buildings, furniture, and automobiles. On the other hand, solvent-based adhesives have several negative environmental impacts, including soil, water, and air pollution, which can harm both human health and the ecosystem's flora and fauna. For example, inhaling solvent fumes can raise your risk of lung and asthma disease. PU hot-melt adhesives offer zero environmental impact and little to no pollutants. They don't need any ventilation and are also non-combustible. These are suitable for high-volume businesses with low-profit margins, like packaging and construction, because of their low price point. Additionally, rather than using solvent-based adhesives, the government and regulatory organizations promote the use of PU hot-melt adhesives.

Increasing Demand from the Packaging and Electronics Industries Creates Tremendous Opportunities

PU hot-melt adhesives are mainstream adhesives in the packaging industry and are most widely used for carton closing, sealing, etc. Packaging represents one of the largest end-user industries in the PU hot-melt adhesives market. PU hot-melt adhesives draw moisture from the substrates and the atmosphere and create a stronger bond than other adhesives, including water-based adhesives and other hot-melt adhesive formulations. Moreover, polyurethane hot melt offers a stronger adhesion and cures better than traditional hot melts, which makes it a prudent choice in the growing industrial packaging industry. These factors are anticipated to create opportunities for market growth.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global polyurethane (PU) hot-melt adhesive market and is expected to grow at a CAGR of 8.11% during the forecast period. The Chinese government desires 5,000 fuel-cell electric vehicles on the road by 2025 and a million by 2030. Due to the government's support of electric, hybrid, and fuel cell vehicles, electric cars are predicted to outpace all other vehicle types in the polyurethane (PU) hot-melt adhesive market over the forecast period. Volkswagen announced an investment of around USD 2.48 billion in the country's electric vehicle industry as a sign of its support for the Chinese government's efforts to reduce pollution. In addition to the Production Linked Incentive, the government has launched the Scheme for Promotion of Electronic Components and Semiconductors (SPECS) and the updated Electronics Manufacturing Clusters (EMC 2.0) to promote the production of electronics in India (PLI). These factors are anticipated to drive market growth during the forecast period.

Europe is expected to grow at a CAGR of 7.18%, generating USD 1,190.14 million during the forecast period. Germany has the most significant automotive sector in all of Europe and controls the European automotive market, and makes one-third of all the vehicles sold there, with 41 assembly and engine production plants. The UK semiconductor industry has a robust design, implementation, and sales foundation and is slowly expanding. The value chain of the semiconductor industry has seen the emergence of a substantial number of firms, which has led to the creation of an intricate web of products and services that help drive down the price of modern electronics. This polyurethane (PU) hot-melt adhesive market is vital in producing hospital furnishings, anesthetic equipment, respiratory equipment, dialysis equipment, diagnostic imaging equipment, cardiology equipment, sterilizers, implantable pacemakers, and artificial dentures.

Key Highlights

• The global polyurethane (PU) hot-melt adhesive market was valued at USD 1,311.33 million in 2021. It is projected to reach USD 2,537.38 million by 2030, growing at a CAGR of 7.61% during the forecast period (2022-2030).
• Based on type, the global polyurethane (PU) hot-melt adhesive market is bifurcated into non-reactive and reactive. The reactive segment is the highest contributor to the market and is expected to grow at a CAGR of 7.61% during the forecast period.
• Based on applications, the global polyurethane (PU) hot-melt adhesive market is bifurcated into paper, board and packaging, healthcare, automotive, furniture (woodworking), footwear, textiles, electrical and electronics, bookbinding, and other applications. The furniture (woodworking) segment is the highest contributor to the market and is expected to grow at a CAGR of 7.49% during the forecast period.
• Asia-Pacific is the most significant shareholder in the global polyurethane (PU) hot-melt adhesive market and is expected to grow at a CAGR of 8.11% during the forecast period.

Competitive Players

Competitive Players

The global polyurethane (PU) hot-melt adhesive market’s major key players are 3M, Arkema Group (Bostik SA), BASF SE, Hranipex AS, CHEMENCE, Collano Adhesives AG, DIC CORPORATION, Franklin International Inc., H.B. Fuller Company, Henkel AG & Co. KGaA, BC Adhesives, Jowat SE, KLEBCHEMIE GmbH & Co. KG, Master Bond Inc., and Sika AG.

Recent Developments

Market News

• In September 2022, During Climate Week NYC, 3M showcased cutting-edge decarbonization solutions and the power of science to combat climate change.
• In May 2022, Bostik, a leading global adhesive specialist, introduced its latest smart adhesive solutions for woodworking, the SG6518 and SG6520 under its Supergrip® adhesive solutions line. Supergrip® is a Hot Melt Polyurethane Reactive (HMPUR) adhesive solution produced for use for edge banding in the woodworking industry.

Segmentation

Global Polyurethane (PU) Hot-melt Adhesive Market: Segmentation

By Type

• Non-reactive
• Reactive

By Applications

• Paper, Board, and Packaging
• Healthcare
• Automotive
• Furniture (Woodworking)
• Footwear
• Textiles
• Electrical and Electronics
• Bookbinding
• Other Applications

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA