Hot Melt Adhesive Market

Market Overview

The global hot melt adhesive market size was valued at USD 11.46 billion in 2022. It is estimated to reach USD 18.7 billion by 2031, growing at a CAGR of 5.59% during the forecast period (2023–2031).

Hot-melt adhesive (HMA), usually called "hot glue," is a kind of thermoplastic adhesive frequently offered for purchase as solid cylindrical sticks of different diameters intended to be used with a hot glue gun. The plastic glue is melted within the gun by a continuous-duty heating element. The user pushes through the pistol by pressing directly with the finger or using a mechanical trigger mechanism.

When the glue is heated, it becomes sticky before quickly solidifying. Hot-melt adhesives are popular among artisans and hobbyists for attaching and as a less expensive alternative to resin casting. They can also be applied by dipping or spraying. Compared to solvent-based adhesives, hot-melt adhesives offer several benefits for industrial use. Drying or curing is skipped along with reducing or eliminating volatile organic molecules. Hot-melt adhesives have a lengthy shelf life and may typically be thrown away without extra care.

Market Dynamics

Market Drivers

Increased Use of Hot Melt Adhesives in DIY Activities

The rise in DIY activities among children and youngsters for home decoration and aesthetics is increasing the use of paper, fabric, metal, plastic, cardboard, glue, and strong adhesives. Such DIY is witnessing high attraction in North America and Europe. Hot-melt adhesives are used as sticks for various DIY applications as these sticks are easy to use. Holt melt adhesives are cost-effective as they can bond materials, thus helping reduce installation and maintenance costs.

Furthermore, the current rise in attraction toward building miniatures has increased the use of hot-melt adhesives. Model-building is becoming a very popular hobby. These miniatures include hot-air balloons and zeppelins, houses and trees, landscapes, cars, ships, planes, trains, steam engines, and streets, including the high use of stick-based hot-melt adhesives used in construction, therefore, driving the market growth.

Rising Demand from Construction Industry

Most construction majors consider using adhesives and sealants in the construction industry can revolutionize engineering in every building type. Precisely these adhesives can change the way the design of modern building structures around natural disasters. By drastically cutting down the weight of a building, construction firms can reduce the impact that affects buildings during an earthquake. There is considerable momentum in the global construction market, helping mitigate the effect of weaker economic growth. Hence, all of these variables are anticipated to fuel the market growth during the forecast period.

Market Restraint

Issues Faced in the Application of Hot Melt Adhesives

Hot melt adhesives do not show strong bonding strength in high temperatures, which can completely melt the adhesive and thermal load of the substrate. Moreover, many hot melt adhesives are actively resistant to chemical attacks and weather changes, which can negatively impact the market for global hot melt adhesives. Various other problems that manufacturers face include poor adhesion, charring of adhesive, gelling of adhesive, stringing, which occurs when adhesive material is left behind on the nozzle, and fuming of adhesive. These issues increase downtime and lead to product wastage while manufacturing and high manufactural expenses, restricting market expansion.

Market Opportunities

Increased Demand for Polyurethane-Based Hot Melt Adhesives

Polyurethane adhesives are formulated to build on a strong bond between non-porous materials such as wood and metal, together with are used in various applications such as bookbinding, product packaging, and footwear manufacturing. In addition, its low volatile organic compound is increasing demand as it can be used as raw material in manufacturing hot melt adhesives. Polyurethane hot melt has attractive applications, which is increasing its demand. Moreover, these adhesives are stronger than water-based adhesives and other hot-melt adhesives. This type of adhesive is mostly used because of its strength, flexibility, temperature, and chemical resistance.

Furthermore, growth in construction in Asia-Pacific has increased the demand for furniture, propelling the polyurethane adhesives market. In addition, China is one of the largest packaging industries witnessing the rise in demand for polyurethane adhesives owing to the growth in customized packaging. Therefore, the advantages offered by Polyurethane-based hot melt adhesives create opportunities for market expansion.

Regional Analysis

The global hot melt adhesive market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is estimated to exhibit a CAGR of 5.09% over the forecast period. The increase in hot melt adhesives in the automotive, construction, and medical end-use industries is expected to provide novel growth opportunities for the market. The high economic progress for the increase in per capita income of the middle-class population in India and China is expected to increase automotive sales over the years. This creates opportunities for adhesives used in the automotive industry. Asia-Pacific is also expected to be the fastest-growing market for hot melt adhesives used in building and construction activities in countries like China, India, Indonesia, and Vietnam.

Europe is anticipated to exhibit a CAGR of 5.85% over the forecast period. Germany, France, and the UK are the early adaptors of automation, packaging, and construction technology, making them high-demand adhesive generators. The adhesives market in Europe is mature and has a vast addressable market in Eastern Europe. The region continues to be at the forefront of innovation in creating new building technologies, sustainable building standards, and facility management lifecycle cost reductions, all of which will necessitate the demand for hot melt adhesives. In addition, the packaging industry witnessed the highest consumption of plastics in 2018. The share of packaging was 45% of the total plastic production in 2016. The flexible food packaging industry's demand was around 4.5 million tons. Businesses in the region are better positioned to compete with vendors in other geographies due to favorable EU trade mandates, causing the regional market to grow.

In North America, the demand for hot melt adhesives is driven by the massive end-user industries such as automotive, packaging, semiconductor, and aerospace. The demand for adhesives mostly comes from the packaging industry and will likely continue as a significant driving factor for the adhesive market. The US will generate the most revenue in the area over the forecast period. Further, the performance of the North American economy over time has increased consumer spending per person. The increase in automotive sales over the last two years will likely create more opportunities for hot melt adhesives across the region. The demand for naturally derived products is anticipated to be driven by stringent regulations for utilizing toxic chemical formulations in chemically curing adhesives in the coming years. In addition, by 2050, the commercial building floor space is estimated to reach 126.1 billion square feet, an increase of 39% from 2017. The recovery of the construction industry in North America after the economic slowdown also enhances opportunities for hot melt adhesives.

The Latin American economy is in a difficult phase, with Argentina and Venezuela facing recession and its after-effects. Manufacturers are facing high-cost pressure, and consumers are switching to hot melt adhesive-based packaging from rigid packaging. Latin America is witnessing the highest growth due to this shift to cut costs. Smaller pack sizes and multi-packs are being introduced to save on expenditure. Premium plastic polymers and multi-layer films are expected to witness a drop in demand during this period.

The Middle East and Africa have witnessed increased investments from government and private players in the food production segment. The rise in production is expected to fuel the demand for packaging. However, the unstable political and economic climate in countries such as Iran and Syria will offset the overall demand in the region. Taxation in the UAE is more favorable to the industry than the other countries in the region, with political stability being an added advantage.

Segmental Analysis

The global hot melt adhesive market is bifurcated into the raw material, product form, application, end-user, and distribution channel.

Based on raw material, the global hot melt adhesive market is divided into ethylene-vinyl acetate, styrene block copolymers, polyurethane, polyamide, amorphous ploy-alpha olefin, metallocene polyolefin, and others. 

The ethylene-vinyl acetate segment is the most significant contributor to the market and is anticipated to exhibit a CAGR of 5.70% over the forecast period. EVA hot melt adhesives are adaptable and compatible with various polymers and additives, facilitating application. The melting viscosity of raw materials is dependent on their molecular weight. The melting range for EVA varies from 2 to 200 and has strong strength and adhesion to various substrates. It can be used for pressure-sensitive adhesion or in rigid hot melt composition in semi-structural applications. It is among the components used as raw ingredient in hot melt adhesives for high-performance packaging. It also has a traditional application and works on new low temperature that helps reduce the operations' energy consumption and carbon footprint.

Based on product form, the market is divided into pellets, pillows, and sticks. 

The pellets segment contributes to the highest market share and is expected to exhibit a CAGR of 5.46% over the forecast period. Hot melt adhesives are also available in pellet form and are composed of chemical compounds that promote rapid adhesion to porous and non-porous surfaces. These pellet-shaped hot melt adhesives have various applications, such as binding, labeling, packaging, and woodwork, and are used in product assembly. These adhesives help in creating a strong bond between surfaces due to their adhering power. In addition, the compounds used in these adhesives are not toxic, flammable, or hazardous. Moreover, these adhesives have no solvents, making them easy to use and safe for storage, handling, and transportation. Thus, they help speed up production, save factory space, and reduce waste while manufacturing hot melt glue in pellets.

Based on application, the global hot melt adhesive market is divided into paper and packaging, assembly, woodworking, nonwoven and disposable, footwear, bookbinding, and others. 

The paper and packaging segment accounts for the largest market share and is anticipated to exhibit a CAGR of 5.76% over the forecast period. The bulk packaging demand from various end-users largely drives the packaging market. Unlike consumer packaging products, there are no specific end-users for industrial packaging, which can be used in almost all industries. Hot melt adhesives are mostly used in various product packaging cartons and act as a protective covering for products.

Based on the end-user, the global hot melt adhesive market is bifurcated into residential and industrial. 

The industrial segment dominates the global market and is predicted to exhibit a CAGR of 5.40% during the forecast period. The industrial end-user segment is further sub-segmented into packaging, construction, automotive, furniture, electric and electronics, healthcare, and others. The automotive, aerospace, and electronics industries are pioneers in adopting new adhesive technologies as they search for more durable weight-reduction materials. The emergence of Taiwan as the go-to place for all kinds of semiconductor products has strengthened the industry and attracted many other industries to outsource. In addition, Asia-Pacific's highly competitive contract manufacturing industry is driving the need for highly efficient industrial adhesive products. The aim or objective of low-cost and high-quality products is achieved on a continuous scale by way of outsourced manufacturing.

Based on distribution channels, the market is bifurcated into online and offline channels. 

The offline segment owns the highest market share and is predicted to exhibit a CAGR of 5.34% over the forecast period. In the adhesives and sealants sector, distributors represent various chemicals and raw materials producers to get those materials into the hands of formulators and manufacturers. Some distributors also represent manufacturers of the finished adhesive or sealant products. The offline segment includes hot melt adhesives purchased from wholesalers, retail stores, and specialty stores. In addition, glue sticks are also available in super and small retail stores. The adhesive industry is an intensive offline market, which accounts for a significant share of purchasing time and product price. Offline distribution of adhesives is mostly done through wholesalers, distributors, and direct selling, wherein buyers purchase hot melt adhesives in bulk, such as manufacturing, packaging, and automotive industries.

Recent Developments

• March 2023- Pidilite Industries Limited, India's leading producer of adhesives, sealants, and construction chemicals, expanded its partnership with Jowat SE, a German family-owned business and one of the world's leading suppliers of industrial adhesives. Pidilite will now exclusively provide Indian clients with Jowat hot melts that are produced locally, thereby strengthening the partnership.

• April 2023- Avery Dennison and Dow developed a sustainable new hot-melt label adhesive that enables the mechanical recycling of polyolefin filmic labels and polypropylene (PP) or polyethylene (PE) packaging in a single stream. According to the companies, the adhesive is the first of its type on the label market and is Recyclass-approved for recycling in the HDPE colored stream - Class B.