North America PUR-based Reactive Hot Melt Adhesive Market

Market Overview

Polyurethane hot melts are becoming increasingly popular in a variety of industries, including high-volume production and DIY and home repair. This is due to the fact that PUR hot melts have some fantastic features that appeal to a wide range of people. PUR hot melts are non-toxic, quick to set, have excellent temperature and weather resistance, and are cost-effective in any volume.

Total PUR-based reactive hot melt adhesive market size to grow from USD 722.5 million in 2021 to USD 1401.5 million by 2030. Over the projected period, the North America PUR-based Reactive Hot Melt Adhesive Market is expected to increase at a substantial rate, with a CAGR of 4.7% with a total value of 204.34 million USD in 2030. During the projection period, the market is likely to be driven by rising demand from the region's packaging industry, as well as increased use of PUR holt-melt adhesives as an alternative for solvent-borne adhesives.

In the coming years, market growth is expected to be aided by the adoption of bio-based hot-melt adhesives. The United States is predicted to dominate the market and to have a good CAGR in future.

Market Dynamics

• Hot Melt Adhesives have a wide range of applications due to their robust properties: Hot melt adhesives are most commonly employed in applications that need simplified and streamlined manufacturing as well as rigorous end-product protection. The adhesives in question are used in a wide range of industries, including automotive, electronics, medical, furniture, and packaging. The versatility of hot-melt adhesives is owing to their compatibility with a wide range of substrates, such as composites, papers, rubbers, plastics, ceramics, metals, glass, and wood.The high melt viscosity of these hot melt adhesives makes them a perfect choice for the applications they're utilised for, therefore they're usually applied by extruding, rolling, or spraying techniques. Hot-melt adhesives can be used for both industrial and household repair applications, catering to practically all B2B and B2C end customers. Another reason for hot-melt adhesives' dominance in the market is its qualities such as quick setting, temperature resistance, and, most crucially, price.
• Increasing demand from packaging industry to accelerate market growth: Packaging, woodworking, transportation, assembly, footwear & leather, building & construction, bookbinding, nonwovens, and other segments make up the industry. Because of the demand for convenient options, the packaging application will account for a significant portion of the North American market. Furthermore, major firms have invested heavily in R&D and innovation.

Key Market Restraints

• Market can be negatively Impacted by Volatile Raw Material Costs and Dynamic Exchange Rates: Petrochemicals and their derivatives, as well as tackifiers, are the primary raw ingredients for hot-melt adhesives, and their prices are determined by the global market price of crude oil. Crude oil prices are volatile, which has an impact on the total price structure of raw materials, which in turn has an impact on the price of hot-melt adhesives. Because of the significant volatility in raw material prices, as well as supply and demand variables, the overall cost of producing hot melt adhesives is slightly higher, which may limit the growth of the North American PUR-based reactive hot melt adhesive market.

• In comparison to other methods, the curing period is long: In comparison to other adhesives, reactive hot melt adhesives take longer to cure. Because cure is dependent on moisture from air permeating through the substance, these adhesives require many hours to cure after initial green strength or must be left undisturbed overnight. These adhesives' long curing times are backed up by their bond line limits. Thick bond lines are not recommended for curing with one-part reactive hot melt adhesives

Key Market Opportunities

• Demand for environmentally friendly adhesives is increasing: The use of environmentally friendly and low volatile organic compounds in conjunction with green and sustainable adhesives has been recognised as a growth opportunity for the PUR-based reactive hot melt adhesive market. Poisonous elements in the adhesives emit dangerous gases as they dry up, releasing toxic, irritating, and carcinogenic vapours that impair human health and deteriorate air quality. That is why the glue industry is concentrating its efforts on developing environmentally friendly adhesives that eliminate the aforementioned problems. Because of the increased demand for environmentally friendly adhesives, the North American market is moving toward an eco-friendly model in which people want adhesives that are safe for their health and the environment. With all of this, eco-friendly adhesives are seen as a future opportunity for the adhesive sector.

Segmental Analysis

The North America PUR-based Reactive Hot Melt Adhesive Market is divided into two categories: substrate and application.

The North American PUR-based reactive hot melt adhesive market is segmented into fibreglass, nylon, and plastics based on substrate. Plastic is the leading segment, with a market share of USD 304.9 million in 2021 and an estimated CAGR of 8.15 percent to USD 617.5 million in 2030. Because consumers seek lightweight and attractive packaging, the plastic substrates category has dominated the market.

After plastics, fibreglass substrates are the second most popular category in the PUR-based reactive hot melt adhesive industry, as they provide great connection flexibility at high processing speeds and temperatures. These are mostly utilised in the binding of fibreglass components used in various industries, resulting in a staggering revenue of USD 186.80 million in 2021 and USD 334.85 million in 2030, with a CAGR of 6.7 percent, because of their low surface energy and high moisture absorption, nylon polymers are difficult to bind. However, it is utilised in a wide range of industries, contributing to sales of USD 50.9 million in 2021 and predicted to reach USD 81.15 million by 2030 at a CAGR of 5.32 percent.

The PUR-based reactive hot melt adhesive market is divided into two categories: automotive and electronics. With a CAGR of 11.95 percent from USD 93 million in 2021 to USD 256.86 million in 2030, the automotive segment commands the largest portion of the market. The increased need for hot melt adhesives used in automobiles to make them low weight and aesthetically pleasing is the reason for the adhesive industry's growth in the automotive sector.

Apart from the automotive industry, the electronics manufacturing business has a high demand for hot melt adhesives, which are used to create electronic components that make extensive use of adhesives to ensure that the complete electronic device or equipment structure is properly joined. It has the second highest market share after the automotive market, with estimated sales of USD 37.06 million by 2030, growing at a CAGR of 8.49 percent, which is a significant increase from USD 17.8 million in 2021.

Regional Analysis

North America is one of the most technologically advanced regions in the world, as well as a major producer of PUR-based reactive hot melt adhesives. The region generated USD 142.7 million in sales in 2021 and is predicted to reach USD 204.34 million by 2030, with a CAGR of 4.07 percent. Hot melt adhesives are mostly employed in the automobile industry, and North America is one of the leading manufacturers in this market, allowing the region to meet its sales targets.

The United States dominated the hot-melt adhesives market in North America. The United States is one of the world's fastest-growing economies, with one of the largest manufacturing bases. One of the primary contributors to the country's economy is the manufacturing sector. Various automakers are going to invest in the next years, despite threats from the government to raise tariffs on Mexican auto imports. This aspect is predicted to have a beneficial impact on the country's automotive industry in the following years, resulting in an increase in hot-melt adhesive usage in the automotive industry throughout the forecast period. Because of the strong demand for sophisticated infrastructure, Canada will play a significant role in the North American hot melt adhesives market. Over the next few years, end-users are expected to bet on growing industrialization and urbanisation. With the increase in demand for paper board, industry participants are likely to invest in hot melt adhesives.

Recent Developments

• 3M introduced a new device named Next Generation Clear Aligner System in September 2021 to allow for totally customizable and unique designs.
• Henkel Adhesives received RecyClass clearance for recyclability for their Loctite adhesive products in November 2021.
• Sika AG acquired Sable Marco Inc, a cementitious product manufacturer in Canada, in March 2022, creating a new distribution channel in Canada.

North America PUR-based Reactive Hot Melt Adhesive Market Segmentation

By Substrate 

• Fiberglass
• Nylon
• Plastics

By Application

• Automotive 
• Electronics

By Region

• United States of America
• Canada
• Mexico
• Rest of North America