Polyurethane (PU) Hot-melt Adhesive Market

Market Overview

The global polyurethane (PU) hot-melt adhesive market size 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).

Polyurethane hot melt, also known as PU hot melt, is an adhesive that is heated and poured from a cartridge or slug, as opposed to conventional hot melt, which is in the form of a stick or pellet. PU is also unique because it solidifies through air moisture to form an unbreakable, ultra-strong connection. PU is perfect for many applications, including woodworking, finish carpentry, shoe repair, furniture restoration, shattered glassware repair, laminate countertops, construction and renovation, ceramic ceiling tiles, and more because of its strength, durability, and quick setting time. The polyurethane hot adhesives market is anticipated to grow due to increasing industry demand.

Market Dynamics

Global Polyurethane (PU) Hot-melt Adhesive Market Drivers

Rising Environmental Concerns Regarding Solvent-based Adhesives

In the past, sectors like construction, furniture, and automotive used solvent-based adhesives. However, solvent-based adhesives have several adverse effects on the environment, including soil, water, and air pollution, which can be hazardous to both human health and the ecosystem for both flora and wildlife. For instance, breathing solvent vapors can increase your risk of developing lung and asthma. Construction-related solvents eventually contaminate groundwater after seeing into the soil. The release of dispersion (emulsion) adhesives into the environment might also result in specific issues. These worries have pushed the market under study as stakeholders turn to more ecologically friendly adhesive choices as PU holt melts.

PU hot-melt adhesives cause minimal to no pollution and have negligible environmental effects. They are also non-combustible and do not require any ventilation. Due to the cheap price point, these are also appropriate for big-volume industries like packaging and construction because it keeps costs down. Furthermore, the government and regulatory bodies encourage the use of PU hot-melt adhesives rather than solvent-based.

Global Polyurethane (PU) Hot-melt Adhesive Market Restraint

Reduction in Global Automotive Production

In the automotive industry, PU hot-melt adhesives are frequently used for significant bonding structures and hang-on items, such as doors, tailgates, hoods, and trunk lids. Additionally, they are employed in place of, or even in addition to, mechanical fasteners for chassis parts. They are the perfect reinforcement for metal stamping pieces during the installation of the body to the chassis because they give constant wet-out across uneven surfaces. In the automobile industry, they are also employed as fastener adhesives for power train applications, applications involving electric car batteries, exterior and glass assembly, bonding, sealing, and isolation, among other things. Ride-sharing firms like Uber and Ola, combined with demand shocks in countries like India, have caused a dramatic decrease in vehicle sales over the past year (production follows the sales demand for automobiles with a slight lag).

Global Polyurethane (PU) Hot-melt Adhesive Market Opportunities

Increasing Demand from the Packaging and Electronics Industries

In the packaging business, PU hot-melt adhesives are widely used. The majority of their applications include sealing and closing cartons. One of the biggest end-user industries for PU hot-melt adhesives is the packaging sector. Compared to other adhesives, such as water-based adhesives and other hot-melt adhesive formulations, PU hot-melt adhesives extract moisture from the substrates and the environment to form a stronger bond.

In addition, polyurethane hot melt provides greater curing and adhesion than conventional hot melts, making it a wise choice in the expanding industrial packaging sector. Transparent cases are frequently used for packaging cosmetics, fragrances, and beauty goods. These hot-melt adhesives are employed to seal packages that guarantee a clear application and aid in the distribution of an ideal finished good. The packaging and electronics industries are anticipated to dominate the market in the coming years due to all the previously mentioned causes.

Regional Analysis

The global polyurethane (PU) hot-melt adhesive market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

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. By 2025, the Chinese government hopes to have at least 5,000 fuel-cell electric vehicles on the road and one million by 2030. Electric cars are anticipated to dominate the market under study over the projection period due to the government's promotion of electric, hybrid, and fuel-cell vehicles. Additionally, Volkswagen pledged its assistance to the Chinese government to reduce pollution by announcing an investment of roughly USD 2.48 billion in the country's electric vehicle sector. Due to its large population, furniture is in high demand in China. Customers are prepared to spend extra on furniture and floor coverings.

Along with the Production Linked Incentive, the government introduced two additional programs to encourage the manufacture of electronics in India: the Scheme for Promotion of Electronic Components and Semiconductors (SPECS) and the updated Electronics Manufacturing Clusters (EMC 2.0). (PLI). As businesses grow their output in India, the government is expected to provide incentives, with USD 5.5 billion available over five years, according to the PLI scheme. The nation's electronics production will probably increase as a result. India's medical business has benefited from the country's 1.6% annual population growth. The nearly 100 million-strong aging population, rising rates of lifestyle diseases, rising wages, and more use of health insurance have contributed to the industry's expansion.

Europe is expected to grow at a CAGR of 7.18%, generating USD 1,190.14 million during the forecast period. The vehicle industry in Germany is the biggest in all of Europe. With 41 assembly and engine production facilities, it dominates the European automotive market and produces one-third of all the cars sold on the continent. Many manufacturers have established themselves locally, from equipment makers to raw material and component suppliers and even full system integrators. Although the UK semiconductor sector is well-developed in design, implementation, and sales, it is growing slowly. A sizable number of businesses have been developed throughout the semiconductor industry's value chain, resulting in the development of a complex network of goods and services that aid in bringing down the cost of contemporary electronics. An extensive network of small and micro businesses and technological start-ups make up Italy's local medical device manufacturing market, with 3,605 production facilities. This polyurethane (PU) hot-melt adhesive market is vital in producing hospital furniture, anesthesia equipment, respiratory apparatus, dialysis equipment, diagnostic imaging equipment, contrast media for imaging, cardiology equipment, sterilizers, implantable pacemakers, and artificial dentures.

North America is anticipated to grow significantly during the forecast period. The American medical device industry enjoys a strong reputation abroad for producing cutting-edge goods. The US has a competitive advantage in the microelectronics, telecommunications, instrumentation, biotechnology, and software development sectors, all of which are essential to the medical device industry. According to SelectUSA, a project of the US Department of Commerce's International Trade Administration (ITA), the US medical device industry is the largest medical device market in the world. It is currently valued at USD 156 billion and is expected to reach USD 208 billion by 2023. The US electronics market, the biggest in the world in terms of size, is one of the critical prospective growth areas for the industry under investigation. Due to the use of cutting-edge technology, an increase in the number of R&D facilities, and rising consumer demand, it is also anticipated that this market will continue to hold the top spot during the projection period.

Additionally, Canada is the world's fifth-largest producer of automobiles. Approximately 2 million automobiles and light trucks are produced there annually, making up a sizeable portion of the world's production of automotive vehicles. However, the nation's automobile industry has declined over the past two years. The automotive industry is anticipated to be impacted by a lack of domestic demand. However, the car sector has incorporated the North American Free Trade Agreement to advance its manufacturing activities (NAFTA).

Some of South America's most extensive electronics manufacturing facilities are in Brazil. Numerous significant electronics manufacturers, including Samsung, LG, Foxconn, Dell, Multilaser, Positivo, AOC, Lenovo, and the Leadership Group, have extensive production facilities in the nation. The nation's customers are more cautious when purchasing expensive goods, and this tendency is anticipated to last for the foreseeable future. The Argentine peso's depreciation has hurt the market for electronic equipment, but it is expected to improve over the forecast period. The polyurethane (PU) hot-melt adhesive market is expected to grow more slowly than the electronics industry. Brazil and Argentina extended their free trade agreement to export and import automobiles and their components to improve the automotive industry's performance. This might provide relief to the sector in the coming years and aid in stabilizing the domestic market.

Segmental Analysis

The global polyurethane (PU) hot-melt adhesive market is segmented by type and application.

Based on type, the global 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. The reactive polyurethane hot-melt adhesives are heated before use, applied while still molten, and strengthened by a physical hardening process as they cool. The PU adhesive combines with the water molecules or humidity (in the air) and becomes an elastomer. Reactive hot-melt adhesives offer a considerably stronger bond with improved resistance to moisture, heat, and chemicals after crosslinking is finished. The adhesives' reactive groups broaden the range of adhesion by forming stable chemical interactions with compatible reactive partners on the surface of the substrate. The reactive hot melt adhesives are based on various kinds of polyurethane and polyolefin. It is also offered in granulate form for applications requiring excellent quality and aesthetics as a high-performance PUR adhesive. Additionally, they attach significantly more effectively to untreated substrates like polyethylene (PE) and polypropylene (PP). Also, they do not have any free isocyanates. High heat and water resistance, quick setting periods, adherence to various materials, and low processing temperatures are all benefits of reactive polyurethane hot-melt adhesives.

Contrary to reactive resins, which are made of one or two-component resin systems, non-reactive polyurethane hot-melt adhesives are based on high molecular weight polymers. The non-reactive polyurethane hot melt adhesives are distributed between two surfaces that need to be linked and bonded in the form of a thin layer of high molecular weight polyurethane. Thermoplastic granules that may be extruded or heated in holding tanks to melt to produce glue sticks for a hot-melt gun or sticky films for industrial heat presses are available as non-reactive polyurethane hot-melt adhesives. Paper, board, wood, metals, plastics, and fabrics can all be joined together with polyurethane hot-melt adhesives. The most common method of using polyurethane non-reactive hot-melt adhesives is to sandwich them between two substrates, heat them to a temperature over their melting point, and then press the two substrates together while holding them in place.

Based on applications, the global 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. PU hot-melt adhesives are used in a variety of woodworking processes and can be utilized to create architectural and decorative features for soft shaping, profile wrapping, and other processes. Hot-melt polyurethane adhesives are used to provide environmental resilience and cure exposure to moisture. The domestic or home market and the commercial or office market are the two areas that provide the majority of the demand for the furniture business.

Household furniture is in demand in these markets due to the country's growing demand for residential and commercial buildings. Due to the rising number of homes, offices, and other commercial buildings, China and India are among the major markets for the woodworking industries. Additionally, over the past few years, China's demand for high-end wood interior design has grown significantly, which has increased the demand for PU hot-melt adhesives. The demand for PU hot-melt adhesives is anticipated to increase over the projected period due to all the factors driving the furniture sector above.

One of the biggest markets for polyurethane hot-melt adhesives is packaging. It is used in a wide variety of products, including cups, foil laminates, corrugated boards, disposables (non-woven), specialty envelopes, labels, remoistenable products, composite containers, tubes, bags, carton side seams and closures, and more. Industrial products are marketed in exceptionally high numbers of packaging, either for aesthetics or stability needs for storage and transportation. Most packing materials used nowadays are made by laminating several materials, which need adhesives. Hot-melt polyurethane (PU) adhesives are an excellent choice for sealing cartons, stabilizing food and beverage pallets, and sealing various consumer and industrial goods. Since these adhesives are also offered in clear variants, it is simple to conceal any glue lines to create the impression that the material is continuous. Clear boxes and folding carton packaging are more alluring to consumers because of their high visibility. Polyurethane hot-melt adhesives are a wise choice in expanding industrial packaging because they provide stronger adhesion and a better cure than conventional hot melts.

Recent Developments

• September 2022- During Climate Week NYC, 3M showcased cutting-edge decarbonization solutions and the power of science to combat climate change.
• 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.