REPORT DESCRIPTION

Market Size and Overview:

As per the findings outlined in the research report, the worldwide bio-based hot melt adhesive market is anticipated to achieve an overall market value ranging from USD 10.61 billion by 2023 to USD 15 billion by 2030. Throughout the analytical timeframe spanning from 2024 to 2030, the market is expected to experience a compounded annual growth rate (CAGR) of 4.5%.

Overview of the Industry

Hot melt adhesives are increasingly finding applications in the packaging sector, serving various purposes such as sealing food-related boxes, cartons, and general consumer packaging. These adhesives, suitable for do-it-yourself (DIY) applications, offer adhesion to a diverse range of materials, including cloth, paper, porcelain, metal, cardboard, and plastics. The concept of DIY, prevalent in developed regions like North America and Europe, encompasses activities such as woodworking, crafting, and packaging for everyday items.

In the United States, hot melt adhesives are extensively manufactured and utilized. The COVID-19-induced lockdown led to a significant surge in the demand for these adhesives, driven by the increased need for package box sealing amid the expansion of e-commerce goods delivery services. However, the pandemic-related disruptions resulted in price hikes for raw materials like additives, polymers, and resins, affecting various industrial sectors beyond the raw material supply chain.

Bio-based hot melt adhesives are gaining popularity in the United States due to their sustainability. Companies like Jowat, a producer of adhesives, have introduced products derived from renewable raw materials, certified by the United States Department of Agriculture (USDA). The versatile applications of hot melt adhesives, including flooring installation, carpeting, ceramic tiles, and glassware bonding, contribute to their high demand in construction and renovation projects, enhancing the aesthetic appeal of floors compared to traditional staples and nails.

Impact of COVID-19 on the Industry

The COVID-19 outbreak in 2020 had a considerable negative impact on hot melt glue sales, primarily due to reduced demand in several end-use sectors. Despite minor concerns such as driver shortages and transportation delays, travel restrictions did not significantly affect the availability of raw materials for hot melt adhesives. Industries like automotive, transportation, furniture, and woodworking experienced varying degrees of demand decline, while the DIY sector remained relatively unaffected by the pandemic-related closures.

In the packaging industry, hot melt adhesives continued to be in high demand, particularly for flexible packaging, pet food packaging, and beverage packaging and containers. The post-pandemic phase is expected to present additional opportunities for market participants in specific regions.

Market Drivers

Demand for non-woven fibers is creating significant opportunities for manufacturers of hot melt adhesives

The demand for non-woven fibers is creating substantial opportunities for hot melt adhesive manufacturers. Hot melt adhesives offer a cost-effective bonding solution for non-woven fibers, maintaining the soft, textile-like quality of the product. Unlike alternative methods, hot melt adhesives do not require a drying or curing phase, making them more efficient, economical, and environmentally friendly.

Higher Demand in the Asia-Pacific Region Driving Market Growth

The Asia-Pacific hot melt adhesives market is poised for significant expansion during the projected period, presenting lucrative growth prospects for industry participants. The anticipated almost double-digit Compound Annual Growth Rate (CAGR) is attributed to the increasing infrastructure projects in sectors such as electronics, transportation, energy, automotive, and industrial activities in countries like China and India.

Market Restraints

Stringent Government Regulations on Chemical Manufacturing and Usage

Governments in Europe and North America impose stringent regulations on the manufacturing and usage of chemical and petroleum-based products. Regulatory bodies such as the Epoxy Resin Committee (ERC) and the European Commission (EC) closely monitor the production of goods using solvents. While these regulations offer health and environmental benefits, they pose challenges in terms of compliance and increased raw material costs, especially for smaller businesses. This trend is impacting the production capacity of businesses in North America and Europe, compelling manufacturers to focus on developing environmentally friendly adhesives like water-based adhesives.

Environmental Concerns Challenging Market Growth

Initiatives to reduce the environmental impact of Volatile Organic Compounds (VOCs) and other potentially harmful compounds have been a priority for organizations such as the U.S. Environmental Protection Agency (EPA). Hot melt glue, despite its advantages, faces challenges related to low heat resistance. Factors such as heat stress on the substrate, the necessity to use heat-resistant substrates, diminished bond strength at higher temperatures, and complete adhesive melting are potential drawbacks. These aspects are expected to influence market expansion.

Global Bio-Based Hot Melt Adhesive Market - By Resin Type

• Ethylene Vinyl Acetate (EVA)
• Styrenic Block Copolymers (SBC)
• Metallocene Polyolefin (MPO)
• Amorphous Polyalphaolefins (APAO)
• Polyolefins
• Polyamides
• Polyurethane (PU)
• Others

In 2021, the revenue of the ethylene vinyl acetate (EVA) segment is expected to grow at a robust annual rate of 6.9%. The overall market for hot melt adhesives is projected to witness a 5.7% annual increase in 2021, driven by an estimated 4.9% rise in polyamide demand through 2030. EVA hot melt adhesives, known for their adaptability, dependability, and durability, find applications in diverse industries such as paper, woodworking, assembly, and automotive sectors.

EVA, being the most cost-effective hot melt glue, adheres to a wide variety of surfaces and operates within a broad temperature range. With the ability to function at temperatures ranging from -40 degrees Fahrenheit to 160 degrees Fahrenheit, depending on the formulation, EVA adhesives stand out as a competitive product in the market.

Global Bio-Based Hot Melt Adhesive Market - By End-User

• Packaging Solutions
• Disposable Hygiene Products
• Furniture & Woodwork
• Automotive & Transportation
• Footwear
• Textiles
• Electronics
• Bookbinding
• Others

Over the next five years, packaging solutions in the South Asia & Pacific region are predicted to grow at a CAGR of approximately 6.9%. Hot melt adhesives play a crucial role in packaging solutions globally, offering remarkable speed, bonding, and adhesion properties ideal for sealing bottles, corrugated boxes, and paperboard cartons. The growing manufacturing base for packaging and the rising demand for nonwoven products in South Asia & Pacific contribute to market growth.

Global Bio-Based Hot Melt Adhesive Market - By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

In China, hot melt glue consumption is expected to increase by 5.7% year over year in 2021, defying initial concerns related to the global pandemic. China is projected to generate $3 billion in total hot melt adhesive sales by 2030, driven by rising demand from sectors such as footwear, packaging solutions, disposable hygiene products, textiles, and automotive & transportation. The U.S. market is anticipated to grow at a CAGR of around 6% during the projection period, maintaining its leading position in hot melt adhesive consumption due to increased domestic production and demand for bio-based adhesives.

Global Bio-Based Hot Melt Adhesive Market - By Companies

• 3M Company
• Arkema
• Avery Dennison Corporation
• Beardow & Adams (Adhesives) Ltd.
• DOW Inc.
• HB Fuller Company
• Henkel AG & Co. KGaA
• Jowat Se
• Sika AG
• Tex Year Industries Inc.
• Adtek Malaysia SDN BHD
• Buhnen GmbH & Co. Kg
• Cherng Tay Technology Co., Ltd.
• Evonik Industries AG

Notable Happenings in the Global Bio-Based Hot Melt Adhesive Market in the Recent Past:

• Merger & Acquisition (2021): Bostik acquired Prochimir and Fixatti, aiming to lead the sector with vertically integrated resin formulation capabilities and a unique global supply chain.
• Merger & Acquisition (2020): Applied Adhesives acquired Premier Packaging Solutions, enhancing its sales and service footprint in North America and reinforcing its commitment to providing local technical support and product solutions.
• Business Collaboration (2020): Bodo Möller Chemie and Henkel Adhesives Technologies collaborated to strengthen their relationship for pan-European sales and distribution of Henkel's adhesive solutions across various industries.