Hot melt adhesives are polymers that melt under application of heat and pressure, allowing adherence of various materials. They are primarily used in packaging applications such as case and carton sealing, carton closing, and other general assembly. The global packaging industry has witnessed robust growth in recent years driven by the rapidly growing e-commerce sector. Rising demands for packaged foods and consumer goods have also contributed to packaging market expansion. The use of hot melt adhesives for packaging applications provides benefits such as reduced fouling, improved aesthetics, fast production cycle time, and reduced waste.

The global hot melt adhesives market is estimated to be valued at US$ 9.04 Mn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The growing packaging industry remains the key driver for growth of the Global Hot Melt Adhesives Market Size over the forecast period. Rapid e-commerce penetration coupled with demand for packaged and convenience foods have augmented packaging material requirements. Hot melt adhesives are widely used for carton closing and case sealing applications in the packaging sector. Additionally, preference for hot melt adhesives over solvent-based adhesives owing to their cost-effectiveness and eco-friendly characteristics also supports market expansion. However, volatility in raw material prices remains a key challenge.

SWOT Analysis

Strength: Hot melt adhesives have high bonding strength and fast setting time which makes them suitable for high-speed production processes. They require low pressure and heat for bonding and produce minimal contaminants. Their solvent-free nature makes them environmentally sustainable.

Weakness: Hot melt adhesives have limited water and chemical resistance which restricts their usage in outdoor and wet applications. Their bonds also have low flexibility and may crack or break under stress.

Opportunity: Growing demand from packaging and footwear industries due to rising e-commerce activities is expected to boost the market. Increasing preference of hot melt adhesives over solvent-based adhesives owing to regulatory push for eco-friendly products will open new opportunities.

Threats: Availability of substitutes like solvent-based adhesives and pressure sensitive adhesives can hamper the market growth. Fluctuations in raw material prices may increase the overall production cost.

Key Takeaways

The global hot melt adhesives market is expected to witness high growth over the forecast period. The global hot melt adhesives market is estimated to be valued at US$ 9.04 Mn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.

Regional analysis: Asia Pacific dominates the global market and is expected to maintain its lead through 2031, growing at a CAGR of 6.1% during the forecast period. This can be attributed to strong growth of packaging and footwear industries in countries like China, India. North America and Europe are other major consumers of hot melt adhesives.

Key players: Key players operating in the hot melt adhesives market are Zoetis Inc., Elanco, Merck & Co., Inc., Boehringer Ingelheim GmbH, Ceva, Bayer AG, Evonik Industries AG, and Archer Daniels Midland Company.

The global hot melt adhesives market is fragmented with presence of many global and regional players. Manufacturers are focusing on expansion in high growth regions and new product launches catering to specific applications.

Get More Insights On This Topic: https://www.newsanalyticspro.com/hot-melt-adhesives-market-analysis-growth-forecast-outlook-2023-2030/