by Hot melt adhesives are widely used across various packaging applications such as case and carton sealing, label and flexible packaging lamination. They offer advantages such as fast setting time and ability to bond substrates at room temperature. The global packaging industry has been witnessing high growth due to rising demand for packaged food and pharmaceutical products. Hot melt adhesives play a crucial role in packaging by offering strong and durable bonds. They are used to laminate aluminum foils and films onto paper or paperboard for food packaging. The growing e-commerce sector has also been boosting the sales of packaged goods, which in turn drives the consumption of hot melt adhesives. The global Hot Melt Adhesives Market is estimated to be valued at US$ 7.84 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the hot melt adhesives market is the rising demand for bio-based and sustainable adhesive solutions. With growing environmental concerns, manufacturers are focusing on developing hot melt adhesives from renewable resources like vegetable oils, plant resins and natural polymers. Bio-based hot melt adhesives help reduce dependency on fossil fuels and offer comparable performance to conventional petroleum-based variants. They can be recycled and composted at the end of product life, making them an eco-friendly alternative. Research and production of bio-adhesives from agricultural waste is expected to gain traction in the coming years to foster sustainable development.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the hot melt adhesives market is moderate. Establishing a new manufacturing plant requires high initial investments which discourage new players. However, the availability of substitutes at lower costs pose a threat.
Bargaining power of buyers: The bargaining power of buyers in the hot melt adhesives market is high. The market is fragmented with presence of multiple regional and global players. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Raw materials used in hot melt adhesives are commodity chemicals whose prices are dependent on global supply and demand forces.
Threat of new substitutes: The threat of substitutes is high. Alternatives such as liquid adhesives, reactive adhesives pose threat to hot melt adhesives.
Competitive rivalry: The competitive rivalry in the market is high owing presence of large number of regional and global players. Players differentiate based on product quality, pricing, and innovation.
Key Takeaways
The global Hot Melt Adhesives Market Share is expected to witness high growth.
Europe dominates the hot melt adhesives regional market owing to its large packaging and construction industries in Germany, UK and France. Asia Pacific hot melt adhesives market is expected to grow fastest during the forecast period with China, India and Japan being the major countries.
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. Zoetis Inc. is a leading player with a wide product portfolio and global presence. Elanco and Boehringer Ingelheim GmbH also have strong hold in the market
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
