Global Bio-based Hot Melt Adhesives Market Size (2023 - 2030)

According to our research report, the global bio-based hot melt adhesive market is estimated to reach a total market valuation of USD 10.15 billion by 2022 to USD  15 billion by 2030. The market is projected to grow with a CAGR of 4.5% per annum during the period of analysis (2023 - 2030).

Industry Overview

Hot glue adhesives are being used more often in the packaging sector for a variety of purposes, including the sealing of food-related boxes and cartons as well as general consumer packaging. Hot melt adhesives (HMAs) are appropriate for DIY applications because they provide adhesion to a broad range of materials and surfaces, including cloth, papers, porcelain, metal, cardboard, and plastics. DIY is a relatively recent idea, although dominating in developed countries like North America and Europe. The DIY uses include woodworking, craft, and packaging for everyday items.

Hot melt adhesives are widely produced and used in the United States. Due to the lockdown that took place as a result of the COVID-19 outbreak, the product demand significantly surged. As hot melt adhesives are frequently used in the wrapping of package boxes, the shutdown sparked the expansion of e-commerce goods delivery services, which boosted both production and consumption activity. However, because to price increases brought on by the pandemic's interruptions, industrial industries experienced a lack of raw materials such additives, polymers, and resins. The pandemic's effects extended beyond the raw material sector and negatively impacted the end-use sectors.

Due to its sustainability, bio-based hot melt adhesives are becoming more and more popular in the United States. For the North American market, for instance, Jowat, a firm that produces adhesives, has produced products derived from renewable raw materials that have been certified by the United States Department of Agriculture (USDA). Due to its numerous uses, including the installation of flooring, carpets, ceramic tiles, and glassware, hot melt adhesives are in high demand as new construction and renovations of existing structures increase. Compared to staples and nails, the use of HMA improves the aesthetic aspect of the floor.

Impact of Covid-19 on the industry

Hot melt glue sales were considerably damaged by the COVID-19 outbreak in 2020 since several end-use sectors had decreased demand. With the exception of modest driver shortage worries and minor transportation delays brought on by travel restrictions, COVID-19 hasn't had a substantial influence on the availability of raw materials for hot melt adhesives. Sectors that use hot melt adhesives are seeing varying degrees of demand as a result of the pandemic and precipitous declines in oil prices. The automobile and transportation sectors, together with the furniture and woodworking industries, were the most affected by the epidemic. The closure mostly had little impact on the DIY sector.
In the packaging business, hot melt adhesives were also in high demand, notably for use in flexible packaging, pet food packaging, and beverage packaging and containers. The post-pandemic phase will present additional chances for market participants in some locations.

Market Drivers

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

Hot melt adhesive producers have a lot of chances thanks to the need for non-woven fibres. The advantage of HMAs for non-woven fibres is that the glue maintains the product's soft, textile-like quality. It is a more economical method of bonding than alternative methods. Since there is no drying or curing phase, it is more effective, more affordable, more environmentally benign than conventional bonding techniques.

Higher Demand in Asia- Pacific Region will drive the market growth

Over the projected period, the Asia Pacific hot melt adhesives market is anticipated to expand significantly, providing great potential growth opportunities for market participants. Due to growing infrastructure projects in the electronics, transportation, energy, automotive, and industrial sectors in nations like China and India, this market is estimated to grow at an almost double-digit CAGR.

Market Restraints

Stringent regulations are imposed by governments against the manufacturing and use of chemicals

Environmental regulations rigorously control the manufacture of chemical and petroleum-based goods in Europe and North America. The production of goods using solvents is regulated in these areas by organisations like the Epoxy Resin Committee (ERC) and the European Commission (EC). Although it is difficult to contest the fundamental health and environmental advantages of these reforms, greater compliance and raw material costs are real and may be significant - particularly for smaller businesses. The production capacity of businesses in North America and Europe are being impacted by this trend. Manufacturers are being forced by strict environmental requirements to concentrate on making environmentally friendly adhesives like water-based adhesives.

Concerns over impact on the environment will challenge the market growth

Initiating steps to lessen the effects of VOCs and other potentially harmful compounds on the environment, manufacturing employees, and end users has been a top priority for the U.S. EPA and other organisations. Hot melt glue demand is impacted by qualities like low heat resistance. The heat stress on the substrate, the need to employ only substrates resistant to higher temperatures, the loss of bond strength at higher temperatures, and the total melting of the adhesive are some of the drawbacks. All of these elements are anticipated to have some effect on market expansion.

BIO- BASED HOT MELT ADHESIVES MARKET REPORT COVERAGE:

This research report on the global bio-based hot melt adhesive market has been segmented and sub-segmented based on, resin type, end-user, and Geography & region.

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, it is anticipated that the ethylene vinyl acetate (EVA) segment's revenue would grow at a strong 6.9% annual rate. The combined market for hot melt adhesives is estimated to rise by 5.7% annually in 2021 thanks to the estimated 4.9% increase in polyamide demand through 2030. Due to their adaptability, dependability, and durability, EVA hot melt adhesives are used in a variety of industries for a number of applications. These include the paper, woodworking, assembly, and automobile sectors.

EVA is the most economical hot melt glue and sticks to the broadest variety of surfaces. It also performs at one of the widest temperature ranges. EVA adhesives may function at temperatures as low as -40 degrees Fahrenheit and as high as 160 degrees Fahrenheit, depending on the formulation. These features make it 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 are predicted to grow in the South Asia & Pacific area at a CAGR of about 6.9%. Hot melt adhesives are widely employed in packaging solutions all around the world. Due to their remarkable speed, bonding, and adhesion properties, hot melt adhesives are ideal for sealing bottles, corrugated boxes, and paper board cartons, among other packing materials.

Hot melt adhesives made from biomaterials are being used more and more in the packaging industry. The primary factor fuelling market growth in South Asia & Pacific is the area's rapidly growing packaging manufacturing base, which is linked with a steadily rising demand for nonwoven products.

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

• North America

• Europe

• Asia-Pacific

• Latin America

• The Middle East and Africa

Hot melt glue consumption in China is predicted to increase 5.7% year over year in 2021, defying early doubts about how the business would fare in the event of a worldwide pandemic. Hot melt adhesives are anticipated to generate $3 billion in total sales in China by 2030. Due to rising demand from sectors like footwear, packaging options, disposable hygiene products, textiles, and automotive & transportation, as well as the nation's rapidly expanding population and economy, China has emerged as a lucrative market for hot melt adhesive providers.

More diverse, sophisticated, single-serve pack sizes have been produced as a result of shifting consumption habits and rising purchasing power in China, which has fuelled the industry. The domestic market's growing consumption has also benefited the hygiene goods industry. China has laxer demands and standards for its products. The availability of inexpensive raw materials and laxer restrictions are also encouraging businesses to increase their investments in this sector.

During the projection period, the U.S. market is predicted to grow at a CAGR of around 6%. Due to the existence of numerous important manufacturers, the nation is also predicted to be a significant market in the hot melt adhesives industry. The market in the area is expanding as more cutting-edge technology is being used in North America.

The U.S. has managed to maintain its leading position in the consumption of hot melt adhesives because to rising domestic production and demand for bio-based and biodegradable adhesives. Big packaging producers including Ball Corporation, International Paper, and Owens-Illinois are present in the U.S., hence this industry is anticipated to be a major factor in market growth.

Global Bio-Based Hot Melt Adhesive Market- By Companies

1. 3M Company

2. Arkema

3. Avery Dennison Corporation

4. Beardow & Adams (Adhesives) Ltd.

5. DOW Inc.

6. HB Fuller Company

7. Henkel AG & Co. KGaA

8. Jowat Se

9. Sika AG

10. Tex Year Industries Inc.

11. Adtek Malaysia SDN BHD

12. Buhnen GmbH & Co. Kg

13. Cherng Tay Technology Co., Ltd.

14. Evonik Industries AG

NOTABLE HAPPENINGS IN THE GLOBAL BIO-BASED HOT MELT ADHESIVE MARKET IN THE RECENT PAST:

• Merger & Acquisition: - In 2021, Prochimir and Fixatti were purchased by Bostik. The business thinks that with its vertically integrated resin formulation capabilities and distinctive global supply chain, it can take the lead in the sector.

• Merger & Acquisition: - In 2020, Premier Packaging Solutions, a Chattanooga, Tennessee-based distributor of hot-melt and water-based adhesives, was purchased by Applied Adhesives. The acquisition of Premier by Applied strengthens their sales and service footprint in North America as well as their dedication to providing local technical support, problem-solving support, and product solutions to its customers.

• Business Collaboration: - In 2020, In order to increase their relationship for the pan-European sales and distribution of Henkel's adhesive 4.0 solutions in the automotive, metal, packaging, wood, electronics, medical technology, and aerospace industries, Bodo Möller Chemie and Henkel Adhesives Technologies worked together.