Economic Growth Leading to Rising Consumption of Hot melt Adhesives
Factors such as the surging consumer expenditure and the expanding packaging industry will help the hot melt adhesives market to display a CAGR of 6.1% during the forecast period (2020–2030). According to P&S Intelligence, the market generated a revenue of $7,717.0 million in 2019, and it is expected to reach $12,761.3 million by 2030. Hot melt adhesives are widely used in the electronics, construction, packaging, and automotive industries, due to their ease of application, non-volatile organic compound (VOC) emitting, and fast setting time properties.
The flourishing packaging industry, primarily on account of the burgeoning demand for packaged food and drinks and the growing e-commerce sector, is one of the key contributors to the market growth, worldwide. Since packaged products require both rigid and flexible packaging, this industry uses hot melt adhesives in abundance because of their easy application and fast setting time features. With the increasing penetration of e-commerce platforms, owing to the rapid internet and smartphone adoption, the demand for such adhesives is escalating rapidly.
In recent years, the rising shift of automobile manufacturers toward advanced assembly techniques from conventional ones has become a major trend in the hot melt adhesives market. The conventional assembly techniques in the automobile industry involve the usage of mechanical welds or fastener; whereas, the advanced techniques use hot melt adhesives. Nowadays, automakers have started using such adhesives in abundance, as these offer flexibility during the production process. Moreover, the hot melt adhesives are used in the automobile industry to join various types of substrates used in vehicles.
Globally, the Asia-Pacific hot melt adhesives market generated the highest revenue in 2019, due to the presence of vast manufacturing hubs in China, India, Japan, and South Korea. Additionally, the regional market is also expected to retain its dominance throughout the forecast period. This will be due to the booming population and escalating per capita income in APAC countries. Owing to these reasons, the consumption of automobiles, electronics, and packaged goods will surge rapidly, which will create a huge demand for hot melt adhesives, in the region.
Thus, the booming packaging sector and mounting public spending in developing countries will supplement the market growth in the forecast years.
