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Packaging Solutions Drives Growth in Hot-Melt Adhesives Market

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Demand for packaging solutions is increasing the use of adhesives in various applications, including bulk packaging, industrial packaging, commercial packaging, and specialty packaging.

Share-ify Launches Into 2024 after Stellar 2023 Results

By Priyanka Tiwari, MarketsandMarkets, Pune, India

Hot-melt adhesives are solvent-free thermoplastic adhesives commonly available in the form of pellets and solid cylindrical sticks of various diameters. These adhesives have spread ability irrespective of the surface texture, and they cool down rapidly at room temperature. They are 100% thermoplastic solids at temperatures below 80 °C (176 °F). However, they are applied in a molten state at temperatures ranging from 120 °C to 180 °C (248–356 °F), depending on the application and materials to be bonded.

The market size of hot-melt adhesives is estimated to grow from $9,535.8 million in 2024 to $10,946.7 million by 2029 at a compound annual growth rate (CAGR) of 2.8%. It is an emerging market and is projected to register moderate growth between 2024 and 2029. The growing demand for high-performance products across various industries and applications is significantly driving the market for hot-melt adhesives. Demand is also attributed to hot-melt adhesives' solvent-free properties, which comply with regulatory requirements for health, safety, and product quality. Steady advancements in technology and the shift of manufacturers from traditional solvent-based adhesives to hot-melt adhesives are expected to have an impact on the market during the forecast period.

The competitive environment in the hot-melt adhesives market is analyzed through the Porter's Five Forces analytical framework. According to the model, the bargaining of suppliers is high due to competition from other industries for procuring the same raw materials. Asia-Pacific is projected to register the highest growth in the hot-melt adhesives market during the forecast period. Emerging economies, such as China, India, and South Korea are attracting several global players to establish their manufacturing base in the Pacific region. These manufacturers are competing to reach a broader customer base in countries such as China and India as they work to cater to the increasing demand for hot-melt adhesives from end-use industries.

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Market Drivers

Packaging solutions lead the overall hot-melt adhesives market during the forecast period. The market in this segment is estimated to be $3,912.4 million and projected to reach $4,343.1 million by 2029, showing a CAGR of 2.1%. The packaging applications of hot-melt adhesives include carton envelopes, carton cups, flexible packaging specialty packaging bags, and processed food products. Cases and cartons are made of paperboard and used for the packaging of goods. They are used in various applications, such as transportation and storage of agricultural and poultry products, biscuits, chocolates, pharmaceutical products, and industrial use. The Asia-Pacific region is the largest and fastest-growing market for hot-melt adhesives due to its booming manufacturing sector, particularly in industries such as packaging, automotive, and electronics.

The rapid urbanization and increasing disposable incomes in countries like China, India, and the Southeast Asian nations drive the demand for consumer goods, which in turn boosts the need for efficient adhesive solutions. Additionally, the region benefits from lower production costs and a large labor force, attracting significant investment from multinational companies. Hot-melt adhesives are used in many applications, such as packaging solutions, nonwoven hygiene products, bookbinding, and furniture and woodwork. Many hot-melt adhesive manufacturers supply various hot-melt adhesive grades to end users according to the needs of their applications. Several new and high-performance structural hot-melt adhesives have been developed recently to meet some of the challenges associated with traditional amorphous poly-alpha olefin and styrene block copolymer-based hot-melt adhesives. These technological advancements have helped manufacturers reduce costs and improve manufacturing efficiencies.

The packaging solutions segment leads the overall hot-melt adhesives market. This is attributed to the increasing use of adhesives in various packaging solutions, such as bulk packaging, industrial packaging, commercial packaging, and specialty packaging. The nonwoven hygiene products segment is projected to register the highest CAGR during the forecast period. This is attributed to the increasing consumer awareness and use of disposable hygiene products. The demand for nonwoven hygiene products is higher in Asia-Pacific and South America than in other regions.

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Resin Types

In terms of resin type within hot-melt adhesive formulations, ethylene-vinyl acetate (EVA) resins are expected to dominate the overall market during the forecast period, followed by styrenic block copolymers and amorphous poly alpha olefin (APAO).

Trends and Disruptions

The hot-melt adhesives market is significantly impacted by the trend towards sustainability, with increasing demand for eco-friendly and biodegradable adhesives driven by consumer and regulatory pressures. Additionally, advancements in adhesive technology, such as the development of low-temperature applications and high-performance adhesives, are disrupting the market by enabling broader application scopes and improved performance in various industries.

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New Revenue Pockets

The packaging application of hot-melt adhesives includes carton boxes, envelopes, carton closures, cups, flexible packaging, specialty packaging, bags, and processed food products. Cases and cartons are made of paperboard and used for the packaging of goods. They are used in various applications such as transportation and storage of agricultural and poultry products, cookies, chocolates, pharmaceutical products, and industrial use. Corrugated packaging offers various benefits, as it is stackable, custom-designed, recyclable, and incurs low transportation costs. A corrugated board is a blend of three sheets of paper. Corrugated paperboard is used for the packaging of products, such as fruits, vegetables poultry, meat, agriculture, cosmetics, furniture, personal care, automotive, publication and printing, and seafood.

In paper and packaging, hot-melt adhesives are also used for sticking labels on boxes, and containers in food and beverage, pharmaceuticals, and personal care industries. Flexible packaging, which regains its original shape after application, is driven mainly by environmental norms and government regulations such as the FDA and the European Commission. Flexible packaging is gaining importance owing to properties, such as flexibility, customized quality, attractiveness, easy printability, less weight, and smaller space requirements, and supportability. The increased demand for flexible packaging will play an important role in driving the hot-melt adhesives market.

Learn more about the market report from MarketsandMarkets that covers the global hot-melt adhesives market.