California hot melt adhesives market size was 105.11 million lbs in 2014. Trend in substitution of conventional fasteners by hot melt technology in packaging, disposable products and pressure sensitive products are a vital determinant for industry development. HMAs such as EVA, styrenic block copolymers, and polyolefins are largely used in industrial applications to foster faster processing times, high chemical & UV resistance, and improved structural integrity. Regulations aimed at vehicular weight reduction have been instrumental in driving adhesives consumption in component bonding. Adhesives now make up almost 12kgs of overall passenger car weight, and they significantly aid in weight reduction as substitutes to metal fasteners and welded joints. Regulatory policies play a vital role in shaping industry dynamics. Numerous agencies such as the California EPA, U.S. FDA, ATSM and Air Resources Board of California have implemented stringent regulations regarding environmental impact of industrial products. California has taken the lead in formulating new VOC limits for several consumer goods by creating around 13 Air Quality Management Districts (AQMD) with a set of limits prescribed by each body. Article 2 of the California Code of Regulations (CCR), Title 17, Division 3, Sub-chapter 8.5- Consumer Products provides guidelines regarding adhesives application and associated VOC emissions. Similar federal level policies from U.S. EPA and the U.S. Chemical Safety Board pertaining to phthalates and plasticizers presence in various additives have also impacted the production technology and process landscape. California government is increasingly taking initiatives to encourage and support the manufacturing sector with the provision of varied subsidies and incentives. Increasing preference for individually packaged goods owing to nuclear family patterns and high per capita income is likely to boost adhesion products in packaging and labeling sectors. Fluctuating petrochemical prices, environmental concerns regarding GHG emissions, disposability and toxicity are major challenges the industry has been facing during the recent times. Companies in order to offset such challenges have invested in development of bio-based adhesives. This trend is crucial in determining the future development trends.