India and China are very likely high-growth markets for the use of hot melt adhesives. The furniture and construction industries, coupled with continuing investments infrastructure and manufacturing, is expected to fuel adhesive industry growth there. The furniture and construction industries have experienced strong demand in 2016 and 2017, with that trend forecast continuing. Hot melt has become a staple for use in these sectors. The total value of the hot melt adhesive market in South America reached over $101 million in 2015. The expected market value in the next two years is $149 million, a CAGR of almost 8 percent. The main growth regions for hot melts will be in Brazil, due to its robust manufacturing sector, along with Mexico, Argentina, Columbia and Chile. The primary market segments include packaging, automotive, electronics, textiles and footwear. In 2015, the hot melt market in the United States was valued at $6 billion. Researchers expect that number to reach at least $9.4 billion in the next five to six years. That is an average CAGR of 5.2 percent through 2024. Revenue in Europe for hot melts is expected to reach close to $2 billion in 2018. Industry prognosticators believe this CAGR of 5.52 percent annually will continue through 2023. The packaging and paper industries account for 30 percent of the adhesive market share in Europe and most other locations. Healthcare and transportation have the next largest share of the market. Germany dominates Europe as the most prominent user of hot melt adhesive, with a share of over 23 percent. The UK is expected to be the fastest growing sector in 2018 through 2023, with a predicted CAGR of greater than 6.2 percent. The hot melt industry in China will see the most growth in the automotive sector. Vehicle manufacturing uses hot melt for a wide range of applications. Since hot melt properties include resistance to weather and chemicals, the usage is particularly attractive in cars and trucks. Vehicle companies use hot melt for seat upholstery, exterior trim bonding, door sealants and much more. Amorphous poly-alpha-olefin hot melt adhesive is the most popular for vehicle use as it also has a high UV protection rating. Globally, this sector will see an increase in hot melt adhesive use, but China’s expanding vehicle manufacturing will increase hot melt usage there for the next 5-6 years. Experts expect revenues in China to reach $50 million by 2024. The construction industry has relied on solvents for adhesives needs for decades. Hot melt has begun to replace solvent-based products. Construction is one area that industry watchers predict hot melt use will rapidly grow, outpacing the expected growth in other industries As a major endues market for hot melt adhesives, the packaging industry, hot melt will continue to expand and grow with packers. Industry watchers state that by 2024, the hot melt revenue in the packaging industry only will reach $3 billion worldwide, with a CAGR of 5.5 percent per year for each year, which began in 2016 and will continue through 2017, 2018 and beyond. Smaller consumer food packs, due to a larger number of one- and two-person households will also drive up the need for hot melt. Diaper closing tape represents a large portion of the pressure sensitive adhesive, hot melt market. Aircraft interiors, too, need pressure sensitive adhesives. Over the next five years, experts predict disposables will account for $1.6 billion in revenue for the hot melt market. The worldwide market in baby diapers, adult incontinence and feminine hygiene products has increasingly driven governments to enact strict disposal regulations and laws. Hot melt adhesives remove much of the disposal problem for the manufacturers. Most remain extremely optimistic for the next five years and beyond for the use of hot melts by this industry sector. The regulatory environment today has resulted in requiring more information displayed on labels. Demand for print labels using hot melt adhesives will, accordingly, likely increase in 2018 and beyond. Booklet labels, labels that require you to peel away the top layer to reveal the text related to the contents of a box, package or item, will need adhesives. Hot melt meets these needs without any environmental worries or problems with application. Many advertisers have been marketing through labeling. This trend will likely continue, increasing revenue for hot melt products in this market. Businesses small and large have come under increasing pressure to do business in an environmentally responsible manner. This trend significantly increased in 2017 and is very likely to continue for the foreseeable future. Switching to hot melt, or finding ways to use hot melt in place of solvents or for bonding purposes done by some other method, is an easy and cost-effective way for enterprises to demonstrate a commitment to the environment. Hot melt insiders believe that companies will find as-yet-unrecognized uses for hot melt, given how non-polluting hot melt adhesives are. Several companies, including 3M Company in partnership with H.B. Fuller, have been focusing on developing bio-based hot melt adhesives. Using bio-based production methodologies in production will help further cement the corporations’ market shares in the hot melt market. Coat weight is the amount of adhesive used per item for bonding with something. Companies that manufacture adhesive dispensing systems, such as pneumatic glue dispensers, have several tools and options that lower the coat weight of the hot melt. This trend has been noticed across all hot melt industries including packaging, labeling and construction. This will affect demand, driving it up in some instances, due to the relatively low cost of hot melt, especially when compared to other adhesives. The market volatility for raw materials could adversely affect the growth of the hot melt sector. Increases in the prices for natural polymers, such as asphalt, rubber and starch, could drive up prices for hot melt products. The fluctuations of oil prices can also have a considerable effect on hot melts. Bitumen natural rubber and resin, the polymeric material used by hot melt producers, prices will rise along with any increase in oil costs. The few market-inhibiting factors that could reduce the optimism of most analysts for hot melt’s future in 2018 and beyond appear negligible. Most oil industry analysts, for example, predict a downturn and flattening of oil prices to levels slightly below 2017 prices. This bodes well for the rosy picture of the hot melt adhesive industry’s future. Finally, industry futurists believe that other uses for hot melt will be discovered and exploited to further bolster the analyst’s claims of steady, substantial growth. Source:https://www.hotmelt.com/blogs/blog/future-hot-melt-adhesive-industry-outlook-2018-beyondAsian Markets
South America
The USA
Europe
Automotive Sector
Construction
Packaging
Pressure Sensitive Adhesives (PSA)
Printing Industry
Effect of the Growing Corporate Responsibility Movement
Bio-Based Production
Coat Weight
Possible Inhibiting Factors for Hot Melt Industry Growth
Final Thoughts