The polyurethane (PU) hot-melt adhesive market is expected to grow at a CAGR of around 7.9% during the forecast period of 2019 - 2024. Major factors driving the market studied are rising environmental awareness, increasing demand from the Asia-Pacific packaging and electronics industry. However, volatility in the availability and price of raw materials is expected to hinder the growth of the market studied.
- Furniture industry dominated the market in 2018 and is expected to grow during the forecast period due to increasing residential and commercial construction activities, globally.
- Rising demand for bio-based PU hot melt adhesives is likely to provide various opportunities for the growth of the market in the future.
- Asia-Pacific region dominated the Polyurethane (PU) Hot-melt Adhesive market across the globe with the largest consumption from the countries such as China, India, and Japan.
Key Market Trends
Paper, Board & Packaging Segment - A Huge Market Potential
- An extremely high proportion of industrial products are sold in packages, either due to stability requirements for storage and transport or for aesthetic reasons. Most packaging materials presently used are different materials laminated together, which require the use of adhesives.
- PU hot-melt adhesives are an excellent solution for carton closing, sealing, and pallet stabilization for food, beverages, and other consumer and industrial products.
- PU hot-melt offers stronger adhesion, and cures better than traditional hot-melts, making it a prudent choice in the growing industrial packaging industry.
- In addition, these adhesives are also available in clear versions, making it easy to hide any glue lines, to give an appearance of continuity in the material. The high visibility makes clear box and folding carton packaging more attractive to consumers.
- PU hot-melt adhesives can bond small cartons to heavy wrap-around cases. The adhesive is perfect for packaging in various industries, such as:
- Perfumes, cosmetics, and beauty products are customarily packaged in transparent cases. PU hot-melt adhesives are used to seal those packages, which ensures a clear application and helps in dispensing a perfect end-product.
- Most of the demand for packaging is from the food and beverage industry. On the other hand, healthcare products are the largest users of folding cartons. These end-user segments are likely to boost the demand for PU hot-melt adhesives in the coming years.
- The APAC region is expected to account for the largest share in the use of PU hot-melt adhesives for the packaging industry. China leads the market for folding cartons, owing to its high purchasing power, combined with rapidly growing consumption, which is likely to fuel the PU hot-melt adhesives industry.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share in 2018. Asia-Pacific is also projected to register highest growth during the forecast period, driven by strong growth of end-user industries, such as packaging, electronics, and automotive, through different countries, such as, China, India, Malaysia, Thailand, and Indonesia.
- China dominated the market for polyurethane hot-melt adhesives in the region, followed by Japan and South Korea. However, the countries, such as India and South Korea are expected to witness highest CAGR during the forecast period.
- Indian government has been taking initiatives to attract FDI's in the manufacturing sector, to make India a manufacturing hub. In this regards, the country has been witnessing investments into end-user industries, such as automotive, electronics, textile, healthcare, etc.
- Besides, ASEAN countries, like Vietnam, Thailand, Indonesia, Philippines, and Malaysia, are also witnessing numerous investment opportunities. With growth in income, and rising population, the demand for electronic products, vehicles, etc. has been increasing. With this, investments and production in such industries have also been witnessing growth, which is further expected to create demand for polyurethane hot-melt adhesives market.
The global polyurethane (PU) hot-melt adhesive market is a consolidated market, where major players account for a significant portion of the market demand. Some of the major players include 3M, H.B. Fuller, Henkel AG & Company KGaA, Arkema Group (Bostik AG), and Sika AG, amongst others.
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