The unique properties of hot melt adhesives, including adhesion to a broad assortment of surfaces, effortless use, aging features and strength, is attracting interest in a variety of sectors. Aerospace, nonwovens, transportation, automotive and electronics are finding increasing usage of these adhesives, according to a study released by Global Industry Analysis, Inc.
Automotive industry demand is gaining traction due to the ability of hot melt adhesives to bond with engineered plastics, ceramics and other types of composites.
Electronics represents another major emerging end-use sector where the miniaturization trend and the ensuing use of lightweight engineered plastics, is opening up new application possibilities for hot melt adhesives.
Despite growing demand, the market faces challenges in the form of rising prices and tight supply of raw materials, according to the report. While the constrained supply situation is offering challenges to adhesive producers to secure reliable sources of supply, the high cost of feedstock is exerting pressure on profit margins, forcing them to implement price increases.
Nevertheless, high demand for elastic and stretch adhesives has been shifting the onus on polyolefin-based adhesives, which are not only capable of lowering manufacturing costs but also aid in curbing maintenance issues. These adhesives, which are widely used in packaging and hygiene products sectors, are forecast to make inroads into newer applications in the near term.
As stated by the new market research report on Hot Melt Adhesives, Asia-Pacific represents the largest as well as the fastest growing market, followed by the United States and Europe. India and China represent the growth engines in Asia-Pacific supported by aggressive investments by global majors. In Latin America, Brazil and Argentina are emerging as promising markets for adhesives and sealants. Globally, packaging represents the largest end-use segment.