Six major players from the global hot melt adhesives market together accounted for a considerable 75.0% share in 2015, notes Transparency Market Research in a new study.
Sika AG, DOW Coming Corning Corp., Henkel, H.B. Fuller, Jowat SE, and 3M Co., are key businesses who have managed to set up a good stronghold in this market. Most companies are trying to increase their exports for improving geographical outreach. This, along with the foray of new small- and middle-sized businesses in this market is expected to make competition tougher in the near term, according to our experts.
In context to the market’s numbers, the global hot melt adhesives market had registered a valuation of US$6.00 bn in 2015. This value is further anticipated to grow by registering a healthy CAGR of 5.20% to become worth US$9.44 bn by 2024.
hot melt adhesives marketAsia Pacific to outrun other Regions and Claim a Lion’s Share in the Market
With respect to the end-use segments in the global hot melt adhesives market, the packaging industry holds a leading position vis-à-vis revenue generated and is expected to hold on to it in the near future.
From a geographical perspective, Europe holds a preeminent position in the global hot melt adhesives market with respect to market share due to a stable packaging industry over here. Besides Europe, Asia Pacific is predicted to grow at a rapid pace, mainly due to an increasing demand for optimally packaged consumer goods, beverages and foods.
Encouragement by Governmental Rules and Regulations Stokes Sales
Owing to voluminous applications of hot melt adhesives in industries such as construction, packaging, and electronics, the market is receiving a substantial boost for in sales all over the globe. Many companies dealing with the adhesives have properly established themselves in several developed as well as developing economies, the latter being in Asia Pacific and Latin America. Such a geographical expansion has positively reflected on the global hot melt adhesive market’s growth. An overall improvement in the packaging quality of foods and beverages also is highly contributing towards a flourishing market. Most of the adhesive products are perfectly safe while using in different conditions, as well as eco-friendly. As a result of these characteristics, many governmental agencies are encouraging the use of these adhesives by amending various policies and regulations. This has caused a considerable upsurge in demand in the global hot melt adhesives market.
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In contrast to the drivers explained above, the global hot melt adhesives market is affected by a few restraints, which may lead to reduction in sales. Oil price fluctuations and the overall dicey nature of the crude oil industry is a prominent hindrance to the market. This is mainly because of the widespread need for using oil products for manufacturing the adhesives. However, with decrease in war and strife in the Middle East, the oil prices are expected to bounce back to their former glory, leading towards a decrease in the hindrances affecting the hot melt adhesives market.