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Hot Melt Adhesives Market (HMA) are Estimated to Witness High Growth Owing to Opportunity in Packaging Industry

Hot Melt Adhesives Market (HMA) are Estimated to Witness High Growth Owing to Opportunity in Packaging Industry

Hot melt adhesives are thermoplastic polymers that are used to bond or join surfaces upon activation with heat. They are flexible, pressure sensitive, and durable adhesives used in various applications such as packaging, construction, non-woven hygiene, bookbinding, and woodworking among others. Hot melt adhesives offer advantages such as strong and quick bonding properties without the use of solvents and at room temperature. The global hot melt adhesives market is estimated to be valued at US$ 7.84 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing packaging industry offers high growth potential for the hot melt adhesives market. Packaging requires flexible, high-strength, moisture-resistant, and economical adhesives and hot melt adhesives meet all these criteria. They are increasingly being used in corrugated packaging, case and carton sealing, and flexible packaging. Growth in e-commerce has led to surging demand for packaging products, driving the consumption of hot melt adhesives in this industry. Furthermore, regulations promoting sustainable packaging solutions favor hot melt adhesives as they are solvent-free and help manufacture lightweight packaging. The demand from the packaging industry is expected to increase substantially over the forecast period, presenting lucrative opportunities for hot melt adhesive manufacturers.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the hot melt adhesives market is moderate. High capital requirement and established brand loyalty poses barriers for new players. However, low differentiation of products allows scope for new players.

Bargaining power of buyers: The bargaining power of buyers in the hot melt adhesives market is high. Buyers can negotiate on price due to availability of multiple manufacturers. Switching costs are also low.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Due to availability of substitute raw materials, suppliers cannot influence prices much. However, rising costs of raw materials can be passed on to buyers.

Threat of new substitutes: Threat of substitutes is moderate as new alternative adhesive technologies can replace hot melt adhesives in certain applications. However, hot melt adhesives have established demand across diverse industries.

Competitive rivalry: The competitive rivalry is high owing to presence of numerous international and local players. Players compete on pricing, product differentiation, and client relationships.

SWOT Analysis

Strength: Hot melt adhesives provide instant adhesion and find application across packaging, construction, non-woven disposables etc. The market has achieved scale economies owing to stable demand.

Weakness: Frequent price fluctuations of raw materials can affect glue manufacturers. Hot melt adhesives have compatibility issues with certain substrates.

Opportunity: Growing e-commerce has bolstered packaging applications. Biodegradable and recyclable hot melt adhesives present opportunities.

Threats: Stringent environmental regulations on VOCs may deter adhesive use. Development of alternative bonding technologies poses threats.

Key Takeaways

The global Hot Melt Adhesives Market Share is expected to witness high growth over the forecast period backed by thriving packaging and non-woven disposables industries.

Regional analysis indicates that Asia Pacific region dominates the global market currently owing to presence of emerging economies like China and India with burgeoning manufacturing sectors.

Key players operating in the hot melt adhesives market are Zoetis Inc., Elanco, Merck & Co., Inc., Boehringer Ingelheim GmbH, Ceva, Bayer AG, Evonik Industries AG, and Archer Daniels Midland Company. These players are focusing on capacity expansions and new product launches catering to end-use segments. For instance, Arkema launched Pebax Med-Melt hot melt adhesive series targeted at medical device manufacturers.

For more insights, read- https://www.newsstatix.com/hot-melt-adhesives-market-trends-size-and-share-analysis/

For more details on the report, Read- https://dailynewsmotion.weebly.com/report-blog/plant-based-meat-market-is-estimated-to-witness-high-growth-owing-to-opportunity


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