Asia-Pacific Hot-Melt Adhesives Market - Segmented by Resin Type, End-user Industry, and Geography - Growth, Trends and Forecast (2018 - 2023)
The Asia-Pacific hot-melt adhesives market is expected to register a moderate CAGR during 2018-2023 (the forecast period). Owing to the rapidly increasing use of hot-melt adhesives in the production of automotive and packaging applications in China, the country is likely to lead the market. Based on end-user industry, the paper, board, & packaging segment of the market is expected to grow at the fastest pace.
Growing Demand from the Automotive and Packaging Industries
In Asia-Pacific, owing to the rapid growth in demand for hot-melt adhesives from the packaging and automotive industries, the need for hot-melt adhesives is increasing, consistently. Also, owing to a steady growth in the food-processing sector, the demand for packaging has been increasing, especially in countries like India, and China, among other South Asian countries. Additionally, the rise in work pressure and consumer shift toward modern lifestyle food needs are the factors fueling up the demand for packaged foods, which, in turn, is boosting the demand for hot-melt adhesives in the packaging sector. The automotive industry employs hot-melt adhesives for a host of applications, including bonding, insulating, and cushioning materials, bonding headlight, fixing cables in the roof lines, to bond door sill protectors, and other plastic parts, and for wheel covers. They can also be used to bond emblems, as well as anchor plates onto gear knobs. The application of adhesive bonding enables a significant weight reduction of the vehicle, an increase of the body stiffness, improved crash performance/safety, and enhanced NVH characteristics as compared to conventional joining technologies. In 2017, the Indian automotive industry grew by 5.83%. Between the FY 2006-2017, the passenger vehicle segment witnessed the fastest growth, registering a CAGR of around 10%. The Automotive Mission Plan 2016-26 (AMP 2026) targets a fourfold growth in the automotive industry. The Chinese government is planning to introduce over 1 million electric vehicles by 2020, which is further expected to drive the market for hot-melt adhesives in the country.
Paper, Board, & Packaging - the Fastest Growing End-user Industry
An extremely high proportion of all industrial products are sold in the packaging industry, either due to the stability requirements for storage & transport or aesthetic purposes. Applications of hot-melt adhesives range from corrugated box construction and lamination of printed sheets to packaging materials that are used for all types of consumer products and the production of large industrial tubes and cores. Although normal envelopes and paper bags consist of just a single layer of the material, most packaging materials used nowadays are of different materials laminated together. The improvement in living standards and higher incomes, especially in the developing countries of Asia-Pacific, have fueled up the demand for a broad range of products, all of which require packaging. Therefore, the demand for packaging has increased the demand for hot-melt adhesives. The production of tapes and labels has been experiencing an immense growth. Asia-Pacific is the largest market for bookbinding adhesives in the world. The demand for books and related materials is expected to increase, with the growing population and literacy rate.
China to Lead the Market
The Chinese Ministry of Transport and National Development and Reform Commission (NDRC) have planned to invest about USD 724 billion during 2016-2018, in order to construct over 303 key transportation projects, including railways, highways, waterways, airports, and urban rail. Under the 13th five year plan (2016-2020), the Chinese government is planning for infrastructure development of 30,000 km of railway lines and 30,000 km of expressways. In 2017, the production of light vehicles in the country recorded a growth of 1.6% YOY, reaching an overall production of 24,806,687 units. Aging population, increase in urbanization, and rise in income are a few factors driving the healthcare industry in the country. In 2017, the healthcare expenditure increased, as the fiscal spending increased by over 8 % YOY. In 2017, the production of trucks in China recorded a growth of 28.5% YOY, reaching an overall production of 2,257,562 units.
Notable Developments in the Market
October 2017: H.B. Fuller’s acquired Royal Adhesives & Sealants for USD 1.575 billion. This acquisition is likely to deepen H.B. Fuller’s expertise in a range of sectors, such as medical, electronics, hygiene, transportation, construction, clean energy, and others.
Major Players: Henkel AG, HB Fuller, Arkema, Sika AG, and 3M, amongst others.
Reasons to Purchase this Report
The impact of end-user applications on the market
Various perspectives of the market with the help of Porter’s five forces analysis
The most dominating technology in the market
Countries that are expected to witness the fastest growth rates during the forecast period
The latest developments, market shares, and strategies that are employed by the major market players
3 months analyst support, along with the Market Estimate sheet (in Excel)
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