The global PUR hot melt adhesives market is expected to value at USD 1,000.78 million (in terms of revenue) and XX kilotons (in terms of volume) in 2016, and is likely to reach USD 1,416.84 million and XX kilotons by 2021, growing at a CAGR of over 7.20%, and 6.65% respectively, during the forecast period, 2017-2022.
PUR hot melt adhesives are solvent-free solid compounds, with negligible or no VOCs (volatile organic compounds) when compared to solvent-based adhesives. These adhesives are preferred over other adhesives for their properties such as high-temperature resistance, moisture resistance, excellent flexibility and their ability to bond with a wide range of materials including metals, plastics, and wood. These features make them suitable for a majority of commercial and industrial applications. The different application segments taken into consideration in this report are hygiene products, automotive, furniture, packaging, footwear, electronics, textile, and bookbinding, among others.
A number of factors, such as growing demand from the packaging and electronics industries in the Asia-Pacific region, growing environmental awareness, and increasing applications in a vast range of industries, drives the market. On the flipside, the volatility in raw material prices is a major factor impeding the market PUR hot-melt adhesives growth.
The premium pricing of PUR hot melt adhesives hinders the growth of the market. Additionally, the level of consumer awareness regarding PUR hot melt adhesives products in countries such as India and China is still lagging behind their Australian, European and North American counterparts. This has resulted in lower market penetration of PUR hot melt adhesives solutions. This is despite India and China being the two biggest consumer markets for overall adhesives, with the presence of research facilities dealing with newer PUR hot melt adhesives product innovations.
PUR glues are a recent development for perfect binding, which is largely different from the EVA and SBR (styrene butadiene rubber) hot melts. They polymerize when applied and form stronger bonds than traditional hot melts. They also possess superior flexibility and can withstand a larger range of temperature. They are expensive than traditional EVA hot melts (2-4X) but application rates are much lower. Transitioning to reactive hot melt polyurethane (PUR) offers companies a way to stay relevant and competitive.
There is less control on the consumption of high VOC adhesives in China and India due to the absence of relevant government policies. Market players are keen to expand their product portfolio to offer innovative products to consumers at competitive prices. The major market players are focusing on R&D activities to innovate products under the regulations of EPA and REACH. Other development strategies opted by market players include signing agreements and collaborations to optimize their distribution chain in the growing economies.
The global PUR hot melt adhesives market is segmented based on type, and application. By type, the global PUR hot melt adhesives market is segmented into reactive and non-reactive. Based on application, the market is segmented into packaging, hygiene products, automotive, furniture, footwear, textile, electronics, bookbinding, and others. Based on geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa.
In 2016, in terms of revenue, China is expected to lead the Asia-Pacific region with a share of 48.71%. Improvement in the financial status of the consumers, rise in their purchasing power, and a changing lifestyle pattern (food consumption pattern in particular) are boosting the demand for automobiles, packaged food products, hygiene products and electronic goods. This, in turn, makes the region an area of immense potential and opportunities for PUR hot melt adhesives.
The rising demand for bio-based PUR hot melt adhesives products and other innovative product developments is projected to offer numerous opportunities for the growth of the global PUR hot melt adhesives market. Some of the major companies dominating this market are 3M, Arkema Group (Bostik), Jowat AG, DIC Corp., Henkel AG & Co. KGaA, H.B. Fuller, and Dow Chemicals.