North American Hot Melt Adhesives Markets: Industry Research Report

North American Hot Melt Adhesives Markets

Published Date: September 2007

Published By: Frost & Sullivan

Page Count: 112

Order Code: R1-6123

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Description

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This Frost & Sullivan research service titled North American Hot Melt Adhesives Market offers an elaborated analysis in terms of forecasts by end-user applications. This study reviews the important drivers and restraints and explores the future growth potential of radcure coatings market. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following markets; packaging, non-rigid bonding, automotive, woodworking, and construction.

This analysis is available through our Chemicals & Materials Growth Partnership Service program. With this program, clients receive industry-leading market research such as this, along with technical and econometric data and many interactive features including Analyst Inquiry Time and Client Council.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

Packaging
Non-rigid bonding
Automotive
Woodworking
Construction

Market Overview

Product Portfolio Shift Driving Growth

For want of superior performance characteristics, the North American hot melt adhesives market is slowly drifting from the conventional hot melt adhesives towards the use of high-performance products such as reactive hot melts and pressure sensitive hot melt adhesives. This product portfolio shift is driving the overall growth of hot melt adhesives in North America, despite the hot melt adhesives approaching commodity status. Furthermore, the hot melt adhesive is the most preferred technology in the end-user industries, namely, packaging, non-rigid bonding, and automotive. The growth of these industries is driving the overall hot melt adhesives market in North America.

However, increasing raw material costs, due to rising crude oil prices, represent a major challenge for participants in the North American hot melts adhesive market. Raw material prices have been increasing at a rate of around 10 to 12 percent per year, obligating adhesive manufacturers to absorb the cost increase. "Additionally, the trend toward globalization is forcing manufacturers to shift their consumer base to emerging markets, mainly Asia and Central and Eastern Europe," notes the analyst of this research service. "This shift is expected to have a negative impact on the growth of the hot melt adhesives market in North America."

Cost and Productivity Advantages continue to Encourage Uptake

Hot melt adhesives enable increased speeds on production lines due to their high initial tack and rapid setting time. In addition to better productivity, hot melt adhesives deliver cost saving, as they are 100 percent solids and the entire volume is used as an adhesive, while other typical adhesives lose 50 percent to 70 percent of their volume during application. This implies that hot melt adhesives yield more than twice as much coating thickness as solvent and water-based adhesives. Also worth noting is the fact that hot melt adhesives are becoming an increasingly popular alternative to solvent-based adhesives due to the growing concerns over solvent emissions. Hot melt adhesives are less harmful to the environment as their use does not involve the energy-intensive and solvent-emitting drying process, which is a vital part of the solvent-based adhesive application.

With regard to end-user segments, packaging is the single largest end-user segment for hot melt adhesives, representing 54.1 percent by volume of the total North American hot melt adhesive market in 2006. Following this, non-rigid bonding is the second largest end-user segment and is predominantly served by the hot melt technology. "Among the various formulations available in the market, the EVA-based one is the most commonly used hot melt adhesive in North America," says the analyst. "However, reactive hot melts, such as polyurethane are expected to have better growth during the forecast period. Pressure-sensitive hot melt adhesive could also see encouraging growth during 2007-2013."

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