Global Analysis of the Hot Melt Adhesives Market Asia-Pacific Market is Likely to Maintain Growth Momentum

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September 2013

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Research Team

Sandeepan Mondal Industry Analyst

Chemicals, Materials & Foods

91-80-6702-8070

sandeepanm@frost.com

S d M d l

Lead Analyst Research Director

Leonidas Dokos Research Director

Chemicals, Materials & Foods

(44)-(0)-1865-398-685

leonidas.dokos@frost.com

Special Thanks

Deepan Kannan Industry Manager

Deepak Karthikeyan Industry Analyst

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Contents

Section Slide Number

Executive Summary 4

Market Overview 8

Introduction to Hot Melt Adhesives 15

Total Hot Melt Adhesives Market -

• Drivers and Restraints 24

• Forecasts and Trends 32

• Market Share and Competitive Analysis 48

North American Hot Melt Adhesives Segment 56

European Hot Melt Adhesives Segment 78

Asia-Pacific Hot Melt Adhesives Segment 100

The Last Word 122

Appendix 125

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Executive Summary

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Executive Summary

• The global hot melt adhesives (HMA) market is expected to grow from $3,561.6 million in

2012 to $5,013.5 million in 2019 at a compound annual growth rate (CAGR) of 5.0%.

• Although the contribution of Asia-Pacific market for hot melts is meagre compared to other

regions, it is better positioned to have high growth for hot melt formulations.

• Overall, ethylene-vinyl acetate- (EVA) and polyolefin-based HMAs are likely to dominate

throughout the forecast period and there is a substitution trend between the 2 chemistries

as supply of their raw material dictates.

• HMA prices will increase, but it will not be a substantial increase as in 2010 and 2011

because of supply shortages and diversion of raw materials to more profitable end markets.

• From the application point of view, packaging and non-rigid bonding will continue to

dominate among all end-user applications because of steady growth in these sectors, while

automotive, tapes, and construction will have greater growth rates because of higher

penetration of reactive and pressure sensitive hot melts.

Source: Frost & Sullivan

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Executive Summary—Market Engineering Measurements

Market Stage

Growth

Market Revenue

$3,561.6 M

(2012)

Market

Units/Volume

818.6 kT

(2012)

Average Price

per Kilogram

$4.4

Market Size for

Last Year of

Study Period

$5,013.5 M

(2019)

Base Year

Market Growth

Rate

7.6%

Compound

Annual Growth

Rate

5.0%

(CAGR: 2012–2019)

Market

Concentration

76.1%

Degree of

Technical

Change

7

(scale: 1 [Low] to 10 [High])

Total Hot Melt Adhesives Market: Global, 2012

Stable Increasing Decreasing g

(% of market share held by top 4 companies)

For a tabular version click here.

Number of

Competitors

30-40

(active market competitors in base year)

Market Overview

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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Executive Summary—CEO’s Perspective

2 EVA and polyolefins are likely to remain the dominant base polymer chemistries used in hot melts globally.

3

Technological advancements are focusing on extending open times, lowering odour, and enabling lower density and higher green strength.

4 The price of HMAs is likely to increase, but there would be a decrease in the total cost of ownership for the customer.

5 The HMAs market is highly consolidated due to a series of mergers and acquisitions (M&A) that took place in the past 4 years.

1 Global HMAs market is likely to expand at a single-digit growth rate.

Source: Frost & Sullivan