The South America hot-melt adhesive market is expected to register a moderate CAGR during the forecast period, 2018 - 2023. Brazil is estimated to lead the market, owing to the increase in production of automotive in the country. By end-user industry, the automotive segment is expected to be the fastest growing among all.
Increasing Usage as a Substitute for Solvent-borne Adhesives
Hot-melt adhesives contain 100% solids and no solvent. Hot-melt adhesives combine different positive attributes found in various unique adhesives. Most solvent-based adhesives contain flammable solvents, which require critical precautions for safe handling. In addition, the solvent-borne adhesives are not recommended because of the environmental concerns related to their emissions. Hot-melt adhesives have numerous advantages over solvent-based adhesives, which include the removal of hazardous air pollutants (HAPs) and volatile organic compounds (VOCs), elimination of plant explosion risk, which corresponds to lower insurance costs, fast setup time and reduced cost, and no requirement for air pollution control devices in hot-melt adhesive systems. Odor elimination is the additional benefit that comes with hot-melt adhesives, which has assisted in driving the replacement of solvent-based adhesives. Elimination of odor is a key priority for the packaging industry. In packaging materials, most odors are related to the solvent that is used in adhesives. Odors stem not only from solvents but also from the thermal and UV degradation of the solvents.
Automotive - The Fastest Growing End-user Industry
Hot-melt adhesives provide environmental resistance from corrosion, UV light, salt water, rain, and other weathering conditions. They create tough, impact-resistant bonds having high shear strength, and high abrasion resistance, and therefore, have a wide range of applications. The market for these adhesives is quite extensive and includes several applications in the transportation industry, such as aircraft & aerospace, railways, vehicle assembly, marine, interior vehicle trim, exterior vehicle trim, automotive module sealing, and electronic circuit board protection. Hot-melt adhesives act as critical components in the automotive manufacturing industry, as they are ideal for all bonds that require flexibility for moments, like expansion and compression. Their automotive applications include package tray attachment, seating, instrument panels, and controls, door sealant, water shields. In the aerospace industry, they are used to make lightweight designs for aircraft. In railways, they are used in interior rail construction, floor bonding, light cover assembly, and exterior metal skin bonding.
Brazil to Lead the Market
In 2017, the Brazilian automotive industry recorded a growth rate of 25.2% Y o Y, reaching a total of 2,699,672 vehicles. With an increase in the number of government social housing programs, including, “Minha Casa, Minha Vada”, the demand for adhesives in Brazil has increased. Construction of new hotels, coupled with the refurbishment of the existing houses, is likely to boost the demand for hot-melt adhesives. The footwear market in Brazil has been majorly occupied by global apparel and footwear players, which include Nike, Adidas, Puma, and Geox. The footwear market is majorly driven by cotton consumption, textile consumption, personal disposable income, and the native population.
Notable Developments in the Market
- November 2017: Bostik acquired XL Brands in flooring adhesives in the United States.
- October 2017: H.B. Fuller’s finalized its acquisition of 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, and clean energy, among others.
Major Players: Henkel AG, HB Fuller, Arkema, Sika AG, and 3M, among 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 dominating technology in the market
- Countries expected to witness the fastest growth rates during the forecast period
- The latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
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1.1 Research Phases
1.2 Scope of the Market
1.3 Study Deliverables
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter's Five Forces Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products and Services
3.2.5 Degree of Competition
4. Market Dynamics
4.1.1 Accelerating Demand from the Automotive Industry
4.1.2 Increasing Usage as Substitute for Solvent-borne Adhesives
4.1.3 Increasing Applications in a Vast Range of Industries
4.2.1 Volatility in Availability and Price of Raw Material
4.2.2 Other Restraints
4.3.1 Adoption of Bio-based Hot Melt Adhesives
4.3.2 Innovative Product Development to Gain Competitive Edge
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By Resin Type
5.1.1 Thermoplastic Polyurethane
5.1.2 Ethylene Vinyl Acetate
5.1.3 Styrenic-butadiene Copolymers
5.2 By End-user Industry
5.2.1 Building & Construction
5.2.2 Paper, Board, & Packaging
5.2.3 Woodworking & Joinery
5.2.5 Footwear & Leather
6. Regional Market Analysis
6.6 Rest of North America
7. Competitive Landscape
7.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
7.2 Market Share Analysis**
7.3 Strategies Adopted by Leading Players
8. Company Profiles (Overview, Financials**, Products & Services, and Recent Developments)
8.2 Alfa International Corporation
8.3 American Chemical Inc.
8.4 Arkema Group (Bostik SA)
8.5 Ashland Inc.
8.6 Avery Dennison Corp.
8.7 BASF SE
8.8 H.B. Fuller Co.
8.9 Henkel AG & Co. KGaA
8.10 Hexcel Corporation
8.11 Jowat AG
8.12 Hernon Manufacturing Inc.
8.13 Master Bond
8.14 Paramelt BV
8.15 Pidilite Industries Ltd
8.16 Sika AG
8.17 Wacker Chemie AG
*List Not Exhaustive
**Subject to availability on public domain