North America Hot Melt Adhesives Market Size, Share & COVID-19 Impact Analysis, By Raw Material (Ethylene Vinyl Acetate (EVA), Polyolefin, Styrenic Block Copolymers (SBC), Polyurethane (PU), Polyester, and Others), By Application (Packaging, Assembly, Woodworking, Transportation, Building & Construction, Footwear & Leather, Nonwovens, Bookbinding, and Others), and Country Forecast, 2022-2029

The North America hot melt adhesives market size was USD 1.86 billion in 2021. The market is projected to grow from USD 1.98 billion in 2022 to USD 2.80 billion by 2029, exhibiting a CAGR of 5.1% during the forecast period. The COVID-19 pandemic has been unprecedented and staggering, with hot melt adhesives experiencing lower-than-anticipated demand across North America compared to pre-pandemic levels. Based on our analysis, the market share exhibited a decline of -8.2% in 2020 as compared to 2019.

Hot Melt Adhesive (HMA) is usually used for manufacturing solid materials based on thermal polymers. The adhesives are 100% solid thermoplastic materials without any flexible organic compounds, which make them safe for use in transportation, production, storage and application. Rising product demand in the construction and packaging industries is a major factor driving North America hot melt adhesives market growth. In addition, the use of HMAs in the automotive industry to maintain storage space and the growing demand in the pressure-sensitive industry are some of the factors driving the overall market growth during the forecast period.

GLOBAL NORTH AMERICA HOT MELT ADHESIVES MARKET OVERVIEW

Market Size & Forecast:

• 2021 Market Size: USD 1.86 billion
• 2022 Market Size: USD 1.98 billion
• 2029 Forecast Market Size: USD 2.80 billion
• CAGR: 5.1% from 2022–2029

Market Share:

• The U.S. led in 2021, rising from USD 1.75 billion in 2020 to with USD 1.86 billion in 2021, driven by packaging, construction, and automotive applications.
• By raw material: Ethylene vinyl acetate (EVA) dominated due to high use in packaging, footwear, and solar applications.
• By application: Packaging held the largest share, followed by assembly (10.7% in 2021) and footwear & leather.
• Canada’s assembly segment accounted for 11.8% in 2021.

Key Country Highlights:

• United States: Strong demand from packaging, woodworking, and automotive interiors.
• Canada: Infrastructure spending and urbanization boost adhesives demand in construction and assembly.
• Mexico: Manufacturing growth drives packaging and footwear adhesive use.

COVID-19 IMPACT

Declining Demand from Various End-user Industries Hampered Market amid the Pandemic

The emergence of COVID-19 in 2020 had a significant impact on hot-melt sales due to declining demand from packaging, footwear, and building & construction industries. Meanwhile, COVID-19 did not have a significant impact on the raw materials supply, aside from transportation delays due to travel restrictions and minor concerns about labor shortages.

Due to changes in international trade relations and the impact of the COVID-19 pandemic, the world is increasingly turning to local production and supply models. Adhesives manufacturers can shorten and increase supply and efficiency by using digital technology to gain a huge advantage. North America hot melt adhesives companies also plan to provide digital products, such as online platforms or portable devices. These dynamics will transmit real-time performance indicators of adhesives and sealants applied to customer assets. In addition, companies are expanding their production bases to benefit from the low manufacturing rates amid the pandemic.

LATEST TRENDS

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Growing Demand for More Environmentally Friendly HMAs to Propel Market

Biodegradable adhesives can be naturally broken down by bacteria, fungi, or other biological processes. Some "biodegradable" adhesives degrade much faster in hot and humid environments than in cold and dry environments. Biodegradable hot melt adhesives are used in packaging, bookbinding, and lamination industries. The increasing demand for more environmentally friendly packaging solutions has subsequently increased the demand for biodegradable hot melt adhesive. The biodegradable adhesive is designed to adapt to customer needs and reduce the environmental effect on packaging applications. Increasing consumer awareness and stringent regulations shall drive the industry growth.

• North America witnessed a north america hot melt adhesives market growth from USD 1.75 billion in 2020 to USD 1.86 billion in 2021.

Compostable adhesives are similar to biodegradable adhesives. A compostable adhesive will not degrade adequately or completely when disposed of in a landfill. However, the compostable adhesive can completely degrade if added to the compost. Additionally, compostable adhesives help improve the soil and detect additional nutrients in the process.

In addition, companies are focusing on adopting compostable and biodegradable adhesive systems in their value chain to gain a competitive edge in the market. For example, in April 2021, H.B. Fuller introduced two compostable adhesive solutions under its Flextra Evolution brand for the flexible packaging industry.

DRIVING FACTORS

Rising Demand from Packaging Industry to Drive Market Growth

In North America, the packaging industry is a major consumer of hot melt adhesives. The enhanced polymer coating in adhesives reduces the amount of resin in thermal solubility, leading to a stable solvent. These adhesives provide extra performance and add to the overall beauty of the package. In today’s world, the packaging is important to the customer experience and is a priority for every firm.

The North American packaging industry is thriving and growing. Due to the increasing trend in online shopping, most of the online products use hot melts as they provide the maximum stability that is essential during transport. These type of adhesives provide excellent adhesion, adaptability to a wide range of surfaces, and durability at various temperatures making them an ideal adhesive for packing these goods.

RESTRAINING FACTORS

Increasing Downtime with Charring of Hot Melt Adhesives to Hinder Market

Charging may be a common problem with these type of adhesives used in packaging applications. Typically, these applications require that the adhesive be placed in a large melt tank. The adhesive will be trapped in the tank and "cooked." Over time, this can lead to charring. Some HMAs maybe scorch at a slower rate than other adhesives, but this problem may occur over time in all types of tanks. If not maintained properly, the deposit will cause charring and damage to the equipment.

SEGMENTATION

By Raw Material Analysis

Ethylene Vinyl Acetate Segment Dominated the Market Due to Rising Application in Packaging, Footwear, and Pharmaceutical Industries

Based on raw material, the market is segmented into ethylene vinyl acetate (EVA), polyolefin, styrenic block copolymer (SBC), polyurethane (PU), polyester, and others.

The rising demand for ethyl vinyl acetate-based hot melt adhesives for packaging, footwear, agriculture, solar panel, pharmaceutical, and assembly industries is likely to boost the regional growth during the forecast period. EVA has good dependability, versatility and durability properties making it preferable for the packaging industry. The growing footwear and leather industry due to excellent weather & chemical resistance, acoustic & thermal insulation, and impact & vibration absorption properties will drive the demand for ethyl vinyl acetate market in the North America region.

In addition, the growing solar energy industry in the region due to the photovoltaic (PV) set up modules in solar cells to produce renewable energy sources in the region is likely to boost the demand for EVA in the region. In addition, during the peak of the COVID-19 pandemic, the packaged goods demand increased, thus creating a huge demand for EVA-based adhesives. With the increasing adoption of environmentally friendly packaging materials and various government programs to create renewable energy sources, the demand for EVA is anticipated to grow significantly during the forecast period.

The polyurethane market is expected to witness significant growth in North America region due to increasing application in construction, automotive, footwear, packaging, and electronics industries. Polyurethane hot melts are quick setting, non-toxic, sustain load-bearing requirements, offer great temperature and weather resistance, and are affordable. These factors are likely to boost North America hot melt adhesives market growth. The growing concerns regarding increasing energy cost, energy losses, and GHG emissions have aided the importance of energy-efficient buildings. In addition, frequent support from the government to establish energy efficiency may drive regional market growth.

By Application Analysis

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Packaging Application Dominated the Market Due to Consumer Inclination for Convenience Packaging

The market is segmented into packaging, assembly, woodworking, transportation, building & construction, footwear & leather, nonwovens, bookbinding, and others, in terms of application.

This market is largely driven by the packaging industry. The presence of large packaging companies in the United States, such as Mondi PLC, Amcor Ltd, Mondi PLC, and others, is driving investments in new product innovation and R&D activities in the region. Furthermore, consumer inclination for convenience packaging could drive market growth. Due to their environment-friendly and cost-effective properties, the wide application of corrugated packaging in non-durable products will boost regional growth rate. This is likely to boost the polyester-based adhesives market growth during the forecast period. Advancements in packaging materials and technologies are increasing the demand for the packaging for the food and beverages industry.

The increasing need for hot melt adhesives in the footwear industry due to breathability and water resistance is likely to boost regional demand. Adhesive manufacturers, such as Eastman have developed various hot-melt, solvent-based, and water-based products for the footwear and leather industry.  According to the Footwear Distributors and Retailers of America (FDRA), in 2021, the U.S. imported around 5.7 pairs of shoes for children, men, and women. The annual sales were around USD 76.9 billion in 2020. The footwear industry in the U.S. was facing retail challenges due to the COVID-19 pandemic. However, most footwear retailers are surviving through the use of robust and innovative strategies both in shoe stores and online. The assembly segment is expected to hold a 10.7% share in 2021.

REGIONAL INSIGHTS

The U.S. market size was valued at USD 1.76 billion in 2021. The U.S. is expected to dominate the market size during the forecast period. In the U.S., the furniture industry is expected to grow during the forecast period due to the increasing residential and commercial construction activities. Increasing woodworking industries in the U.S. are expected to propel the polyurethane-based adhesives market. Due to the increase in automotive industries, HMAs are increasingly used to produce automotive interior panels, thus driving the country's growth.

Rising infrastructure spending in Canada to improve the existing public infrastructure is a key factor driving the construction market growth. The rising demand for better infrastructure in Canada because of rapid industrialization and urbanization may propel the country's growth.

• In Canada, the assembly segment is estimated to hold a 11.8% market share in 2021.

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The region has strict environmental regulations for solvent-based adhesives that should stimulate growth in this market. Additionally, increased government regulations for environmental safety, easy access to products, and limited availability of raw materials can slow down the growth of the product market in the region. Due to the growing demand for practical food and beverage packaging, the growing paperboard and packaging industry is likely to drive sales of the HMA.

KEY INDUSTRY PLAYERS

Key Companies to Adopt Strategies and Broaden their Market Presence

With a few key market players capturing a significant share, the North America hot melt adhesives market share is highly concentrated in nature. Exxon Mobil Corporation, Dow, 3M, Henkel Corporation, H.B. Fuller, and BASF SE are some of the key market players.

Key industry participants are focusing on adopting strategies to expand their product portfolio. The market is characterized by plant expansions and strategic mergers and acquisitions. In February 2021, H. B. Fuller Company launched a new generation of high-performance adhesive that is fluid-resistant, safe for the consumer, and designed to enhance sustainability and fast-moving machinery. Growing regulations banning plastic have resulted in H.B. Fuller's company developing high-performance adhesives to meet the growing demand for paper straws.

LIST OF KEY COMPANIES PROFILED:

• Exxon Mobil Corporation (U.S.)
• Dow Inc. (U.S.)
• 3M (U.S.)
• Henkel Corporation (Germany)
• H.B. Fuller Company (U.S.)
• BASF SE (Germany)
• Sika AG (Switzerland)
• Bostik (France)
• AVERY DENNISON CORPORATION (U.S.)
• LyondellBasell Industries Holdings B.V. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 - H.B. Fuller Company acquired the Belgium-based company Fourny nv, a provider of construction adhesives with experience in technologies focused on commercial roofing, construction and other private label industrial specialties. According to the company, Fourny’s position in the commercial roofing business will allow the localization of products imported from the U.S.
• September 2019 – BÜHNEN, a German hot melt specialist strengthened its U.S. business with a new distribution partner, GLS Products LLC, based in Charlotte, NC. This collaboration will strengthen BÜHNEN’s business in hot melt adhesives in North America.

REPORT COVERAGE

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The market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. In addition, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth in recent years.

This report includes historical data & forecasts revenue growth at country levels, and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation