The disposable income of people in developing countries is growing rapidly, which is resulting in their rising spending power. Countries including Indonesia, China, and India are registering significant economic growth, owing to which people have started spending widely on consumer goods. The demand for products such as footwear, clothes, and electronics has increased considerably over the past few years. Since hot melt adhesives are used extensively in the product of such products, their demand is increasing rapidly as well. 

 

The global hot melt adhesives market is predicted to advance at a significant pace in the near future. The demand for these products is also rising due swift urbanization and growth of the packaging industry. The packaging industry is growing due to the expansion of the e-commerce sector and increasing penetration of internet and smartphones. The preference for online is growing rapidly all across the globe, which is driving the growth of the packaging industry, and, in turn, the demand for hot melt adhesives. 

 

A major trend being witnessed in the domain is the switch from conventional techniques to advanced assembly methods in the automotive industry. The need for decreasing the weight of vehicles is high for increasing their efficiency, owing to which, manufacturers have now started making use of adhesives for joining automotive parts rather than mechanical fasteners and welds. The swift adoption of electric vehicles across the globe is further projected to drive the demand for hot melt adhesives in the automotive industry. 

 

The hot melt adhesives market is predicted to generate a revenue of $10,259.7 million by 2023, increasing from $7,353.1 million in 2017, and is predicted to grow at a 5.7% CAGR during the forecast period (2018–2023). In terms of product, the market is divided into Styrenic block copolymer, ethylene vinyl acetate (EVA), polyamide, polyurethane, metallocene polyolefins, amorphous polyalphaolefins, and polyester, among which, the EVA division held the largest volume share of the market in 2017. 

 

EVA has several advantageous properties, including durability, quicker setting time, and suitability in different temperature ranges. The demand for this product is predicted to increase in the coming years, owing to the expanding construction and automotive industries. In terms of application, the market is categorized into bookbinding, diapers, packaging products, automobile, furniture, textile, footwear, and others. The automobile category is predicted to register the fastest growth due to the growing use of hot melt adhesives for assembling vehicle components. 

 

Geographically, the European region dominated the hot melt adhesives market, as per a report by P&S Intelligence. The high spending power of people in the region is creating high demand for hot melt adhesives. In addition to this, the sales of automobiles in the region is quite high, which is also resulting in the growth of the market.    

In conclusion, the demand for hot melt adhesives is increasing due to the rising spending power of people across the globe and expansion of construction and automotive industries.