The spending power in developing countries is increasing rapidly on account of rapid urbanization and industrialization. Countries including Indonesia, China, and India are registering significant economic growth, which is taking place due to the rising per capita income. Because of this, the demand for products including electronics, clothes, and footwear is also growing. These products make extensive usage of hot melt adhesives, which is why their requirement is increasing as well. Hot melt adhesive, or hot glue, is a thermoplastic adhesive that is applied using a hot glue gun. The adhesive is commonly sold as solid cylindrical sticks of different diameters and can also be applied by spraying or dipping. 

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As per a report by P&S Intelligence, in 2017, the global hot melt adhesives market generated a revenue of $7,353.1 million and is predicted to attain $10,259.7 million in 2023, registering a 5.7% CAGR during the forecast period (2018–2023). The various product types of hot melt adhesives are polyester, ethylene vinyl acetate (EVA), amorphous polyalphaolefins, polyurethane (PU), metallocene polyolefins, styrenic block copolymer, and polyamide. Out of these, the EVA type was utilized the most during 2013–2017 and is predicted to be the most in demand during the forecast period as well. The fastest growth in demand is expected to be witnessed by the PU type in the coming years.  

Bookbinding, electronics, automobile, textile, footwear, furniture, diapers, and packaging products are the key application areas of hot melt adhesives. Some other application areas include filter and floristry industry. Among these, the largest demand for hot melt adhesives was created for the packaging products application during 2013–2017 and the situation is projected to remain the same in the coming years as well. The fastest growth in demand for hot melt adhesives is expected to be registered by the furniture application, owing to the rising requirement of these products in the furniture industry for fulfilling the needs of the rising population in countries including Germany, India, and China. 

The shift from conventional assembly techniques to new automotive assembly techniques is projected to drive the demand for hot melt adhesives in the near future. In the past, fasteners or welds, which provided high strength and performance, were utilized for bonding different parts in the automotive industry. However, now with the growing need for lightweight vehicles that have increased fuel efficiency, the usage of lighter gauge metals, nonferrous metals, plastics, and coated steels is increasing in the industry. This is further creating rising demand for hot melt adhesives as they are increasingly being utilized for joining different parts of vehicles. 

Out of all the regions, namely Asia-Pacific (APAC), North America, Europe, and Rest of the World, Europe accounted for the major share of the hot melt adhesives market during 2013–2017, which is attributed to the high spending power of Europeans. The APAC region however is predicted to dominate the market by 2023, in terms of volume, advancing at the highest CAGR during the forecast period. This is ascribed to the increasing utilization of hot melt adhesives in different end-use industries such as packaging, electronics, and automotive.