California Hot-Melt Adhesives Market to See Modest Growth through 2022
The California hot-melt adhesives market is expected to reach $159.7 million by 2022, according to a new report by Grand View Research Inc. The California hot-melt adhesives market size was 105.1 million lbs in 2014, and it is expected to reach 131.3 million lbs by 2022, growing at a compound annual growth rate (CAGR) of 2.8% from 2015 to 2022. The increasing requirement for quicker bonding time in high-speed product assembly and industrial applications is expected to boost industry growth over the forecast period.
Rising environmental concerns regarding volatile organic compounds (VOCs) emissions have driven substitution of conventional adhesive technologies, such as solvent-based, with hot melts. Stringent environmental regulations regarding adhesive additives implemented by federal agencies such as the U.S. Environmental Protection Agency (EPA) and U.S. Chemical Safety Board are expected have a major impact on industry dynamics, particularly in terms of product formulation and production.
Ethylene vinyl acetate (EVA) adhesives are expected to remain the largest product segment due to high usage by numerous end users seeking better adhesion on non-porous substrates such as metals and glass. The segment accounted for over 37% of total market volume in 2014 and is expected to witness the highest growth of 3.1% over the forecast period. With the increasing consumer requirement for greater flexibility in curing and setting times, polyurethane hot melts are expected to gain in terms of usage.
Packaging was the leading application segment, accounting for 29.1% of total market volume in 2014. Burgeoning demand for individually packaged goods (owing to high per capita income), coupled with growing preference for superior performance characteristics, is leading to high hot melt demand in packaging and general industrial applications. Disposables are expected to be the fastest-growing application segment over the forecast period. Migrant population growth, increasing birth rates and population maturity are major factors driving hot melt consumption in packaging.
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