Europe Hot Melt Adhesives Market Overview
The Europe Hot Melt Adhesives Market is expected to grow at a CAGR of 8.89% during the forecast period (2024-2031).
Hot melt adhesives are formulations based on thermoplastic polymers which can be softened and reshaped on heating above their melting point. These adhesives are applied to the material in a liquid state and offer easy to clean application with minimum toxicity. The market is segmented based on the product type as glue sticks, sprayable adhesives, and bulk hot melt adhesives. Bulk hot melt accounts for a significant market share of XX% in the year 2019. It is expected to grow at a CAGR of 9.12% during the forecast period. In the context of material type, the ethyl-vinyl acetate segment holds the largest market share of XX% in 2019 with a growth rate of 8.78% during the forecast period. EVA resin is used as a primary raw material in hot melt production pertaining to its economic feasibility and high performance. EVA offers superior heat & UV resistance, low-temperature flexibility, and high toughness which is utilized in interior liners of automobiles.XX is projected to have the largest market share and dominate the Europe Hot Melt Adhesives Market from 2020 to 2027 due to the presence of major automobile manufacturing units and allied industries around the region. The major trend witnessed in the Europe Hot Melt Adhesives Market is the switch from traditional techniques to new assembly methods by automobile manufacturers are switching.
The global COVID-19 pandemic has led to a sudden pause in manufacturing activities across the globe, affecting the demand for hot melt adhesives and also its production. The most critically impacted end-use segments of the hot melt adhesives include automotive & transportation.
The global economy has been largely affected by the growth in the automotive sector. The sector employs more than 9 million people alone in the manufacturing of automobiles globally, which includes over 5% of the global manufacturing workforce. Many other industries including iron, steel, plastics, textile, glass and rubber among others are dependent on the demand from the automotive sector.
It is estimated that global automobile sales will decline about 23% in 2020. Initially, the disruption in supply and manufacturing hampered the industry significantly and now with the multifold decline in demand has led to uncertainty regarding the recovery.
According to the XX, passenger vehicle sales declined 51% to 143,014 units in March 2020 in XX. Also, sales of commercial vehicles declined 88% to 13,027 units, those of two-wheelers fell 40% to 866,849 units. The COVID-19 outbreak has crashed the automotive industry tremendously. The U.S. is anticipated to witness a decline of 27% in automobile sales in 2020.
The automotive industry is struggling with an abrupt and widespread stoppage of economic activity, as workers are told to stay at home, supply chains grind to a halt, and factories closed. Lockdown prohibited the movement of people, and the sudden closure of economic activity caused a severe contraction in sectoral output and gross domestic product (GDP).
The Europe Hot Melt Adhesives Market is likely to witness a significant decline in 2020 owing to the supply chain disruption and diminishing demand caused by the COVID-19 pandemic. However, the market is likely to take a sharp upward turn in 2021 and reach pre COVID-19 level owing to a recovery in demand from the packaging, industrial assembly, and nonwovens industries.
