United Kingdom Hot-melt Adhesives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for hot-melt adhesives in the United Kingdom is expected to register a CAGR of about 5% during the forecast period. The increasing usage of it as a substitute for solvent-borne adhesives is driving the demand of the market studied. However, the slowdown in the automotive industry is expected to restrain the growth of the market during the forecast period.

Key Highlights

• The adoption of bio-based hot-melt adhesives is expected to augment the growth of the market during the forecast period.
• The paper board and packaging sector accounts for the major share of demand from the end-user industries. This sector is expected to continue its dominance during the forecast period.

Key Market Trends

Packaging sector to Dominate the market

• Most of the industrial products are sold in packaging, either due to the requirements for storage and transport or for aesthetic reasons. Hot-melt adhesives are the mainstream adhesives in the paper, board, and packaging industry. It is most widely used for carton closing, sealing, etc.
• The paper board and packaging industry is one of the largest end-user industries accounting for about 11% of the UK hot-melt adhesives market, in terms of volume. Some of the major applications of hot-melt adhesives include bags, cigarettes and filters, cartons’ side seams and closures, composite containers and tubes, disposables, envelopes, flexible packaging, remoisten able products, labels/signs/decals, specialty packaging, corrugated boards, etc.
• Moreover, design improvements and innovation, as well as the shifting focus toward the usage of recyclable materials for packaging, are the factors that are expected to offer numerous opportunities for the growth of the market. Thus, this factor opens up the possibility of launching new products in the market. The United Kingdom packaging manufacturing industry records annual sales of GBP 11 billion. According to the government's figures, the country accounts for the usage of about two million ton of plastic packaging (the leading product segment), annually.
• The food packaging industry is improving, with the measures for environmental protection and high-speed and fully-automated equipment. The PUR hot-melt sealing process is expected to gradually replace conventional bundled packaging and tape packaging, owing to its excellent binding force, good quality, and appearance.
• According to a recent study, the British consumers spend almost GBP 1,500 per year on beverages. Thus, the popularity of premium spirits had been attracting the spirit companies to introduce new premium flavored drinks in the last couple of years.
• Additionally, the increasing popularity of premium mixers, as customers look for sophisticated options, is also driving the demand for hot-melt adhesives for the packaging of alcoholic beverages.

Souring Demand from Styrenic-butadiene Copolymers

• Styrenic-butadiene copolymers (SBCs) are synthetic elastomers that are made by polymerizing styrene and butadiene or styrene and isoprene. These copolymers are also known as styrene copolymer adhesives.
• Among all the types of SBCs and tri-block copolymers, which are based on SBS and SIS, they find importance in adhesive applications. The discontinuous polystyrene phase is responsible for the polymer cohesion, tensile strength, and thermal stability of SBC.
• The continuous polybutadiene or polyisoprene phase leads to better impact strength, elastomeric properties, tack, and adhesive power. The versatility of these copolymers allows additives to be blended when the special balance of performance is required.
• These hot-melts are also used in automotive and electronics assembly operations over laminating films, vehicle graphics, traffic/safety graphics, interior panels, and low-surface energy applications.

Competitive Landscape

The UK hot-melt adhesives market is fragmented, with the top four players accounting for about 42% of the total market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support