The surging automotive and food packaging sectors have profoundly impacted the commercialization of hot melt amorphous polyalphaolefin (APAO) market. Currently, automakers have been using this product extensively, for weight reduction of vehicles to improve fuel efficiency. The lower molecular weight of APAO as well as increasing awareness among the consumers about fuel efficiency will stimulate hot melt APAO industry size over the years ahead. in addition, pertaining to the product’s adhesive nature, it is essentially used in the automobile sector to bond different materials. The surging adoption rate of personal cars across the globe will thus, subsequently boost the industry growth. As per estimates, hot melt amorphous polyalphaolefin (APAO) market was valued at USD 200 million in 2016 and will surpass a revenue collection of USD 380 million with a CAGR of above 6% over 2017-2024.
U.S. Hot Melt Amorphous Polyalphaolefin (APAO) Market size, by application, 2013 – 2024 (USD Million)
Modernization has paved the way to changing consumer habits with regards to meal consumption. People across the globe have been giving preferences to packaged food, owing to their sedentary lifestyles. Thus, the increasing adoption of packaging facilities across the pharmaceutical, e-commerce, and food & beverage sectors will favorably fuel hot melt APAO market share, particularly across the Asia Pacific. The APAC region, for the record, has witnessed huge growth in the e-commerce and food & beverage sectors since the last decade, owing to the surging industrialization across this region. On that note, Asia Pacific hot melt amorphous polyalphaolefin market will collect a revenue of more than USD 100 million by 2024 with an annual growth rate of 7% over the coming seven years. Improving economic background mainly across emerging countries such as China, India, and Indonesia along with surging consumption of packaged products will cater to the regional industry growth. The product’s usage in plastics, textiles, and woodworking will also help augment Asia Pacific hot melt APAO industry.
Most of the industry giants have shifted their manufacturing bases across APAC, owing to cheap labor and inexpensive manufacturing costs. Globally, the key participants in hot melt APAO market include Evonik Industries, Huntsman Corporation, Henkel AG & Company, REXtac, Arkema, H.B. Fuller, Eastman Chemical Company, ADTEK Malaysia Sdn Bhd., Evans Adhesive Corp., Glue Machinery Corp., Bond Tech Industries, Liaoyang Liaohua Qida Chemicals Co., Ltd., and Texyear Industrial Adhesives.
The awareness about personal health and hygiene among the people is increasing exponentially across the globe, considering the surging occurrence of health problems due to personal uncleanliness. In that regard, hot melt amorphous polyalphaolefin market share from personal hygiene, worth USD 30 million in 2016, will register noticeable annual growth rate over the years ahead. Rising demand for personal care products including the ones for feminine hygiene and baby health will considerably influence the growth potential of this particular segment.
The populace across the geographies of North America and Europe have depicted relatively more awareness regarding the usage of personal hygiene products. This is evident from the fact that both the continents encompass a massive manufacturing base of personal care products. In 2016, North America and Europe collectively accounted for more than USD 120 million of the overall hot melt amorphous polyalphaolefin industry. Growing demand for packaged food products across these regions will enhance the industry growth. Surging penetration of e-commerce across these continents is also slated to stimulate hot melt APAO industry share noticeably.
The paper & packaging sector contributed to more than 30% of the overall hot melt amorphous polyalphaolefin market share in 2016 and will, in all probability, collect substantial revenue by the end of 2024. This product is used in the paper & packaging sector for a plethora of distinct purposes, which will subsequently boost the hot melt APAO industry size.
APAO products are used as bonding agents in automotive components, as they help to improve the stiffness and rigidity of vehicles without affecting their weight. On that note, homopolymers have better stiffness, superior strength to weight ratio, excellent chemical resistive nature, and better weldability, which will propel homopolymer-based hot melt APAO market share, especially from automotive and packaging applications. As per reliable estimates, this segment will record an annual growth rate of above 6% over the years ahead. Moreover, homopolymers are widely used to produce corrosion resistance structures as well.
Introducing innovative products is one of the most commonly adopted strategies of hot melt APAO industry players to score an edge over their rivals. They have also been, in addition, making considerable investments to make products as user-friendly as possible considering the many risks associated with adhesives. These incessant efforts by major corporations are certain to bear fruit generate excessive valuation for hot melt APAO market over the years ahead.