Growth Predicted for Hot Melt Adhesive Market in China
BEIJING – In a new market study, GCiS China Strategic Research estimates that the domestic market for hot melt adhesives in China is valued at over RMB 10.1 billion, or $1.6 billion, as of the end of 2014. The study finds that the market will continue to grow at above GDP growth rate in the next few years, driven by China's continued rapid development in key end-user industries, and will reach RMB 15 billion by 2019.
There has been a strong regulatory push to incentivize use of environmentally friendly products, which in combination with an increased environmental consciousness among the public has put pressure on adhesive-using manufacturers to opt for HMA, which has no VOC emissions, over alternate solvent-based adhesives. While HMA has key applications in textile, packaging, furniture, and hygiene products industries, GCiS forecasts electronics will continue to have the highest growth, where hot melts are used for the manufacturing and assembly, of electronic components, chips and boards, cell phones, and computers. In total, these end-user industries are reported to have consumed over 400,000 metric tons of HMA in China.