The Reserve Bank of India (RBI) states that the per capita gross national income (GNI) and per capita net national income (NNI) surged from INR 1,41,439 crore in the financial year (FY) 2018–2019 to INR 1,50,025 crore in FY 2019–2020 and INR 1,26,521 crore in FY 2018–2019 to INR 1,34,226 crore in FY 2019–2020, respectively in India. Further, the Census and Economic Information Center (CEIC) estimates that the per capita national income of Indonesia increased from IDR 38,325,249.839 in 2017 to IDR 40,916,368.165 in 2018.
The surging per capita income has caused a massive rise in the adoption of electronics, clothes, and footwear in the emerging economies, such as India and Indonesia, owing to which the hot melt adhesives market will grow at a CAGR of 6.1% during 2020–2030. According to P&S Intelligence, the market was valued at $7,717.0 million in 2019 and it will reach $12,761.3 million revenue by 2030. Additionally, the expanding packaging sector, on account of the rising demand for packaged edible items and the flourishing e-commerce industry, will also catalyze the market growth globally.
The application segment of the hot melt adhesives market is classified into automotive, bookbinding, diaper, electronics, footwear, furniture, packaging, textile, and others, such as health care and building and construction. Among these, the packaging category will generate the highest revenue during the forecast period due to the booming demand for packaged food and beverages and the flourishing pharmaceutical sector. Whereas, the furniture category is projected to exhibit the fastest growth throughout the forecast period, owing to the surging furniture demand in India, Germany, and China, on account of the growing population in these countries.
Globally, Asia-Pacific accounted for the largest share in the hot melt adhesives market in 2019, owing to the presence of manufacturing hubs in India, Japan, South Korea, and China. Moreover, the rapid shift of manufacturing industries from western nations to APAC countries, on account of the availability of cheap raw materials and cost-effective labor, is facilitating the market growth in the region. Additionally, the region is also expected to display the fastest growth in the forecast period due to the mounting per capita income and burgeoning population.
Therefore, the escalating per capita income, growing packaging industry, and soaring EV sales will accelerate the consumption of hot melt adhesives in the foreseeable future.