Environment-friendly Hot Melt Adhesives Contribute to “Green” Development

By Zhao Qingfang, China Adhesives and Tape Industry Association, Hangzhou Renhe Hot Melt Adhesive Co., Ltd.

EVA & SBC make up 70% of output

Sales of 102 hot melt adhesive producers in China increased impressively in 2016, rising to 833.5kt from 751.2kt in 2015, growing 10.96% YoY, slightly slower than the 12.71% growth in 2015, according to statistics of China Adhesives and Tape Industry Association, Hot Melt Adhesive Committee. Figure 1 shows the details.
The total sales value of China’s hot melt adhesive market increased from RMB13.909 billion in 2015 to RMB15.542 billion in 2016, growing 11.74%, a little faster than 2015’s 9.27%. Growth of the sales value was 0.78 percentage points higher than growth of the sales volume in 2016, mainly because of rising prices for most raw materials in the second half of the year, transformation/upgrading of products and an increase in added value. Figure 2 shows the details.
The sales volume of hot melt adhesives based on PO (polyolefin) was 95.3kt in 2016, an increase of 5.2% over 2015 and accounting for 11.4% of the total. The sales value was RMB2.136 billion, accounting for 13.7% of the total. Their applications in automobile upholstery materials, packaging, filters and healthcare materials will become bright spots in the future.
The sales volume of hot melt adhesives based on ethylene/vinyl acetate copolymers such as EVA (ethylene/vinyl acetate) and EVAR (reactive ethylene/vinyl acetate) was 370.5kt. The focus remained on EVAR hot melt adhesives that grew rapidly (pushed mainly by the development of “green” energy strategies, the sales volume of solar photovoltaic thermal cross-linking EVA hot melt adhesive film still grew around 32.4% in 2016). The sales volume increased 13.6% YoY and accounted for 44.5% of the total. The sales value was RMB6.132 billion, accounting for 39.45% of the total.
Sales of hot melt adhesives based on styrene block copolymers such as SIS (styrene/isoprene/styrene), SBS (styrene/butadiene/styrene) and SEBS (styrene/ethylene/butylene/styrene) grew quite rapidly in 2016. The sales volume was 251.2kt, a YoY increase of 13.5% and accounting for 30.1% of the total. The sales value was RMB44.653 billion, accounting for 29.9% of the total. Sales of healthcare materials and express delivery bags grew considerably.
The sales volume of other hot melt adhesives such as those based on PUR (polyurethane), TPU (thermoplastic urethane), PA (polyamide) and PES (polyester) was 116.5kt in 2016, a YoY increase of 2.9% and accounting for 14.0% of the total. The sales value was RMB2.621 billion, accounting for 16.9% of the total. Sales growth of garment hot melt adhesive powders and films slowed in 2016. Shoe material sales grew considerably though. Reactive PUR hot melt adhesive sales also grew quite rapidly.
Varieties of hot melt adhesives based on EVA and SBC still made up 74.6% of the total sales volume and growth was quite rapid. Products based on PO and some other varieties were being restructured. Sales of hot melt adhesives with typical traditional formulations grew quite rapidly.

Low environmental impact drives rapid demand increase

Table 1 shows the application sectors of hot melt adhesives in China in 2016.
The sales volume of hot melt adhesives to makers of paper boxes, paper cartons and paper bags reached 67.0kt in 2016, up 13.2% YoY, owing to these adhesives’ convenience in use and their replacement of water-based adhesives and solvent adhesives. The sales value was RMB1 386 million. This growth was faster than the average growth of the sales volume in past years.
With China’s rising standard of living, healthcare materials and supplies for the aged are constantly upgraded, leading to stable growth in demand for hot melt pressure-sensitive adhesives. With rapid development of internet-based retail, in particular, demand for hot melt adhesives in making express delivery bags has grown rapidly. Demand for hot melt adhesives in making labels and tapes was generally stable however. The sales volume of hot melt adhesives in this sector reached 236.0kt in 2016, up 6.6% YoY. The sales value was RMB4 467 million.
The automobile industry developed steadily in 2016. With growing awareness of environmental protection, more and more hot melt adhesives replaced water-based adhesives and solvent adhesives in installing automobile upholstery. The growth of this market segment was quite rapid in 2016. The sales volume reached 35.0kt, up 16.28% from 2015. The sales value was RMB732 million.

Table 1   Market of hot melt adhesives in China, 2016

Category    Sales volume (kt)    Sales value (million RMB)    Growth of sales volume (%)
Paper/paper boards/related products    Packaging    67.0    1 386    7.07
    Flexible packages, composite films, perfect binding    19.5    249    
    Healthcare materials, hot melt pressure-sensitive adhesives    236.0    4 467    
Communication/transportation (various vehicles and components)    35.0    732    16.28
Shoes/leather products    38.0    617    6.74
Consumption/retail sale    57.0    1 010    -12.3
Building/construction/civil engineering    33.0    595    -7.56
Timber processing/products    26.0    279    -4.41
Assembly/other operations    Solar energy adhesive film    233.0    4 145    
    Garment interlining    60.0    1 470    25.58
    Household electric appliances, filters, etc.    29.0    592    
Total    833.5    15 542    10.96


The top three application sectors for hot melt adhesives in 2016 in terms of sales volume were paper/paper boards/related products (38.7%), assembly and other operations (38.6%) and consumers/home-use (6.8%). Figure 3 shows the details. Application sectors with the most rapidly growing sales volume included assembly and other operations (25.98%), communication/transportation (16.28%) and paper/paper boards/related products (7.07%). The sales volume shrank in three sectors: consumers/home-use (-12.3%), building/construction/civil engineering (-7.56%) and timber processing/products (-4.41%). Variations among different application sectors became more evident. Hot melt adhesive applications in making solar energy equipment and filters developed rapidly. The growth of hot melt adhesives in manufacturing automobiles, healthcare materials and household decorations was quite high. The growth of hot melt adhesives for perfect binding, adhesive bars and timber processing, however, declined further.
China’s market for hot melt adhesives will continue to improve in the next few years, with annual growth to reach around 9%.