Hot Melt Amorphous Polyalphaolefin (APAO) Market Analysis

Hot Melt Amorphous Polyalphaolefin Market Analysis

By product, hot melt APAO market is categorized into two segments viz. homopolymers and copolymers. Copolymers have a significant share in hot melt APAO market owing to its many properties such as better impact strength, durability, and toughness. Although it is softer than homopolymers, it has better resistance to stress cracks and toughness in low temperatures.
 

Homopolymers are characterized by high strength to weight ratio and has better stiffness, weldability, and chemical resistance and are extensively used in corrosion resistant structures. This segment will likely grow at a CAGR of more than 6% during the forecast timeframe.
 

Global hot melt APAO market is categorized into six segments as per its application. These include paper & packaging, bookbinding, personal hygiene, product assembly, woodworking, and other applications, including, automotive assembly, textiles, plastics, etc. Paper & packaging application segment has more than a third share of the overall hot melt APAO market owing to the wide-ranging use of the product in this industry. This share is expected to increase at a healthy rate during the forecast timeframe.
 

Personal hygiene application segment also has a substantial share of the hot melt APAO market and it is poised to increase at a fast pace due to growing awareness and demand for personal hygiene products such as diapers, feminine hygiene products, etc. in the developing and underdeveloped countries. This segment generated revenue more than USD 30 million for the hot melt APAO market in 2016.
 

North America and Europe has a substantial share of the global hot melt APAO market owing to the developed packaging industry in those regions and increasing demand for packaged food products. Increased penetration of e-commerce in North America and Europe has also resulted in a high demand for hot melt adhesives needed for packaging. Awareness about personal hygiene products is also more in these regions creating a stable demand for these products. In 2016, North America and Europe together registered a revenue more than USD 120 million.
 

Asia Pacific share of the global hot melt APAO market is poised to grow at a CAGR close to 7% during the forecast timeframe. This can be attributed to improving economic condition of the region which has fueled a demand for packaged products. Increasing demand for personal hygiene products will also influence the hot melt APAO market in this region positively. Shifting of manufacturing bases to developing countries like China and India will also play a significant role in the growth of amorphous polyalphaolefin demand in the coming years.