Market Challenges And Opportunities

Market Dynamics

Increasing demand for phenol formaldehyde adhesives and laminates from end-use industries such as buildings & construction, automotive, and electronics is expected to boost growth of the global phenol formaldehyde adhesives and laminates market over the forecast period. Phenol formaldehyde laminates are used in manufacturing electrical components such as punch-through boards.

Phenol formaldehyde adhesives are used in wooden chipboard for exterior wall appellations as they offer moisture resistance. In the construction industry, phenol formaldehyde resins are used as wood adhesives and glues for construction grade wood panels. Phenol formaldehyde adhesives offer high moisture resistance and superior water resistance. Phenol formaldehyde reacts with natural phenol-like lignin found in wood to enhance glue to wood bond and sets hard and rigid. Therefore, demand for phenol formaldehyde adhesives from the construction industry is also expected to boost the market growth over the forecast period.

However, presence of cheaper alternatives is expected to hinder the market growth. Urea formaldehyde glue is cheaper compared to phenol formaldehyde adhesives. Moreover, phenol in phenolic adhesive formulations can be replaced with lignin.