WOOD ADHESIVES MARKET ANALYSIS

The global wood adhesives market is expected to surpass US$ 20.84 Billion by the end of 2030 in terms of revenue, exhibiting a CAGR of 8.3% during the forecast period (2023 to 2030).

Drivers

• Rapidly expanding construction industry: One of the major factors driving the demand for the global wood adhesives is the rapid growth of the construction industry in the developing countries of the Asia Pacific region. Over the forecast period, the rapid rebound in the housing sector, combined with commercial and infrastructure development, is expected to drive significant demand for wood adhesives.
• Consumer spending on home décor and luxury furnishings: Consumer expenditure on home décor and luxury furniture has increased significantly as disposable income has increased, which is expected to drive the global wood adhesives market. When compared to screws, bolts, and other means of bonding, the use of wood adhesives for bonding timber, plywood, and other products provides a superior aesthetic appeal. As a result, wood adhesives are in high demand. The growing popularity of lightweight materials is expected to drive up demand for wood adhesives. More than 58.9% of houses in Japan are made of wood, making it the world's largest country for the construction of wooden houses, resulting There has been a rise in the use of wood adhesives In glue-laminated beams (Glulam), the beams are structurally engineered and bonded together with moisture resistant adhesives. These are used as straight beams, columns, which include lintels, purlins, ridge beams, floor beams, tied rafters, and trusses, in the construction of buildings where the application of wood adhesives is very high. Growing construction activity in countries such as China, Japan, the U.K., the U.S., Russia, and India is expected to drive the market for global wood adhesives over the forecast period.

Market Restraints

• High production cost of wood adhesives: Price and availability of raw materials are the key factors for adhesive manufacturers in determining the cost structure of their products. The high raw material prices of plastic resins, synthetic rubber, inorganic chemicals, industrial inorganic chemicals, and refined petroleum products might limit the target market’s growth to a certain extent. Moreover, complexity in production processes of wood adhesive may hamper the global wood adhesives market’s growth over the forecast period. Raw materials used by the adhesive industry include plastic resins, synthetic rubber, inorganic chemicals, industrial inorganic chemicals, and refined petroleum products. The major challenge market player’s face throughout the world is controlling the prices of raw materials and equipment required for wood adhesives because of the volatility in crude oil prices.

Opportunity

• Growing demand for low-VOC (Volatile Organic Compound) adhesives: Because the top players in the wood adhesives market are seeking sustainability, switching to low VOC content products is one of the key trends in the market Low-VOC wood adhesives are more environmentally friendly than solvent-based adhesives. Aside from being environmentally beneficial, water-based low-VOC solutions feature quick dry periods, little odor, and are simple to clean with soap and water.

Market Trends

• Adhesives made from natural resins boost the market: Natural resin adhesives are becoming more popular as a result of the global trend toward sustainable development and technological advancements.High-molecular-weight, biocompatible, biodegradable polymers with natural content are used in natural resin-based adhesives. They have significant bonding capabilities and could be used in both industrial and high-tech commercial applications. Research&Development activities will be focused on biotechnology developments to increase the usage of bio-based goods and natural resource-based materials and be authenticated to various demonstration levels. This will increase the demand for natural products in different end-use industries. The potential use of animal- and plant-based resources in the manufacturing of adhesives is creating value in various industries by facilitating biodegradable products.

Figure 1. Global Wood Adhesives Market by End User in 2022

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 Market segment

• On the basis of end user, in 2022, the furniture segment held the largest revenue share of 61.20% in the global wood adhesives market. The increasing per capita disposable income of customers across the globe has elevated furniture demand substantially, owing to growth of the wood adhesives and binders global wood adhesives market growth. Furthermore, the increasing number of non-residential projects is expected to influence the furniture demand, as a large number of desks and other furniture would be required. Wood-based panels find wide application scope in furniture as they are lightweight, well finished, and durable as compared to traditional wood. Unlike glass, these panels can be used to manufacture sturdy and durable interior decoration items, which are expected to have a positive impact on the segment growth over the forecast period.

Figure 2. Global Wood Adhesives Market by Region in 2022

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• Among region, Asia Pacific held a dominant position in the global wood adhesives market in 2022, accounting for 35.10% market share in terms of revenue, followed by Europe and North America. Construction is expected to grow rapidly in this region, particularly in emerging economies such as China, India, Indonesia, and Vietnam. This is likely to boost demand for engineered panels, which would support the growth of the wood adhesives market. According to the International Monetary Fund’s (IMF), World Economic Outlook, China and Japan are the world’s second-and third-largest economies in 2021 in the Asia Pacific region, respectively. According to the Population Reference Bureau, the fastest-growing consumer markets of China, India, and other APAC countries had a combined population of more than 4.3 billion people (as of 2020) and are expected to become a more important driver of global consumption over the next two decades, thanks to rapidly rising household incomes and a rapidly growing middle-class population.

Global Wood Adhesives Market - Impact of Coronavirus (Covid-19) Pandemic

The global COVID-19 pandemic has contributed to a sudden pause in manufacturing activities worldwide, impacting adhesives demand as well as their development and processing, which will lead to a hindrance in the wood adhesives market in 2020-2021. The pandemic's global economic slowdown has resulted in a drop in disposable income among consumers all across the world. This has resulted in a significant drop in demand for wooden furniture and other high-end items, as well as a drop in demand for wood adhesives.

Key development

• In January 2023, Sika has launched MB EZ Rapid, a one-component, quick-drying moisture barrier, adhesive substrate sealer for the installation of all residential and commercial floor coverings. Sika MB EZ Rapid is suitable for plywood, concrete, plaster and old cutting
• In February 2023, Sika extended its engagement with Innosuisse, the Swiss Innovation Agency, a body established by public legislation, in order to develop science-based innovation for the benefit of industry and society. Sika increased its joint research on wood-concrete composite elements for creative and sustainable hybrid structures for the building sector following the successful testing of hybrid precast elements to reduce the quantity of concrete used in industrial construction.
• In October 2021, Araldite, with the introduction of "Araldite Carpenter," entered the wood glue market. The launch is directed at the general public, contractors, and carpenters, who are the product's intended users.
• In September 2021, Henkel, a German conglomerate, quietly increased its influence in adhesives. While Pidilite is best known for consumer-oriented names such as Fevikwik and Fevicol, Henkel is strong in the industrial adhesives area, providing solutions to industries such as automotive, metals, packaging, and aerospace.

Competitive Section

Key players operating in the global wood adhesives market include Henkel AG & Co. KGaA, Sika AG, The 3M Company, Arkema, HB Fuller, Bostik SA, Ashland Inc., Pidilite Industries Limited, Akzo Nobel NV, and Jubilant Industries Ltd.

*Definition: Wood adhesives are substances that are used to bind two wooden surfaces. Various chemicals, such as formaldehyde, urea, melamine, isocyanate, and others, are used to make wood adhesives. Adhesives used in industry might be water-based, solvent-based, or produced using other technologies. Wood adhesives have a wide range of applications in the construction sector for making furniture, cabinets, doors, and windows. It is also used in the packaging industries.