Flooring Adhesive Market

Market Overview

The global flooring adhesive market size was valued at USD 5.6 billion in 2023 and is projected to reach  USD 10.3 billion by 2032, registering a CAGR of 7.0% during the forecast period (2024-2032). Growing investments in the construction industry, particularly in the residential and commercial sectors, are expected to drive flooring adhesive market growth during the forecast period.

Flooring adhesive is a type of adhesive designed specifically to adhere various flooring materials to substrates. It is used to install several types of flooring, including carpet, vinyl, hardwood, laminate, tile, and other resilient materials. Flooring adhesives are designed to generate a strong and long-lasting bond between the flooring material and the substrate, ensuring optimal installation and performance.

The global floor adhesives market share is fast growing due to increased demand from construction due to its versatility, safety, and ease of application. Furthermore, increased demand for polyurethane adhesive for hardwood flooring is likely to drive demand for floor adhesive in coming years. The worldwide floor adhesive market is predicted to grow rapidly. In 2023, the market was developing steadily, and with increasing acceptance of procedures by key businesses, it is likely to exceed the anticipated skyline. Growing awareness of environmentally friendly products is shifting the focus away from solvent- and water-based adhesives. This will boost the water-based floor adhesives market size throughout the forecast period.

Highlights

• Acrylic accounts for the largest share of the market in terms of resin.
• Resilient Flooring contributes significantly to the market by application.
• The commercial segment dominates the market by end-use.

Market Dynamics

Global Flooring Adhesive Market Drivers:

Rapid Urbanization and Construction

As global urbanization accelerates, so does construction activity, which includes residential, commercial, and industrial projects. Many parts of the world are experiencing fast urbanization, resulting in the construction of new residential complexes, commercial buildings, and infrastructure projects such as highways and bridges. Cities in growing countries, such as China, India, and Brazil, are seeing significant urban growth, increasing demand for new building projects and, consequently, flooring adhesives.

In 2023, 57% of the global population lived in cities. This suggests that the global rate of urbanization will be 57% in 2023. North America, Latin America, and the Caribbean had the highest urbanization rates, with more than four-fifths of the population living in cities. 

Furthermore, the real estate industry is important in driving construction activity. Large-scale real estate projects, such as residential townships, commercial complexes, and mixed-use developments, necessitate extensive usage of flooring adhesives to install diverse flooring materials. The United Arab Emirates, particularly Dubai, is one of the most appealing places in the Middle East. The UAE has a stable economy, high-quality infrastructure, a well-regulated market, and a growing population, which generates demand. In 2023, the UAE real estate market experienced an increase in new project launches, with 6,500 residential units supplied in Abu Dhabi and 34,950 in Dubai. 

Furthermore, government measures to improve infrastructure, healthcare, education, and transportation help to drive construction activity. Public-sector investments in projects such as schools, hospitals, airports, and public transportation networks drive the demand for flooring adhesives in new and renovated buildings. The FAA invests USD 130 million in airports to improve safety and increase capacity. This includes USD 20 million for smaller airports to replace or modify air traffic control towers and USD 110 million in grants to 74 airports across 32 states to improve airfield safety and modernize airport and runway infrastructure. 

Global Flooring Adhesive Market Restraints:

Fluctuating Raw Material Prices

Resins, solvents, and additives are key raw materials in the flooring adhesive industry. Fluctuations in raw material prices can impact firms' production costs and profit margins. Price volatility can also lead to questionable pricing tactics, compromising market stability.

Crude oil price fluctuations directly affect the prices of these basic materials. Crude oil prices changed in 2023 due to the EU's embargo on Russian crude oil imports, interest rate hikes, and concerns about inflation and recession. Price swings increased in the second half of 2023 due to global tensions and concerns over crude oil demand. According to the United States Energy Information Administration (EIA), crude oil prices were very volatile in 2023, with Brent crude oil prices averaging USD 83 per barrel, down from USD 101 per barrel in 2022. Brent crude finished at USD 77.04 per barrel on the final trading day of 2023, while U.S. West Texas Intermediate crude settled at USD 71.65 per barrel, down more than 10% year to date. Oil price volatility is caused by supply and demand's slow response to short-term price swings. In the short term, oil production capacity and equipment that rely on petroleum products as their primary energy source remain reasonably stable.

Furthermore, the American Chemistry Council (ACC) monitors pricing trends for various chemical goods. Their data reflect price swings for key chemical feedstocks such as ethylene and propylene, which might impact adhesive producers' raw material costs. The costs of ethylene and propylene, two important chemical feedstocks, can change due to supply and demand, geopolitical events, natural disasters, and energy prices. In 2021, the average global price of ethylene was around USD 1,000 per metric ton; in 2022, it increased to USD 1,060. In the final week of November 2023, ethylene prices in Europe fell due to excessive inventory levels and poor demand. In the Asia-Pacific area, the propylene market in Q4 2023 was problematic due to a supply-demand imbalance affected by crude oil prices. 

Global Flooring Adhesive Market Opportunity:

Expansion of Green Building Practices

The increased emphasis on sustainability and environmental responsibility opens up the potential for producers to create eco-friendly flooring adhesive solutions. Formulating adhesives with minimal volatile organic compound (VOC) emissions, using renewable or recycled ingredients, and gaining eco-certifications can appeal to environmentally concerned customers and help to differentiate the market. China led the globe in LEED green construction projects in 2023, certifying nearly 24 million square meters of space, followed by Canada with 7.9 million square meters. India placed third with about 77 million square feet, while Turkey rated fourth with 36 LEED-certified projects.

Manufacturers can provide flooring adhesives with low volatile organic compound (VOC) emissions to meet green building standards and regulations. For example, water-based or solvent-free adhesives can considerably reduce VOC emissions, enhancing indoor air quality and occupant health. For example, Chemique Adhesives, located in the United Kingdom, recently developed Polyped 1, a VOC-free (Volatile Organic Compounds) one-component pedestal adhesive designed specifically for bonding raised flooring pedestals to concrete subfloors. 

Furthermore, using renewable ingredients, such as bio-based resins or natural polymers, in adhesive compositions might improve their sustainability credentials. For example, bio-based adhesives manufactured from soybeans, starches, or lignin are biodegradable and have a lower environmental impact than traditional petroleum-based adhesives. A multinational building materials company that provides diverse products and solutions to the construction sector. CEMEX is dedicated to sustainability and provides innovative solutions for green building and urbanization.

Regional Analysis

North America Dominates the Global Market

The global flooring adhesive market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global flooring adhesive market shareholder and is estimated to grow at a CAGR of 6.8% over the forecast period. The growing emphasis on residential and institutional development activities in North America is expected to drive demand for flooring adhesives in the region over the projected period. In 2018-19, the US government's fiscal stimulus helped to boost corporate confidence in the country. It also helped to maintain continual building spending in the United States, which fueled market expansion in the country. 

In addition, the increase in construction investment in the United States is a favorable indicator of the country's flooring adhesive market. Construction operations were deemed essential in several sections of the country in 2020. As a result, overall construction investment in the United States grew in 2020, which was very encouraging during the pandemic. 

Furthermore, Canada's 2024 budget contains USD 1 billion for communities to address immediate infrastructure needs and USD 5 billion for agreements with provinces and territories on long-term goals. The budget also includes funding for research and science infrastructure, residential development, and water and wastewater infrastructure. This resulted in a boom in demand for flooring adhesives across the country. 

Asia-Pacific is anticipated to exhibit a CAGR of 7.1% over the forecast period. In terms of volume, the region accounted for 40% of the global market by 2020. The Asia Pacific flooring adhesive market is expected to grow substantially over the forecast period. Rising demand for the product in the housing sectors of countries such as India and China is expected to boost regional market expansion in the coming years.

Additionally, in 2023, China's industrial output expanded by 4.6% yearly, one percentage point higher than in 2022. The value added of industrial firms larger than a specified size increased by 0.52% month on month in December 2023. Various measures enacted by the Indian government, such as Smart City projects and Housing for All by 2022, are projected to boost the slowing construction industry. Furthermore, recent regulatory reforms, such as the Real Estate Act, GST, and REITs, will likely shorten approval delays and improve the construction sector in the coming years. 

European countries prioritize technological innovation, durability, and environmental sustainability in flooring adhesives. The EU's rigorous VOC emissions laws and the increased demand for green construction materials have resulted in substantial advances in adhesive technology, including solvent-free and water-based solutions. The government's effort for greener construction methods has resulted in the development of stricter adhesive standards and regulations. Recent endeavors include the creation of bio-based adhesives and recycling schemes to reduce the environmental impact of flooring installations. 

The Middle East requires high-performance adhesives that endure harsh temperatures with its luxury real estate and commercial projects. The demand for high-performance adhesives in the United Arab Emirates (UAE) is predicted to rise as construction and renovation projects increase. 

Segmental Analysis

The global flooring adhesive market is segmented based on resin, application, and end-use.

The resin market is further segmented into acrylic, polyurethane, and polyvinyl acetate.

The acrylic segment dominated the flooring adhesive market, accounting for 40% of total sales. Acrylic resin is a thermoplastic polymer noted for its high adhesive strength and adaptability. Acrylic resins are popular in flooring adhesives due to their quick cure durations, high bonding strength, and resilience to moisture and climatic conditions. Acrylic-based adhesives adhere well to various substrates, including concrete, wood, and metal, making them ideal for multiple flooring applications. 

Additionally, a substantial percentage is attributable to the fast-setting time of acrylic resins and their enhanced adherence to difficult-to-bond surfaces. They have good environmental resilience. Acrylic resins create aqueous, heat-resistant, and UV light-curing adhesives. These are ideal for resilient and wooden floorings on moisture-free, porous, or rough surfaces. They are highly resistant to plasticizer migration and provide robust and durable bonding. Following the 2021 Tokyo Olympics, there is likely a greater emphasis on developing sports infrastructure, raising demand for asphalt and wood floors, and contributing to increased acrylic adhesive use. 

Polyurethane is another crucial market area for flooring adhesives. The rising demand for polyurethane adhesives has prompted raw material providers to expand their production capacity. For example, in January 2020, BASF announced plans to expand its polyurethane dispersion business in Europe. With this expansion, the company hoped to expand its adhesives, parquet flooring, and automotive and industrial coatings offerings.

The market can be bifurcated by application into Resilient Flooring, Wooden Flooring, and Laminate Flooring.

The resilient flooring segment had the highest revenue share of 50% in 2023. This Flooring consists of color, binders, and fillers. Asphalt and resin act as binders, while limestone, groundwood, and synthetic fibers are fillers. These are made from elastic materials, including rubber, PVC, and linoleum. This Flooring suits high-traffic locations such as manufacturing units, restaurants, hospitals, sports facilities, schools, dance floors, playrooms, living rooms, shower rooms, garages, and home gymnasiums. Its extensive applicability is driving segment expansion and increasing adhesive demand. 

Wooden Flooring is expected to be the fastest-growing category over the projected period because of its increasing importance in luxury construction in both residential and commercial regions. It has several benefits, including strength, durability, ease of maintenance, attractiveness, a high monetary worth of a home, a consistent appearance, the option of refinishing, increased acoustics, and improved air quality.

Based on end-use, the market is fragmented into Residential, Commercial, and Industrial.

The commercial sector dominated the flooring adhesive market, accounting for over 30% of total revenue. Commercial applications have heavy traffic areas and require durable flooring such as resilient hardwood. Adhesives are essential in such flooring applications and can be found in a wide range of commercial building applications, including offices, convenience stores, shopping malls, and retail stores. 

In recent years, the increased development of commercial buildings, such as drugstores, grocery stores, and big-box retailers, is projected to boost the segment's growth. Furthermore, strong demand for office space, particularly in urban regions of emerging countries, is driving up demand for high-quality flooring adhesive.

The residential category includes flooring adhesive applications for homes, apartments, condominiums, and other residential properties. The residential category is expanding rapidly, thanks to government subsidies for first-time homebuyers in developing and industrialized nations. Countries like Australia, Canada, Germany, and India have launched various initiatives to promote real estate development. 

Moreover, these projects are essentially supported by the governments of these countries, benefiting the construction industry's demand side. This is expected to drive market expansion in flooring adhesives in the future years.

Recent Developments

• April 2024- Bostik, Arkema's adhesive solutions division, invested in UV acrylic hot melt pressure sensitive adhesive (UV acrylic HMPSA) capabilities, expanding UV acrylic HMPSA production inside its North American facilities and bringing its high-performance portfolio to market.
• March 2024- Dow introduced bio-circular and circular propylene glycol solutions in North America.
• January 2024- Sika received an "AA" sustainability rating from MSCI ESG Research and is ranked as an industry leader by Sustainalytics ESG Rating.