The global market for Wood Adhesives was valued at USD 5.27 billion in 2021 and is expected to reach USD 7.99 billion in 2030 expanding at a compound annual growth rate (CAGR) of 4.73% from 2022 to 2030. There has been an increase in the amount of money that consumers are spending on home décor and luxury furniture goods due to the growing emphasis on the enhancement of the standard of life. Due to this, there has been a large increase in the demand for wood materials such as lumber, plywood, and other products that have a stronger aesthetic appeal. When compared to the use of metal fasteners and other methods of bonding, the use of adhesives for the purpose of bonding has a number of advantages that are not offered by other conventional methods. These advantages include a quicker drying and setting time, improved adhesion, compatibility of use with a variety of substrates, higher strength, and an aesthetic appeal that is superior. The assembly of wood requires the use of wood adhesives for a variety of tasks, including edge glueing, dowel insertion, mitre glueing, tongue and groove joints, and finger jointing. For applications involving wood works, a wide range of adhesives—from natural to synthetic, offering adhesion and other qualities according to specific requirements—are utilised. These adhesives can be either water-based or solvent-based. The development of wood adhesives that have a greater resistance to the moisture content of wood as well as humidity is now the primary focus of many manufacturers. Due to the relative simplicity of application and raw material procurement, the use of wood adhesives has also led to a drop in overall product costs and labour expenses. This is one of the many benefits of using wood adhesives.
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It is projected that expanding activities related to refurbishing and renovation, in conjunction with a growing number of builds, would promote market growth. Additionally, government initiatives geared toward environmentally responsible building practises have resulted in an increased demand for engineered wood and wood products in the form of furniture for use in both residential and commercial applications. This will result in an increase in demand for wood adhesives over the course of the forecast period.
It is anticipated that activities such as remodelling, and renovation would add to the demand for furniture since higher living standards will drive these activities. The expansion of the service sector in developing countries has resulted in the construction of new office spaces and corporate buildings. This has, in turn, had an effect on the demand for furniture made of wood, which is projected to fuel the growth of the market for wood adhesives.
The increasing number of people's concerns about the deforestation of forests and the effects of climate change have resulted in an uptick in the demand for engineered wood panels. A substantial amount of glue is required for the production of engineered wood panels such as oriented strand board, plywood, and particle board. These panels must be manufactured. For instance, plywood is manufactured by laminating sheets of veneer with an adhesive resin. As a consequence of this, it is probable that the need for wood adhesives will increase as a result of the increased demand for wood panels.
In addition, an increased awareness of the deterioration of the environment, an expanding customer base, and expanded and constant research and development efforts are all expected to raise the market for bio-based wood adhesives. It is anticipated that the availability of abundant raw materials of bio-based adhesives including starch, soy, and maize would have a favourable impact on the growth of the wood adhesives market throughout the course of the projected period.
The adhesive manufacturers are putting a strategic focus on growing their footprint and capitalising on the high growth potential in emerging economies such as China, India, Brazil, and Mexico. Other rising economies also fall under this category. Due to less severe laws and data needs, the regulatory policies in the APAC area are more adaptable and business-friendly than those in other regions. The ever-increasing level of competition in established markets will further drive makers of adhesives to direct their attention toward developing markets.
Figuring out how much their products will cost, adhesive makers' decisions are heavily influenced by the costs and accessibility of the raw materials they use. Raw materials utilised by the adhesive business include plastic resins, synthetic rubber, refined petroleum products, inorganic chemicals, and industrial inorganic chemicals. Because the vast majority of these raw materials are petroleum derivatives, their prices are susceptible to swings in the prices of other commodities. Furthermore, oil prices have been extremely unstable in recent years as a direct result of the pandemic as well as political unrest in the Middle East.
Because the leading players in the wood adhesives market are interested in sustainability, one of the important trends in the industry is the shift toward products with low volatile organic compound (VOC) content. Wood adhesives with low volatile organic compound emissions are better for the environment than solvent-based varieties. Water-based low-VOC products, in addition to having features that are good to the environment, have a reduced amount of odour, dry quickly, and are simple to clean with soap and water.
The market for Wood Adhesives is segmented into the following categories: Product, Application, Substrate, and region.
In 2018, urea-formaldehyde (UF) led the market, accounting for 37.8 percent of total sales. Urea-formaldehyde is a non-transparent thermosetting resin for wood that is frequently used. It has excellent qualities such as strong tensile strength and flexural modulus. To manage flow, viscosity, and resin penetration in wood, fillers and extenders are added to the resin. They're commonly employed in the production of interior grade plywood and particleboard. Water resistance is a significant disadvantage of UF adhesives. When compared to other resins, melamine urea-formaldehyde (MUF) resins have higher water resistance. A recent trend shows the development of MUF resin adhesives for finger jointing of sawmill waste timbers, as well as for the production of bamboo flooring tiles and bamboo laminates. These resins are the most often used for exterior and semi-exterior panels. Soy-based adhesives are predicted to grow at the highest rate of 7.5 percent between 2019 and 2025. In the woodworking sector, they are mostly replacing petrochemical-based adhesives. These adhesives are safe for the environment and increase the overall function of the wood panel. Isocyanates have great moisture resistance and are used to connect agricultural cellulosic wastes like bagasse and straw. Methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI) are the most widely utilised isocyanates (TDI).
With a revenue share of 47.2% in 2018, furniture was the most popular application. Since wood-based panels are lighter, more polished, and more durable than typical wood, they have a wide range of applications in furniture. In contrast to glass, these panels may be employed to create strong, long-lasting interior design items, which is anticipated to positively affect the segment's growth over the following seven years. With a CAGR of 5.4 percent in terms of revenue from 2019 to 2025, the flooring application is anticipated to have the highest increase. The demand for flooring is expected to rise as a result of rising per capita disposable income and rising housing demand. Customers may obtain improved aesthetics at a cheaper cost by using plywood floors. The demand for wooden flooring is projected to increase due to an increase in restoration and renovation projects in developed countries, which will fuel the market's expansion for adhesives.
For waterproofing and to improve the overall texture and appearance, wood adhesives are being used more often on residential and commercial doors and windows. Because it improves the UV filtering of the films, the substance is also utilised in the production of window films.
Wood is used to construct housing components such as studs, joists, rafters, sheathing, and siding. Over the course of the projected period, market expansion is anticipated to be largely fueled by rising demand for residential space as a result of increasing urbanisation and rising living standards. The demand for designed housing components to ensure energy sustainability, attractiveness, and efficiency is also being driven by new residential and commercial development activities.
With a volume share of 29.5%, plywood led the market in 2018. From 2019 to 2025, the segment is anticipated to increase at the quickest rate. The fundamental component of plywood is a collection of veneers that are joined together with glue. In the upcoming years, expansion in plywood manufacturing, particularly in Asia Pacific, is anticipated to promote market development. Another important market for the product is oriented strand board (OSB). The logs are divided into strands of a particular size and assembled in wet bins prior to drying. In order to build the board, the dried strands are combined with glue and a little quantity of wax. This increases the board's resistance to moisture and water absorption. Over the projection period, there is expected to be a rise in the demand for oriented strand board (OSB) as a substitute for plywood and solid boards, particularly in North America and Europe. From 2019 to 2025, it is predicted that the amount of wood adhesive used in particleboard (PB) would increase at a CAGR of 4.2 percent. In order to create particleboard, wood flakes and glue are combined, and the sticky material is then formed into thin sheets. In Europe, particleboards are quite popular. Due to its reduced price, particleboard can replace some of its competitors, including plywood. Compared to plywood, it is more homogeneous, less expensive, and denser. Over the course of the projection period, this is anticipated to have a favourable effect on product demand. The building and furniture sectors have a wide range of uses for medium-density fiberboard (MDF). The market will be driven by rising demand for wood furniture, flooring, and cabinets. Over the projection period, the segment growth is anticipated to benefit from the Asia Pacific region's strong expansion of the residential and commercial building & construction industry.
Based on region the market is classified into North America, Europe, Asia Pacific, Latin America and Middle East.
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With a 46.7 percent share of global sales in 2018, Asia Pacific came in first. Over the course of the prediction, the area is expected to maintain its supremacy. The rapid growth of the population in Asia Pacific countries, combined with a high demand for affordable housing and government initiatives to promote basic necessities such as food and shelter, has fueled the growth of the construction industry in the region, which is expected to boost the wood adhesives market over the forecast period.
Given that China is one of the world's top producers of wood-based panels, the wood-panel business there is of significant economic significance. It is projected that the region's well-established wood panel sector would help drive the expansion of the wood adhesives market along with the region's consistent supply of wood goods. Additionally, it is anticipated that rising urban and industrialization would fuel market expansion during the projection period.
One of Europe's top producers of wood adhesives is Germany. Due to the building and furniture industries' strong demand, the wood adhesives market has grown quickly in recent years. Strong economic growth has significantly benefited the furniture business and improved consumer demand.
However, the European debt crisis and macroeconomic uncertainty are likely to impede the expansion of a number of industrial sectors in Germany, including the furniture and housing construction industries. This is anticipated to have a detrimental effect on the wood adhesives market over the course of the forecast period.
The 3M Company (Saint Paul, Minnesota, United States), Arkema, Henkel AG (Düsseldorf, Germany), and Sika AG (Baar, Switzerland) are the major companies in the wood adhesive industry (Colombes, France).
Henkel made an investment in a new innovation hub in Shanghai, China, in may 2021. The expansion is intended to improve the company's position in the APAC region.
H.B. Fuller opened an engineering adhesives company in Japan in march 2019. By concentrating on high-performance adhesives, such as reactive adhesive chemistries and applications, this growth has strengthened its Engineering Adhesive (EA) operations in Japan.