GVR Report cover Wood Adhesives Market Size, Share & Trends Report

Wood Adhesives Market Size, Share & Trends Analysis Report By Product (Urea-formaldehyde, Soy-based), By Application (Flooring, Furniture), By Substrate, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-2-68038-853-4
  • Number of Pages: 200
  • Format: Electronic (PDF)

Report Overview

The global wood adhesives market size was valued at USD 5.29 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030. Growing global engineered wood-based panel production is a significant factor driving the market. Engineered wood-based panels such as plywood, oriented strand board, and particle board consume a significant volume of adhesives during their manufacturing process. For instance, plywood is produced by binding veneers with adhesive.

U.S. wood adhesives market size and growth rate, 2023 - 2030

Wood panel manufacturers, especially in Asia Pacific, rely on in-house production capabilities to produce adhesives for their products. Adhesive production is considered to be a part of wood-based panel manufacturing in the woodworking industry. However, most small to medium panel manufacturers do not have adequate adhesive production and quality control capabilities. Adhesive formulation and monitoring of quality are solely dependent on the operator’s knowledge, skill, and experience.

The market is characterized by the presence of a stringent regulatory framework associated with the emission levels of formaldehyde during wood-based panel manufacturing. This is expected to open new growth avenues for soy-based, polyurethane, and polyvinyl acetate adhesives over the next seven years.

Growing refurbishment and renovation activities coupled with an increasing number of constructions are anticipated to boost the market growth. Moreover, government initiatives towards sustainable construction have resulted in an increased need for engineered wood and natural wood products in the form of furniture for use in both residential as well as commercial applications. This is expected to augment demand for wood adhesives across the forecast period.

Remodeling and renovation activities on account of rising living standards are expected to contribute to the demand for furniture. The growing service sector in emerging economies has led to the development of office spaces and corporate buildings, which have consequently impacted the demand for wood furniture, which is expected to drive the wood adhesives industry growth.

Furthermore, rising concerns among people regarding the abatement of trees and global warming have led to a surge in the use of engineered wood panels. The manufacturing of engineered wood panels such as oriented strand board, plywood, and particle board requires a significant volume of adhesives. For instance, plywood is produced by applying adhesive resin to veneers. As a result, the growing demand for wood panels is likely to boost demand for wood adhesives.

In addition, rising awareness regarding environmental degradation, growing customer base, and enhanced & consistent R&D activities are anticipated to grow the bio-based wood adhesives demand. Additionally, according to World Agricultural Production Outlook, the global production of soy (soybean) was 391.17 million metric tons, which represented a 10% increase in production. To sum up, abundant raw material availability of bio-based adhesives such as starch, soy, and corn is expected to positively influence the wood adhesives industry growth over the forecast period.

However, volatile organic compound (VOC) emissions resulting from commercial and industrial use of adhesives pose both environmental and health risks. To regulate such industrial emissions, several countries have set guidelines to restrict the volume of gaseous emissions during the use of adhesives. Thus, stringent government regulations prevalent in the industry are expected to restrict market growth across the forecast period.

For instance, in the U.S., the Environmental Protection Agency states that manufacturers and suppliers of adhesives and sealants must comply with the established volatile organic compound standards. Moreover, the European adhesives industry also complies with the regulations under Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH). These environmental regulations restrict the growth of the adhesive industry as the violation of such government-defined regulations can result in heavy penalties and losses.

Product Insights

The Urea-formaldehyde (UF) segment dominated the market with a revenue share of more than 37% in 2022. This is attributed to its wide utilization as a non-transparent thermosetting resin for wood. It exhibits superior properties including high tensile strength and flexural modulus. Fillers and extenders are added to the resin to control flow, viscosity, and resin penetration in wood. They are widely used in the manufacturing of interior-grade plywood and particleboard. A major drawback of UF adhesives is their poor water resistance.

The melamine urea-formaldehyde (MUF) resins offer superior water-resistance properties as compared to other resins. A recent trend indicates that the development of MUF resin adhesives for finger jointing of sawmill waste timbers and also for manufacturing flooring tiles from bamboo and bamboo laminates is growing. These resins are the popular choice for exterior and semi-exterior panels.

The soy-based adhesive segment is expected to witness the fastest CAGR of 7.9%, in terms of revenue, from 2023 to 2030. They are largely replacing petrochemical-based adhesives in the woodworking industry. These adhesives are environmentally friendly and improve the overall performance of the wood panel.

Isocyanates exhibit excellent moisture resistance and are used to bond agricultural cellulosic wastes such as bagasse and straw. The most commonly used isocyanates are methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI). However, the product irritates the skin, eyes, and respiratory tract when used in high concentrations.

Application Insights

The furniture application segment dominated the market with a revenue share of over 46% in 2022. This is attributed to the growing utilization of wood-based panels 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 next seven years.

The flooring application is poised to observe the fastest growth with a CAGR of 6.0%, in terms of revenue, from 2023 to 2030. Increasing per capita disposable income coupled with the growing demand for residential space is anticipated to fuel the demand for flooring. Plywood floors enable customers to achieve enhanced aesthetics at a lower cost. An increasing number of restoration & refurbishment projects in developed economies are likely to augment the demand for wooden flooring, thereby propelling the adhesive industry’s growth.

Wood adhesives are increasingly being applied on residential and commercial doors & windows for waterproofing and enhancing the overall texture & appeal. The product is also used during the manufacturing of window films as it enhances the UV filtration of the films.

Housing components including studs, joists, rafters, sheathing, and siding are made from wood. Increasing demand for residential space owing to rapid urbanization along with higher living standards is expected to drive market growth significantly over the forecast period. New residential & commercial construction activities are also propelling the demand for engineered housing components to ensure energy sustainability, attractiveness, and efficiency.

Substrate Insights

The Particleboard (PB) segment dominated the substrate segment with a revenue share of over 29% in 2022. Particleboard can substitute its counterparts, such as plywood, owing to its lower cost. It is denser, cheaper, and uniform as compared to plywood. This is expected to have a positive impact on product demand over the forecast period.

Wood adhesive consumption in particleboard (PB) is estimated to grow at a CAGR of 5.4%, in terms of volume, from 2023 to 2030. Particleboard is manufactured by mixing flakes and wood particles with adhesive and transforming the sticky mixture into the shape of thin sheets. Particleboards are vastly popular in Europe.

Oriented strand board (OSB) is yet another significant segment of the product. The logs are sliced into strands of a specific size and assembled in wet bins until they get ready to be dried. The dried strands are mixed with adhesive to construct the board and a minimal amount of wax is used to improve the resistance to water absorption and moisture. Increasing demand for oriented strand board (OSB) as an alternative to plywood and solid boards, especially in North America and Europe, is projected to drive the demand for the product in OSB over the forecast period.

Global wood adhesives markett share and size, 2022

Medium-density fiberboard (MDF) finds extensive application scope in the construction and furniture industries. Rising demand for wood furniture, flooring, and cabinetry is expected to drive the market over the forecast period. The rapid growth of the residential and commercial building & construction sector in Asia Pacific is expected to have a positive impact on the segment growth over the forecast period.

Regional Insights

Asia Pacific region dominated the market with a revenue share of more than 47% in 2022. This is attributed to an exponential rise in population in the Asia Pacific countries, coupled with the high demand for affordable housing, and government schemes promoting basic amenities such as food & shelter have led to the expansion of the construction industry in the region.

The wood-panel industry in China has a high economic importance since it is one of the largest producers of wood-based panels in the world. The well-established wood panel industry in the region coupled with the steady supply of wood products is anticipated to further boost the wood adhesives industry growth. Furthermore, rapid urbanization and industrialization are projected to boost market growth across the forecast period.

Wood Adhesives Market Trends, by Region, 2023 - 2030

Germany is one of the largest producers of wood adhesives in Europe. The wood adhesives industry has witnessed rapid growth over the past few years owing to robust demand from the furniture and construction industry. Robust economic development has substantially profited the furniture industry and has resulted in increased private consumption.

However, the macroeconomic insecurity in the context of the European debt crisis is likely to hamper the growth of numerous industrial sectors in Germany, including furniture and housing construction, which in turn is expected to negatively impact the wood adhesives industry over the forecast period.

Key Companies & Market Share Insights

The global market is fragmented with the presence of numerous global and regional players. The market is characterized by the presence of key companies such as HB Fuller; Henkel AG & Co.; KGaA; Bostik SA; 3M and other small to medium regional players.

The global players face intense competition from each other as well as from the regional players who have strong distribution networks and good knowledge about suppliers & regulations. For instance, in June 2021, H.B. Fuller announced a strategic distribution agreement with Jubilant Agri and Consumer Products Limited (JACPL), to address the increasing demand for wood adhesives applications, especially in the B2B woodworking segment. In addition, companies in the market compete based on the quality offered and the technology used for the manufacturing of the product. Some prominent players in the global wood adhesives market include:

  • H.B. Fuller

  • Henkel AG & Co., KGaA

  • Bostik S.A.

  • 3M

  • Sika AG

  • Ashland, Inc.

  • Pidilite Industries Ltd.

  • Jubilant Industries Ltd.

  • AkzoNobel N.V.

  • Franklin Adhesives & Polymers.

  • DowDuPont Inc.

Wood Adhesives Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 5.54 billion

Revenue forecast in 2030

USD 8.01 billion

Growth rate

CAGR of 5.3% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Volume in kilotons, revenue in USD million/billion, CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, trends

Segments covered

Product, application, substrate, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; India; Japan, Brazil; Saudi Arabia

Key companies profiled

Henkel AG & Co. KGaA; 3M Company; H.B. Fuller; Sika AG; Ashland Inc.; Bostik S.A.; Pidilite Industries Ltd.; Jubilant Industries Ltd.; AkzoNobel N.V.; Franklin Adhesives & Polymers.; DowDuPont Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Wood Adhesives Market Report Segmentation

This report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global wood adhesives market report based on product, application, substrate, and region:

Global Wood Adhesives Market Report Segmentation

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

    • Urea-formaldehyde (UF)

    • Melamine Urea-formaldehyde (MUF)

    • Phenol-formaldehyde (PF)

    • Isocyanates

    • Polyurethane

    • Polyvinyl Acetate (PVA)

    • Soy-based

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

    • Flooring

    • Furniture

    • Doors & Windows

    • Housing Components

    • Others

  • Substrate Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

    • Solid Wood

    • Oriented Strand Board (OSB)

    • Plywood

    • Particle Board (PB)

    • Medium-density Fiberboard (MDF)

    • High-density Fiberboard (HDF)

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

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