Market Trends of Wood Adhesives Industry
This section covers the major market trends shaping the Wood Adhesives Market according to our research experts:
Growing Demand due to Increasing Construction Activities
- Adhesive, also known as glue, mucilage, or paste, is any non-metallic substance applied to one or both surfaces of two items that bind them together and resists their separation. Wood adhesives are specially made to bind wooden substances.
- Wood adhesives are produced using natural and synthetic sources. Natural glues are obtained from plant or animal bodies with low binding capacity compared to synthetic adhesives.
- The growing construction activity is increasing the wood application, creating the scope for wood adhesives.
- China's growth is fueled mainly by rapid residential and commercial building expansion. According to the world bank, China is encouraging and enduring a continuous urbanization process, with a projected rate of 70% by 2030.
- Also, according to the National Bureau of Statistics of China, the country's construction output peaked in 2021 at about USD 4.3 trillion. As a result, these factors tend to increase the wood adhesive demand.
- Furthermore, according to a report released by the Indian Real Estate Industry, India is also likely to invest around USD 1.3 trillion in housing over the next seven years. It is expected to see the construction of 60 million new homes. Affordable housing availability will likely rise by around 70% in 2024.
- Thus, growing global construction activity is expected to drive the market for wood adhesives over the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for wood adhesives during the forecast period. With the growing construction sector in countries such as China, India, and Japan, the utilization of wood adhesives is increasing in the region.
- The largest producers of wood adhesives are present in Asia-Pacific. Some leading companies in adhesive wood production are 3M, Sika AG, Henkel AG & Co. KGaA, Pidilite Industries Ltd, and Jubilant Industries.
- Apart from furniture, wood adhesives are also used in flooring & decks, plywood, cabinet, particleboard, windows & doors, and other applications. Thus, the market is expected to grow significantly with growing housing construction.
- In India, the Pradhan Mantri Awas Yojana-Urban (PMAY-U) sanctioned 114.06 lakh houses till November 2021. Of them, 89.36 lakh houses are approved for building, with 52.55 lakhs completed by November 2021.
- Furthermore, according to the National Bureau of Statistics of China, in June 2022, the retail sales of wood furniture in China amounted to USD 2.39 billion, which shows an increase of 40% in the period (March 2022 - June 2022).
- Additionally, urbanization, rising real estate development, robust GDP growth, and economic stability are some of the other key factors contributing to the wood furniture growth in the region, thus increasing the wood adhesive demand.
- The factors above, coupled with government support, are contributing to the increasing demand for wood adhesives and are expected to grow during the forecast period.
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