Rising demand in furniture, building and construction will drive wood adhesive sector
Growth opportunities in the global wood adhesives market look promising over the next six years.
Frost & Sullivan’s recent analysis, Global Wood Adhesives Market, Forecast to 2024, reveals that the market is expected to witness significant growth rates due to rising volume demand for wood adhesive applications in the furniture and building and construction industries, particularly in high-growth economies such as China, India, and Southeast Asia.
The market is forecast to reach $33.68 billion by 2024, growing at a CAGR of 7.2 per cent between 2017 and 2024.
“While regulatory requirements are pushing high demand for resin chemistries, there is a growing need for adhesive technologies with niche applications,” said Ganesh Dabholkar, senior research analyst, visionary science at Frost & Sullivan. “Manufacturers who focus on developing zero and ultra-low formaldehyde- and volatile organic compounds (VOC)-emitting resin chemistries will secure preferential customer purchase and lucrative revenue prospects.”
For further information on this analysis, visit http://frost.ly/310
To gain a competitive advantage, Dabholkar recommends that players emulate market leaders such as Henkel, BASF, Ashland, and Georgia-Pacific by developing brand equity, customer loyalty, technical support, and global sales and distribution networks. These strategies are likely to provide maximum growth opportunities in the foreseeable future.
Companies that are eager to grow within the global wood adhesives market can find further opportunities through:
- Developing innovative products that conform to current regulations but also to increasingly stringent future regulations;
- Collaborating with local manufacturers or setting up manufacturing locations in specific countries to cater to high local demand growth and establishing a strong sales and distribution network;
- Providing customized technical support relative to effective product application; and
- Producing premium, high-performance products supported by brand building to achieve higher margins or concentrating on developing low-cost alternatives to augment volume sales, depending on the regional demand of the target market.
“Due to varied product types, resin chemistries, and adhesive technologies available to them, customers have a high bargaining power,” noted Dabholkar. “To mitigate this, players should enter into long-term pricing contracts to ensure sustained customer loyalty.”