Frost & Sullivan is a growth partnership company focused on helping clients achieve transformational growth as they are impacted by an economic environment dominated by accelerating change, driven by disruptive technologies, mega trends, and new business models. Here they report on the Global Wood Adhesives Market.
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 compound annual growth rate (CAGR) of 7.2% between 2017 and 2024.
Wood adhesives manufacturers focus their growth strategy on furniture, building and construction industries. “While regulatory (Government) 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.”
Companies such as Dow Chemical; 3M; Henkel; Jowat and H.B. Fuller are all eager to grow within the global wood adhesives market. These companies will develop innovative products that conform to current regulations but also to increasingly stringent future regulations. They may collaborate with local manufacturers or set up manufacturing locations in specific countries to cater to high local demand growth and they will establish a strong sales and distribution network. They will also provide customized technical support relative to effective product application and produce 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.” Report dated 18th December, 2018, SANTA CLARA, California. Frost & Sullivan has 14 offices in the region including Sydney, Australia.