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3. AICA Kogyo Co., Ltd (Japan) and Hexion (US) are Leading players in the Engineered Wood Adhesives Market

The global engineered wood adhesives market size is projected to grow from USD 8.7 billion in 2024 to USD 10.5 billion in 2029, at a CAGR of 3.7%. The propulsion of this market growth is largely attributed to the burgeoning demand from the wooden house construction sector.

The engineered wood adhesive market is intricately linked to the performance and growth of the broader construction and manufacturing industries, where these adhesives are pivotal in the production of composite wood products such as plywood, oriented strand board (OSB), and laminated veneer lumber (LVL). Engineered wood adhesives are specialized products designed to meet stringent performance criteria including high strength, resistance to moisture and temperature variations, and long-term durability under structural loads.

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The market for these adhesives is diversified across several key product types, primarily urea-formaldehyde, phenol-formaldehyde, melamine-urea-formaldehyde, and other polymers including polyurethane. Urea-formaldehyde adhesives dominate the market due to their effective bonding qualities and cost-efficiency, although their use is becoming regulated due to formaldehyde emissions concerns. Phenol-formaldehyde and melamine-urea-formaldehyde are noted for their superior moisture resistance and are preferred in exterior construction applications. Polyurethane adhesives, while more expensive, provide robust performance in terms of flexibility and moisture resistance, making them increasingly popular for high-end applications in harsh environments.

Melamine Formaldehyde (MF) is a thermosetting polymer widely recognized for its robust performance as a resin in engineered wood adhesives. This resin is synthesized through the polycondensation of melamine, a nitrogen-rich compound, and formaldehyde, an organic compound, forming a network that is exceptionally resistant to heat, moisture, and chemicals. The resultant three-dimensional cross-linked structure is what gives MF adhesives their superior properties.  MF adhesives are particularly valued for their high thermal stability and moisture resistance, making them ideal for use in environments like kitchens and bathrooms where humidity and temperature flux are common. These adhesives are applied in the manufacture of laminates, medium-density fiberboard (MDF), and particle board, and as bonding agents in plywood and other composite wood products. The cured resin is hard, durable, and maintains an aesthetic finish that does not degrade or yellow over time, supporting its use in both functional and decorative capacities.

The Asia Pacific region stands out as the fastest-growing market for engineered wood adhesives market, a trend fueled by the region's rapid infrastructural activities. Factors such as the ready availability of raw materials, cost-effective labor, enhanced trade relations, and the active participation of the private sector in the sustainable infrastructure industry are significant contributors to this growth. Additionally, the demographic dynamics of rising population and swift urbanization in the emerging economies of this region further amplify market expansion.

The engineered wood adhesives market in the Asia Pacific region is witnessing robust demand, driven by the significant upsurge in construction activities. The market's growth is further bolstered by the engineered wood's adhesives environmentally friendly properties, durability, and enhanced aesthetic appeal. The strategic relocation of major European players to developing nations, including India and Saudi Arabia, presents lucrative growth prospects. Nonetheless, the escalating costs of raw materials pose a formidable challenge, necessitating innovative strategies to navigate this obstacle efficiently.

There are various small, medium, and large players operating in the market. Some of the major market players include H.B. Fuller Company (US), Henkel AG & Co., KGaA. (Germany), AkzoNobel N.V. (Netherlands), Arkema SA (France), BASF SE (Germany), Dow (US), Huntsman Corporation (US), AICA Kogyo Co., Ltd (Japan), Astral Limited (India), and Hexion (US). They have implemented a range of growth tactics, including financial investments and operational growth, unveiling new products, engaging in mergers and acquisitions, and establishing joint ventures, all aimed at enhancing their market position.

AICA Kogyo Co., Ltd.: AICA Kogyo Co., Ltd. is a leading Japanese company specializing in the manufacturing and distribution of chemical products, particularly in the fields of adhesives, decorative and industrial laminates, and synthetic resins. It operates in two main business segments, namely, chemical products, laminates and building materials. The company offers various kinds of adhesives for a wide range of applications including industrial and architectural, hot melts, industrial resins, and composite board resins. It offers wood adhesives through its adhesives sub-segment of chemical products business segment.

Hexion: Hexion has been at the forefront of developing specialty chemicals, high-performance materials, and a major player in the global market for engineered wood adhesives.  Hexion's adhesives cater to diverse wood applications, providing a broad spectrum of processing and performance attributes. They facilitate the formulation of adhesives capable of bonding materials such as wood, metals, concrete, ceramics, glass, plastics, fabric, paper, polyesters, and thermoplastic rubber. Moreover, Hexion specializes in high-performance adhesives tailored for engineered wood products like glulam beams and cross-laminated timber, Hexion prioritizes sustainability with eco-friendly options and ensures compliance with industry standards. It offers a wide range of adhesive solutions including phenol-resorcinol-based resins and eco-friendly options.

Related Reports:

Engineered Wood Adhesives Market by Resin (Melamine Formaldehyde, Phenol Resorcinol Formaldehyde), Product (CLT, OSB, MDF, LVL), Technology (Solvent-Based, Water-Based), Application (Structural, Non-Structural), and Region - Global Forecast to 2029

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