The global wood adhesives and binders market is fragmented.These companies are Dow Chemical Company, 3M Company, Henkel AG and Co. KGaA, and HB Fuller. The wood adhesives and binders market is capital intensive and requires huge setup cost, Transparency Market Research (TMR). This makes it difficult for entry difficult for new players.

　　Growth in Construction Industry Boosts Demand for Wood Adhesives and Binders

　　Wood adhesives and binders have their applications in flooring, cabinets, plywood, doors, windows, and other structural panels. Furniture and construction are the major areas where the use of wood adhesives and binders is on a large scale. The construction market is expected to grow at a 4.7% CAGR between 2016 and 2020. Asia Pacific is expected to lead in the construction industry from 2017 to 2020. The massive population in the region is expected to create the need for newer constructions and infrastructure developments. Similarly, other regions are also witnessing a growth in the construction industry. This growth in the construction industry worldwide is resulting in a considerable demand for wood adhesives and binders.

　　Fluctuating Price of Crude Oil to Restrict Growth of Wood Adhesives and Binders Market

　　Wood adhesives and binders are synthesized from petroleum-based feedstock such as urea, vinyl acetate, acrylates, styrene butadiene, polyurethanes, phenols, and polyolefins. These petroleum-based feedstock are dependent on the supply of crude oil. Thus, an increase in the price of oil and gas increases the cost of the raw materials required for the manufacturing of wood adhesives and binders.

　　Another factor affecting the growth of the market is the environmental and health risks associated with VOC (volatile organic compounds) emissions during the industrial or commercial applications of wood adhesives and binders. In order to regulate these emissions, several countries have set guidelines that restrict the amount of gaseous emission during the use of adhesives and binders. The violation of such government-defined regulations can cause severe penalties and losses. This is causing market players to shift their focus from solvent-based wood adhesives, thus restricting the growth of the market.

　　Environmental Concerns Give Rise to Demand for Bio-based Adhesives and Binders

　　The rising carbon footprint and the consequent increase in environmental concerns are causing market players to focus on the development of bio-based adhesives. The development of bio-based adhesives not only provides environmental benefits but also reduces the overall manufacturing cost as opposed to their synthetic counterparts. Bio-based adhesives are thus catching up in the market and are being manufactured by companies such as Henkel, ADCO Global, Cargill, BASF, Croda, Dow Chemical Company, DuPont, and Evonik Industries.