Wood Adhesives Market Analysis & Forecast: 2025-2032

Wood Adhesives Market Size and Forecast – 2025 to 2032

Wood Adhesives Market is estimated to be valued at USD 13.99 Bn in 2025 and is expected to reach USD 24.45 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 8.3% from 2025 to 2032.

Key Takeaways

• By Product, The Urea-formaldehyde (UF) & Melamine urea-formaldehyde (MUF) segment dominates the market. This is due to their low cost, strong bonding properties, and widespread use in wood-based panels like plywood and particleboard.
• By Technology, the Water-Based segment dominates the market. This is driven by growing environmental regulations and demand for low-VOC (volatile organic compound) adhesives.
• By Substrate, the Plywood segment is contributing the highest share of the market in 2025, due to its widespread use in construction, furniture, and interiors.
• By End User, the Furniture segment held the largest revenue share of 20%in due to high demand for durable, strong, and aesthetically pleasing bonded wood products in both residential and commercial sectors.
• Asia Pacific held a dominant position in the global wood adhesives market in 2025, accounting for 35.10% market share in terms of revenue. This is due to rapid urbanization and industrial growth in countries like China, India, and Japan.

Market Overview

The increased interest in sustainable and high-performance bonding is rapidly growing the wood adhesives market. Improvements in adhesive formulations are yielding great advancements, such as eco-friendly and low-VOC adhesives, which improve the efficacy of the products and increase environmental health. Use across furniture, construction, and automotive industries is increasing globally, and a bigger consumer awareness to green products and regulations for manufacturers to develop bio-based and formaldehyde-free adhesives will fuel the wood adhesives market growth.

Current Events and Its Impact

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Import Export of Wood Adhesives

Between June 2024 and May 2025, India exported a total of 84 wood adhesive shipments, involving 13 Indian exporters and 30 international buyers.

In May 2025 alone, India recorded 28 wood adhesive export shipments—showing no change in volume compared to both May 2024 and April 2025.

The primary destinations for India’s wood adhesive exports during this time were the United Arab Emirates, Yemen, and Uganda.

On a global scale, China is the leading exporter of wood adhesive with 5,911 shipments, followed by the United States with 1,930 shipments, and Malaysia in third place with 495 shipments.

Segmental Insights

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Wood Adhesives Market, Insights, By End user -  Furniture Segment Dominates High Demand for Durable, Strong, And Aesthetically Pleasing Bonded Wood Products

In terms of end users, in 2025, the furniture segment held the largest revenue share of 61.20% in the global wood adhesives market. The increasing per capita disposable income of customers across the globe has elevated furniture demand substantially, owing to the growth of the wood adhesives and binders global wood adhesives market growth. Furthermore, the increasing number of non-residential projects is expected to influence the furniture demand, as a large number of desks and other furniture would be required. Wood-based panels find a wide application scope in furniture as they are lightweight, well finished, and durable as compared to traditional wood. Unlike glass, these panels can be used to manufacture sturdy and durable interior decoration items, which are expected to have a positive impact on the segment growth over the forecast period.

For instance, in September 2025, DAP launched the Weldwood® 2in1 Wood Glue & Filler, a dual-purpose adhesive designed for woodworking projects. This innovative product combines strong bonding capabilities with gap-filling properties, making it ideal for repairing furniture and other wood surfaces. Its thick, non-sag formula ensures durability and ease of use.

Wood Adhesives Market, Insights, By Product -  Urea-formaldehyde (UF) & Melamine urea-formaldehyde (MUF) Segment Dominates Due To Their Low Cost

In terms of product, the Urea-formaldehyde (UF) & Melamine urea-formaldehyde (MUF) segment dominates the market in 2025, due to their low cost, strong bonding properties, and widespread use in wood-based panels like plywood and particleboard. Their fast-curing time and compatibility with automated manufacturing processes also boost demand. Additionally, they are widely used in furniture and construction industries, driving volume.

For instance, in July 2025, IKEA-backed startup NILO developed a novel adhesive derived from plastic waste, aiming to replace traditional urea formaldehyde (UF) and melamine urea formaldehyde (MUF) resins in engineered wood products. This innovation aligns with IKEA's commitment to reducing formaldehyde emissions, which currently contribute to 5% of its total climate footprint.

Wood Adhesives Market, Insights by Technology -  Water-Based Segment Dominates Due To Safer, Non-Toxic Nature

The water-based segment dominates the market. This is driven by growing environmental regulations and demand for low-VOC (volatile organic compound) adhesives. Water-based adhesives are safer, non-toxic, and easier to clean, making them ideal for packaging, woodworking, and consumer goods. Their versatility and eco-friendliness make them the preferred choice across industries.

For instance, in September 2024, Biophilica, a London-based material innovator, unveiled Brightbond, a 100% biobased, water-based adhesive crafted from renewable resources. Developed over 18 months, Brightbond matches the performance of traditional PVA adhesives and is suitable for bonding materials like wood, paper, textiles, and Biophilica’s own plant-based Treekind. Its non-toxic, non-hazardous formula aligns with sustainability goals, offering a clear finish and strong bonding capabilities.

Wood Adhesives Market, Insights, By Substrate -  Plywood Segment Is Leading Owing to Its Widespread Use in Construction, Furniture, And Interiors

In terms of substrate, the plywood segment is expected to lead with the highest share of the market in2025, due to its widespread use in construction, furniture, and interiors. Its layered structure requires strong adhesives for durability, moisture resistance, and structural integrity. Growth in engineered and laminated plywood, along with high consumption in both emerging and developed markets, further boosts the need for advanced bonding solutions.

For instance, in May 2025, Koskisen, a Finnish wood processing company, introduced Zero ThinPly, a sustainable thin plywood product made entirely from bio-based materials. The plywood features high-quality birch veneer bonded with a non-toxic, bio-based adhesive developed in collaboration with Plantics. This adhesive matches the strength of traditional adhesives and contains no formaldehyde, phenolic compounds, or urea, aligning with Koskisen’s commitment to reducing environmental impact.

Regional Insights

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Asia Pacific Wood Adhesives Market Analysis & Trends

Among region, Asia Pacific held a dominant position in the global wood adhesives market in 2025, accounting for 35.10% market share in terms of revenue, followed by Europe and North America. Construction is expected to grow rapidly in this region, particularly in emerging economies such as China, India, Indonesia, and Vietnam. This is likely to boost demand for engineered panels, which would support the growth of the wood adhesives market.

For instance, in August 2025, Covestro has expanded its specialty isocyanate portfolio by acquiring two production sites in Rayong, Thailand, and Freeport, USA, previously owned by Vencorex Holding SAS. These facilities, specializing in HDI derivatives, enhance Covestro's capabilities in coatings and adhesives, particularly for applications in automotive, wood furniture, and electronics. The move aligns with Covestro's "Sustainable Future" strategy, bolstering its presence in the Asia-Pacific.

Europe Wood Adhesives Market Analysis & Trends

Europe is the fastest-growing market due to strict environmental regulations promoting eco-friendly adhesives. The region's focus on sustainable construction and green building practices boosts demand. Rising investments in the automotive and renewable energy sectors also fuel growth. Additionally, strong R&D and innovation in bio-based adhesives support market expansion.

For instance, In February 2024, German chemical giants Henkel and Covestro partnered to develop sustainable adhesives for load-bearing timber construction. Covestro supplies Henkel with bio-attributed polyurethane raw materials, allowing the adhesives to be produced using mass-balanced, bio-based feedstocks—while maintaining product certifications under the ISCC PLUS standard.

Wood Adhesives Market Outlook Country-Wise

United States Wood Adhesives Market Trends

The U.S. leads due to its large-scale construction and furniture manufacturing industries. High demand for engineered wood products and technological advancements in adhesives drive growth. The country also emphasizes sustainable and high-performance adhesive solutions.

For instance, in February 2025, BioBond Adhesives has launched BioAdhere, a line of bio-based adhesives designed for cabinetry, furniture, wallpaper, and engineered wood applications. These USDA BioPreferred-certified adhesives are plant-derived, odor-free, contain zero microplastics, and offer cost-effective performance comparable to traditional solvent-based options. Manufactured in rural Indiana, BioAdhere aims to provide sustainable solutions for the woodworking industry.

Germany Wood Adhesives Market Trends

Germany dominates in Europe with its strong wood processing, furniture, and automotive sectors. The country’s commitment to sustainability and precision manufacturing boosts demand for advanced, eco-friendly wood adhesives. It also invests heavily in R&D for innovative bonding solutions.

For instance, in July 2025, The DERIX Group has transitioned its timber production to nearly 100% bio-based adhesives, marking a significant step in sustainable construction. Utilizing adhesives like Henkel Loctite HB S Eco and Akzo Grip Pro Plus Nature, which incorporate 50–63% renewable or recycled materials, the company reduces its CO₂ footprint while maintaining product quality. This initiative underscores DERIX's commitment to eco-friendly practices in engineered wood manufacturing.

Market Report Scope

Wood Adhesives Market Report Coverage

Wood Adhesives Market Drivers

• Rapidly expanding construction industry: One of the major factors driving the demand for the global wood adhesives is the rapid growth of the construction industry in the developing countries of the Asia Pacific region. Over the forecast period, the rapid rebound in the housing sector, combined with commercial and infrastructure development, is expected to drive significant demand for wood adhesives. BASF inaugurated a new adhesive production plant in Dahej, India, with a substantial capacity exceeding 40,000 metrics tons per year—a direct response to surging demand from construction and furniture sectors across Asia Pacific.
• Consumer spending on home décor and luxury furnishings: Consumer expenditure on home décor and luxury furniture has increased significantly as disposable income has increased, which is expected to drive the global wood adhesives market. When compared to screws, bolts, and other means of bonding, the use of wood adhesives for bonding timber, plywood, and other products provides a superior aesthetic appeal. As a result, wood adhesives are in high demand. The growing popularity of lightweight materials is expected to drive up demand for wood adhesives. More than 58.9% of houses in Japan are made of wood, making it the world's largest country for the construction of wooden houses, resulting There has been a rise in the use of wood adhesives in glue-laminated beams (Glulam), the beams are structurally engineered and bonded together with moisture resistant adhesives. These are used as straight beams, columns, which include lintels, purlins, ridge beams, floor beams, tied rafters, and trusses, in the construction of buildings where the application of wood adhesives is very high. Growing construction activity in countries such as China, Japan, the U.K., the U.S., Russia, and India is expected to drive the market for global wood adhesives over the forecast period.

Key development

• In May 2025, Henkel unveiled its micro-emission hot-melt wood adhesives at Ligna 2025 in Hanover. These advanced adhesives feature ultra-low diisocyanate emissions below 0.1%, enhancing safety and meeting stringent REACH standards. Designed for edge banding and lamination, they offer high heat and moisture resistance. Henkel's commitment to sustainability is evident through increased renewable carbon content and lifecycle assessments.
• In March 2025, Henkel launched the Loctite HB XE Line, a high-performance adhesive designed for bonding cross-laminated timber (CLT) and glued laminated timber (GLT). This new generation of adhesives meets stringent fire protection standards, including Eurocode 5, exhibiting a linear charring rate of 0.65 mm/min. The Loctite HB XE Line enhances fire safety in timber construction while promoting sustainable building practices.
• In January 2025, Kiilto introduced the Pro SW adhesive line, enhancing engineered wood bonding by up to 30%. This one-component polyurethane adhesive is designed for applications like cross-laminated timber, glulam beams, and roof trusses. It offers an optimal balance between open and pressing times, improving productivity without additional equipment investment. The adhesive's efficient spread and penetration reduce material use and environmental impact.

Analyst View

• The global market for wood adhesives is projected to flourish with growth mainly attributed to the construction and furniture industry expansion across the globe. New research indicates that engineered wood products such as plywood’s and particle boards, have overtaken traditional building materials in popularity due to their price point and sustainability, which is driving the demand for new types of adhesives. Manufacturers have begun utilizing urea-formaldehyde (UF) and melamine urea-formaldehyde (MUF) adhesives on an increasing scale, which became the majority share in 2024, because they bond strongly enough and are suitable enough for the industrialized processes.
• However, emerging government standards and rising consumer preferences for more environmentally friendly products are altering the landscape of the market. Growing water-based and bio-based adhesives can be observed, as markets are looking for low-VOC and formaldehyde-free solutions. The leading companies have been investing millions of dollars into research & development of sustainable adhesives that do not impede product performance. Organizations require a balance between the regulatory construct and industry goals. The development of low-emission UF resins and bio-based formulations may mark the turning point for the sector.
• In addition, technological advancements in adhesive applications and automated manufacturing result in a more efficient production process. Some facilities that adopted precision dosing technologies and solvent-free adhesives have reported improved product consistency and waste reduction.

Market Segmentation

• By Product Type
  • Urea-formaldehyde (UF) & Melamine urea-formaldehyde (MUF)
  • Epoxy
  • Phenol-formaldehyde
  • Polyurethane
  • Polyvinyl acetate (PVA)
  • Others (Soy Based, etc.)
• By Technology
  • Solvent-based
  • Water-based
  • Others (Solvent less, etc.)
• By Substrate
  • Solid Wood
  • Oriented Strand Boards
  • Plywood
  • Fiberboards
  • Others (Particle Board, etc.)
• By End User
  • Furniture
  • Flooring
  • Housing Components
  • Doors & Windows
  • Others
• Global Wood Adhesives Market, By Region
  • North America
    
    • U.S.
    • Canada
  • Latin America
    
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest Of Europe
  • Asia Pacific
    
    • China
    • India
    • Japan
    • South Korea
    • ASEAN
    • Australia
    • Rest of Asia Pacific
  • Middle East & Africa
    
    • Middle East
    • Africa
• Company Profiles
  • Henkel AG & Co. KGaA
  • Sika AG
  • The 3M Company
  • Arkema
  • HB Fuller
  • Bostik SA
  • Ashland Inc.
  • Pidilite Industries Limited
  • Akzo Nobel NV
  • Jubilant Industries Ltd.

Sources

Primary Research Interviews

• Wood adhesive manufacturers and suppliers
• Furniture and construction industry executives
• Raw material suppliers (formaldehyde, phenol, polyurethane)
• Adhesive technology specialists and R&D professionals
• Others

Databases

• Wood Products Industry Database
• Global Trade Information Services (GTIS)
• Others

Magazines

• Adhesives & Sealants Industry Magazine
• Wood & Wood Products Magazine
• Furniture Today Magazine
• Construction Specifier Magazine
• Others

Journals

• International Journal of Adhesion and Adhesives
• Journal of Wood Science
• Forest Products Journal
• Others

Newspapers

• Chemical Week
• Wood Working Network News
• Furniture/Today Daily News
• Chemical & Engineering News
• Others

Associations

• Adhesive and Sealant Council (ASC)
• Forest Products Society (FPS)
• International Wood Products Association (IWPA)
• European Panel Federation (EPF)
• Others

Public Domain Sources

• U.S. Environmental Protection Agency (EPA) regulations
• European Chemicals Agency (ECHA) database
• Trade statistics from government commerce departments
• Industry white papers and technical publications
• Others

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years

*Definition: Wood adhesives are substances that are used to bind two wooden surfaces. Various chemicals, such as formaldehyde, urea, melamine, isocyanate, and others, are used to make wood adhesives. Adhesives used in industry might be waterbased, solventbased, or produced using other technologies. Wood adhesives have a wide range of applications in the construction sector for making furniture, cabinets, doors, and windows. It is also used in the packaging industries.