Global Speciality Resins For Plywoods Market - Forecast(2023 - 2028)

Global Specialty Resins For Plywoods Market Overview

The global specialty resins for plywoods market size is forecast to reach US$843.5 million by 2027, after growing at a CAGR of 4.1% during 2022-2027. Specialty resins, such as phenol-formaldehyde resins and melamine-formaldehyde resins, are used to manufacture high-quality plywood panels. The activated carbon from these specialty resins has superior thermal stability and excellent texture properties that enhance plywood's quality and is one of the primary factors driving the growth of the global specialty resins for plywoods market. However, during the production of plywood panels, volatile organic compounds (VOCs) such as methylene chloride are emitted, which can be harmful for the environment and can be toxic by inhalation and can cause skin and eye irritation. The report takes a closer inspection at the global specialty resins for plywoods industry outlook and analyse the market share of the global specialty resins for plywoods top 10 companies within the forecast period of 2022-2027.

COVID-19 Impact on Global Specialty Resins For Plywoods Market

During the COVID-19 pandemic, many industries had suffered a tumultuous time, and it was no different for the global specialty resins for plywoods market. Many governments across the globe implemented lockdown regulations and factories & production facilities in many sectors came to a halt. The supply chain was greatly disrupted as many businesses followed lockdown protocols. Specialty resins used in the plywood industry mainly supply to industry verticals such as the building & construction industry, the furniture industry, and the cargo transport sector. During the pandemic, there was a substantial decline in demand for those industry verticals which also led to a decline in the global specialty resins for plywoods market. For instance, according to the Institute of Physics (IOP), the pandemic is estimated to have reduced investment in the construction sector of India by 30% while China is estimated to have suffered a loss of US $ 1.5 million in the construction sector. However, the pandemic has now largely subsided, and governments have resumed factory production in almost all sectors. As such, the demand for the global specialty resins for plywoods market also saw a significant incline in demand in 2021 and will continue to do so during the forecast period of 2022-2027.

Report Coverage

The report “Global Specialty Resins For Plywoods Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the global specialty resins for plywoods industry.

By Resin Type: Melamine-Formaldehyde (MF), Melamine-Urea-Formaldehyde (MUF), Urea-Formaldehyde (UF), Phenol-Formaldehyde (PF), and Others.
By Application: Flooring, Walls, & Roofing, Fencing, Packing Boxes, Scaffolding, Cargo Transportation, Musical Instruments, Laminated Lumber, Sports Equipment, and Others.
By End-Use Industry: Building & Construction (Residential, Commercial, and Infrastructure), Furniture, Transportation (Freight Transport Vehicles, Railway Transportation, and Others), Sports Industry, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa).

Key Takeaways

• The Asia-Pacific region will dominate the global specialty resins for plywoods market within the forecast period of 2022-2027, primarily due to the region's growing building & construction sector.
• Phenol-formaldehyde resins are the most commonly used type of specialty resins in the manufacture of plywood panels because they possess high moisture resistance, high durability, fungi tolerance, and other superior qualities.
• The growing demand for the building & construction sector and the furniture industry are some of the key reasons driving the global specialty resins for plywoods market within the forecast period.
• The growing concern for petroleum shortage and pollution factor during the production of plywood using specialty chemicals is driving the need for bio-based alternatives which proves to be a challenge for the growth of the global specialty resins for plywoods market.

 Figure: Asia-Pacific Specialty Resins For Plywoods Market 2021-2027 (US$ Million) 

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Global Specialty Resins For Plywoods Market Analysis – By Resin Type

Phenol-Formaldehyde resins held the largest share with 27% in the global specialty resins for plywoods market in 2021. Phenol-formaldehyde resins, also simply known as phenolic resins, are the most commonly used type of resin that are used in the manufacture of plywood panels where they are used as a bonding material between the composite wood materials in the plywood panel. Phenol-formaldehyde resins have high moisture resistance and are extremely durable, giving plywood panels a long lifetime. They are also fast-curing, fungi tolerant, and thermal resistant making them especially desirable for any outdoor plywood solutions. Additionally, new developments in the market are also propelling the demand for phenolic resins in the global specialty resins for plywoods market. For instance, in December 2021, Bakelite Synthetics, one of the leading companies in specialty resins, announced that they will be acquiring Georgia-Pacific’s phenolic resin business. As such, phenolic resins are preferred over amino resins such as melamine-formaldehyde and urea-formaldehyde, which have lower impact strength and heat resistance.

Global Specialty Resins For Plywoods Market Analysis – By End-Use Industry

Building & Construction held the largest share with 33% in the global specialty resins for plywoods market in 2021. The primary application of specialty resins such as phenol-formaldehyde and melamine-formaldehyde are ideal in the manufacture of plywood which are used as molding support for wet concrete and for flooring and roofing purposes in the building & construction sector. Plywood panels are extensively used for flooring, walls, roofing, scaffolding and so on. Post pandemic, the demand for the building & construction sector had seen a growth in demand, especially in the commercial construction sector. For instance, according to the United States Census Bureau, the public construction sector spending, seasonally adjusted, was valued at US$ 341.9 billion in August 2021 while educational constructions, seasonally adjusted, was valued US$ 79.8 billion. The United States construction spending amounted to US$ 1.584 trillion at a seasonally adjusted annual rate in August 2021, which was an annual increase of 8.9% from August 2020. As such, the rising commercial and residential construction activities in the building & construction sector is driving the global specialty resins for plywoods market.

Global Specialty Resins For Plywoods Market Analysis – By Geography

The Asia-Pacific region held the largest share with 38% in the global specialty resins for plywoods market in 2021. This is primarily because of the growing economies of countries such as China, India, South Korea, Indonesia, Philippines, and Vietnam where there has been a dramatic increase in construction, as well as a growing demand for furniture & upholstery, primarily due to the increase in quality of lifestyle and an inclining demand for housing. According to the International Trade Administration, the construction industry of China is the world’s largest construction market and is expected to grow at an annual average of 5.2% between 2021-2029 while the revenue value was estimated to be USD $1.1 trillion in FY 2021. According to the India Brand Equity Foundation, the Indian Government has invested US$ 24.27 billion in the infrastructure sector during the Union Budget 2020-21. As such, the increasing demand for the building & construction sector, as well as the growing furniture sector in the Asia-Pacific region is driving the demand for the global specialty resins for plywoods market in Asia-Pacific.

Global Specialty Resins For Plywoods Market Drivers

Increasing demand for the furniture & upholstery market:

Plywood is commonly used in the manufacture of furniture as it is sturdy, durable and impact & heat resistant, while also having a lightweight form factor. In recent years, the furniture sector has seen significant growth, especially during the pandemic, when everyone was subjected to stay-at-home protocols. The growing housing and construction sector and the growth of online retail are further fuelling the growth of the furniture industry as well. According to the Trade Promotion Council of India (TPC), the global furniture market was estimated to be US$ 1.1 trillion in 2020 of which China was the leading exporter of furniture products with a global share of 37.5%. Additionally, according to Invest India, the furniture industry of India is estimated to achieve a year-on-year growth of 14.3% in 2023. As such, the inclining demand for the furniture & upholstery market is an excellent driving factor for the growth of the global specialty resins for plywoods market within the forecast period of 2022-2027.

Substantial growth in the transport industry:

Plywood, especially birch plywood, is used extensively in the transport industry due to its lightness, strength, firmness, and hardiness. It is considerably cheaper than its competitors like light metals and steel and is also more environmentally friendly as well. Plywood is used to make excellent flooring materials, panelling, and ceiling materials for buses and trailers. It is also used for making seats in buses, and flooring in containers, freights and carrying vehicles. As such, the growing transportation industry, is also increasing the demand for plywood. For instance, according to the Bureau of Transportation Statistics, the North American Transborder freight value was valued at US$ 114 billion in January 2022 which is 20.6% more than 2021. Additionally, according to the World Trade Organisation (WTO), the world trade merchandise volume is estimated to have grown by 10.8% in 2021. Due to an increase in the global trade, the global demand for freights and containers have also increased as they are essential in transporting trade goods. As such, the growing transport industry proves to be a great driver for the global specialty resins for plywoods market.

Global Specialty Resins For Plywoods Market Challenges

Bio-based alternatives to specialty resins:

Some of the key drawbacks of specialty resins such as phenol-formaldehyde and melamine-formaldehyde are that they use petroleum as that primary raw material for their manufacture and formaldehyde-based compounds are carcinogenic, can be toxic by inhalation, and can cause burns to the skin. This has driven the plywood industry to seek more sustainable alternatives to petroleum based raw materials as well as less harmful alternatives that are not toxic in nature. Due to this, there has been an increase in demand for bio-based alternatives such as lignin, tannin, cardanol, glyoxal and so on to produce more bio-based resins which are completely safe and eco-friendly and are also easily disposable without causing any form of pollution. As such, the increasing popularity of bio-based alternatives to traditional resins such as phenol-formaldehyde and melamine-formaldehyde can prove to be a challenge for the growth of the global specialty resins for plywoods market within the forecast period of 2022-2027.

Global Specialty Resins For Plywoods Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the global specialty resins for plywoods market. The global specialty resins for plywoods top 10 companies include:

1. Bakelite Synthetics
2. Sumitomo Bakelite Company Limited
3. SI Group Inc.
4. Jinan Shengquan Group Share Holding Co., Ltd.
5. Ashland Global Holdings
6. BASF SE
7. Georgia-Pacific Chemicals
8. DIC Corp
9. Hexcel Corporation
10. Akrochem Corporation

Recent Developments

• On December 4, 2021, Bakelite Synthetics, a global leader in specialty resins for plywood, announced that they will buy the formaldehyde-based phenolic resins business of Georgia-Pacific which makes resins for wood products, coatings, adhesives, and other applications.
• On November 1, 2021, SI Group Inc., a leading performance additives company, completed the sale of a majority of its global industrial resins business to ASK Chemicals, a portfolio company of private equity firm, Rhône Group, LLC.
• On September 17, 2020, Sumitomo Bakelite Co. Ltd. announced the development of solid novolac phenolic resins using lignin, which is a major component in plants, and will be distributing thermoset environment responsive plastic to various fields.

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