Prefabricated Construction Will Become the Biggest Growth Point of China's Construction Adhesive Market
Click:0    DateTime:Jul.30,2021

Ji Hongyi, CNCIC

According to statistics, in 2020, China's adhesive demand was about 9.1 million tons, and the market reached RMB120 billion. In the past 5 years, the average annual growth rate of adhesive consumption was about 5.8%, as shown in Figure 1.

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Figure 1 Changes in China's adhesive demand from 2016 to 2020

Applications are concentrated in three major markets

From the downstream point of view, construction, packaging and wood processing are the three major markets where the application of adhesives is concentrated, with consumption accounting for 29%, 21% and 14% respectively, as shown in Figure 2. In addition, adhesives are also used in transportation, fiber processing, paper product processing, shoe-making and leather industries, but the consumption ratio is below 10%.

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Figure 2 China’s downstream applications of adhesives in 2020

 (by consumption)

During the "Thirteenth Five-Year Plan" period, driven by a number of national industrial policies, prefabricated construction have developed rapidly, therefore the demand for adhesives has also risen. In 2020 construction adhesive market, the demand for traditional construction and prefabricated construction accounted for 39% and 24% respectively, as shown in Figure 3.

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Figure 3 Proportion of China's construction adhesive applications in 2020

 (by consumption)


Prefabricated construction lead demand growth

In the past 10 years, under the combined influence of government policies and market factors, the new construction area of China's building curtain walls and the output of insulating glass increased significantly. In contrast, the output of building materials such as doors and windows has increased relatively flat. Correspondingly, the proportion of adhesive applications in the traditional construction market showed a changing trend. The demand from curtain walls and insulating glass increased, while the demand for doors and windows gradually decreased. In 2020, the demand for the three market segments accounted for 48%, 32%, and 20% respectively, as shown in Figure 4.

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Figure 4 The proportion of China's adhesives in the traditional construction market in 2020 (by consumption)

Driven by a series of government policies, prefabricated construction showed explosive growth during the "Thirteenth Five-Year Plan" period. In 2020, China's newly built prefabricated construction area reached 630 million square meters, with an average annual growth rate of 55% in the past five years. The area of newly built prefabricated constuction accounts for 20.5% of the total area of newly built buildings.

The prefabrication of prefabricated components is the core of prefabricated construction, and the amount of glue used per unit area is significantly higher than that of traditional construction. Affected by this factor, after only about five years of development, the demand for adhesives in prefabricated construction reached about 600 000 tons, becoming one of the most concerned downstream markets in the adhesive industry.

It is expected that in the next 5 years, prefabricated construction will continue to maintain rapid growth under the influence of government policies. Base on the calculation that the area of newly constructed prefabricated construction will account for 30% of the total newly constructed area in 2025, the demand for adhesives will reach approximately 1.05 million tons by then, with an average annual growth rate of 10.8%. Driven by it, the market demand for construction adhesives is expected to be about 3.4 million tons in 2025, with an average annual growth rate of about 5.3%.

On the whole, the demand for adhesives in prefabricated construction will be the biggest growth point for construction adhesives in the next 5 years. In the process of increasing proportion of prefabricated construction and decreasing proportion of traditional construction, the demand for silicone sealants to modified silicone sealants will become the most important development trend in the construction adhesive industry.