Bio-based wood adhesives market seen rising on modular construction demand

The market for bio-based structural wood adhesives used in modular construction is projected to grow from $1.13 billion in 2026 to $1.65 billion by 2030, fueled by sustainable building rules, prefabrication demand and tighter emissions standards. Europe led the market in 2025, while Asia-Pacific is expected to post the fastest growth.

Why it matters: - Bio-based structural wood adhesives are becoming a key material for modular and mass timber construction as builders look for lower-emission alternatives to petrochemical products. - The market is forecast to expand at a 9.9% CAGR through 2030, pointing to sustained demand in sustainable building supply chains. - Tighter limits on formaldehyde and volatile organic compound emissions are pushing the market toward low-VOC, renewable adhesive systems.

What happened: - The Business Research Company published a report on the bio-based structural wood adhesives for modular construction market on June 23, 2026. - The report said the market will rise from $1.03 billion in 2025 to $1.13 billion in 2026. - The report projected the market will reach $1.65 billion by 2030. - The report tied the growth outlook to modular construction, engineered wood production and sustainability-driven building practices.

The details: - Bio-based structural wood adhesives are made from renewable biological materials and are designed for strong bonding in engineered wood components. - The adhesives are formulated for durability, high load-bearing capacity and resistance to environmental stressors. - The report said historic growth was supported by traditional timber construction, cost-effective wood bonding needs, growing plywood and engineered wood output, environmental concerns about petrochemical adhesives and early research into bio-based resins. - The report highlighted several expected product trends, including lignin-based adhesives for engineered wood bonding and soy-based bio-adhesives for cross-laminated timber production. - The report also pointed to wider use in prefab wall and floor panels and continued development of high-performance bio-polymer adhesives for load-bearing wood structures. - Europe held the largest market share in 2025. - Asia-Pacific is expected to post the fastest growth during the forecast period. - The report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. - The report included market attractiveness scoring, total addressable market analysis, company scoring matrices, Excel-based forecasting dashboards, hotspot infographics and updated graphics and tables.

Between the lines: - The growth case is less about a single product cycle and more about a broader shift in construction toward low-carbon materials and factory-built housing systems. - LEED momentum is reinforcing that shift. The US Green Building Council reported a 9% increase in LEED certifications in 2023 and a 51% jump in new LEED project registrations. - More sustainable building standards could accelerate adoption of adhesives that meet both structural and emissions requirements.

What's next: - The market’s near-term outlook will likely depend on how quickly modular construction expands and how fast manufacturers improve bio-polymer performance. - Adoption should rise as builders seek adhesives that combine structural strength with lower emissions. - More information is available in the full market report and the sample request.

The bottom line: - Bio-based structural wood adhesives are moving from a niche sustainability play to a growth category tied to modular construction, tighter emissions rules and the rise of mass timber.