Polyurethane adhesive is an environmentally friendly adhesive and an important component of the rapidly developing polyurethane resin. It has excellent properties and has been widely used in many aspects. It is one of the important varieties in the eight major synthetic adhesives.

The research and development of polyurethane adhesives in China began in the 1960s. After the 1980s, research on waterborne polyurethane adhesives became more active in China, but compared to the level of large-scale industrial development of waterborne polyurethane adhesives abroad, it is still in the development stage. In the 1990s, due to the urgent need for localization of imported products, relevant research institutes and production units increased their development efforts, and new products continued to emerge. So far, there are basically all types of adhesives available in China, including those from foreign countries.

Although China's polyurethane industry has reached a considerable scale, there is still a significant gap compared to developed countries. The main difference is that the overall production of polyurethane is not large, and the technological level is still lagging behind some developed countries.

1、Introduction to Adhesive

The composite polyurethane adhesive industry is a sub industry of fine chemicals in the adhesive industry. Adhesives refer to substances that can bond objects together through bonding, and there are many types of adhesives. According to the product classification of adhesives by China Adhesive Industry Association, adhesives are mainly divided into the following six categories: pressure sensitive adhesive (tape), polymer lotion adhesive, rubber adhesive, polyurethane adhesive, hot-melt adhesive and engineering adhesive.

2、Introduction to Composite Polyurethane Adhesive

Adhesive refers to a substance that can bond objects together through adhesive action, and there are many types of adhesives. Among them, composite polyurethane adhesive specifically refers to adhesives containing urethane groups (- NHCOO -) or isocyanate groups (- NCO) in the molecular chain, mainly used to bond two or more different or identical film like or sheet like materials to form new composite materials. The principle is shown in the following figure:

Classification and Performance

There are various types of composite polyurethane adhesive products with different classification methods. There are three common classification methods:

① According to their applications, they can be divided into packaging, leather, textile and shoe making, printing, transportation, household appliances and electronic products, furniture and building materials, safety protection, composite polyurethane adhesives for new energy, etc;

② According to the characteristics, it can be divided into several categories: ultra-low temperature, foaming, anaerobic, conductivity, high temperature resistance, high barrier, anti-aging, anti media, anti slip agent composite polyurethane adhesive, etc;

③ According to different chemical principles, it can be divided into two categories: reactive composite polyurethane adhesives and non reactive composite polyurethane adhesives. Due to environmental and safety issues with non reactive composite polyurethane adhesives, their market share has gradually been replaced by reactive composite polyurethane adhesives this year.

performance

Reactive composite polyurethane adhesive refers to a composite polyurethane adhesive containing two or more chemically active components that are cured and crosslinked during use. In addition to its wide range of applications, this adhesive also has the following advantages:

High adhesive strength;

High and low temperature resistance, wide design range;

Good hygiene and biological performance;

High process adaptability;

Strong resistance to media.

3、Application of Composite Polyurethane Adhesive

Composite polyurethane adhesive is mainly used in packaging, printing, leather, textile and footwear, transportation, home appliances and electronics, furniture and building materials, safety protection, new energy, tobacco, etc.

4、Overview of the Composite Polyurethane Adhesive Industry

① Since the reform and opening up, China's composite polyurethane adhesive industry has experienced sustained, rapid, and stable development, and has formed a certain production scale. However, from an internal perspective, small and medium-sized composite polyurethane adhesive manufacturers are still the main players in the industry. According to incomplete statistics, there are hundreds of composite polyurethane adhesive production enterprises in China, most of which are still small and medium-sized enterprises scattered in 28 provinces, municipalities and autonomous regions across the country. There are less than 10 enterprises with annual sales revenue of over 50 million yuan and mainly relying on independent technology; And most small enterprises have low production technology and management level, small output, and low product grade, making it difficult to cope with the challenges of modern production and market competition.

② As a high-end product in the industry, composite polyurethane adhesive has maintained a strong development momentum due to the continuous expansion of domestic new material application fields and the high-speed development of the domestic economy in the past 10 years. Despite historical reasons such as late start and relatively low R&D investment, the technical level of domestic production enterprises in a few products cannot compete with international enterprises. In the past 10 years, the production and sales volume have grown rapidly, with an average growth rate of 20%

③ In the context of an 11% increase in domestic industrial added value in 2009 compared to 2008, the production of composite polyurethane adhesives applied in the field of plastic flexible packaging in China reached 215000 tons that year, still achieving a high growth rate of 26.5%. At the same time, although its sales volume only accounted for about 5.5% of the total sales of all adhesive varieties, its sales accounted for more than 8% of the total sales of all adhesives, playing an important role in the entire adhesive industry.

5、Main development trends of the industry

At present, the development of the composite polyurethane adhesive industry presents the following major trends

① Expansion of application areas

Composite polyurethane adhesive, as a high-end adhesive, has been widely used not only in traditional packaging fields such as food, medicine, daily chemical, precision instruments, meters, and electronics, but also in oil printing, household appliances, building materials, transportation, new energy, safety protection and other fields.

② Industry concentration has increased

In recent years, users' requirements for the quality, performance, and environmental protection of composite polyurethane adhesive products have been increasing, and their awareness of the brands of enterprises in the industry has been continuously strengthened, leading to increasingly fierce market competition. The industry as a whole is showing a trend of large-scale and intensive development, with increasing industry concentration; Enterprises with strong research and development capabilities and high technological levels are rapidly expanding.

③ Professional development

With the increasing demand for composite polyurethane adhesives in China and the continuous innovation of application methods, tailoring specialized composite polyurethane adhesives according to customer performance requirements will become the development trend of high-end adhesives in the future. This will put forward higher requirements for the research and development capabilities and professional level of composite polyurethane adhesive production enterprises.

④ Import substitution trend

In recent years, domestic enterprises have made significant technological progress in some composite polyurethane adhesive products, gradually replacing imported products and competing with domestic giants. At the same time, downstream customers have a strong demand for replacing imported products from the perspective of reducing their own costs, which has also stimulated the research and production of domestic products.

6、Industry market competition pattern

There are many small enterprises in the composite polyurethane adhesive industry in China, which are widely dispersed. These enterprises mainly focus on products with low technical requirements and have low profit margins. Therefore, they are at the bottom of the industry pyramid. A few domestic enterprises that hold independent intellectual property rights of high-end composite polyurethane adhesives mainly produce products with high technological content and profit margins, which are in the upper part of the industry pyramid; International giants, with their strong research and development capabilities and brand advantages, have established joint ventures or production bases in China to reduce production costs, achieve monopoly in the market share of the highest end products, and have a clear competitive advantage in technology research and development, ranking at the top of the pyramid.

As a high-end product in the industry, composite polyurethane adhesive has long been monopolized by international giants such as Henkel in Germany, Dow Corning in the United States, and 3M in the United States due to its high requirements for enterprise research and development capabilities, technological level, and sales channels. Many industries in China rely on imported or joint venture products for their composite polyurethane adhesive needs. Since the 1990s, domestic enterprises, research institutes and other enterprises and institutions have gradually entered the field of independent research and development of products. After years of technological accumulation, they have gradually achieved independent knowledge development in composite polyurethane adhesive products, with the goal of replacing imports.

The field of plastic flexible packaging is one of the main applications of composite polyurethane adhesives. After years of development, composite polyurethane adhesives for plastic flexible packaging have accounted for more than 50% of the production and sales of composite polyurethane adhesives, and have a relatively mature market. In 2009, the production of composite polyurethane adhesive for plastic flexible packaging by Chinese enterprises reached 215000 tons. At present, the domestic market for composite polyurethane adhesives used in plastic flexible packaging has formed the following pattern: multinational companies' high-end product technology is lacking, domestic enterprises have increased their concentration, focused on segmented fields, continuously expanded their market share in the mid to high end, and gradually achieved product import substitution. Market Research on Plastic Composite Flexible Packaging Adhesive - China Packaging Industry

7、Market Capacity Analysis

In recent years, China's adhesive industry has continued to develop rapidly, with production increasing from 1.705 million tons in 2002 to 4.628 million tons in 2010, and sales increasing from 16.3 billion yuan in 2002 to 59 billion yuan in 2010. (Source: China Monthly Adhesive Industry Association)

Thanks to the rapid and stable development of the adhesive industry, composite polyurethane adhesives have experienced rapid growth in the past decade, with an average annual sales growth rate of up to 20%, making them one of the fastest-growing adhesive products. Among them, plastic flexible packaging is the main application area of composite polyurethane adhesives. The proportion of composite polyurethane adhesives used in this field accounts for more than 50% of the total production and sales of composite polyurethane. After years of development, composite polyurethane adhesives for plastic flexible packaging have become an important type of composite polyurethane adhesive with complete categories, high technological level, and mature market. In 2009, the production of composite polyurethane adhesives for plastic flexible packaging in China was about 215000 tons, with sales of 4.35 billion yuan, an increase of 26.47% and 21.85% respectively compared to 2008

Since 2009, China's composite polyurethane adhesives have developed rapidly, with production continuing to grow at an average annual rate of over 25%. In 2013 and 2014, the production of composite polyurethane adhesives in China reached 712000 tons and 858000 tons respectively, maintaining a good growth momentum. In 2013 and 2014, the sales revenue of the composite polyurethane adhesive industry was 15.65 billion yuan and 19.37 billion yuan, respectively.

In recent years, due to the continuous maturity of composite polyurethane adhesive technology and the upgrading of downstream industry technology standards, composite polyurethane adhesives have gradually entered emerging fields such as ink printing, transportation, and safety protection. The future market capacity expansion speed will accelerate.

In addition to the rapid development in the emerging fields mentioned above, composite polyurethane adhesives are gradually expanding their application areas and gaining more in-depth applications in other emerging fields such as new energy, household appliances, and building materials. Conservatively estimated, the overall growth rate of composite polyurethane adhesives in emerging fields will far exceed 20% in the coming years.

8、Industry profit level and trend of change

In recent years, due to the sustained and rapid development of China's economy, the sustained prosperity of downstream industries has driven the rapid development of the composite polyurethane adhesive industry. The overall gross profit margin level of the industry is relatively stable, and the profitability is proportional to the output. Especially for advantageous enterprises that produce high-performance composite polyurethane adhesive products, their profits have continued to grow in recent years, and the profit margin level is relatively high. The main reason is that:

The gross profit margin of the composite polyurethane adhesive industry is relatively high

Enterprises that produce composite polyurethane adhesives in high-end traditional and emerging fields have strong market bargaining and cost transfer capabilities, and can cope with fluctuations in raw material prices. It is expected that in the foreseeable future, the gross profit margin of composite polyurethane adhesives in high-end traditional fields will remain relatively stable, while the gross profit margin of composite polyurethane adhesives applied in emerging fields will remain relatively high. Therefore, the polyurethane adhesive industry will have a higher gross profit margin.

The demand for products in the composite polyurethane adhesive industry continues to increase

As a new material, the application scope of composite polyurethane adhesive is still expanding, especially high-performance composite polyurethane adhesive that can adapt to different environments and performance requirements has begun to be widely used in emerging fields such as ink printing, household appliances, building materials, transportation, new energy, safety protection, etc. These emerging fields have huge markets, and with the upgrading of technical standards in these fields, the future market for composite polyurethane adhesive products is huge.

9、Factors affecting industry development

Advantage

① The application field continues to expand

As a new polymer material, composite polyurethane adhesive plays a prominent role in improving product performance, reducing costs, and promoting environmental protection and energy conservation. With the improvement of product quality and stability in recent years, the popularization and deepening of market awareness, the upgrading of technical standards in related downstream industries, and the continuous expansion of application fields.

② Industrial policy support

Composite polyurethane adhesive, as a new polymer material, plays an important role in the national economy and has received increasing attention from government departments. Some policy documents have clarified the future development ideas of the industry and included it in the national encouraged development industry, providing a very favorable policy environment for composite polyurethane adhesive enterprises.

③ Upgrading of technical standards in related industries

Composite polyurethane adhesives are widely used in important fields such as packaging, printing, household appliances, building materials, transportation, new energy, and safety protection. The upgrading of technical standards in related fields has brought greater opportunities for the development of composite polyurethane adhesives.

④ Intellectual Property Protection

In recent years, with the introduction of various laws and regulations on intellectual property protection, the country's efforts to protect intellectual property have been increasingly strengthened, providing strong guarantees for the rapid development of enterprises with independent innovation capabilities and intellectual property rights in the future.

Disadvantage

① The fluctuation of raw material prices is severe

The raw materials used in the production of composite polyurethane adhesives are all petroleum processed products. In recent years, the fluctuation of crude oil prices in the international market has led to significant changes in the raw material prices of composite polyurethane adhesives.

② The demand for research and development is increasing day by day

The composite polyurethane adhesive industry belongs to a technology intensive industry, and product formulation and research and development capabilities are the guarantee for enterprises to maintain high profit margins. With the rapid development of the global fine chemical industry, customer demands are constantly changing and showing personalized trends, which invisibly increases the difficulty of upstream product research and development. Enterprises must always pay attention to product formulation improvement, performance improvement, and expand application fields to meet the continuously changing market demand and consolidate market share.

③ Intensified localization competition among multinational corporations

With the rapid development of the composite polyurethane adhesive industry, some domestic enterprises have gradually acquired independent intellectual property rights and gained competitive advantages in some fields; However, some multinational corporations have realized that the Chinese market has strong development potential and is a competitive hotspot for implementing their globalization strategies. In recent years, multinational corporations have increased their investment in China, accelerating the process of localizing product production and scientific research while reducing their costs.

10、Industrial chain

Upstream and downstream industry chain

Upstream industry

The upstream of the composite polyurethane adhesive industry is the basic petrochemical raw material industry, with main raw materials such as diethanol, adipic acid, and isophthalic acid.

At present, 95% of the raw materials in this industry have been localized, mainly provided by Sinopec, PetroChina, Wu'er (China) and Yantai Wanhua; Overall, the raw materials for composite polyurethane adhesives are in a state of supply-demand balance.

Downstream industry

Due to its wide range of applications, downstream industries of composite polyurethane adhesives include packaging, printing leather, textiles, footwear, household appliances, electronic products, furniture, building materials, transportation, new energy, safety protection, tobacco, etc.

11、 Industry related legal policies

Guiding Catalogue for Industrial Structure Adjustment (2005 Edition), Outline of the Eleventh Five Year Plan for Economic and Social Development of the People's Republic of China, and Outline of the National Medium - and Long Term Science and Technology Development Plan (2006, 2020)