Adhesives & Sealants Market Trends

Growth Drivers

• Sustainability and bio-based innovations: The adhesive industry is gradually moving toward bio-based and environment-friendly products to cater to the adhesives and sealants market demands and regulatory policies. International policies such as the European Green Deal are now putting pressure on chemical firms to reduce emission intensity. Water-based and solvent-free formulations are becoming more common, which means that they release fewer VOCs. Certification like the ISCC PLUS helps to enhance the credibility of sustainability claims and to gain the trust of the customer. Businesses that are adopting renewable raw materials are creating better strategic positions in the adhesives and sealants market. The shift toward circular economy solutions is already evident in the adhesive industry worldwide.
   
• Construction and infrastructure boom: Growth in the construction industry is fueling steady growth in demand for adhesives and sealants in Asia, North America, and Europe. In December 2024, Soudal acquired a Japanese adhesive firm as it extended its business into Asia, where the construction sector is rapidly growing. Expansion of residential, commercial, and industrial sectors has necessitated the use of better sealing techniques to enhance energy efficiency and product reliability. Smart city development and green building regulations are adding to the growth of the specialty adhesives market. They are used in structural glazing, facade sealing, and as insulating panels and adhesives. Such regional development initiatives as India’s Smart Cities Mission remain crucial sources of growth. Adhesives are now playing an essential role in the construction industry and are gaining traction as time passes.
   
• Automotive lightweighting trends: The increased demand for lightweight materials to enhance fuel economy and emission reduction in the automotive industry is driving adhesive consumption. In September 2024, Ingevity launched the Capa polycaprolactone technology at FEICA, focusing on the sustainable improvement of adhesives’ performance. In automotive assembly, adhesives eliminate the need for mechanical fasteners and result in lighter and stronger structures. Another factor that is driving the need for more bonding solutions is the increasing production of electric vehicles. In modern vehicles, adhesives are used for noise control and battery integration. Manufacturers are shifting their focus towards environment-friendly and high-performance adhesives in the automotive sector for safety and compliance. This trend suggests strong adhesive consumption throughout the global automotive manufacturing regions.

Challenges

• Challenges of the supply chain and shortage of materials: Raw material availability continues to pose a challenge to adhesive producers by affecting production timelines and costs.  The use of specialty chemicals such as isocyanates and acrylates makes manufacturers vulnerable to fluctuations in price. Political risks and supply chain constraints exacerbate these issues. There is a shift in sourcing strategies with manufacturers keen to source locally and expand local supply chain networks. Technological advancements in the utilization of non-conventional feedstocks are being considered to address the risks. However, one of the main challenges to scalability and sustainability is the reliability of raw materials.
   
• Regulatory complexity and compliance pressures: The pressure on adhesive manufacturers to address emissions, chemical safety, and sustainability reporting is intensifying.  The certification standards for bio-content, emissions, and product transparency are steadily increasing. If the rules are not followed, the consequences may include restricted adhesives and sealants market access and loss of customers’ trust. When there are differences in the regulatory frameworks between the regions, it becomes costly and challenging to conduct business across borders. Those investing in proactive certification and reporting are likely to be in a better place to adapt to changing standards.