Adhesives & Sealants: Where the Industry Is Headed Next

The global adhesives and sealants market is facing a strategic reset. A boom in construction and manufacturing activity around the world is driving sales of adhesives and sealants. Preference of manufacturers to opt for novel joining methods over conventional ones creates new opportunities.

The adhesives and sealants industry is slated to grow from USD 80.40 billion in 2025 to USD 122.42 billion by 2033, registering a CAGR of 5.4% from 2026 to 2033 as per Kings Research. Adhesives and sealants are used extensively across multiple sectors, which makes them a critical part of various applications. Volatility in crude oil and petrochemical prices directly affects the cost of resins, polymers, solvents, and other critical feedstocks. At the same time, logistics disruptions, geopolitical risks, and supplier constraints can delay deliveries and increase inventory and transportation costs.

For industry leaders, the priority is shifting from cost control alone to strategic consolidation, sustainability, and EV-driven growth. Mergers and acquisitions are enabling companies to expand technologies, strengthen geographic reach, and secure critical capabilities. At the same time, stricter sustainability requirements are accelerating demand for low-VOC, bio-based, recyclable, and lightweight adhesive solutions.

The rapid growth of electric vehicles is creating additional opportunities for adhesives and sealants in battery assembly, thermal management, lightweighting, and electronic components. Companies that align M&A strategies with sustainable technologies and EV-focused applications will be better positioned to strengthen market share, improve competitive differentiation, and capture long-term growth.

Which Challenges are Persistent for Adhesive and Sealant Manufacturers?

Supply chain disruptions, regulatory changes, and fluctuations in petrochemical prices are major challenges that bother adhesive and sealant companies. The industry relies heavily on petroleum-based raw materials, including resins, polymers, solvents, monomers, and additives. Changes in crude oil and petrochemical prices directly influence manufacturing costs, pricing strategies, and profit margins.

Supply chain disruptions can cause raw material shortages, longer lead times, higher transportation costs, and production delays. Geopolitical tensions, port congestion, energy shortages, and supplier constraints can further reduce supply reliability. Manufacturers may increase safety inventories and qualify alternative suppliers. These measures improve supply continuity but raise working-capital and operating costs.

Petrochemical price fluctuations create additional cost uncertainty. Rising crude oil and natural gas prices can increase the cost of key inputs such as synthetic resins, polyurethane components, acrylics, and solvents. Manufacturers often pass higher costs to customers through price increases or surcharges. However, strong market competition and customer price sensitivity can restrict cost pass-through. This results in margin compression.

The impact varies across adhesive and sealant technologies. Solvent-based and synthetic polymer products can be particularly exposed to petrochemical cost movements. The water-based segment accounted for 41.43% share of the global adhesives and sealants market in 2025. Bio-based technologies and solvent-free formulations may provide opportunities to reduce exposure, although their performance, availability, and cost competitiveness remain important considerations.

These challenges also influence procurement, inventory management, product formulation, and sourcing strategies. Companies are increasingly diversifying suppliers, regionalizing production, securing long-term contracts, optimizing inventories, and developing alternative formulations.

Overall, supply chain volatility and petrochemical price fluctuations increase production costs, pricing uncertainty, inventory expenses, and operational risks in the adhesives and sealants market. Companies with diversified sourcing, efficient procurement, flexible manufacturing, and strong pricing strategies are better positioned to protect margins and maintain supply continuity. Supply chain resilience and raw material cost management are therefore critical competitive advantages for adhesives and sealants manufacturers.

Regulations and Certifications Influencing Adhesives and Sealants Industry

Acquisitions and Mergers: Key Strategic Emphasis

The business landscape for adhesive and sealant companies is changing rapidly. Some companies are focused on keeping pace with market demand, while others are aggressively expanding their operations. Expanding manufacturing capacity and investing in sustainable R&D are key priorities across the industry.

Meanwhile, mergers and acquisitions (M&A) are gaining traction as leading companies seek to strengthen their market position, expand product portfolios, enter new markets, and access new technologies. Acquiring smaller or specialized companies can also help large players quickly gain technical expertise and manufacturing capabilities without developing them from scratch. Growing demand for high-performance, sustainable, and application-specific adhesives and sealants is further encouraging consolidation. As competition intensifies, strategic acquisitions are expected to remain an important growth strategy for major industry players.

Acquisitions have emerged as a major trend in the industry, and here are some notable recent ones:

• In September 2026, Sika announced that it had closed the acquisition of Akkim, a Turkish adhesives and sealant manufacturer. This move has allowed Sika to expand its geographic reach and bolster its manufacturing capacity as well. Akkim had generated net sales revenue of CHF 220 million in 2025.
• In August 2026, Chase Corporation announced the acquisition of Hylomar Holdings Limited. Hylomar is known for designing and manufacturing specialized sealants and adhesives used across multiple industries. Chase’s global scale and Hylomar’s expertise of over 60 years are expected to accelerate growth.
• In June 2026, DiversiTech Corp. revealed that it had acquired Polymer Adhesives Holdings LLC. Financial terms of the deal were not made available. This acquisition helps expand DiversiTech's business in adhesives, sealants, and fire-stopping materials, and HVAC-related applications.
• In March 2026, TruArc Partners, a private equity company, announced the acquisition of Matrix Adhesives Group. TruArc’s expertise in investing in specialty manufacturing businesses is expected to help Matrix enhance its presence. Matrix is known for its adhesives and sealants used in construction, industrial, commercial, and specialty sectors.

Sustainability in Adhesives and Sealants

Adhesives and sealants have traditionally been made using petroleum feedstocks and synthetic chemicals. However, climate change has made sustainability a key factor in adhesive and sealant formulations. Manufacturers are increasingly developing bio-based, water-based, solvent-free, and low-VOC products to reduce environmental impact. Recycled and renewable raw materials are also being explored to reduce dependence on fossil-based feedstocks.

Sustainable formulations can help lower VOC emissions, carbon footprint, energy consumption, and hazardous chemical use while maintaining bonding and sealing performance. This shift toward sustainability is shaping new product developments across the adhesives and sealants industry.

• In July 2025, Henkel Adhesive Technologies announced the launch of Loctite Liofol LA 7837/LA 6265. The new aliphatic adhesive system is solvent-free and prepared for high thermal stress applications. The solution helps in reducing CO2 emissions and eliminates the need for an extra drying step present in solvent-based adhesives.
• In June 2026, Fedrigoni Self-Adhesives North America launched a new clear-drying and water-soluble adhesive. DS2 is specifically designed for label applications that leave no residue behind. It disperses in hot or cold water, which makes it suitable for applications such as food service, institutional, food preparation, healthcare, grocery, and lab environments.
• In July 2026, DELO developed and launched a new adhesive formulation called DELO PHOTOBOND SJ4192. This is the company’s first adhesive where renewable materials make up more than half of its composition, sitting at 62% renewable raw materials. Low outgassing, better moisture resistance, high peel strength, and fast curing are offered by this new product.
• In July 2025, Tex Year Group launched Asia’s first biodegradable hot melt adhesive dedicated production line in its Taoyuan factory. The facility also features a new R&D facility to address challenges of climate change, global warming, and environmental trends.

Role of Adhesives and Sealants in Electric Vehicles (EVs)

The past decade has witnessed a notable shift in mobility trends, reshaping the automotive industry. Electric vehicles (EVs) are being promoted to reduce emissions and meet stricter vehicle emission standards. These changes have encouraged automakers to adopt alternative joining methods to traditional welding and bolting. Adhesives and sealants reduce joint weight, improve vehicle efficiency, and support lightweight EV designs. Silicone and pressure-sensitive adhesives are highly popular in automotive applications.

In March 2026, Hoenle Adhesives launched a new UV-curable cured-in-place gasket material. The new blue fluorescent polyacrylate is being presented as an alternative to conventional gaskets used in automotive and e-mobility electronics housings. Vitralit CIPG 60200 is also claimed to resist engine oil, ATF, and 50:50 water/glycol mixtures.

Adhesives and sealants are widely used in battery packs, electric motors, body structures, thermal management systems, and electronic components. Structural adhesives provide high-strength bonding and enable the joining of dissimilar materials such as aluminum, steel, composites, and plastics. Sealants protect components from moisture, dust, chemicals, vibration, and thermal exposure. As EV production expands, adhesives and sealants are becoming increasingly important for lightweight construction, battery protection, durability, and vehicle performance.

In May 2026, Henkel announced the launch of a thermal gap filler and thermally conductive adhesive for EVs. Bergquist TGF 2030APS and Loctite TLB 9270APS were launched with 1.7 W/mˑK and 2 W/m.K thermal conductivity each. They also highlight Henkel’s commitment to reducing emissions and creating more sustainable products.

Where are Adhesive and Sealant Manufacturers Going?

Adhesive and sealant manufacturers are moving toward consolidation, sustainable innovation, and high-growth EV applications. The industry is shifting beyond traditional volume-led growth toward higher-value technologies, strategic M&A, and application-specific solutions.

For industry leaders, the direction is clear: consolidate strategically, innovate sustainably, and capture EV-driven demand. Companies that combine technological differentiation with resilient supply chains and disciplined capital allocation will be best positioned to gain market share.

In short, the future of the global adhesives and sealants market will be defined by manufacturers that move closer to customers, higher-value applications, and sustainability-led technologies. The winners will not simply sell more adhesives and sealants; they will deliver solutions aligned with the next generation of mobility, manufacturing, and sustainable development.

Track the shifts shaping the next phase of industry growth. Connect with analysts at Kings Research to better understand the current landscape and future trajectory of adhesives and sealant demand.

FAQs

Why are adhesives and sealants popular in electric vehicles?

Electric vehicles need to be lightweight to extend their range, which is why they opt for adhesives and sealants instead of conventional joining methods.

What’s the difference between adhesive and sealant?

The main difference is their function: adhesives are designed to bond surfaces, while sealants are designed to seal gaps and joints. Adhesives generally prioritize bond strength, while sealants prioritize flexibility, durability, and resistance to environmental exposure.

What are the main types of adhesives?

The main types of adhesives include epoxy, polyurethane (PU), acrylic, cyanoacrylate, silicone, hot-melt, and pressure-sensitive adhesives (PSAs). Each type offers different levels of strength, flexibility, curing speed, and chemical or temperature resistance.

Why does an adhesive or sealant fail to stick?

Adhesive or sealant failure is commonly caused by poor surface preparation, contamination, incorrect application, incompatible materials, insufficient curing, or unsuitable environmental conditions. Following the manufacturer's application and curing requirements helps prevent adhesion failure.

How are sales of adhesives and sealants expected to rise?

The global adhesives and sealants market is slated to expand at a modest 5.4% CAGR through 2033.