The Indian adhesives and sealants industry has witnessed steady expansion over the past decade, underpinned by the country’s rapid infrastructural development, booming automotive and packaging sectors, and increasing demand for sustainable construction and manufacturing materials. In 2024, the market size of the industry is estimated to be approximately USD 1.5 billion, with a projected compound annual growth rate (CAGR) of 8 to 10 percent through 2030. This upward trajectory is driven by a diverse range of end-use industries including construction, electronics, automotive, aerospace, footwear, woodworking, and fast-moving consumer goods (FMCG).

Polyvinyl acetate (PVA), epoxy, polyurethane (PU), silicone, and acrylic-based adhesives constitute the bulk of the market share, with water-based adhesives leading the way due to their low volatile organic compound (VOC) content and favorable environmental profile. In the wake of growing emphasis on sustainability, water-based and hot-melt adhesives have shown higher growth momentum compared to solvent-based types, as manufacturers seek compliance with environmental regulations and cater to rising consumer preferences for green alternatives.

The construction sector, accounting for nearly 30 percent of adhesive consumption in India, has been a major growth engine. Increasing investments in smart cities, affordable housing, metro rail networks, and commercial infrastructure are generating robust demand for tile adhesives, sealants, and construction chemicals. Companies like Pidilite Industries, Astral Adhesives, and Sika India are capitalizing on this momentum by expanding product portfolios, enhancing distribution networks, and investing in brand awareness campaigns to reach contractors and individual homebuilders alike.

In the automotive sector, the adoption of lightweight vehicles and electric vehicles (EVs) is fueling demand for structural adhesives and specialty sealants, as manufacturers look for alternatives to traditional fasteners to improve fuel efficiency and noise-vibration-harshness (NVH) performance. Adhesives in EV batteries and thermal management systems have also emerged as a high-growth niche. Tier 1 suppliers and OEMs are collaborating with global adhesive technology providers to integrate advanced bonding solutions into their product designs.

The packaging industry remains another vital segment, particularly in flexible packaging for food and pharmaceuticals, where lamination adhesives and sealants are crucial for maintaining barrier properties and shelf life. Growth in e-commerce, combined with increased demand for hygienic, tamper-proof, and sustainable packaging, has further amplified the use of adhesives. Henkel, Bostik, and H.B. Fuller continue to be key players bringing advanced global solutions to the Indian market, while Indian companies are innovating to meet local demands at competitive price points.

Sealants are experiencing increasing usage in weatherproofing, glazing, insulation, and industrial assembly. Silicone and polyurethane-based sealants are in high demand in the real estate and infrastructure segments, while hybrid sealants are gaining attention due to their superior adhesion, flexibility, and environmental friendliness. The ongoing replacement of mechanical joining methods with adhesive bonding in manufacturing sectors is also contributing to the shift.

The R&D focus within the Indian adhesives and sealants industry has evolved to address both performance enhancement and environmental sustainability. Innovations in low-VOC formulations, bio-based raw materials, and smart adhesives that change properties in response to stimuli are becoming more prevalent. Pidilite, the market leader, has consistently invested in product innovation and recently announced strategic collaborations with startups and global research institutions to strengthen its innovation pipeline.

Growth momentum picked up in 2024

One of the most notable developments is the rising focus on green and sustainable adhesive solutions. Indian manufacturers are increasingly shifting towards low-VOC, solvent-free, and water-based adhesives to meet both regulatory and environmental standards. Pidilite Industries, which controls nearly 70 percent of the consumer adhesives market in India, has significantly expanded its eco-friendly portfolio by investing in plant-based polymers and bio-resin technologies. Henkel Adhesives Technologies India has also launched new high-performance water-based adhesives targeted at packaging and hygiene markets, reducing emissions and improving end-user safety.

Capacity expansion has been another major focus area in 2024. To meet growing domestic and export demand, companies like Astral Adhesives and Jubilant Agri and Consumer Products Ltd (JACPL) have announced the commissioning of new adhesive manufacturing facilities in Gujarat and Maharashtra. Pidilite, too, has continued its capital investment strategy with additional units in Vapi and Amod focused on specialty adhesives. These investments are designed not only to meet increasing demand but also to reduce reliance on imports for specialty grades and improve supply chain resilience.

Mergers, acquisitions, and global partnerships have played a vital role in enhancing India’s technological capabilities in the adhesive and sealants space. In early 2024, Pidilite completed its integration with Tenax India Stone Products to gain stronger technical expertise in construction adhesives. Similarly, Arkema Group, a global leader in adhesives through its Bostik brand, has scaled up its India operations through partnerships with local distributors and OEMs. These collaborations are bringing advanced structural adhesives, hot-melt solutions, and hybrid sealants to Indian markets, catering to fast-growing applications in electric vehicles, solar panels, and sustainable construction.

Innovation in adhesives for electric vehicles and electronics has gained momentum. With India’s EV production expected to grow by 35 percent year-on-year through 2030, adhesive manufacturers are investing in high-heat resistant, electrically insulating, and flame-retardant formulations specifically designed for battery assembly, wire harnessing, and powertrain systems. Henkel and H.B. Fuller are leading the way in this segment, partnering with Indian OEMs and component manufacturers to develop localized solutions for EV platforms.

Packaging adhesives have also evolved in 2024 with innovations tailored for flexible, recyclable, and biodegradable packaging formats. In response to India's EPR (Extended Producer Responsibility) mandates, adhesive makers have introduced products compatible with mono-material packaging that supports easier recycling. UFlex Chemicals and Jubilant Ingrevia have both launched new grades of lamination adhesives that improve packaging sustainability without compromising on barrier performance.

From a regulatory and policy perspective, the government’s push under “Make in India” and “Aatmanirbhar Bharat” has catalyzed indigenization of inputs for adhesives and sealants. The PLI schemes for chemicals and electronics have indirectly benefited adhesive manufacturers by supporting upstream demand and encouraging backward integration. Research institutes like the Indian Institute of Chemical Technology (IICT) and IITs have intensified partnerships with industry players to co-develop new adhesive chemistries based on indigenous raw materials.

Digitalization has also entered the adhesive domain, with companies implementing AI-driven process optimization, digital twin models for plant management, and customer-focused digital advisory platforms. These tools are enhancing product performance, ensuring process safety, and improving the overall user experience in industrial applications.

Adressing challenges requires urgency

A primary challenge for the industry is the heavy reliance on imported raw materials, especially specialty chemicals, resins, tackifiers, and performance polymers. Over 40 percent of the raw materials used in high-performance adhesives and sealants in India are imported, primarily from China, the US, and European nations. This dependency exposes manufacturers to global supply chain disruptions, foreign exchange fluctuations, and geopolitical tensions, all of which can cause inconsistent pricing and unpredictable lead times. For example, disruptions during the Red Sea shipping crisis and the Russia-Ukraine conflict have led to spikes in input costs, affecting profit margins across the industry.

Price volatility of petrochemical-based raw materials has become another persistent issue. Adhesive formulations depend heavily on base chemicals such as ethylene, propylene, and toluene, which are subject to sharp price swings. The global crude oil market's instability in 2023 and 2024 has had a ripple effect on input prices in the Indian adhesives sector, squeezing manufacturers and forcing them to pass on costs to consumers or compromise on margins.

Technological gaps and the lack of domestic manufacturing capacity for high-performance and specialty adhesives pose an additional barrier to market competitiveness. While companies like Pidilite and Astral dominate the domestic consumer adhesive space, India still lags behind global players in advanced technologies such as reactive polyurethane hot-melt adhesives, structural epoxies, and electrically conductive adhesives. The industry also struggles with a fragmented market structure, particularly in the unorganized and small-scale segments that dominate rural and semi-urban areas. These segments often lack access to R&D resources, quality control processes, and regulatory compliance mechanisms.

Environmental compliance is becoming increasingly stringent, both from regulatory authorities and customer expectations. The adoption of REACH, RoHS, and low-VOC norms globally has pressured Indian manufacturers to upgrade their formulations and production processes. However, transitioning to eco-friendly adhesives entails significant investment in R&D and plant infrastructure, which smaller players may not be able to afford. Furthermore, the absence of strong domestic guidelines on emissions and product certifications adds ambiguity, hampering large-scale adoption of sustainable alternatives.

Another bottleneck is the limited technical awareness and skill availability across application sectors. Adhesive performance often depends on precise application techniques, surface preparation, and curing methods. In sectors such as construction and automotive aftermarket services, a large part of the workforce lacks formal training in adhesive use, leading to inefficient application, product wastage, and suboptimal results. This lack of education not only affects product performance but also hinders customer satisfaction and slows down market penetration of advanced adhesive systems.

Lastly, innovation in the sector is uneven. While top-tier players like Henkel, Bostik, and Pidilite continue to invest in product development and customized solutions, many local companies operate with outdated formulations and limited R&D budgets. This innovation divide restricts the sector’s ability to move up the value chain and compete globally, especially as end-users demand more specialized and sustainable bonding solutions.

Strongly optimistic outlook

There is a  growing demand for the adhesive and sealants across end-user sectors, technological advancements, and a shift toward sustainable and high-performance products. The industry, which stood at approximately USD 1.5 billion in 2024, is projected to grow at a compound annual growth rate of 8 to 10 percent, reaching around USD 2.2 to 2.4 billion by 2030. This growth is expected to be driven by infrastructure development, rising automotive and EV production, advancements in electronics manufacturing, and a boom in the packaging and hygiene industries.

The government’s focus on boosting domestic manufacturing under the "Make in India" and PLI schemes is expected to catalyze demand for industrial adhesives, especially in sectors like electronics, white goods, and solar energy, where bonding solutions are replacing traditional mechanical fasteners. Increasing urbanization and the real estate push under programs such as Smart Cities Mission and PM Awas Yojana will further fuel demand for construction adhesives, tile bonding compounds, and sealants.

Technological innovation will play a key role in shaping the future landscape. Market leaders are investing heavily in R&D to develop next-generation adhesives that are solvent-free, low-VOC, and bio-based. Water-based adhesives, which currently account for nearly 40 percent of the market, are expected to gain more traction due to their environmental compliance and safety profile. Specialty segments like reactive adhesives, pressure-sensitive adhesives, and electrically conductive adhesives are forecast to grow at double-digit rates, particularly with the acceleration of electric vehicle adoption and domestic electronics assembly.

The export potential for Indian adhesives and sealants is also rising. With increasing alignment to global standards and certifications, Indian manufacturers are positioning themselves to serve international markets in South Asia, the Middle East, and Africa. Players like Pidilite, Jubilant, and Astral are scaling their international presence, while global giants like Henkel and Bostik continue to invest in Indian operations, boosting the country's technological footprint in this segment.

Digitalization and smart manufacturing are expected to improve efficiency and product innovation. Integration of AI for predictive formulation, IoT-based quality monitoring systems, and digital customer interfaces will enhance competitiveness and accelerate product development cycles. Additionally, greater awareness and training around adhesive application techniques will expand market acceptance across user segments, from DIY consumers to industrial manufacturers.

Overall, the Indian adhesives and sealants industry is set to evolve from a volume-based to a value-driven ecosystem, with sustainability, customization, and high-performance solutions at its core. This transition, coupled with rising domestic and export demand, positions the sector as a key enabler in India’s next phase of industrial and economic transformation.