India Adhesives and Sealants Market Trends Driving Sustainable Innovation

Market Overview and Key Growth Drivers
India's adhesives and sealants sector is transitioning from being cost-competitive to technology-driven. A combination of environmental reforms, growing demand for lightweight and high-strength bonding, and strategic shifts in sectors such as aerospace, automotive, construction, and packaging is redefining the value proposition of adhesives in India.
Key Growth Drivers:
Aerospace & Defense Projects: Structural adhesives are replacing rivets and fasteners in UAVs and indigenous aircraft like HAL Tejas Mk1A.
FMCG & E-commerce Boom: The need for food-safe adhesives and flexible packaging has risen significantly.
Shift to Sustainable Solutions: Government-led bans on single-use plastics are accelerating the adoption of paper-based packaging, fueling demand for water-based and bio-based adhesives.
Rise of Smart Infrastructure: Advanced sealants are being deployed in green buildings and urban facades, especially in Tier-1 cities.
Market Dynamics
🚀 Driver: Aerospace & MRO Capabilities Expanding
India’s ambition to become a global hub for aircraft manufacturing and Maintenance, Repair, and Overhaul (MRO) services has fueled significant demand for aerospace-grade adhesives and sealants. OEMs are increasingly using lightweight, structural bonding agents in lieu of traditional fasteners to reduce aircraft weight and enhance structural integrity. Bengaluru-based MRO hubs are witnessing growing use of two-component sealants for fuel tanks, windshields, and flame-retardant interior adhesives.
⛔ Restraint: VOC Emissions and Worker Safety Concerns
Solvent-based adhesives, while historically dominant, face mounting regulatory pressure due to their volatile organic compound (VOC) emissions. Prolonged exposure in unventilated workspaces has led to a higher incidence of respiratory ailments among factory workers. Compliance costs related to environmental audits, especially in industrial zones of Gujarat and Haryana, have increased significantly, pushing small-scale operators to adopt low-VOC or zero-VOC formulations—often at higher costs or with slower cure times.
🌱 Opportunity: Bio-Based and Starch Adhesives Gain Momentum
India’s focus on sustainability has accelerated innovation in bio-based adhesives. Local start-ups are developing solutions derived from cashew nutshell liquid (CNSL), soy protein, and starch. These adhesives offer biodegradable, formaldehyde-free alternatives ideal for wood panels, food packaging, and automotive interiors. Revised standards by the Bureau of Indian Standards (BIS) and compliance with the India Plastics Pact are expected to fast-track commercialization.
Market Segmentation Analysis
🔬 By Technology
The India adhesives and sealants market is segmented into water-based, solvent-based, hot melt, and reactive adhesives.
Water-based adhesives are expected to hold a 31.3% market share in 2025, driven by regulatory pressure on VOCs and increasing consumer preference for non-toxic, eco-compliant materials.
Solvent-based adhesives, though historically prevalent in automotive and furniture, are gradually declining due to environmental and safety concerns.
Hot melt adhesives are seeing uptake in electronics and FMCG, owing to fast setting times and energy-efficient processing.
Reactive systems, such as polyurethane and epoxy-based adhesives, are gaining relevance in construction and aerospace applications due to their superior strength and chemical resistance.
🏭 By Application
Paperboard & Packaging: Dominating with a projected 50.6% market share in 2025, driven by the boom in e-commerce, FMCG, and compliance with plastic bans.
Leather & Footwear: India, being the second-largest footwear producer globally, heavily relies on adhesives for sole bonding and lamination, especially in export-oriented clusters.
Building & Construction: Witnessing increased adoption of sealants in high-rise facades, green buildings, and modular furniture.
Transportation: Includes applications in automotive interiors, trims, and EV battery modules, especially in southern and western India.
Furniture: Shift toward modular and ready-to-assemble furniture drives adhesive demand, especially in urban households.
Regional Insights
📍 North India
NCR (Delhi, Noida, Gurugram): A hotbed for electronics assembly, smart furniture, and packaging adhesives, benefiting from PLI schemes.
Haryana: Auto components in Manesar are switching to structural adhesives for lightweighting goals.
Punjab & Chandigarh: Usage remains strong in rubber adhesives, especially for sports goods and low-cost footwear.
📍 South India
Tamil Nadu: Rising adoption of thermally conductive adhesives in e-mobility and electronics hubs like Sriperumbudur.
Karnataka (Bengaluru): A leader in aerospace-grade sealants, serving DRDO, ISRO, and private space-tech companies.
Telangana (Hyderabad): Adhesives for medical packaging and pharmaceuticals gain traction in Genome Valley.
📍 West India
Gujarat: A chemical manufacturing stronghold supplying key raw materials like ethylene, toluene, and propylene, crucial for synthetic adhesives.
Maharashtra: Home to EV production by Tata and Mahindra, leading to spiked demand for structural and thermal adhesives in Pune and Chakan clusters.
Competitive Landscape
The Indian adhesives and sealants market is highly competitive, featuring a blend of global MNCs and domestic champions.
🌍 Key Global Players:
3M
Henkel Adhesives Technologies
H.B. Fuller
Sika AG
Dow India
Arkema
Avery Dennison
These companies are focusing on high-performance adhesives tailored for automotive, aerospace, and electronics, leveraging global R&D and local manufacturing.
🇮🇳 Leading Domestic Players:
Pidilite Industries Ltd (Fevicol, Fevikwik)
Astral Adhesives
Atul Ltd
Jubilant Industries
Local players dominate the consumer and construction adhesives space, supported by brand equity, pricing strategy, and wide distribution.
Recent Developments
February 2025: Henkel launched an application engineering center in Chennai to boost electronics adhesives innovation and localization.
April 2024: Pidilite Industries rolled out four new Fevikwik variants—Precision Pro, Advanced, Gel, and Craft—to meet evolving consumer and industrial needs.
Conclusion
The India adhesives and sealants market is poised for strong, sustainable growth. Driven by innovation, environmental policies, and diversification across applications, the market is shifting toward value-added solutions rather than volume-based growth.
Companies that can align with India's green regulations, cater to emerging sectors like EVs, aerospace, and smart packaging, and invest in bio-based technologies will be best positioned to lead the next growth phase.
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