Market Overview
| Study Period | 2017 - 2028 |
|---|---|
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2028 |
| Market Size (2024) | USD 399.98 Million |
| Market Size (2028) | USD 496.92 Million |
| Growth Rate (2024 - 2028) | 5.58% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Brazil Sealants Market Analysis by Mordor Intelligence
The Brazil Sealants Market size is estimated at 399.98 million USD in 2024, and is expected to reach 496.92 million USD by 2028, growing at a CAGR of 5.58% during the forecast period (2024-2028).
Brazil's economic landscape has shown resilience and transformation, with a GDP per capita of 8,570 USD and a growth rate of 0.8% year-over-year in 2022, creating a stable foundation for industrial development. The country's commitment to sustainable development has become increasingly prominent, with initiatives focusing on energy efficiency and environmental protection. This commitment is evidenced by Brazil's pledge to reduce emissions by 75% by 2030, driving significant changes in industrial practices and product specifications. The government's focus on sustainable development has led to increased demand for eco-friendly and energy-efficient solutions across various industries, particularly in the construction and manufacturing sectors.
The construction sector has undergone significant policy changes, with the government implementing favorable financing conditions to stimulate growth. A notable development is the reduction in interest rates from 8.16% to 7.66% under the mortgage program for low-income construction projects, making construction more accessible and affordable. This financial restructuring has created new opportunities for modern construction materials and technologies, particularly in the residential sector. The emphasis on sustainable construction is reflected in the presence of over 1,400 certified green buildings in the country, demonstrating a clear shift towards environmentally conscious building practices. The demand for construction sealants and waterproofing sealants is expected to rise as these materials are integral to sustainable building practices.
The healthcare sector has emerged as a significant contributor to industrial growth, with Brazil allocating approximately 9.1% of its GDP to healthcare spending. This substantial investment has led to increased demand for specialized industrial products and materials in medical device manufacturing and healthcare infrastructure. The trend toward modernization in healthcare facilities and the adoption of advanced medical technologies has created new applications for industrial materials, particularly in sterile environments and medical device assembly. The use of sealants in medical applications is crucial for maintaining sterile conditions and ensuring the integrity of medical devices.
Industrial modernization efforts have gained momentum across various sectors, with companies focusing on technological advancement and efficiency improvements. The integration of advanced manufacturing processes and the adoption of Industry 4.0 principles have created new requirements for industrial materials and solutions. This transformation is particularly evident in the manufacturing sector, where companies are investing in automated systems and precision equipment that require specialized industrial products. The focus on quality control and compliance with international standards has led to increased demand for high-performance materials that meet stringent specifications. The Brazil waterproofing market is also seeing growth as industries seek durable and reliable construction adhesives and sealants to enhance product longevity and performance.
Brazil Sealants Market Trends and Insights
Supportive government policies for residential projects to aid the construction industry
- Brazil's construction industry is projected to register a CAGR of about 4.28% during the forecast period (2022 - 2028). The construction industry registered a weak recovery in 2019 after a continuous decline of Y-o-Y growth for about 20 quarters. The country spends only 2% of its GDP on infrastructure, while the average percentage of GDP countries spend worldwide is 4%.
- The construction projects did not shut down in most of Brazil's 27 states, including Rio de Janeiro, São Paulo, and Minas Gerais, its three largest economies. An estimated 88% of housing, infrastructure, and industrial building projects remain in progress, according to Brazil’s Building Construction Syndicate. Measures of physical distance and hygiene were adapted at job sites. According to São Paulo city officials, in 2020, 4,000 subsidized housing units linked to the Minha Casa Minha Vida (My House, My Life) housing program were planned for construction on the land and pending the release of funds from the federal government. The government further auctioned 44 infrastructure projects in 2020. Out of the 44 projects, 22 are airports conceded to the private sector. The government aimed to attract USD 24.6 billion in investments in these projects.
- Moreover, there are several multi-family housing construction projects came into the picture. Projects such as Jundiai Reserva Alta Vista Residential Complex, Nex One Alto da Boa Vista Residential Complex, Itapema Shard Tower Residential Complex, and Indianopolis Ibira Mixed-Use Complex started in 2021 and are expected to complete by 2023. These factors tend to increase the demand for adhesives and sealants in the country.
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Increasing demand for electric vehicles will augment the industry’s growth
- Brazil has a GDP of 8,570 USD per capita, with a growth rate of 0.8% Y-o-Y in 2022. The automotive industry sector contributes around 5.5% of the GDP. Brazil is the 8th largest producer of automotive vehicles in the world and the 2nd largest producer in Latin America after Mexico. The vehicle production comprised 76% passenger vehicles, 16% light commercial vehicles, 7% heavy trucks, and 1% buses in 2021.
- The economic slowdown in the country was observed in 2020 because of the COVID-19 impact. This results in a reduction in vehicles in terms of production, sales, and exports. The production sharply decreased by 31%, and exports decreased by almost 25% in 2020 compared to 2019. The supply chain disruptions, lockdowns in the country, and chip shortage are the major reasons behind this decline in production. Despite these situations, Brazil is able to secure the 8th position in vehicle production in the same year.
- The company has shown recovery in 2021 and onwards since the economy came back to normal through the regular supply of raw materials, imports and exports, and the opening of lockdowns. The production and exports increased by 10% and 29%, respectively, in 2021 compared to the year 2020. Electric vehicle registrations also increased by 77% in 2021 in Brazil, and it is expected to increase further in the coming years, which shows the future connectivity trend.
- The production of automobiles is going to increase further due to the investments of multinational automotive manufacturers, such as BMW, Mercedes-Benz, Audi, and Volkswagen, in Brazil.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing demand for logistics and transportation in Brazil will likely boost the aerospace industry
Segment Analysis: End User Industry
Building and Construction Segment in Brazil Sealants Market
The building and construction segment dominates the Brazil sealants market, accounting for approximately 84% of the total market volume in 2024. This significant market share is attributed to the diverse applications of construction sealants in construction activities, including waterproofing, weather-sealing, crack-sealing, and joint-sealing. The segment's dominance is further strengthened by government housing programs such as "Casa Verde e Amarela," which continue to boost residential construction activities. Construction sealants are specifically designed for longevity and ease of application on different substrates, making them essential in both residential and commercial construction projects. The segment is also projected to maintain its market leadership while growing at the fastest rate of approximately 6% during 2024-2029, driven by increasing investments in infrastructure development and the rising trend of sustainable construction practices in Brazil.
Remaining Segments in End-User Industry
The automotive sealants segment represents the second-largest end-user industry for sealants in Brazil, where these materials are crucial for various applications, including sealing powertrains, windshields, and engine components. The healthcare sector utilizes industrial sealants primarily in medical device assembly and surgical applications, with a growing demand for specialized medical-grade sealants. The aerospace sealants industry, though smaller in market share, maintains steady demand for high-performance sealants used in aircraft manufacturing and maintenance. Other end-user industries, including electronics, marine, and DIY sectors, collectively contribute to the market's diversity, with each sector requiring specific sealant formulations tailored to their unique applications and performance requirements.
Segment Analysis: Resin
Silicone Segment in Brazil Sealants Market
The silicone sealants segment dominates the Brazil sealants market, holding approximately 37% market share in 2024, driven by its extensive applications across multiple industries. Silicone sealants exhibit superior properties, including flexibility in wide temperature ranges and resistance to weather conditions, water, chemicals, and mold formation. These sealants are particularly crucial in the automotive industry for sealing powertrains, portlights, backlights, windshields, gearboxes, engines, and cylinder heads. In the construction sector, silicone sealants are extensively used for both indoor and outdoor applications, including plumbing, sheet cladding, curtain walling, roofing, guttering, sealing doors and window frames, sealing electric sockets, wires, and fire-rated joints. The segment's growth is further supported by its increasing adoption in structural sealants applications due to higher bond strength and durability, particularly in commercial buildings where energy efficiency is a priority.
Polyurethane Segment in Brazil Sealants Market
The polyurethane sealants segment represents the second-fastest growing segment in the Brazil sealants market, with a projected growth rate of approximately 4% during 2024-2029. This growth is primarily attributed to the segment's versatility and customizable properties, such as hardness, bond strength, thixotropy, and flexibility, that can be tailored to match specific requirements. Polyurethane sealants are manufactured in both single and multi-component formulations, forming flexible and elastomeric sealants seams upon curing. The segment's growth is supported by increasing demand from the construction sector, particularly in applications requiring air-tight and water-tight seals in commercial, residential, and industrial settings. The Brazilian government's initiatives in mortgage programs for low-income construction projects and the anticipated growth in automotive production are expected to further drive the demand for polyurethane sealants in the coming years.
Remaining Segments in Resin Segmentation
The remaining segments in the Brazil sealants market include acrylic sealants, epoxy sealants, and other resin-based sealants, each serving specific applications across various industries. Acrylic sealants, known for their high resistance to environmental degradation and non-toxic nature, are primarily used in interior decoration, general construction, and automotive applications. Epoxy sealants, characterized by their excellent bond strength and resistance to environmental conditions, find applications primarily in the construction sector for indoor applications such as concrete countertops and cement-based overlays. Other resin-based sealants, including rubber-based sealants, polyesters, polysulfides, and phenolic resin-based sealants, cater to specialized applications in electronics, healthcare, and various industrial sectors, contributing to the market's diversity and comprehensive solution offerings.
Competitive Landscape
Top Companies in Brazil Sealants Market
The Brazil sealants market features both global leaders and strong local players competing for market share. Companies are focusing heavily on product innovation, particularly in developing environmentally sustainable and low-VOC content sealants to meet evolving regulations and customer preferences. Operational agility has become crucial, with manufacturers expanding their local production facilities and distribution networks to ensure reliable supply chains. Strategic moves in the market have centered around acquisitions of local companies to gain immediate market access and established distribution channels, as evidenced by several recent consolidations. Companies are also emphasizing customization capabilities and technical support services to strengthen their market positions. The expansion strategies have primarily focused on increasing manufacturing capacity, enhancing R&D capabilities, and strengthening presence across different regions of Brazil through partnerships with local distributors and retailers.
Market Structure Shows Mixed Competition Dynamics
The Brazilian sealants market exhibits a fragmented structure with a mix of global conglomerates and specialized manufacturers. Global players like Sika AG, Henkel, Dow, and 3M leverage their extensive R&D capabilities and broad product portfolios to maintain strong market positions, while local players such as Brascola and Poliplas compete effectively through their deep understanding of regional requirements and established distribution networks. The market has witnessed significant consolidation activity, particularly with international companies acquiring local manufacturers to strengthen their market presence and expand their product offerings.
The competitive dynamics are characterized by a strong presence of both multinational corporations and domestic players, each bringing distinct advantages to the market. Global companies typically lead in technological innovation and premium product segments, while local players excel in mid-range products and regional distribution. The market has seen increased partnership activities between global and local players, creating synergies in manufacturing, distribution, and technical expertise. This has resulted in a competitive environment where success depends on balancing product quality, local market knowledge, and distribution capabilities.
Innovation and Distribution Drive Future Success
For established players to maintain and increase their market share, focus needs to be placed on developing innovative chemical sealants that address specific industry requirements while meeting environmental regulations. Companies must invest in research and development to create advanced formulations that offer superior performance characteristics. Building strong relationships with key end-users, particularly in the construction and automotive sectors, while maintaining an efficient distribution network across Brazil's vast geography, will be crucial. Additionally, incumbent players need to strengthen their technical support services and customize solutions for specific applications to maintain their competitive edge.
New entrants and challenger companies can gain ground by focusing on niche market segments and developing specialized polymer sealants for specific applications. Success will depend on establishing strong local partnerships for distribution and technical support, while also investing in manufacturing facilities to ensure competitive pricing and reliable supply. Companies need to carefully consider the concentration of end-users in different regions and adapt their strategies accordingly. The risk of substitution from alternative sealing technologies needs to be addressed through continuous product innovation and performance improvements. Future regulatory changes, particularly regarding environmental standards and VOC emissions, will require companies to maintain flexible production capabilities and invest in sustainable technologies.
Brazil Sealants Industry Leaders
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3M
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Dow
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Henkel AG & Co. KGaA
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Sika AG
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Soudal Holding N.V.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- April 2019: Dow completed the separation of its Material Science division through a spin-off of Dow Inc.
Brazil Sealants Market Report Scope
Aerospace, Automotive, Building and Construction, Healthcare are covered as segments by End User Industry. Acrylic, Epoxy, Polyurethane, Silicone are covered as segments by Resin.
End User Industry
| Aerospace |
| Automotive |
| Building and Construction |
| Healthcare |
| Other End-user Industries |
Resin
| Acrylic |
| Epoxy |
| Polyurethane |
| Silicone |
| Other Resins |
| End User Industry | Aerospace |
| Automotive | |
| Building and Construction | |
| Healthcare | |
| Other End-user Industries | |
| Resin | Acrylic |
| Epoxy | |
| Polyurethane | |
| Silicone | |
| Other Resins |
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Market Definition
- End-user Industry - Building & Construction, Automotive, Aerospace, Healthcare, and Others are the end-user industries considered under the sealants market.
- Product - All sealant products are considered in the market studied
- Resin - Under the scope of the study, resins like Polyurethane, Epoxy, Acrylic, Silicone, and Others are considered
- Technology - For the purpose of this study, One component and Two component sealant technologies are taken into consideration.
| Keyword | Definition |
|---|---|
| Hot-melt Adhesive | Hot melt adhesives are generally 100% solid formulations, based on thermoplastic polymers. They are solid at room temperature and are activated upon heating above their softening point, at which stage they are liquid, and hence, can be processed. |
| Reactive Adhesive | A reactive adhesive is made up of monomers that react in the adhesive curing process and do not evaporate from the film during use. Instead, these volatile components become chemically incorporated into the adhesive. |
| Solvent-borne Adhesive | Solvent-borne adhesives are mixtures of solvents and thermoplastic, or slightly cross-linked polymers, such as polychloroprene, polyurethane, acrylic, silicone, and natural and synthetic rubbers (elastomers). |
| Water-borne Adhesive | Water-borne adhesives use water as a carrier or diluting medium to disperse a resin. They are set by allowing the water to evaporate or be absorbed by the substrate. These adhesives are compounded with water as a diluent, rather than a volatile organic solvent. |
| UV Cured Adhesive | UV curing adhesives induce curing and create a permanent bond without heating by using ultraviolet (UV) light or other radiation sources. An aggregation of monomers and oligomers is cured or polymerized by ultraviolet (UV) or visible light in a UV adhesive. Because UV is a radiating energy source, UV adhesives are often referred to as radiation curing or rad-cure adhesives. |
| Heat-resistant Adhesive | Heat-resistant Adhesives refer to those that do not break down under high temperatures. One aspect of a complicated system of circumstances is the adhesive's capacity to withstand disintegration brought on by high temperatures. As the temperature rises, adhesives may liquefy. They can withstand stresses resulting from differing coefficients of expansion and contraction, which might be an additional advantage. |
| Reshoring | Reshoring is the practice of moving commodity production and manufacturing back to the nation where the business was founded. Onshoring, inshoring, and back shoring are further terms used. Offshoring, the practice of producing items abroad to lower labor and manufacturing costs, is the opposite of this. |
| Oleochemicals | Oleochemicals are compounds produced from biological oils or fats. They resemble petrochemicals, which are substances made from petroleum. The oleochemical business is built on the hydrolysis of oils or fats. |
| Nonporous Materials | Nonporous materials are substances that do not permit the passage of liquid or air. Nonporous materials are those that are not porous, such as glass, plastic, metal, and varnished wood. Since no air can get through, less airflow is required to raise these materials, negating the requirement for high airflow. |
| EU-Vietnam Free Trade Agreement | A trade agreement and an investment protection agreement were concluded between the European Union and Vietnam on June 30, 2019. |
| VOC content | Compounds with limited solubility in water and high vapor pressure are known as Volatile Organic Compounds (VOCs). Many VOCs are human-made chemicals that are used and produced in the manufacture of paints, pharmaceuticals, and refrigerants. |
| Emulsion Polymerization | Emulsion polymerization is a method of producing polymers or connected groups of smaller chemical chains known as monomers, in a water solution. The method is often used to make water-based paints, adhesives, and varnishes, in which the water stays with the polymer and is marketed as a liquid product. |
| 2025 National Packaging Targets | In 2018, the Australian Environment Ministry set the following 2025 National Packaging Targets: 100% of the packaging must be reusable, recyclable, or compostable by 2025, 70% of plastic packaging must be recycled or composted by 2025, 50% of average recycled content must be included in packaging by 2025, and problematic and unnecessary single-use plastic packaging must be phased out by 2025. |
| Russian Government’s Import Substitution Policy | The Western sanctions suspended the distribution of several high-tech items to Russia, including those required by the raw material export sectors and the military-industrial complex. In response, the government launched an "import substitution" scheme, appointing a special commission to oversee its implementation in early 2015. |
| Paper Substrate | Paper substrates are paper sheets, reels, or boards with a base weight of up to 400 g/m2 that has not been converted, printed or otherwise altered. |
| Insulation Material | A material that inhibits or blocks heat, sound, or electrical transmission is known as Insulation Material. The variety of insulation materials includes thick fibers like fiberglass, rock and slag wool, cellulose, and natural fibers as well as stiff foam boards and sleek foils. |
| Thermal Shock | A temperature change known as thermal shock generates stress in a material. It commonly results in material breakdown and is especially prevalent in brittle materials like ceramics. When there is a quick temperature change, either from hot to cold or vice versa, this process occurs abruptly. It occurs more frequently in materials with poor heat conductivity and insufficient structural integrity. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: The quantifiable key variables (industry and extraneous) pertaining to the specific product segment and country are selected from a group of relevant variables & factors based on desk research & literature review; along with primary expert inputs. These variables are further confirmed through regression modeling (wherever required).
- Step-2: Build a Market Model: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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