Market Overview
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 8.57 Billion |
| Market Size (2030) | USD 11.49 Billion |
| Growth Rate (2025 - 2030) | 6.03% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
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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Water-borne Adhesives Market Analysis by Mordor Intelligence
The Water-borne Adhesives Market size is estimated at USD 8.57 billion in 2025, and is expected to reach USD 11.49 billion by 2030, at a CAGR of 6.03% during the forecast period (2025-2030). The water-borne adhesives market is growing as manufacturers accelerate the shift from solvent-based to water-based chemistries to comply with tightening global VOC rules and meet brand-owner sustainability targets[1]Arkema, “Second-Quarter 2024 Results,” arkema.com. Growth momentum is reinforced by fast-expanding e-commerce packaging volumes, automotive lightweighting, and modular construction, each of which demands high-performance yet low-emission bonding systems. Regulatory convergence, especially Europe’s VOC Solvents Emissions Directive and the Ecodesign for Sustainable Products Regulation, has made water-based chemistries a de facto license to operate, prompting multinationals to re-engineer portfolios while opening technology-transfer opportunities in emerging markets.
Key Report Takeaways
- By resin type, acrylics led with 38% of water-borne adhesives market share in 2024, while polyurethane dispersions are projected to grow at a 6.55% CAGR through 2030.
- By application, flexible packaging accounted for 40% of the water-borne adhesives market size in 2024, whereas laminating and filmic structures are advancing at a 7.23% CAGR to 2030.
- By end-user industry, building and construction held 45% revenue share in 2024; healthcare is forecast to expand at a 6.21% CAGR over 2025-2030.
- By substrate, paper and paperboard represented 51% of water-borne adhesives market size in 2024, while plastics and films are growing at a 6.45% CAGR on the back of barrier-packaging demand.
- By geography, Asia-Pacific dominated with 40% water-borne adhesives market share in 2024 and is set to maintain the fastest 6.89% CAGR through 2030.
Global Water-borne Adhesives Market Trends and Insights
Driver Impact Analysis
| Drivers | (~) % Impact on CAGR Market | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| E-commerce-led boom in corrugated packaging | +1.20% | North America; global spill-over | Medium term (2-4 years) |
| VOC-reduction mandates in Europe | +1.80% | Europe; global influence | Long term (≥ 4 years) |
| ASEAN modular construction and PVA demand | +0.90% | ASEAN core; Asia-Pacific | Medium term (2-4 years) |
| Lightweight automotive bonding with PU dispersions | +1.10% | Asia-Pacific core; global | Long term (≥ 4 years) |
| Regulatory push in emerging markets | +0.70% | Latin America, Middle East, Africa | Long term (≥ 4 years) |
Source: Mordor Intelligence
E-commerce-Led Boom in Corrugated Packaging in North America
Explosive online retail sales mean corrugated shippers now use seven times more adhesive per dollar transacted than traditional retail. Brand owners have tightened “ship-in-own-container” requirements, pushing converters to adopt fast-setting water-based grades such as H.B. Fuller’s Advantra series that survive multi-node logistics while meeting curbside-recyclability guidelines. Automated case-sealing lines further amplify demand for clean-running, low-viscosity formulations compatible with high-speed applicators. These factors collectively lift the water-borne adhesives market as converters specify eco-compliant chemistries to secure contracts with omnichannel retailers.
VOC-Reduction Mandates Accelerating Solvent-to-Water Conversion in Europe
The EU VOC Solvents Emissions Directive caps industrial emissions so rigorously that water-borne systems have become standard in automotive trim, flooring and façade panels. Recent European Coatings Show demonstrations of bio-based PU dispersions highlighted equal or superior shear strength versus solvent counterparts, eroding legacy performance objections and consolidating the regulatory-driven shift. Early movers such as Arkema report a 5.1% volume lift in industrial grades after launching new acrylic water-borne binders tailored for low-carbon packaging.
ASEAN Modular Construction Driving Fast-Setting PVA Demand
Factory-built housing panels require adhesives that deliver structural integrity within compressed takt times. Polyvinyl acetate emulsions meet this need by curing rapidly at ambient temperatures and by bonding engineered woods prevalent in modular builds. Enhanced capital flows inside ASEAN—52% of FDI already intra-regional—accelerate technology transfer, making water-based formulations a default in green-building codes adopted by Singapore and Vietnam[2]Asian Development Bank, “Asian Economic Integration Report 2025,” adb.org.
Light-Weight Automotive Bonding Boosting PU Dispersions in Asia
Electric-vehicle platforms substitute metal clips with water-borne polyurethane dispersions to reduce mass and mitigate galvanic corrosion. Sumitomo Chemical’s water-based polyolefin emulsions now bond polypropylene battery casings without primers, proving that eco-compliant systems can meet crash-worthiness and thermal-cycle demands. Tier-1 suppliers across China and Korea are re-tooling paint shops to accommodate these dispersions, expanding the addressable water-borne adhesives market.
Restraint Impact Analysis
| Restraints | (~) % Impact on CAGR Market | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Heat-resistance gap in high-temperature uses | -0.80% | Global industrial & automotive | Long term (≥ 4 years) |
| Limited applicability in high-end electronics | -0.50% | Global; aerospace & electronics | Medium term (2-4 years) |
| Higher initial conversion cost | -0.60% | Global; emerging markets | Medium term (2-4 years) |
Source: Mordor Intelligence
Heat-Resistance Gap Limits Penetration into High-Temperature Applications
Continuous exposure beyond 150 °C challenges most water-borne networks. 3M’s Fastbond 1000NF illustrates progress—delivering GREENGUARD-certified bonds that tolerate cyclical peaks—but heavy-duty engines, baking-oven panels and under-hood linings remain dominated by solvent systems. Bridging this thermal delta will require novel silicone-hybrid lattices now in early R&D pipelines; until then, market penetration into these niches stays capped.
Higher Initial Cost and Investment
Retrofitting a 15-ktpa solvent line to water-base can run USD 2–10 million for stainless reactors, chilled loops and VOC-capture gear. Smaller converters struggle to finance these upgrades, slowing adoption in cost-sensitive geographies. H.B. Fuller’s plan to consolidate 27 legacy plants by 2030 underscores how scale players restructure footprints to absorb capex and defend margins.
Segment Analysis
By Resin Type: Performance-Driven Shift Toward PU Dispersions
Acrylic emulsions held 38% of water-borne adhesives market share in 2024 thanks to versatility and low cost. Polyvinyl acetate remains the workhorse for wood bonding, yet rising indoor-air standards are steering contractors toward formaldehyde-free acrylics. Polyurethane dispersions, although contributing a modest slice of 2024 volume, are advancing at a 6.55% CAGR because they pair high peel strength with flexibility—attributes critical in lithium-ion battery packs and retort-pouch laminates.
The acrylic bloc faces margin pressure from propylene and acrylic-acid feedstock swings, nudging suppliers to integrate bio-acrylate routes or by-product streams. Chloroprene dispersions and niche hybrids serve metal furniture, footwear and mining belts where oil-resistance is non-negotiable, but remain volume-constrained. Overall, formulators that balance price-sensitive acrylic offerings with high-value PU portfolios will capture multi-tier growth.
Note: Segment share of all individual segments available upon report purchase
By Application: Flexible Packaging Dominance with Lamination Upside
Flexible packaging generated 40% of water-borne adhesives market size in 2024, driven by pouch, sachet and mailer conversions for omnichannel retail. Yet multi-layer lamination is the fastest-advancing cell at 7.23% CAGR as brand owners seek high-barrier designs combining PET, aluminum oxide and bio-PLA films. Water-based two-component systems now enable more than 65 N/15 mm bond strength, matching solvent-polyurethane predecessors while ensuring food-contact compliance.
Tapes, labels and graphic arts supply chains adopt dispersion-based PSAs that meet automated application speeds without stringing. Book-binding and paper-converting segments respond to lower-energy hot-cure cycles offered by new vinyl-acetate-ethylene copolymers. As e-commerce accelerates, corrugated-case adhesives with immediate tack yet fiber-tear substrate failure gain prominence, expanding total addressable demand.
By Substrate: Paper Predominance Meets Polymer Surge
Paper and paperboard preserved 51% share owing to corrugate, label-stock and carton volumes. However, plastics and films substrates are on a 6.45% CAGR trajectory as food processors shift toward mono-material PE or PP pouches that still need robust interlayer bonds. Sumitomo Chemical’s water-based polyolefin emulsions address the polarity mismatch of earlier generations, unlocking polypropylene/ethylene acrylic lamination potential.
Wood-composite panels continue to leverage PVA emulsions, but emerging substrates such as bio-PET and nanocellulose composites demand tailored surfactant packages for adequate wetting. Metals, glass and ceramics hold niche status in appliances and architectural façades where moisture-cure water-based epoxies now deliver long-term weathering resistance.
By End-User Industry: Construction Still Leads, Healthcare Accelerates
Building and construction retained 45% of 2024 revenue, reflecting volumes in flooring, wall panels and insulation boards that mandate EHS-compliant adhesives under rapidly updated building codes. Manufacturers like Holcim recycle demolition waste into panel substrates that require low-VOC bonding agents, reinforcing water-based pull-through. Transportation applications, notably EV battery housing, increasingly specify PU dispersions for vibration damping.
Healthcare’s 6.21% CAGR positions it as the next value hotspot. FDA recognition of ISO 9917-2 water-based dental cements validates clinical performance while eliminating solvent toxicity, opening channels into orthopedic – and soft-tissue fixation adhesives[3]U.S. Food and Drug Administration, “Dental Cements – Performance Criteria,” fda.gov. As single-use medical devices proliferate, demand for sterilization-stable, low-extractable adhesives will reward suppliers with cleanroom manufacturing capability.
Note: Segment share of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific’s 40% revenue leadership in 2024 reflects its unrivaled manufacturing depth, robust construction pipeline and accelerating electric-vehicle production. China’s Tier-2 cities drive panel adhesive uptake, while India’s infrastructure push anchors volume gains. The region’s 6.89% CAGR also stems from regulatory tightening in Japan and South Korea, which incentivizes solvent-free chemistries through tax breaks and green-procurement lists.
North America ranks second, buoyed by e-commerce packaging and automotive lightweighting. The United States continues to mandate lower VOC limits in consumer products, expanding the water-borne adhesives market, whereas Canada’s energy-efficiency codes spur adoption in residential retrofit insulation. Mexico’s maquiladora corridors increasingly specify water-based formulations to service OEM export requirements.
Europe exerts outsized technology influence through stringent directives. Germany’s auto interiors, France’s flexible food packaging and the UK’s timber-frame housing sectors collectively lift continental demand. Eastern European converters, supported by EU cohesion funds, upgrade to dispersion lines, eroding solvent share faster than originally forecast.
South America offers a mixed outlook: Brazil’s construction recovery and agribusiness packaging needs push modest demand growth, aided by Henkel’s new innovation hub in Jundiaí. Argentina maintains smaller but specialized appetites in flexible food wraps. Middle East and Africa remain nascent yet promising; Saudi giga-projects and South African retail logistics are starting to specify water-based grades to meet imported-goods standards.
Competitive Landscape
Despite moderate fragmentation, competitive intensity is shaped by research and development pipelines, global supply footprints, and acquisition strategies. 3M leverages four decades of dispersion know-how and GREENGUARD-certified Fastbond products to hold premium industrial slots. Smaller regional producers find refuge in custom batch work for niche healthcare or electronics applications, but face escalating compliance costs. Consequently, mergers and acquisitions pipelines are expected to remain active as strategic consolidators pursue scale, technology breadth, and geographic diversification to fortify positions in the expanding waterborne adhesives market.
Water-borne Adhesives Industry Leaders
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Henkel AG & Co. KGaA
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H.B. Fuller Company
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Arkema
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Dow
-
3M
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: Arkema’s St. Charles, Louisiana site obtained ISCC PLUS certification for water-borne acrylic resins, supporting up to 90% bio-attributed content.
- March 2025: PPG has opened a new water-borne automotive coatings plant in Samut Prakan, Thailand. The facility has an annual production capacity of 2,000 tons and supports the company’s expansion in the Asia-Pacific region.
- October 2024: 3M, in collaboration with Worthington Enterprises, has introduced Fastbond Pressure Sensitive Adhesive 1049. This new water-based, sprayable adhesive is designed for enhanced application efficiency.
Global Water-borne Adhesives Market Report Scope
The water-borne adhesives market report includes:
| By Resin Type | Acrylics | ||
| Polyvinyl Acetate (PVA) Emulsion | |||
| Ethylene Vinyl Acetate (EVA) Emulsion | |||
| Polyurethane Dispersions and CR (Chloroprene Rubber) Latex | |||
| Other Resin Types | |||
| By Application | Flexible Packaging | ||
| Tapes and Labels | |||
| Paper Converting and Graphic Arts | |||
| Laminating and Filmic Structures | |||
| Flooring and Carpeting | |||
| Bookbinding and Publishing | |||
| Non-woven and Hygiene Products | |||
| Others | |||
| By End-user Industry | Building and Construction | ||
| Paper, Board, and Packaging | |||
| Woodworking and Joinery | |||
| Transportation | |||
| Healthcare | |||
| Electrical and Electronics | |||
| Other End-user Industries | |||
| By Substrate | Paper and Paperboard | ||
| Plastics and Films | |||
| Wood and Composites | |||
| Metals | |||
| Glass and Ceramics | |||
| Others | |||
| By Geography | Asia-Pacific | China | |
| India | |||
| Japan | |||
| South Korea | |||
| ASEAN | |||
| Rest of Asia-Pacific | |||
| North America | United States | ||
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| France | |||
| United Kingdom | |||
| Italy | |||
| Rest of Europe | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Middle East and Africa | Saudi Arabia | ||
| South Africa | |||
| Rest of Middle East and Africa | |||
By Resin Type
| Acrylics |
| Polyvinyl Acetate (PVA) Emulsion |
| Ethylene Vinyl Acetate (EVA) Emulsion |
| Polyurethane Dispersions and CR (Chloroprene Rubber) Latex |
| Other Resin Types |
By Application
| Flexible Packaging |
| Tapes and Labels |
| Paper Converting and Graphic Arts |
| Laminating and Filmic Structures |
| Flooring and Carpeting |
| Bookbinding and Publishing |
| Non-woven and Hygiene Products |
| Others |
By End-user Industry
| Building and Construction |
| Paper, Board, and Packaging |
| Woodworking and Joinery |
| Transportation |
| Healthcare |
| Electrical and Electronics |
| Other End-user Industries |
By Substrate
| Paper and Paperboard |
| Plastics and Films |
| Wood and Composites |
| Metals |
| Glass and Ceramics |
| Others |
By Geography
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| ASEAN | |
| Rest of Asia-Pacific | |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | Germany |
| France | |
| United Kingdom | |
| Italy | |
| Rest of Europe | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | Saudi Arabia |
| South Africa | |
| Rest of Middle East and Africa |
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Key Questions Answered in the Report
What is the current size of the water-borne adhesives market?
The water-borne adhesives market stood at USD 8.57 billion in 2025 and is projected to reach USD 11.49 billion by 2030.
Which region leads the market and how fast is it growing?
Asia-Pacific controls 40% of global revenue and is expanding at a 6.89% CAGR on the back of manufacturing and environmental-compliance drivers.
Which application area is growing the fastest?
Laminating and filmic structures within flexible packaging show the quickest rise, advancing at 7.23% CAGR as brands shift to multi-layer barrier pouches.
Why are polyurethane dispersions gaining share?
They offer higher mechanical strength and flexibility essential for EV battery packs and high-barrier packaging, expanding at a 6.55% CAGR versus 2025-2030.
What are the main barriers to wider adoption?
Heat-resistance limitations above 150 °C and the capital costs of converting legacy solvent lines remain the primary constraints on broader uptake.
