Water-Based Adhesives Market Growth, Innovations, and Market Size Forecast 2034

Water-Based Adhesives Market Industry  Size, Companies & Share

The global water-based adhesives market size was valued at USD 38.72 billion in 2024 and is estimated to hit around USD 96.40 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.55% during the forecast period 2025 to 2034.The rapid industrialization and shift towards environmentally friendly products due to growing environmental concerns have helped this market to grow.

Water-Based Adhesives Market Key Takeaways

• Asia Pacific is the dominant region for the water-based adhesives industry, with a revenue share of 50.75% in 2024. 
  
• North America is anticipated to have significant growth in the market in the forecasted period.
  
• By resin type, the acrylic polymer emulsion segment accounted for the largest revenue share of 37.54% in 2024 and is expected to continue dominating the industry over the forecast period. 
  
• By resin type, the polyvinyl acetate segment is anticipated to grow significantly in the market during the forecasted period.
  
• By application, the tapes and labels segment dominated the market with a share of 14.33% in 2024. 
  
• By application, the woodworking segment is anticipated to grow in the forecasted period.

Water-Based Adhesives Market Overview

Water-based adhesives are bonding materials developed by using a combination of water, polymer, and additives. Water-based adhesives form a bond between the two substrates once the water within the formulation is evaporated or absorbed by the substrate. They are popularly used for bonding porous substrates.  They can be natural-based or synthetic-based materials. They are the nontoxic, eco-friendly, and low voc adhesive compounds used in industries, residential, or commercial spaces.These resins use water as a solvent, which reduces the risk of toxicity and makes them harmless. The water adhesives are used in every industry as adhesives.

The increasing demand for water-based adhesives has driven this market to grow, and the shift towards environmentally friendly product use has increased the demand for water-based adhesives in the packaging, automotive, and construction industries. The increasing demand for green buildings and stringent environmental regulations are shifting industries to replace solvent-based adhesives with water-based adhesives. Government policies in the manufacturing of sustainable and eco-friendly products have increased the production of these adhesives. The growth in various industries ultimately increases the demand and helps in the expansion of the water-based adhesives market. 

• In November 2024, Henkel global leader for adhesives, and Celanese Corporation, a chemical and specialty materials company, collaborated and launched a new and innovative water-based adhesive, which is made from captured CO2 emissions. 

Water-Based Adhesives Market Trends

• The growth in the construction industry, healthcare, packaging industries and innovation in flooring technology is a growth factor that has played a significant role.
• The growth in the automotive industry in some regions has led the adhesive market to grow in vehicle manufacturing and assembly.
• The shift towards environmentally safe and eco-friendly product trends has led to the growth of water-based adhesives.
• The rise in e-commerce and increasing packaging needs have increased the demand for water-based adhesives market.
• High-performance and specialized adhesives like cross-linked adhesives, which enhance water and chemical resistance for woodworking and flooring.

Water-Based Adhesives Market  Report Scope

Water-Based Adhesives Market Opportunity

Innovation in High-performance water-based adhesives

The adhesive companies are developing new and innovative advances in the formulation of water-based adhesives with enhanced adhesion strength, water resistance, and faster curing methods. Bio-based adhesives from renewable sources are gaining the interest of consumers. The introduction of nanotechnology in the formulation of the enhanced water-based adhesive, like the integration of nanoparticles, improves adhesion, durability, and moisture resistance properties of the formulation. A combination of acrylic, polyurethane, and epoxy formulation results in multifunctional adhesive, these adhesives provide high strength, chemical resistance, and fast curing time compared to traditional formulations. For automotives, self-healing and self-cleaning adhesives are being formulated, which drives the market to grow at a rapid rate due to an increase in demand. 

Water-Based Adhesives Market  Challenge

Raw Material Price Fluctuation Restrains Market Growth

The cost of raw materials is high, which is a limiting in the growth of the water-based adhesive market. Dependency on petrochemical derivatives hinders growth as the crude oil prices are very high, and disruption in the supply chain of the raw material impacts the price of the final products. The increasing demand for sustainable materials demands biobased adhesives, and the cost of biobased adhesives is higher than that of traditional adhesives, which limits the production capacity because of high raw material costs. Supply chain disruption because of geopolitical tension, shipping constraints affect raw material availability which affects the cost of the raw material and the final cost of the product.

Water-Based Adhesives Market Regional Insights

Asia Pacific dominated the water-based adhesives market in 2024. This is because it is the fastest-growing region due to industrialization, urbanization, infrastructure development, and new innovations in formulation and performance of adhesives. The increasing e-commerce, food packaging, and consumer goods drive the market to grow in the Asia Pacific region.

India and China lead in the building and infrastructure projects, due to their growing economy and developing government-led infrastructure projects, which is because of the massive growth in the construction industry. Automotive sector expansion in Japan and South Korea, since they are the hubs for vehicle production. Government initiatives and policies for eco-friendly components drive this market to grow in the region.

North American expects a significant growth in the market during the forecast period. The growing e-commerce and the use of environmentally sustainable adhesives in the industries drive the market to grow in the region, advancement in the technology of water based adhesive formulation has help in expansion of the market and increasing adoption and demand for green and eco-friendly building has shaped the growth of the market in the North American region. Strict regulations for sustainable and eco-friendly product use in the region contributed in the growth of the market.

In the U.S. and Canada, the increasing demand for water-based adhesives is from the packaging industry due to the increase in e-commerce, and the California Air Resources Board promotes the shift to water-based adhesives. Lightweight vehicle requires advanced adhesives and an increase in the automotive industry in the region demands water-based adhesives. 

Water-Based Adhesives Market Segmental Insights

By Resin Type

The acrylic polymer segment dominated the water-based adhesives market in 2024. These are most widely used due to high adhesion strength, UV resistance, and flexibility of the material. They are commonly used in pressure-sensitive adhesives, the packaging and construction industry. The rising environmental concern and 

The polyvinyl acetate segment is anticipated to grow significantly in the water-based adhesives market during the forecasted period. Widely used in woodworking, furniture, and bookbinding due to strong adhesion to porous surfaces.  They are the most cost-effective and easiest to apply adhesives. Versatility and strong bonding of the polyvinyl acetate make them hold a significant share in the market of adhesives.

By Application

The tapes and labels segment dominated the water-based adhesives market in 2024. The tapes and labels are used in demand as they are used for product tracking, barcodes, security seals, and for instruction labels. The need for durable and moisture-resistant tapes and labels drives the market to grow as they are widely used by the packaging industry. 
The woodworking segment expects a significant growth in the water-based adhesives market during the forecast period. The growing furniture industry, due to an increase in construction and infrastructure development in the regions, has increased the demand for strong bonding, easy-to-use adhesives, which are essential for furniture manufacturing, cabinetry, flooring, and panel bonding. 

Water-Based Adhesives Market Recent Developments 

• In September 2024, London-based material innovator Biophilica launched a 100% biobased adhesive from renewable resources. This adhesive is used for bonding textiles, leather, and cardboards and is a water-based formula that is non-toxic and non-hazardous, which reduces the environmental impact. 
• In a brand, an adhesive brand, Permabond has launched new adhesive products, Permabond 721, a water-resistant cyanoacrylate adhesive that offers excellent moisture and humidity resistance. Permabond ET503 is a two-part epoxy which have properties like fast curing, which is tough, and offers weather resistance and impact resistance.
• In January 2025, Keck Chimie launched an ecological water-based adhesive, aim is to form innovative, high-performance and environmentally friendly solutions to the consumers, the product can revolutionize industrial practices while meeting the regulation in performance and sustainability.

Water-Based Adhesives Market Top Companies List

• Henkel AG & Co. KgaA
• H.B. Fuller
• Arkema
• Dow
• Ashland
• Bayer AG
• PPG Industries
• Sika AG
• Akzo Nobel N.V.
• 3M
• DuPont

Segments Covered In The Report

By Resin Type 

• Acrylic Polymer Emulsion
• Polyvinyl Acetate Emulsion
• Vinyl Acetate Ethylene Emulsion
• Styrene Butadiene Latex
• Polyurethane Dispersions
• Other Resin Type

By Application Type

• Tapes & Labels
• Paper & Packaging
• Woodworking
• Building & Construction
• Automotive & Transportation
• Other Application

By Regional 

• Asia Pacific
• Europe
• North America
• Latin America
• Middle East & Africa