Bio-based and water-based formulations accelerate adoption

The bio-based adhesives segment reached a valuation of ~$6.8 billion in 2026 and is projected to expand to $15.26 billion by 2035. Major chemical suppliers like Henkel, H.B. Fuller, and Arkema have introduced bio-based polyurethane hot melt adhesives featuring up to 50% renewable content without compromising performance. Concurrently, water-based adhesive formulations are growing at ~12% annually, outpacing traditional solvent-based alternatives due to regulatory compliance demands.