Manufacturing · Australia · ANZSIC C2541

Adhesive Manufacturing in Australia: Market Size, Businesses & Forecast 2026

The adhesive manufacturing industry in Australia produces and supplies bonding materials used across construction, packaging, automotive, and other manufacturing sectors. The sector demonstrates steady growth with total industry output valued at AUD 2.1 billion in 2021-22 (ABS Australian Industry 2022-23), reflecting increasing demand from key industries. Industry performance remains resilient despite economic fluctuations, driven by infrastructure development and manufacturing needs.

Businesses · 2025
87
Outlook
Growing
Competition
Moderate, stable

Industry snapshot

Demand drivers
Construction Demand
Manufacturing Output
Infrastructure Investment
Packaging Needs
Environmental Regulations
Relative importance, Claight qualitative assessment.
Market structure
fragmented
moderate
concentrated
Competitive intensity
moderate, stable
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Key public data points

Total industry output (2021)2,100 million AUD
Source: ABS Australian Industry 2022-23
Construction sector share of demand (2023)40.0 percent
Source: ABS Construction Work Done 2023

Historical & forecast

Base year 2025. Each series is official through its own latest government-data year (shown in the legend on each chart), and years beyond that are Claight estimates. As of July 2026 the current year is still in progress (2026 annual data is not yet published), so the forecast runs to 2030.

Number of businesses
Base year 2025
Official data (2025) · ABS Counts of Australian Businesses (8165.0)Forecast
Latest year is official ABS; other years indexed to the ANZSIC division trend.
Forecast
2022
2023
2024
2025
2026
2027
2028
2029
2030
2025 base: 872030 est: 95
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Industry Definition and Scope

What does the Adhesive Manufacturing in Australia industry cover?

Adhesive manufacturing in Australia encompasses the production of various bonding agents including synthetic adhesives, sealants, and glues used across multiple industries. The industry serves both domestic manufacturers and export markets, with products ranging from industrial strength adhesives to specialized formulations. The sector is characterized by its close ties to downstream manufacturing and construction sectors.

  • Industry includes manufacturing of synthetic adhesives, natural-based adhesives, and related chemical bonding products (ABS Australian Industry 2022-23)
  • Products range from general-purpose glues to specialized industrial adhesives for automotive, aerospace, and construction applications
  • Industry scope includes both manufacturers of raw adhesive materials and formulators of specialized adhesive solutions

Market Structure and Operators

Who operates in the industry and how is it structured?

The Australian adhesive manufacturing market consists of multinational corporations with local operations alongside domestic specialty manufacturers. The industry demonstrates moderate concentration with major international players maintaining significant market presence while niche manufacturers serve specialized applications. Production facilities are strategically located near major industrial centers.

  • Multinational subsidiaries including Sika Australia, H.B. Fuller Company, and Henkel Australia operate significant manufacturing facilities (company websites)
  • Domestic players like DuluxGroup (part of Nippon Paint) and Bostik (part of Arkema) maintain strong market positions
  • The industry includes both large-scale manufacturers and smaller specialty adhesive producers serving niche markets
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Demand Drivers

What drives demand in the industry?

Demand for adhesives in Australia is primarily driven by construction activity, manufacturing output, and packaging requirements. The residential and non-residential construction sectors represent the largest end-use markets, while automotive and aerospace manufacturing create demand for high-performance adhesives. Infrastructure development programs significantly contribute to industry growth.

  • Construction sector accounts for approximately 40% of adhesive demand, supported by infrastructure investments (ABS Construction Work Done 2023)
  • Packaging industry represents a significant market segment with growth in e-commerce driving demand (Australian Packaging Covenant)
  • Automotive manufacturing requires specialized adhesives for lightweight vehicle production (Federal Chamber of Automotive Industries)

Competitive Landscape and Notable Public Companies

Who are the notable companies in the industry?

The Australian adhesive manufacturing market features a mix of international chemical companies with local operations and domestic manufacturers. Competition is based on product performance, technical service, and supply chain reliability. Industry participants invest in research and development to meet increasingly stringent performance and environmental standards.

  • Sika Australia - Part of Swiss multinational Sika AG, operates multiple manufacturing facilities across Australia
  • H.B. Fuller Company - Global adhesives manufacturer with significant Australian operations and technical centers
  • DuluxGroup - Major supplier of construction adhesives and sealants, part of Nippon Paint Holdings
  • Bostik - Global brand with Australian manufacturing, part of French chemical company Arkema

Recent Trends and Outlook

What are the recent trends and outlook?

The Australian adhesive manufacturing industry has seen increased focus on sustainable and low-VOC formulations in response to environmental regulations. Technological advancements in adhesive chemistry have led to higher performance products while reducing environmental impact. The industry outlook remains positive with steady growth expected in medium to long term.

  • Industry investment in R&D for bio-based and water-based adhesive formulations (Chemistry Australia)
  • Growing adoption of smart adhesives with enhanced bonding properties for specialized applications
  • Supply chain resilience initiatives being implemented following recent global disruptions
  • Projected CAGR of 2.8% for industrial adhesives through 2027 (Market Insights Australia 2023)
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Regulation and Compliance

How is the industry regulated?

The adhesive manufacturing industry in Australia operates under strict environmental and workplace safety regulations. Chemical products must comply with the Australian Industrial Chemicals Notification and Assessment Scheme (NICNAS) requirements, while workplace safety follows Safe Work Australia standards. Industry participants increasingly adopt voluntary sustainability initiatives beyond regulatory requirements.

  • Adhesive manufacturers must comply with the National Environment Protection (Assessment of Site Contamination) Measure
  • Chemical products regulated under the Work Health and Safety Act 2011 (Safe Work Australia)
  • Volatile organic compound (VOC) content limits imposed under state-based environmental protection legislation
  • Industry participants align with Australian Packaging Covenant Organisation (APCO) sustainability commitments

Sources

Government, statistical and trade sources used for this Claight analysis.

  • ABS Australian Industry 2022-23 ·
  • ABS Construction Work Done 2023 ·
  • Australian Packaging Covenant ·
  • Federal Chamber of Automotive Industries ·
  • Chemistry Australia ·
  • Safe Work Australia

Claight analysis of public industry data.