Indonesia Low VOC Adhesive Market Size, Share, Trends and Forecasts 2031

Key Findings

• The Indonesia Low VOC Adhesive Market is growing rapidly as industries adopt environmentally friendly, low-emission bonding solutions.

• Increasing regulatory pressure on VOC emissions is accelerating the transition from solvent-based adhesives to low-VOC alternatives.

• Demand is rising across construction, automotive, packaging, furniture, electronics, and consumer goods manufacturing.

• Water-based, hot-melt, reactive, and hybrid adhesive technologies are driving innovation in Indonesia.

• High-performance, low-VOC formulations provide strong bonding, reduced odor, and improved indoor air quality.

• Raw material cost volatility and formulation complexity remain key adoption challenges.

• Sustainability-focused initiatives by manufacturers and end-user industries shape the competitive landscape.

• Collaboration among chemical suppliers, adhesive producers, and regulatory bodies enhances product development in Indonesia.

Indonesia Low VOC Adhesive Market Size and Forecast

The Indonesia Low VOC Adhesive Market is projected to grow from USD 5.3 billion in 2025 to USD 8.4 billion by 2031, achieving a CAGR of 7.9%. Market expansion is driven by increasing demand for environmentally friendly adhesive solutions in construction, automotive, packaging, and consumer applications. Low VOC adhesives minimize hazardous emissions, improve indoor air quality, and comply with strict environmental standards. Adhesive manufacturers in Indonesia are shifting toward low-odor, low-toxicity, and eco-certified formulations. Technological advancements in reactive systems, polyurethane dispersions, acrylic emulsions, and hybrid materials are boosting performance. As sustainability becomes a central priority for industries, low-VOC adhesives will continue gaining strong momentum across Indonesia.

Introduction

Low VOC adhesives are formulated to emit minimal levels of volatile organic compounds, making them safer for indoor environments and compliant with environmental regulations. They include water-based, hot-melt, reactive, pressure-sensitive, and hybrid adhesives used across numerous industrial applications. In Indonesia, growing concerns over air quality, worker safety, and green-building standards are accelerating adoption of low-emission adhesives. These adhesives offer strong bonding properties with reduced environmental and health risks. Market growth is further supported by innovations in polymer science and advanced dispersion technologies. As industries prioritize sustainability and performance, low-VOC adhesives are becoming essential across manufacturing and construction.

Future Outlook

By 2031, the Indonesia Low VOC Adhesive Market will be shaped by accelerated adoption of bio-based polymers, sustainable raw materials, and ultra-low VOC technologies. Industries will increasingly prefer adhesives with improved curing speed, high temperature resistance, and superior mechanical strength while maintaining compliance with environmental standards. Construction and automotive sectors will integrate low-VOC adhesives to meet green-building certifications and vehicle sustainability targets. Packaging companies will continue transitioning to food-safe, low-emission adhesive systems. As regulations tighten, manufacturers will focus on solvent-free, water-based, and hybrid formulations with reduced carbon footprints. The future market will evolve toward environmentally responsible, high-performance bonding solutions across Indonesia.

Indonesia Low VOC Adhesive Market Trends

• Shift Toward Water-Based and Solvent-Free Adhesive Formulations
  Water-based adhesives are gaining traction in Indonesia as industries seek safer, low-emission bonding solutions. These adhesives provide excellent bonding strength, easy cleanup, and reduced chemical hazards compared to solvent-based alternatives. Manufacturers are increasingly transitioning to solvent-free systems to meet global emission regulations. Water-based technologies continue to improve, offering better durability, moisture resistance, and adhesion for demanding applications. Industries adopting green practices are accelerating this shift. This trend will remain dominant as sustainability initiatives strengthen worldwide.

• Growing Adoption in Green Building and Sustainable Construction
  Low VOC adhesives are essential components in eco-friendly construction materials, flooring systems, insulation panels, and composite bonding. Builders and contractors in Indonesia increasingly choose low-emission adhesives to achieve LEED, BREEAM, WELL, and other green certification standards. These adhesives improve indoor environmental quality by reducing harmful emissions during construction and occupancy. Governments promote sustainable building practices, further supporting adoption. The rising demand for healthy indoor spaces encourages the use of safe, low-odor adhesives. As construction continues evolving toward sustainable practices, this trend becomes more prominent.

• Rising Use in Automotive Lightweighting and Interior Applications
  Automotive manufacturers in Indonesia rely on low VOC adhesives to ensure cabin air quality and support vehicle lightweighting initiatives. These adhesives allow bonding of plastics, composites, fabrics, and interior components without releasing harmful emissions. Low-VOC adhesives also align with automotive sustainability targets and regulatory standards. They support assembly of noise-reducing, lightweight, and energy-efficient components. As EVs and hybrid vehicles gain traction, adhesive usage will increase in non-metallic and multi-material bonding. This trend aligns with the automotive industry’s pursuit of clean, sustainable manufacturing.

• Growth in Packaging and Food-Safe Adhesive Technologies
  The packaging industry is increasingly adopting low-VOC adhesives for cartons, labels, laminates, and flexible packaging materials. Food packaging demands adhesives free from harmful chemicals to ensure consumer safety and regulatory compliance. Low-VOC formulas provide safe bonding with improved heat resistance and product integrity. Packaging manufacturers in Indonesia are transitioning to water-based and hot-melt systems for greater sustainability. As e-commerce and FMCG sectors expand, demand for safe and eco-friendly packaging strengthens. This trend will continue with global emphasis on circular packaging solutions.

• Advancements in Hybrid and High-Performance Low-VOC Adhesive Materials
  Manufacturers are developing hybrid adhesives that combine the strengths of reactive, polyurethane, acrylic, and silicone systems. These formulations offer enhanced mechanical strength, environmental resistance, and fast curing while maintaining low VOC emission levels. Hybrid low-VOC adhesives support demanding industrial applications, including electronics, automotive, aerospace, and construction. Their formulation flexibility enables use across porous, non-porous, and multi-material surfaces. High-performance adhesives ensure better durability and longer service life. This trend reflects increasing demand for premium, sustainable adhesive solutions across Indonesia.

Market Growth Drivers

• Stringent Environmental Regulations and Emission Standards
  Governments in Indonesia enforce strict VOC regulations to reduce air pollution and improve public health. These regulations limit the use of solvent-based adhesives and encourage adoption of low-emission alternatives. Manufacturers must comply with emissions standards for indoor products and industrial operations, pushing rapid transition to low-VOC adhesive technologies. Environmental compliance drives continuous product innovation. Industries increasingly adopt safer formulations to meet sustainability initiatives. This regulatory influence remains one of the strongest growth drivers.

• Increasing Adoption in Construction, Flooring, and Interior Applications
  Low-VOC adhesives support healthier indoor environments, making them essential in flooring, wall panels, insulation, and furniture assembly. Rising construction of residential, commercial, and public buildings in Indonesia fuels demand for eco-friendly adhesives. Flooring contractors prioritize low-emission solutions to reduce odor and improve air quality during installation. Sustainable interior design practices further strengthen adhesive usage. As urban development accelerates, low-VOC adhesives gain widespread application. This driver significantly contributes to long-term market expansion.

• Growth in Automotive Manufacturing and Cabin Air-Quality Standards
  Automakers are under pressure to meet stringent cabin air quality regulations and consumer expectations. Low-VOC adhesives reduce harmful emissions inside vehicles and support assembly of lightweight interior components. EV and hybrid vehicle manufacturers rely heavily on eco-friendly adhesives for multi-material bonding. Strict OEM requirements push adoption of low-emission adhesive solutions. This demand continues rising as automotive innovation evolves. Automotive growth remains a major driver of the low-VOC adhesive market.

• Shift Toward Sustainable Manufacturing and Green Product Formulations
  Industries prioritize sustainability and seek to reduce carbon footprints through eco-friendly raw materials and low-emission adhesives. Manufacturers invest heavily in water-based, bio-based, and solvent-free adhesive technologies. Corporate sustainability goals encourage use of environmentally responsible bonding solutions. Green labeling programs and consumer preferences reinforce this shift. Companies adopting sustainable practices gain competitive advantage. This driver strengthens as environmental awareness increases globally.

• Growing Demand in Packaging, Labeling, and Food-Safe Applications
  Low-VOC adhesives play a critical role in ensuring safe and compliant packaging for food, beverages, pharmaceuticals, and consumer goods. Packaging manufacturers prefer low-emission adhesives to meet safety guidelines and avoid contamination risks. Rising demand for flexible packaging, laminates, and high-speed labeling increases adhesive consumption. E-commerce growth also boosts the need for durable, eco-friendly packaging solutions. Low-VOC adhesives help maintain regulatory compliance and product safety. Packaging remains a consistent and expanding growth driver.

Challenges in the Market

• Higher Production Costs and Complex Formulations
  Low-VOC adhesives often require advanced raw materials and specialized processing techniques, increasing production costs. Manufacturers must invest in research, testing, and compliance certification to meet emission regulations. These cost factors may limit adoption, especially in price-sensitive markets. Manufacturers face challenges balancing performance and sustainability at competitive prices. Small companies may struggle to transition from solvent-based systems. Cost reduction remains a crucial challenge for expanding adoption.

• Performance Limitations Compared to Solvent-Based Adhesives
  Some low-VOC adhesives may have longer curing times, reduced moisture resistance, or weaker bonding under extreme conditions. Industries requiring high performance may hesitate to adopt low-VOC alternatives without proven durability. Performance gaps create challenges in heavy-duty applications such as automotive assembly or industrial bonding. Manufacturers must continually innovate to match or exceed solvent-based adhesive performance. This limitation slows adoption in certain applications. Overcoming technical gaps is essential for broader market penetration.

• Raw Material Price Volatility and Supply Chain Constraints
  Eco-friendly adhesive formulations depend on specific polymers, specialty chemicals, and additives that experience price fluctuations. Supply chain disruptions impact availability and increase production costs. Manufacturers in Indonesia face challenges maintaining consistent quality and supply. These uncertainties complicate inventory management and long-term contracts. The industry requires stable supply chains to support growth. Raw material volatility remains a persistent challenge.

• Limited Awareness in Small and Mid-Sized Industries
  Some small-scale manufacturers remain unaware of the long-term benefits of low-VOC adhesives. Initial cost concerns and lack of technical knowledge slow adoption in woodworking, textiles, and small-scale construction. Training and awareness programs are needed to encourage transition. Misconceptions about performance or convenience may hinder market penetration. Education is essential to overcome these barriers. Limited awareness restricts adoption in developing regions.

• Stringent Compliance Requirements and Regulatory Burden
  Achieving compliance with VOC emission standards requires extensive testing, documentation, and certification. Manufacturers must continuously reformulate products to meet evolving regulations. Compliance increases production timelines and development costs. Companies may face delays in product approvals or market entry. Regulatory complexity is a significant hurdle for both established and emerging players. This challenge requires dedicated resource allocation and technical expertise.

Indonesia Low VOC Adhesive Market Segmentation

By Technology

• Water-Based Adhesives

• Hot-Melt Adhesives

• Reactive Adhesives

• Pressure-Sensitive Adhesives

• UV-Curable Adhesives

• Hybrid Polymer Adhesives

By Chemistry

• Acrylic

• Polyurethane

• Epoxy

• Silicone

• Ethylene Vinyl Acetate (EVA)

• Bio-Based Adhesives

By Application

• Construction & Flooring

• Automotive & Transportation

• Packaging & Labeling

• Woodworking & Furniture

• Electronics & Appliances

• Textiles

• Consumer Goods

By End-User

• Construction Companies

• Automotive OEMs

• Packaging Manufacturers

• Furniture & Woodworking Industries

• Electronics Manufacturers

• Industrial Manufacturers

• Retail & DIY Consumers

Leading Key Players

• Henkel AG & Co. KGaA

• 3M

• H.B. Fuller

• Sika AG

• Dow Inc.

• Arkema Group

• Wacker Chemie AG

• Avery Dennison

• Jowat SE

• Ashland Global

Recent Developments

• Henkel launched a new water-based adhesive line with ultra-low VOC emissions for construction applications in Indonesia.

• 3M expanded its eco-friendly adhesive portfolio with sustainable packaging solutions targeted at Indonesia manufacturers.

• Sika AG introduced hybrid polymer adhesives optimized for low-VOC industrial bonding in Indonesia.

• H.B. Fuller invested in green-chemistry R&D facilities to enhance solvent-free adhesive production in Indonesia.

• Arkema partnered with packaging suppliers to promote low-VOC adhesive technologies for food-safe applications in Indonesia.

This Market Report Will Answer the Following Questions

1. What is the projected market size and growth rate of the Indonesia Low VOC Adhesive Market by 2031?

2. Which industries—construction, automotive, packaging, furniture—drive adoption in Indonesia?

3. What technological innovations are shaping low-VOC adhesive development?

4. What challenges restrict high-performance, low-emission adhesive adoption across Indonesia?

5. Who are the major players influencing the competitive landscape of this market?