Australia Sealants Market Size, Share and Forecast Trends - Growth Analysis and Outlook Report (2026-2035)

Market Overview

The Australia sealants market is moving from commodity acrylic and silicone tubes towards specified, performance-rated products. Builders, fabricators and vehicle assemblers now ask for documented adhesion, movement capability and indoor air quality, and suppliers are investing in local manufacturing to shorten lead times.

Three forces are shaping demand: a federal housing programme that lifts new dwelling approvals and commencements; a building code that tightens envelope and fire requirements state by state; and an electric vehicle fleet that adds battery, glazing and body sealing. Renovation spending keeps retail demand steady between construction cycles.

In April 2026 Mapei began building a new Melbourne plant, in May 2026 the updated National Construction Code was released, in July 2026 the Australian Bureau of Statistics reported a rise in dwelling approvals, and in October 2026 Soudal announced the acquisition of an Australian company.

Key Market Trends and Insights

• Approvals recovery: The Australian Bureau of Statistics reported on 30 July 2026 that total dwelling approvals rose 7.2% in June to 18,328, with apartment approvals up 69.9% in original terms.
• Commencement shortfall: The Housing Industry Association reported on 8 July 2026 that 197,340 new homes started in the year to March, still below the roughly 240,000 a year the national target requires.
• Accord progress: The National Housing Supply and Affordability Council said on 21 August 2026 that 308,000 homes have been completed under the Accord and 244,000 were under construction in March.
• Electrification effect: Industry sales data published on 6 October 2026 showed electric vehicles reaching 24.2% of September new vehicle sales, lifting battery and body sealing content per vehicle.

Australia Sealants Market Size and Forecast

The market is shifting from general-purpose acrylic and silicone tubes towards specified silicone, polyurethane and hybrid products as builders respond to a more demanding building code and tighter site schedules. Silicone sealants still lead because wet areas, glazing and facade joints rely on them, while MS polymer and hybrid grades, automotive and transport applications and online channels advance fastest as low-odour, paintable and multi-substrate products win share. New South Wales remains the largest base and Queensland grows quickest from a smaller one. Approval pipelines, code adoption dates and local plant investment support a durable multi-year outlook shaped by construction volumes and specification choices rather than a cyclical rebound alone.

Key Takeaways: Australia Sealants Market

Housing Programme Sustains Sealant Volumes

Revenue is set to rise from AUD 980.00 million in 2025 to AUD 1,626.98 million in 2035 at a 5.2% CAGR, as dwelling approvals recover and new homes under construction stay at record levels.

Hybrid Chemistries Lead Growth

Silicone remains the largest resin type, but MS polymer and hybrid sealants grow at an estimated 8.4% CAGR and automotive and transport applications at 6.9% through 2035.

Code Adoption Shapes Product Choice

The National Construction Code released in May 2026 is adopted on different dates across states, which influences when specifiers move to higher-rated products and which suppliers hold approvals.

• Victoria adopting the code from May 2026
• New South Wales and Queensland following in May 2027
• Suppliers aligning approvals ahead of each date

Australia Sealants Market Report Summary

Key Insight

Housing delivery, renovation activity and a shift to cleaner, higher-performance formulations shape spending. Silicone remains the largest base while hybrid chemistries and vehicle electrification advance fastest.

Key Trends in the Australia Sealants Market

The Australia sealants market is being reshaped by supplier acquisitions, the national housing programme, rising dwelling approvals and a staged rollout of the updated building code.

October 2026 - Soudal Announces Acquisition of CohesiveTec in Australia

• Soudal Group listed on 23 October 2026 the acquisition of CohesiveTec Pty Ltd, Australia, its latest move in a local market it already serves through a Sydney-based affiliate.
• Soudal is headquartered in Turnhout, Belgium, and makes silicone, polyurethane and MS polymer sealants alongside foams and adhesives for construction.
• The announcement gave no deal terms or product scope, so the scale of the addition to Soudal's Australian range remains unconfirmed.

August 2026 - Housing Council Reports Accord Progress and Delays

• The National Housing Supply and Affordability Council's report of 21 August 2026 put completions at about 308,000, roughly one quarter of the 1.2 million target.
• It moved the expected finish to the December quarter 2030, with New South Wales delayed to March 2032 and Queensland to March 2031.
• It also recorded 244,000 dwellings under construction in the March quarter, the highest on record, and warned that costs and interest rates could constrain supply.

July 2026 - Dwelling Approvals Rise as Apartments Surge

• The Australian Bureau of Statistics reported on 30 July 2026 that June approvals reached 18,328 dwellings, up 7.2% on May.
• Private sector house approvals of 10,631 were 15.8% higher than a year earlier and the sixth consecutive month above 10,000.
• Queensland recorded the largest rise in private house approvals at 2.9%, while Western Australia fell 5.4%, shifting regional sealant demand.

May 2026 - Updated National Construction Code Released

• The updated National Construction Code was released on 1 May 2026, available for states and territories to adopt on their own timetables.
• Victoria adopted it from that date, while New South Wales, Queensland and South Australia are reported to follow from 1 May 2027.
• Staggered adoption gives suppliers a window to align product approvals, fire ratings and weatherproofing data before the code applies nationally.

Key Insight

A reset in housing supply, rising approvals and a staggered building code rollout are steering sealant specification, while suppliers buy local capacity to secure share of a recovering build programme.

Recent Market Developments in the Australia Sealants Market

Recent developments, presented from the most recent, show the Australia sealants market moving from uneven global demand and electric vehicle growth into local manufacturing and renewed investment in building products.

October 2026 - Electric Vehicles Reach Record Share of Monthly Sales

• Industry data published on 6 October 2026 showed 108,778 new vehicles sold in September, up 1.8% on a year earlier.
• Electric vehicles took 24.2% of September sales, or 26,287 units, and narrowly outsold petrol models.
• Year-to-date electric vehicle share stood at 18.9%, expanding demand for battery, glazing and body sealants fitted by vehicle makers and repairers.

August 2026 - Nippon Paint Cites DuluxGroup Volume Growth

• Nippon Paint Holdings reported second-quarter results on 7 August 2026, with revenue up 19.4% and adjusted operating profit up 30.4%.
• Its summary credited volume growth and price revisions in DuluxGroup (Pacific), the owner of the Selleys sealant and adhesive brands.
• The result points to resilient demand for retail and trade sealants even as housing starts remained below the national target.

July 2026 - Sika Reports Half-Year Results and Buys Adhesives Maker

• Sika reported its half-year results on 28 July 2026, with Asia Pacific local-currency sales down 2.0% as Chinese construction fell by a double-digit rate.
• Excluding Chinese construction, the region grew 7.7% organically, with India and Southeast Asia standing out.
• Sika also announced the purchase of a Turkish adhesives and sealants manufacturer, with closing expected in the third quarter of 2026.

April 2026 - Mapei Starts Building AUD 60 Million Melbourne Plant

• Mapei announced on 21 April 2026 that it had started construction of a AUD 60 million manufacturing facility at Truganina in Melbourne.
• The plant is intended to serve Australia's growing construction industry with locally made building products.
• Local production shortens delivery times for trade customers and reduces exposure to shipping disruption on imported sealants and adhesives.

Key Insight

Recent events show global groups reporting uneven demand, new local plants being built and acquisitions widening product ranges, giving buyers more supply security but a more contested pricing environment.

Australia Sealants Industry Segmentation

The Expert Market Research’s report on the Australia Sealants Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Resin Type

• Silicone Sealants
• Polyurethane Sealants
• MS Polymer and Hybrid Sealants
• Acrylic Sealants
• Butyl and Others
• Others

Silicone Sealants lead because glazing, facades and wet areas depend on them, and Selleys markets Wet Area Silicone for bathrooms and kitchens, while Wacker said on 30 July 2026 that its silicones sales rose 6% in the second quarter. MS Polymer and Hybrid Sealants grow fastest at an estimated 8.4% CAGR, as low-odour, paintable products replace solvent-based grades and Soudal listed an Australian acquisition in October 2026. Polyurethane Sealants serve joints, flooring and vehicle assembly. Acrylic Sealants remain the entry-level choice for interior gaps and painting. Butyl and Others cover roofing, caravan and tape applications.

Market Breakup by Application

• Building and Construction
• Automotive and Transport
• Industrial Manufacturing
• Marine and Others
• Others

Building and Construction leads because dwelling approvals reached 18,328 in June 2026 and the National Construction Code released in May 2026 tightens envelope requirements. Automotive and Transport grows fastest at an estimated 6.9% CAGR, since electric vehicles took 24.2% of September 2026 sales and need battery, glazing and body sealing. Industrial Manufacturing follows local production, with Henkel launching an Australian-made industrial compound from its Kilsyth plant in Victoria in July 2026. Marine and Others cover boat building, rail and repair work, and expand more slowly.

Market Breakup by Sales Channel

• Trade and Specialist Distributors
• Retail and DIY
• Direct and Project Sales
• Online
• Others

Trade and Specialist Distributors lead because builders and installers buy cartridges and sausages in volume, and Mapei's AUD 60 million Melbourne plant, begun in April 2026, is aimed at that customer base. Online grows fastest at an estimated 7.4% CAGR, as tradies and renovators reorder branded products for delivery and compare data sheets before buying. Retail and DIY stay steady on renovation, with Selleys offering Liquid Nails Flex for general sealing jobs. Direct and Project Sales rise with approvals of 18,328 dwellings in June 2026, as large builders specify products and negotiate supply.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Others

New South Wales dominates, with 5,063 dwellings approved in June 2026 and the largest facade and apartment pipeline, and grows at an estimated 4.6% CAGR from that large base as its Accord completion date slips to March 2032. Queensland is fastest at an estimated 6.3%, helped by rolling twelve-month approvals up 23% in the August 2026 council report. Western Australia grows at 5.8% on approvals up 11%, and Victoria at 5.1% after adopting the new code in May 2026. Others, grouping South Australia, Tasmania, the ACT and the Northern Territory, grows at 4.8%, after South Australian private house approvals reached a multi-year high in June 2026.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Sealants Market

Competition combines global construction chemical groups, silicone and polymer producers, and branded Australian suppliers with national retail and trade reach. Entry barriers include technical approvals, local manufacturing or stockholding, relationships with distributors and the ability to meet building code and indoor air quality requirements.

Sika

Sika is headquartered in Baar, Switzerland, and supplies Sikaflex and Sikasil sealants, adhesives and construction chemicals to Australian builders, vehicle makers and fabricators through a local subsidiary. It reported half-year results on 28 July 2026, with Asia Pacific sales excluding Chinese construction up 7.7% organically. The group also announced the acquisition of a Turkish adhesives and sealants manufacturer, expected to close in the third quarter of 2026, widening its portfolio in sealing and bonding.

Soudal

Soudal is headquartered in Turnhout, Belgium, and sells silicone, polyurethane and MS polymer sealants, foams and adhesives in Australia through a Sydney-based affiliate. On 23 October 2026 the group listed the acquisition of CohesiveTec Pty Ltd, Australia, extending its local presence, although no deal terms were given. In September 2026 it also reported that its fifth plant earned an Outstanding BREEAM sustainability rating, supporting its low-impact positioning for builders.

Selleys

Selleys is a household sealant and adhesive brand of DuluxGroup, which is owned by Nippon Paint Holdings of Osaka, Japan. Its range includes Wet Area Silicone, Storm weather sealants and Liquid Nails Flex, a flexible, paintable construction adhesive used for general sealing jobs. On 7 August 2026 Nippon Paint reported second-quarter revenue up 19.4%, crediting volume growth and price revisions in DuluxGroup (Pacific), supporting Selleys' retail and trade reach.

Mapei

Mapei is headquartered in Milan, Italy, and supplies adhesives, sealants, grouts and waterproofing products for tiling and building envelopes in Australia. On 21 April 2026 it announced it had started construction of a AUD 60 million manufacturing facility at Truganina in Melbourne to serve the local construction industry. Local production should improve availability for trade customers and reduce dependence on imported products, and in August 2026 the company expanded a national partnership with the Property Industry Foundation.

Other players operating in the Australia sealants market include Bostik, Henkel, Wacker, Dow, and Ardex, alongside regional formulators, importers, distributors and applicators supplying builders, vehicle makers and fabricators across Australia.

Key Insight

Competition rests on technical approvals, local manufacturing and trade distribution reach rather than price alone, favouring suppliers able to support builders, fabricators and vehicle makers from specification through application.