Pradip Shitole
8 May 2025
Explore key trends and innovations in the chemicals & materials industry, from adhesives to agrochemicals, driving sustainability, efficiency, and smarter solutions across sectors.
The chemicals & materials industry is a cornerstone of modern innovation, driving advancements across numerous sectors, from construction and agriculture to personal care and electronics. Over the past few years, this dynamic industry has witnessed some groundbreaking advancements that are reshaping the way we think about sustainability, performance, and efficiency. From adhesives that hold our world together to the water treatment chemicals that provide us with safe water for drinking and cooking purposes, this industry is under constant development and innovations. These developments are addressing current challenges as well as paving the way for a greener, smarter future.
In this blog, we’ll explore the emerging trends and breakthroughs across key categories, including adhesives, advanced materials, agrochemicals, paints, petrochemicals, plastics, and water treatment chemicals. Also, we’ll shed light on the strategic developments by major market participants in these chemicals & materials market categories. Continue reading!
Adhesives & Sealants
An adhesive is a substance that is designed to hold two or more materials together by creating a surface attachment, essentially acting as a "glue" that bonds different surfaces using cohesive forces. They can be made from a variety of materials like natural resins (tree sap), synthetic polymers, or even animal products. A sealant is a specialized chemical product designed to fill gaps, cracks, and joints between different components of equipment or piping, preventing leaks of chemicals, gases, or liquids by creating a tight, barrier-like seal. Basically, it acts as a protective layer against potential contamination or environmental hazards.
Emerging Trends: The adhesives and sealants category is growing due to the rising demand from the construction, automotive, and packaging industries. There has also been a rise in smart adhesives that can change properties in response to environmental stimuli, such as temperature or humidity. These innovations are particularly useful in electronics and medical devices.
Latest Development: In January 2025, Hubergroup introduced Cold Foil Silver and Cold Foil Gold adhesives for applications involving Food Contact Materials (FCM). These UV-curing adhesives are formulated for premium packaging in industries such as confectionery and tobacco, delivering vibrant, striking metallic finishes while minimizing waste.
Hubergroup Company Information
· Revenue generated as of 2024: USD 887.2 million (EUR 812 million)
· Acquisition: In 2024, MAVCO Investments and Avenue Capital Group acquired Hubergroup for USD 310 million.
Advanced Materials
Advanced materials refer to materials engineered with novel or significantly enhanced properties compared to traditional materials, offering superior performance in specific applications. It is often achieved through innovative design and manufacturing techniques, including nano-scale structures, composites, and tailored chemical compositions. Advanced materials are revolutionizing industries with their unique properties, such as lightweight strength, conductivity, and thermal resistance.
Emerging Trends: Globally, increasing demand for materials with reduced environmental footprint, development of smart materials that can respond to stimuli like temperature, light, or pressure, utilization of nanomaterials for enhanced properties, and exploration of unique properties of graphene and other 2D materials are some of the major trends to lookout for in the upcoming years.
Latest Development: In February 2025, BASF launched the first-ever superabsorbent polymer based on polyacrylate that was marketed for the hygiene sector with a product carbon footprint of zero. Utilizing a biomass balance approach in the production process in conjunction with renewable energy and renewable raw materials allows for this accomplishment.
BASF Company Information
· Revenue Generated as of 2024: USD 71.4 billion (EUR 65.3 billion)
· Major Cash Flow: In 2024, BASF received €1.831 billion from the disposal of equity instruments.
Agrochemicals & Fertilizers
Agrochemicals are chemical products used in agriculture, which primarily include fertilizers and pesticides (like insecticides, herbicides, and fungicides) designed to enhance crop growth and protect against pests. In contrast, fertilizers are substances added to soil to provide essential nutrients for plant development, contributing to increased crop yields. Fertilizers replenish nutrients like nitrogen, phosphorus, and potassium in the soil, which are essential for plant growth and development. However, concerns exist regarding the potential environmental impacts of excessive agrochemical use, including water pollution and disruption of ecosystems.
Emerging Trends: The following are some of the main trends to look for:
· Sustainability and Organic Options:
o Rising demand for organic food is driving the development of biopesticides and biofertilizers as alternatives to synthetic chemicals.
o Companies are focusing on developing products with reduced environmental impact.
· Precision Agriculture:
o Utilizing data analytics, sensors, and advanced technology to precisely target the application of agrochemicals based on specific field conditions.
o Aim to optimize chemical usage and maximize crop yields.
· Regulatory Landscape:
o Stricter regulations regarding chemical usage are pushing innovation towards safer and more environmentally friendly products.
Latest Development: In February 2025, Gates Agricultural Innovations and Corteva Inc., a worldwide agricultural technology firm, revealed their new partnership aimed at speeding up agricultural innovations to enhance global food security.
Corteva Inc. Company Information
· Revenue generated as of 2024: USD 16.9 billion
· Latest Funding Round Amount: USD 6.1 million
Paints & Coatings
Paints and coatings are materials that are applied to surfaces to protect them and enhance their appearance. They come in a variety of types, including latex, acrylic, enamel, varnishes, lacquers, and epoxies. Paints are made from a mixture of pigment, solvent, resin, and additives. Whereas coatings can be made from a variety of materials, including paint, varnishes, lacquers, epoxies, urethanes, and sealants. Paints and coatings are used in many industries, including automotive, metal packaging, and pavement markings.
Emerging Trends: The paints and coatings industry is trending towards more sustainable, eco-friendly, and innovative products. Following are a few of the trends to look out for in the industry.
· Smart Coatings
o Self-healing: Coatings that can heal themselves.
o Anti-microbial: Coatings that have anti-microbial properties.
o Enhanced durability: Coatings that are more durable and resistant to harsh environments.
· Digitalization
o Augmented reality (AR): AR and virtual reality (VR) are being used to visualize and select paint colors.
o IoT devices: IoT sensors are used to collect data on processes and performance.
· Customization
o Personalized: Consumers are looking for more personalized paint options.
· Health and Safety
o Indoor air quality: Coatings are being developed to be safe for indoor use and have minimal impact on air quality.
Latest Development: In December 2024, PPG Industries, Inc. declared that it has finalized the sale of its entire architectural coatings division in the U.S. and Canada for a transaction value of USD 550 million to American Industrial Partners (AIP), an industrial investor.
· Revenue Generated as of 2024: USD 15.8 billion.
· Latest Investment: USD 18.4 million in 2024
Conclusion
The chemicals and materials industry is at the forefront of solving some of the world’s most pressing challenges, from sustainability to resource efficiency. The recent developments highlighted above demonstrate the industry’s commitment to innovation and its ability to adapt to changing demands. Whether it’s through bio-based adhesives, self-healing polymers, or compostable plastics, the future of this industry is bright and it’s built on a foundation of science, creativity, and responsibility.