The construction chemicals industry opened August 2026 with a clear narrative split: mature markets are trading on specification and consolidation, while Asia-Pacific and Southeast Asia are providing the volume engine. Fresh market reports published in late July put waterproofing admixtures, dry-mix mortar additives, and construction-grade cellulose ethers under the spotlight, while company announcements from Saint-Gobain, Sika, and Pidilite show where capital is flowing. Below is a data-driven roundup of the developments that matter for procurement and formulation teams.
Waterproofing Admixtures Enter a High-Growth Phase
Waterproofing admixtures are having a moment. Three research houses released updated forecasts within days of each other, and all point in the same direction.
- Lucintel (July 28, 2026) expects the global waterproofing admixture market to reach USD 7.7 billion by 2035, expanding at a CAGR of 4.4% from 2026 to 2035. Crystalline waterproofing admixtures are flagged as the fastest-growing type, and infrastructure is the fastest-growing end-use segment.
- ForInsightsConsultancy sizes the 2026 market at USD 4.925 billion and projects it will more than double to USD 10.90 billion by 2034, a CAGR of 8.2%.
- TrendX Insights estimates the market at USD 4.79 billion in 2025 and forecasts USD 8.44 billion by 2034, a CAGR of 6.50%. Europe held the largest regional share in 2025 at 36.4%, but Asia-Pacific is expected to lead growth.
The common thread is a move from surface-applied membranes toward integral, specification-driven systems. Crystalline admixtures are gaining share because they extend service life in basements, tunnels, water tanks, and marine structures while reducing maintenance cycles. This shift also explains why Saint-Gobain signed a definitive agreement on July 13, 2026, to acquire Xypex Chemical Corp., the Canadian crystalline-waterproofing leader. Xypex operates in more than 100 countries, employs roughly 170 people, and is expected to generate sales of CAD 110 million in 2026. The transaction is slated to close in the fourth quarter of 2026 and will add Admix C-Series, Concentrate, and Bio-San technology to Saint-Gobain’s existing GCP Preprufe, Fosroc Proofex, Stirling Lloyd Eliminator, and GCP Silcor portfolio.
Southeast Asia: Indonesia Leads the Next Wave
While China wrestles with a cyclical construction slowdown, Southeast Asia is becoming the most reliable volume growth corridor for construction chemicals. A Ken Research report published in late July positions Indonesia as the largest construction chemicals market in Southeast Asia, valued at USD 910 million in 2025 and forecast to reach USD 1,373 million by 2031 at a CAGR of 7.10%.
Indonesia’s scale is structural. The country’s construction economy is estimated at USD 125.4 billion, construction contributes 9.83% of GDP, and the national housing backlog stands at 9.9 million units. The relocation of the political capital to Nusantara, targeted for 2028, is adding roads, housing, utilities, and institutional buildings to the pipeline.
By product category, concrete admixtures account for roughly 36% of the 2025 Indonesian market, while waterproofing systems represent 24%. Repair and rehabilitation materials, at about 14%, are gaining margin attention as the installed base ages. Regional peers are growing too, but at a slower clip: Vietnam (USD 474 million, 7.33% CAGR), Thailand (USD 519 million, 5.89% CAGR), Malaysia (USD 387 million, 5.51% CAGR), and the Philippines (USD 300 million, 5.90% CAGR). For suppliers of HPMC, RDP, PCE, and waterproofing admixtures, Indonesia is increasingly the anchor market in ASEAN.
India Tile Adhesive and Construction Chemicals Keep Expanding
India remains the other major regional growth story. The India tile adhesive market was valued at USD 1.65 billion in 2025 and is projected to reach USD 3.32 billion by 2032, a CAGR of 10.5%. Cementitious tile adhesives dominate with roughly 84% share, driven by large-format tile trends and mandatory BIS certification under IS 15477:2019.
Global suppliers are responding with local capacity. In January 2026, Sika India inaugurated a INR 850 million construction chemicals facility in Pune that includes a dedicated 45,000 MT per year tile adhesive production line. Saint-Gobain has committed USD 1 billion in new India capex over the next five years, on top of USD 600 million deployed in the prior five, with a target of tripling its India business within a decade.
Domestic bellwether Pidilite Industries reported strong Q1 FY26 results: consolidated revenue grew 10.5% year-on-year to INR 3,753 crore, underlying volume growth was 9.9%, and EBITDA margin reached an 18-quarter high of 25.1%. The company expects gross margins of 54-55% through FY26 and has flagged construction chemicals as a key growth category alongside its core adhesives business.
Dry-Mix Mortar Additives and Cellulose Ethers: The Volume Foundation
Behind every waterproofing and tile-adhesive headline sits the dry-mix mortar additive complex. A Global Information report published July 28, 2026, sizes the dry-mix mortar additives and chemicals market at USD 31.55 billion in 2026 and projects USD 49.94 billion by 2032, a CAGR of 7.74%. The same research highlights artificial intelligence as an emerging tool for formulation development, quality control, and predictive maintenance in dry-mix plants.
Construction-grade cellulose ethers provide the rheology and water-retention backbone. According to pMarketResearch, the global market was USD 3.75 billion in 2025 and is forecast to reach USD 5.43 billion by 2032 at a CAGR of 5.42%. Asia-Pacific accounted for USD 1.67 billion of the 2025 total, with HPMC holding a 65.2% type share and dry-mix mortars representing 35.6% of applications. A separate 24MarketReports outlook notes that global non-ionic water-soluble cellulose ether output reached roughly 520,330 tons, with China producing over 300,000 tons, or more than 57% of global supply.
Chinese HPMC spot prices have been range-bound. Market data from early August 2026 shows construction-grade HPMC in Shandong quoted around RMB 12,000 per ton, with Hubei grades near RMB 15,000 per ton. Prices have stabilized after a volatile July, reflecting weak domestic construction demand on one side and firm cotton-linter and wood-pulp costs on the other.
Feedstock and Pricing Context
The ethylene oxide market, a key feedstock for PCE superplasticizer monomers and non-ionic surfactants, ended July at RMB 7,600 per ton on average in China, up 11.76% from RMB 6,800 at the start of the month, according to SunSirs. Regional list prices on August 3 were RMB 7,600 per ton in East China, RMB 7,400-7,500 in South China, RMB 7,400 in North China, and RMB 6,800-7,750 in Central China.
The August outlook is balanced but defensive. Restarting maintenance units are adding supply, downstream construction demand remains in a seasonal trough, and profit-taking is capping rallies. At the same time, crude-oil and ethylene costs provide a floor, ethylene glycol co-production continues to divert EO output, and pre-season restocking ahead of September-October is expected to lend support. The likely pattern is high-level oscillation rather than a directional breakout.
What This Means for Buyers and Formulators
- Waterproofing is a specification play. Crystalline and integral admixtures are displacing commodity membranes in high-value infrastructure. Suppliers with test data, standards compliance, and applicator networks will capture margin.
- ASEAN is the volume hedge. While China navigates a real-estate correction, Indonesia, Vietnam, and the Philippines offer multi-year growth runways for dry-mix mortar, tile adhesive, and waterproofing additives.
- India rewards local manufacturing. Tariff, logistics, and specification pressures favor suppliers that produce in-country or partner with domestic distributors.
- Cellulose ether supply is bifurcated. Buyers in Europe and North America are paying risk premia for security of supply, while APAC spot markets remain softer. Locking in Q4 contracts before the seasonal pickup makes sense.
- EO/PCE cost volatility is contained but not over. The July rally has plateaued, but geopolitical risk and MEG co-product dynamics mean feedstock costs will remain sensitive through September.
Conclusion
Construction chemicals are entering the second half of 2026 with divergent regional momentum but a shared technical direction: higher-performance, lower-carbon, specification-driven formulations. Waterproofing admixtures are the fastest-moving segment, Southeast Asia is the clearest volume opportunity, and dry-mix mortar additives remain the steady foundation. Buyers who align procurement with these three vectors will be better positioned for the quarters ahead.
Hosechem supplies construction-grade HPMC, HEMC, HEC, RDP, PCE superplasticizers, CMC, PP fibers, defoamers, PVA, and gypsum retarders for tile adhesives, dry-mix mortars, waterproofing systems, self-leveling compounds, and repair mortars. If you are formulating for Southeast Asian humidity, Indian large-format tile adhesives, or Middle Eastern infrastructure durability, contact our technical team for product samples, formulation guidance, and stable supply terms.
