China’s waterproof materials industry is in a critical period of deep adjustment, transformation and upgrading. The real estate downturn has brought pain, but infrastructure construction, urban renewal, and green and low-carbon policies have injected new momentum into the industry.
1. Definition of waterproof materials
Waterproof materials are key functional materials used to prevent rain, snow, groundwater, environmental moisture and other corrosive liquids from penetrating into buildings.
Its core function is to prevent penetration, leakage and erosion, which is directly related to the service life, structural safety and sanitary environment of the building.
Common waterproof materials mainly include waterproof membranes, waterproof coatings, sealing materials and rigid waterproof materials.
2. Development policy of waterproof materials industry
China’s national policy on waterproofing materials is focusing on the core goals of “safety, green and durable”, using mandatory national standards and the construction of “good houses” as the two major starting points to promote the transformation and upgrading of the industry.
3. Development status of waterproof materials industry
1. China’s waterproof material output
Affected by the downturn in real estate and the slowdown in infrastructure investment, China’s waterproofing material output has shown a trend of “first increasing and then declining” in recent years.
Relevant reports show that China’s waterproof material output will be 2.538 billion square meters in 2024, a year-on-year decrease of 16.8%, and the output in 2025 will be approximately 2.284 billion square meters.
Some analysts predict that China’s waterproof material output will further drop to 2.101 billion square meters in 2026.
2. Waterproof material product structure
China’s waterproof material market presents a product structure of “mainly rolled materials, supplemented by coatings”.
Among them, waterproofing membranes are absolutely dominant, accounting for about 69.03% of the market share, with SBS/APP modified asphalt membranes as the core; waterproof coatings rank second, accounting for about 27.55%, and are widely used in home decoration and other fields.
Overall, the industry is continuing to evolve from traditional asphalt products to polymer membranes and environmentally friendly coatings with better performance and more environmental protection.
3. Proportion of downstream applications of waterproof materials
The application of waterproof materials in China is centered on the construction field, of which residential buildings are the largest source of demand, accounting for approximately 50% of all applications; civil buildings (such as commercial complexes, public buildings) account for approximately 20%; infrastructure (including railways, rail transit, bridges and tunnels, etc.) and industrial buildings account for approximately 20% and 10% respectively.
4. Layout of key waterproofing material companies in China
my country’s waterproof materials industry resources continue to concentrate on leading companies. Listed companies such as Dongfang Yuhong, Keshun Co., Ltd., and BNBM Waterproofing have continued to expand their market share by virtue of their capital, brand and production capacity advantages.
4. Key enterprises in the waterproof materials industry
1. Oriental Yuhong
Beijing Oriental Yuhong Waterproofing Technology Co., Ltd. has formed a building and building materials system service provider with the main waterproofing business as its core and extended by diversified businesses such as civil building materials, mortar powders, architectural coatings, energy-saving insulation, adhesives, pipes, building repairs, new energy, non-woven fabrics, special films, and emulsions.
In the first three quarters of 2025, Oriental Yuhong achieved total operating income of 20.601 billion yuan, a year-on-year decrease of 5.06%, and net profit attributable to the parent company was 810 million yuan, a year-on-year decrease of 36.61%.
In the first half of 2025, the company’s waterproof materials revenue was 9.459 billion yuan, accounting for 69.71%.
2. Keshun Shares
Keshun Co., Ltd. was established in 1996. It is a building materials system service provider whose main business is to provide comprehensive solutions for building waterproofing. Its products and services cover engineering waterproofing, civil building materials, building repairs, earthquake reduction and isolation, construction sand powder, photovoltaic energy and other business sectors.
In the first three quarters of 2025, Keshun Co., Ltd. achieved operating income of 4.703 billion yuan, a year-on-year decrease of 8.43%, and net profit attributable to the parent company of 20.0877 million yuan, a year-on-year decrease of 84.08%.
In the first half of 2025, the company’s waterproof membrane revenue was 1.646 billion yuan, accounting for 51.11%, and waterproof coating revenue was 872.6 million yuan, accounting for 27.10%.
3. Three Trees
The main business of Sankeshu Paint Co., Ltd. is the research and development, production and sales of architectural coatings (wall coatings), waterproof materials, floor materials, thermal insulation materials and thermal insulation integrated boards, wood coatings, adhesives, base materials, industrial coatings and other products.
In the first three quarters of 2025, 3TREES achieved total operating income of 9.392 billion yuan, a year-on-year increase of 2.69%, and net profit attributable to the parent company was 744 million yuan, a year-on-year increase of 81.22%.
In the first half of 2025, the company’s waterproof membrane revenue was 460.3 million yuan, accounting for 7.91%.
4. BNBM Building Materials Co., Ltd.
Beixin Group Building Materials Co., Ltd. focuses on the three major businesses of gypsum board, waterproofing materials and coatings.
The company’s waterproof products cover more than 100 product series in five categories, including self-adhesive waterproofing membranes, polymer-modified asphalt waterproofing membranes, polymer waterproofing membranes, waterproof coatings, and waterproofing auxiliary materials. The one-stop solution is widely used in infrastructure construction, transportation engineering, industrial construction, urban renewal and repair, civil building materials, residential and commercial real estate and other fields.
In the first three quarters of 2025, BNBM’s operating income was 19.905 billion yuan, a year-on-year decrease of 2.25%, and net profit attributable to the parent company was 2.586 billion yuan, a year-on-year decrease of 17.77%.
In the first half of 2025, the company’s waterproof building materials revenue was 2.494 billion yuan, accounting for 18.40%.
5. Karen Shares
Jiangsu Kailun Building Materials Co., Ltd. specializes in the research and development, production and sales of new building waterproof materials and provides waterproof engineering construction services.
The company’s products cover two categories: waterproofing membranes and waterproof coatings, with dozens of specifications.
In the first three quarters of 2025, Karen shares’ operating income was 1.818 billion yuan, a year-on-year increase of 0.36%, and net profit attributable to the parent company was 26.4105 million yuan, a year-on-year increase of 182.15%.
In the first half of 2025, the company’s waterproof material sales revenue was 724.8 million yuan, accounting for 63.15%.
5. Development prospects of waterproof materials industry
1. Policies and norms continue to increase
Policy guidance has drawn a clear path for the high-quality development of the waterproof materials industry.
The “General Specifications for Waterproofing of Buildings and Municipal Engineering” implemented at the national level, as a mandatory engineering specification, puts forward higher requirements for the design life, material quality and construction technology of waterproof projects, directly increasing the use of waterproof materials, significantly raising the industry threshold, and prompting small and medium-sized enterprises that do not meet technical and environmental standards to accelerate their exit from the market.
At the same time, policies such as the “Work Plan for Stable Growth of the Building Materials Industry (2025-2026)” focus on promoting the construction of green building materials evaluation and carbon footprint systems, and encourage enterprises to carry out digital and intelligent transformation. This has created a favorable environment for leading enterprises that have already deployed in environmentally friendly products and intelligent manufacturing to consolidate their advantages.
2. The market demand is vast
Strong and diversified market demand provides continued impetus for the industry.
Traditional urbanization construction and urban renewal are the basic fundamentals. As of the end of 2023, the urbanization rate of my country’s permanent population has reached 66.16%. The subsequent large-scale urban housing, infrastructure construction and renovation of old communities have provided a solid market foundation.
On the other hand, emerging application scenarios are becoming an important growth engine.
For example, the promotion of rooftop photovoltaics is expected to bring an incremental market of approximately 10 billion yuan to polymer waterproof membranes every year; in addition, infrastructure construction such as underground pipe corridors, sponge cities, and underground energy storage have also generated a large demand for high-performance waterproof materials, pushing the industry’s demand structure to extend from traditional real estate to more diversified fields.
3. Internal optimization and technological innovation in the industry
The industry is improving its overall competitiveness through technological upgrading and layout optimization.
At the technical level, in response to environmental protection policies and high-end needs, companies are actively developing new green and functional products, such as low-VOC (volatile organic compound) coatings, TPO (thermoplastic polyolefin) polymer membranes, etc., and their penetration rates are constantly increasing.
At the same time, intelligent technology runs through the entire chain of production (intelligent production lines), construction (intelligent spraying robots) and operation and maintenance (Internet of Things leakage monitoring), effectively improving quality, efficiency and reducing costs.
In terms of market structure, the industry concentration ratio (CR5) continues to increase, and resources are further concentrated in leading companies with technology, brand and channel advantages, indicating that the situation of “the strong will always be strong” will be strengthened, which will help optimize the competitive environment and drive the industry towards high-quality and sustainable development.
