Latin America Construction Market: Adoption of Low VOC and ESG Inputs

Introduction

Sustainable construction inputs are gaining structured traction in Latin America as global developers, institutional investors, and corporate tenants impose more stringent environmental standards to building projects. Although widespread market adoption is still at an early stage, low VOC and compliant materials are becoming the norm within premium and internationally funded developments.

Commercial real estate is among the primary channels of adoption. Global asset managers are progressively bringing Latin American assets in line with their global ESG policies. For example, in September 2024, Brookfield Properties rolled out low VOC material requirements during multiple office refurbishments in So Paulo, which had an impact on supplier selection and material specifications.

Green building certifications like LEED and EDGE have a great impact on material choice. These standards give credit to products with low emissions that lead to better indoor air quality and occupant health. Developers who seek certification usually have suppliers provide emissions documentation and run compliance testing.

Residential use is still mainly at the luxury segment where sustainability is used as a product differentiator. In Mexico City and Santiago, developers are increasingly selling low VOC interiors as a premium feature rather than a mandate. Suppliers are reacting by making products from scratch and broadening their range. In the middle of 2024, Sika Latin America introduced more low emission adhesives and flooring systems for hospitality and commercial interiors.

For the recent trends in the market, refer to the Latin America Construction Chemicals Market report and gain valuable insights.

Major Drivers, Trends and Challenges

Corporate ESG mandates are among the strongest growth drivers. Multinational tenants and investors increasingly require documented compliance with environmental standards that are shaping their procurement decisions. Certification led demand remains a major factor in influencing material choices, especially in office, hospitality, and institutional sectors. Suppliers who are able to provide clear emissions data will have an edge over their competitors.

One of the major trends is supplier consolidation influenced by sustainability goals. Developers are turning to well-established brands that not only lower the risk of compliance but also make the reporting process easier.

Among the challenges are higher material costs and irregular enforcement of regulations. In markets where price sensitivity is high, the use of low VOC products is still considered a choice rather than an obligation. On the other hand, the use of sustainable construction materials is anticipated to grow gradually, as procurement based on ESG principles becomes more ingrained in the commercial construction industry in Latin America.

Table of Contents

1. Introduction
2. Definition and Scope
3. Sustainability Driven Demand Landscape
4. Green Certification Influence
5. Corporate Procurement Practices
6. Cost and Adoption Constraints
7. Outlook and Strategic Opportunities

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