Polyurethane foam market is anticipated to grow at a CAGR of 5.5% during the forecast period. The growing adoption of polyurethane in the end-user industries such as bedding and furniture, electronics, automotive, and building and construction, in emerging economies such as India, China, and others is a key factor driving the growth of the global polyurethane foam market. In June 2022, Mitsui Chemicals and Microwave Chemical launched a new initiative aimed at commercializing the chemical recycling of flexible polyurethane foam through microwave technology. The project involves a direct synthesis of polyurethane raw materials by decomposing offcuts of the foam used to manufacture mattresses and similar items. 

However, the chemical recycling of flexible polyurethane foam and other polyurethane products has not yet been achieved at a commercial level in Japan. Therefore, the development and commercialization of such technology is a pressing issue from the perspective of contributing to a circular economy. The success of this project may impart a positive impact on the growth of the polyurethane foam market. High raw material costs can lead to pricing pressures on polyurethane foam manufacturers. However, the increasing production of bio-based polyols is anticipated to offer a lucrative opportunity for the growth of the global polyurethane foam market. 

Impact of COVID-19 Pandemic on Global Polyurethane Foam Market

COVID-19 pandemic has negatively impacted the polyurethane market as the lockdown stopped many operations, and there is a certain pause to manufacturing activities, causing interference in the production of raw materials across the globe due to the COVID- 19 pandemic. Thus, it negatively impacted the market growth. The cancellation or delay of purchase deals lead to a decrease in demand for polyurethane foam thus declining the market demand. In the European region, weak demand for polyurethane foams from the automotive sector is a key factor in the declining demand for the polyurethane foam market in Europe.

Segmental Outlook 

The global polyurethane foam market is segmented by type and end-user industry. The market segmentation based on the type includes rigid foam, flexible foam, and spray foam. Based on the end-user industry, the market is segmented into building & construction, bedding & furniture, automotive, electronics, footwear, and packaging.

Building & Construction Segment Held Considerable Share in the Global Polyurethane Foam Market

Based on the end-user industry, the market is segmented into building & construction, bedding & furniture, automotive, electronics, footwear, and packaging. The building & construction segment held a prominent market share in the global polyurethane foam market, owing to the rising demand for energy-efficient buildings. It is becoming more important to provide a building solution that can provide long-term stability as well as energy savings. Stiff foam has many unique insulating properties that make it suitable for both residential and commercial usage. The rigid and spray polyurethane foam sector plays a major role in the building and construction industry. It has unique insulating properties that make it suitable for both new construction and renovation of existing structures. Thus, the rising application of polyurethane foams in the building and construction industry is driving this market segment. For instance, in September 2019, Huntsman Corp. opened a new polyurethane system facility in Dubai. The purpose of building the facility is to boost Huntsman's downstream capabilities in the Middle East and North Africa by increasing its capacity to create polyurethane systems and polyester polyols for customers.

Regional Outlook

The global polyurethane foam market is further segmented based on geography including North America (the US and Canada), Europe (UK, Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East &Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. 

Global Polyurethane Foam Market Growth, by Region (2022-2028)

Asia-Pacific Holds Considerable Share in Polyurethane Foam Market 

Asia-Pacific held a considerable share in the global polyurethane foam market. The growing production of automobiles and increasing government emphasis on construction activities across the region is driving the market growth. With the growing construction activities and rapid urbanization in countries such as China and India, the usage of polyurethane foam is increasing in the region. According to the International Trade Association, Under China’s 14th Five-Year Plan, the Ministry of Housing and Urban-Rural Development (MOHURD) issued a notice for the Implementation of Urban Renewal Actions in 2020. While China’s urbanization rate reached 60.6% in 2019, this urban renewal policy aims to develop greener and more efficient cities as the government seeks to improve the quality of China’s urban living conditions.

Market Players Outlook

The major companies serving the global polyurethane foam market include Covestro AG, BASF SE, Wanhua Chemical Group Co., Ltd., Dow Inc., and Huntsman Corp. The companies are focusing on product launches, mergers and acquisitions, and collaborations, to expand individual market share. For instance, in December 2021, Coverstro AG planned to increase production capacity by establishing new plants for thermoplastic polyurethanes in the Shanghai site. The plant is due to be completed in 2023.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global polyurethane foam market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.