Polyurethane Dispersion Market Analysis

Global Polyurethane Dispersion Market Overview

Polyurethane Dispersion Market Size was valued at USD 2.5 Billion in 2023. The Polyurethane Dispersion industry is projected to grow from USD 2.7 Billion in 2024 to USD 4.7 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.45% during the forecast period (2024 - 2032). Growing demand in the furniture and interior design industries, as well as high demand in the leather and textile industries. are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Polyurethane Dispersion Market Trends

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  The shifting raw material prices impede the market growth

  
  

Rapid urbanization and an increase in the use of better polymeric materials in various end-user sectors have fueled the expansion of the polyurethane dispersion market. One of the main reasons for the rise in demand for polyurethane dispersions is their wide range of uses in the automotive industry. It is utilized in the manufacture of various car parts like adhesives, sealants, and coatings. The paint and coatings business is another key application for polyurethane dispersions. Because of their excellent durability and resistance to weathering, these materials are gaining favor in important end-user industries such as building. Polyurethane dispersions are environmentally safe and are chosen by major end-user industries over conventional dispersions that contain various volatile organic compounds used. Polyurethane, on the other hand, is utilized in the manufacture of furniture, leather, and textile products.

Moreover, due to growing demand from the interior design and furniture industries, the developing automotive industry, and growing consumer demand for leather goods, the market for polyurethane dispersions is growing significantly. The demand for leather is mostly driven by the fashion and footwear industries, in addition to its lucrative application in luggage. Demand for leather items has increased as a result of rising purchasing power and current fashion trends. PVC & concrete floor tops, textile coatings, and polyurethane dispersion, often known as PUD, are just a few of the amazing uses for this material. Excellent tensile strength, high elasticity, extreme temperature durability, and high abrasion resistance are only a few of its remarkable qualities. These factors will boost demand for polyurethane in the near future.

Additionally, the national part of the research also lists specific market-impacting variables and domestic market regulation changes that have an affect on the market's present and future tendencies. Data points including technical trends, porter's five forces analysis, case studies, and upstream and downstream value chain analyses are just a few of the indicators utilized to anticipate the market environment for certain nations. When giving prediction analysis of the country data, it also takes into account the presence and accessibility of international brands as well as the difficulties they encounter due to strong or weak competition from local and domestic brands, the influence of domestic tariffs, and trade routes.

In 2023, Covestro will increasingly rely on alternative raw resources, including biomass. For example, Impranil® CQ DLU, a novel aliphatic polyester carbonate polyether polyurethane (PU) dispersion for textile coating, contains approximately 34% plant-derived carbon. Impranil CQ DLU adds to the existing spectrum of partially bio-based dispersions for textile coating with a product whose solely petroleum-based equivalent, Impranil DLU, is extremely popular among customers.

Polyurethane Dispersion Market Segment Insights:

Polyurethane dispersion Type Insights

The polyurethane dispersion market segmentation, based on type, the market is divided into two categories: water-based and solvent-based polyurethane dispersions. Water-based polyurethane dispersions are expected to be the largest and fastest-growing market during the next five years. Furthermore, water-based polyurethane dispersions are adaptable and eco-friendly coating materials that can be used in a wide range of film hardness and solid content. They have strong blocking resistance, weather resistance, long-term flexibility, UV resistance, and high abrasion resistance while containing no free isocyanate residuals

Figure 2:  Polyurethane Dispersion Market, by Type, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Polyurethane dispersion Application Insights

The polyurethane dispersion market segmentation, based on the application the market is divided into four sections: coatings, adhesives & sealants, synthetic leather manufacture, fiberglass sizing, and others. During the projection period, synthetic leather production is expected to be the fastest-growing application in polyurethane dispersion market revenue. This expansion can be attributed to large industrial producers using synthetic leather in footwear, purses, garments, automobile, interiors, and other sectors. Furthermore, PUD synthetic leather is low in volatile organic compounds and eco-friendly. The use of high-solid polyurethane dispersions allows it to produce synthetic leather without the need of solvents. As a result, the growing manufacture of synthetic leather necessitates a large amount of polyurethane dispersions, bolstering the PUDs market for this application.

Polyurethane dispersion Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America dominates the polyurethane dispersion market as a result of many government regulations, low labor costs, and ease of doing business, which has supported the rise of the leather, automotive, and other textile industries in this region.

Further, the major countries studied in the market report are The U.S, UK, Canada, Germany, India France, Italy, Spain, China, Japan, Australia, South Korea, and Brazil.

Figure 3:  POLYURETHANE DISPERSION MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Polyurethane Dispersion Market accounts for the second-largest market share due to the automotive industry's increasing demand. Further, the Germany Polyurethane Dispersion Market held the largest market share, and the UK Polyurethane Dispersion Market was the fastest-growing market in the European region

The Asia-Pacific polyurethane dispersion market is expected to grow at the fastest CAGR from 2022 to 2030. due to an increase in demand from different industries, including construction, automotive, adhesives & sealants, leather & textiles, and paint & coatings in Asian nations. For the production of synthetic leather and footwear, polyurethane dispersion is employed as a raw material. As a result, it is predicted that the market would grow due to the growing footwear sector. Moreover, China polyurethane dispersion market held the largest market share, and the India polyurethane dispersion market was the fastest-growing market in the Asia-Pacific region

Polyurethane dispersion  Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to broaden their product offerings, which will spur further expansion of the polyurethane dispersion market. Market participants are also undertaking a variety of strategic measures to expand their footprint, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To grow and thrive in a market that is getting more competitive and growing, competitors in the polyurethane dispersion industry must offer products that are affordable.

Manufacturing locally to cut operational costs is one of the main business tactics used by manufacturers in the polyurethane dispersion industry to benefit customers and expand the market sector. The polyurethane dispersion industry has recently given medicine some of the most important advantages.

Lanxess AG is a German specialty chemicals company with headquarters in Cologne, Germany. It was established in 2004 as a result of the spin-off of Bayer AG's chemicals division and some of its polymers business. Lanxess AG shares are a component of the MDAX midcap index and were listed in the German DAX from September 24, 2012, until September 21, 2015. Both the FTSE4Good Index and the Dow Jones Sustainability Index list the company. In February 2021, Lanxess inked a contract to purchase the entire stock of Emerald Kalma Chemical. Lanxess anticipates an additional EBITDA contribution from this acquisition of about USD 30 million per year. Lanxess inked a contract in February 2021 to purchase the entire stock of Emerald Kalma Chemical. Lanxess anticipates an additional EBITDA contribution from this acquisition of about USD 30 million per year.

Perstorp AB is a specialty chemicals company that specializes in poly alcohols, which are used to make resins for the coatings industry. In 2001, Sydsvenska Kemi AB purchased Perstorp. Its operations were combined with those of Neste Oxo, and the entire organization underwent a rebranding to Perstorp in 2002. There are five divisions that the business runs: Perstorp Performance Chemicals, Perstorp Coating Intermediates, Perstorp Oxo Intermediates, Perstorp Engineering Materials, and Perstorp Formox. In November 2019, Perstorp added two new grades to its Hymer line: n180, which has a shorter EO chain than n90, and n180, which has a longer EO chain. The new products are better for the environment and human health, and they open up possibilities for new applications. The product can be used to enhance the leather's surface texture.

In 2023, The LYCRA Company, a global pioneer in producing innovative and sustainable fiber and technology solutions for the garment and personal care industries, announced an intellectual property enforcement strategy in support of its LYCRA® FitSense™ technology. LYCRA® FitSense™ Technology is an aqueous dispersion of the LYCRA® brand polymer that can be printed onto fabrics and clothing. It provides a targeted power boost, resulting in shaping and compression benefits. It has been successfully adopted by both domestic Chinese firms and major foreign retailers. This printable version of the LYCRA® trademark technology is underpinned by a global patent portfolio relating to print technologies that modify clothes for shaping purposes by altering fabric stress-strain qualities. LYCRA® FitSense™ technology has trademark protection.

Key Companies in the Polyurethane Dispersion Market include

• Lamberti S.p.A. (Italy)


• Alberdingk Boley (Germany)


• C. L. HAUTHAWAY & SONS CORP (U.S.)


• Covestro AG (Germany)


• DSM (Netherlands)


• Wanhua Chemical Group (China)


• Lanxess (Germany)


• Stahl Holding (Netherlands)


• Perstorp (Netherlands)


• Chase Corp (U.S.)


• BASF SE (Germany)


• SABIC (Saudi Arabia)


• 3M (U.S.)


• Asahi Kasei Chemicals Corporation (Japan)


• Solvay (Belgium)


• Sumitomo Chemical Co., Ltd (Japan)


• LyondellBasell Industries Holdings BV (Netherlands)


• Momentive (U.S.)


• Mitsubishi Chemical Corporation (Japan)


• Polyplastics Co. Ltd. (Japan)


•  Dow (U.S.)

Polyurethane dispersion  Industry Developments

In February 2021, Covestro announced plans for a new polyurethane dispersion production facility in China to meet the region's growing need for adhesives and coatings that are environmentally friendly. The business has set a 2024 completion date for this project.

In January 2020, Spain will get investment from BASF's polyurethane dispersion division. This investment resulted in a 30% increase in the production capacity of polyurethane dispersions based on water.

In November 2018, in order to increase its market value in the European region and compete favorably in the polymer dispersion industry, the manufacturing company Covestro AG developed a new production facility in Germany. By giving customers high-quality items, the business was able to improve customer relations and carve out a niche for itself in the market.

In 2024 BASF released a new polyurethane dispersion with enhanced durability and application properties for coatings and adhesives.

In 2023 Covestro introduced innovative polyurethane dispersion products with improved performance and environmental benefits.

Polyurethane Dispersion Market Segmentation:

Polyurethane dispersion Type Outlook

• Water Based


• Solvent Based

Polyurethane dispersion Application Outlook

• Coatings


• Adhesives & Sealants


• Leather Finishing


• Paper & Textile


• Fiberglass Sizing


• Others

Polyurethane dispersion Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America