New market study from IAL Consultants: Global overview of the SPF and OCF markets
IAL Consultants has announced the publication of the seventh edition of its report entitled “Global Overview of the Spray Polyurethane Foam (SPF) & One Component Foam (OCF) Markets”. This new study updates and expands the information included in the previous report, published in 2018. Data within this study have been generated through a lengthy programme of primary interviews conducted throughout the industry during the fourth quarter of 2020. This report contains data on the production and demand for both SPF (in tonnes) and OCF (in tonnes and number of cans equivalent) in 2020 and forecasts to 2025, split by major geographic region and country. In addition, the SPF closed-cell and open-cell production volume split, with related raw material consumption for country markets in each region, is provided for 2020.
Global production of spray PU foam
According to the study, global SPF production was estimated at just under 669,000 t in 2020, with the effects of the Covid-19 pandemic resulting in production declining by 5.7 % from 2019. The USA and China continue to be the largest SPF producers in the world, representing more than 60 % of total global output. There is, however, a stark contrast between the performance of the SPF market in the two countries, with strong growth in the USA, driven by the ongoing demand for efficient insulation, and stagnation in China, caused by a slowdown of the economy and construction sector, as well as stricter fire regulations. The US SPF production is expected to continue to grow well in the forecast period, although at a slower rate than the double-digit growth previously registered, while the Chinese market is anticipated to continue to contract.
Western Europe continues to possess the largest SPF production in EMEA; however, growth has been modest in recent years compared to other parts of the region due to saturation. Central Europe and the Middle East have been faring well, owing to the performances of Poland, Saudi Arabia, and the UAE. East European SPF production has suffered in recent times because of the weak development in Russia and Turkey. Africa has shown steady growth, with most production coming from North Africa.
Global SPF demand decreased by 5.5 % in 2020 because of the Covid-19 pandemic. As with SPF production, the USA have the largest demand, followed by China. China’s demand has been declining by 4 – 5 % annually in recent years, and this is anticipated to persist over the forecast period but at a more modest rate.
Global one component foam production
Due to its ease of use and versatility of application, aerosol spray one component foam (OCF) is finding more and more applications in the professional and DIY construction markets across many parts of the world. Global OCF production was 714 million cans in 2020, decreasing by 9.9 % compared to 2019, owing to the fallout of Covid-19.
China is the largest manufacturer in the world, accounting for just under half the world’s production. China’s OCF market has suffered in recent years, owing to the real estate regulatory policies of the government, fewer new building projects and intense industry competition. It is still the main player in the OCF industry, but the high, historical growth rates are unlikely to be matched in the future, even after the effects of the pandemic are resolved, as China settles into its “new normal” economic phase.
Eastern Europe is the second largest OCF producing region, with the total output exceeding 119 million cans in 2020. Growth has been modest in recent years due to the market being mature and saturated. Central Europe is close behind Eastern Europe, with Poland being the largest producer by far.
Global OCF demand declined by 9.4 % in 2020 as a result of the pandemic and the contraction of the Chinese market. China possesses the highest demand worldwide, followed by Russia and then the USA. OCF cans can be easily exported and distributed around the world thanks to their small size and light weight, which help to keep the transport costs minimal. Furthermore, OCF has an outstanding price-quality relationship, meaning that alternative products are overlooked, and thus the demand is expected to continue to develop positively.
Covid-19 caused many countries to implement strict lockdowns, causing construction projects to be put on hold and supply chains to break down, which, in turn, caused the SPF and OCF industries to suffer. However, many of these countries are expected to recover somewhat in 2021. Countries that endured more lenient lockdowns typically struggled less in 2020; however, they are likely to experience a delayed detrimental effect in 2021. In general, both SPF and OCF have fared better than other PU products, thanks to the residential construction and renovation sectors holding strong.
“Global Overview of the Spray Polyurethane Foam (SPF) & One Component Foam (OCF) Markets” is now available, priced at EUR 4,250. All data in this report, plus additional historical trends and forecasts, are also available in IAL’s online database, free of charge, for 365 days when the complete report is purchased.