MarketsandMarkets: PU foam market worth USD 54.3 billion by 2025

According to the new report the “Polyurethane Foam Market by Type (Rigid foam, Flexible Foam, Spray Foam), End-use Industry (Building & Construction, Bedding & Furniture, Automotive, Electronics, Footwear, Packaging, Others), and Region – Global Forecast To 2025” from MarketsandMarkets Research Private Ltd., the PU foams market is projected to grow from USD 37.8 billion in 2020 to USD 54.3 billion by 2025, at a CAGR of 7.5 % from 2020 to 2025.

Major reasons for the growth of the PU foams market include growing end-use industries such as bedding and furniture, electronics, automotive, and building and construction, in emerging economies like India, Thailand, and others. Other driving factors are the increased use of PU foams in building insulations for energy conservation and the versatility and unique physical properties of polyurethane foams, said MarketsandMarkets. The pandemic is estimated to have huge impact on various factors of the value chain of PU foams, which is expected to reflect during the forecast period, especially in the year 2020. The various impacts of Covid-19 are as follows:

• Impact on raw materials: The imposition of Covid-19 lockdowns around the world led to a significant drop in demand for MDI from March to June 2020. The key buyers in Asia Pacific either cancelled their advance orders or delayed their purchases. In the European region weak demand for PU foams from the automotive sector was a key factor for the declining demand for MDI.

The outbreak and the spread of the Covid-19 pandemic have led to a shortage of TDI in key regions around the world. Most polyurethane companies had shut their operations, and many countries had sealed their ports, thereby resulting in no product movement. This has led to the cancellation of several orders for TDI.

• Impact on PU foam manufacturers: The impact of the Covid-19 outbreak has resulted in most PU foam production facilities in Europe either closing or operating at reduced capacity.

• Impact on end-use industries: The impact of Covid-19 on the construction industry is estimated to vary in different regions around the world. In Europe, the construction sector is expected to have shrunk by 60 – 70 % in 2020. However, in Asia Pacific, the economy of China is improving as the construction and automotive sectors in most parts of the country have resumed normal activities.

The other two major end-use industries impacted by the Covid-19 pandemic were automotive and bedding & furniture. Until May 2020, almost all automotive plants in Europe were closed owing to the spread of Covid-19. However, all automotive production facilities have reopened in China. PU foam manufacturing plants that serve the mattresses and furniture industries witnessed a decline of 30 – 90 % in their production in April 2020, with the retail industry closed in most of Europe.

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