Industry News

Global Production of PUDs to Grow at 5.6% Annually for Next Five Years, Expect IAL Consultants

Published on 2015-10-14. Author : SpecialChem

IAL Consultants announced the publication of the third edition of its report on the global market for Polyurethane Dispersions (PUDs).

This new study updates and expands the information included in its previous study published in 2012. Data in this report has been scrupulously analyzed through a lengthy program of primary interviews conducted throughout the industry during the second and third quarters of 2015, backed up by in-depth secondary research. This report provides data on the global production of PUDs in 2014 and forecast for 2019, split by the three major geographic regions (EMEA, Americas and Asia-Pacific) and by major application. In addition, it also includes estimates of PUD demand (consumption) split by end-use application for 2014 and forecast demand for 2019 for each geographic region.

IAL Consultants
Fig. 1: IAL Consultants

The total global production of PUDs has been estimated at 290,600 tons in 2014, which was an overall increase of about 9.2% since 2012. It is expected to continue to grow at an average rate of 5.6% per annum over the next five years, driven by the ever-increasing environmental concerns leading to tightening legislation in the key markets for PUDs, including Western Europe, China and the US. The second most important driver of growth is the fact that PUDs demonstrate excellent performance properties, leading to heightened awareness and a preference amongst customers for using these dispersions in many applications. Nevertheless, a lack of environmental legislation in some emerging and developing economies, and higher prices of PUDs compared to alternatives such as acrylic dispersions, are still creating major hurdles to the faster development of the PUD market.

Western Europe is the largest producer of PUDs in the world, having had an annual output of PUDs of 96,000 tons in 2014; this exceeded the second largest producer North America by more than 13%. As for the fastest growing region, it is the Asian region, which is expected to grow by an average of 7.8% per annum over the reviewed period, mainly due to the high growth predicted for Chinese production. Many local Chinese PUD manufacturers are following expansion strategies and expect double-digit growth rates for their key product categories. Moreover, there is a fast-growing cluster of smaller enterprises in China, exploiting attractive opportunities in lower-end PUD applications such as wood coatings.

PUDs find their widest usage in industrial coatings, occupying a ~45% share of the total production; the largest application in this respect notably lies in the wood coatings sector, followed by automotive coatings in all three regions. Leather and textile applications also use substantial quantities of PUDs, with Asia showing the highest growth rates. The global production of PUD adhesives is forecast to increase in the short term, driven by the footwear industry.

Demand for UV curing PUDs is growing at a faster average growth rate than conventional PUDs, with most of the demand concentrated in wood flooring applications, and to a lesser extent in other wood coating types such as for furniture, and plastic coatings e.g. for PVC flooring.

About IAL Consultants

IAL Consultants is one of the global chemical industry consultancy specializing in polyurethane market reports and research, as well as other key areas such as thermal insulation, adhesives & sealants, flavors & fragrances and other specialty plastics and chemicals.

Source: IAL Consultants

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