IAL Consultants is pleased to announce the recent publication of the 2024 edition of its report on the markets for Polyurethane Chemicals and Products in the Americas.
This new study updates and expands upon the information included in our previous study published in 2023. The information contained within this report is based upon an extensive programme of interviews throughout the industry. The report contains both PU product production and raw material consumption figures, with 2023 as the base year and market forecasts provided to 2028.
Industry Overview
Total production of polyurethane products in the Americas was approximately 5.09 million tonnes in 2023. This represents a decrease of 3.7% compared to the production seen in 2022.
IAL is forecasting a growth rate of 2.7% for 2024; the situation this year is being hindered by a downturn in construction activity in the US and Canada, and instability in some of the South American economies. By 2028, total production of polyurethane is forecast to reach around 6.02 million tonnes.
North America accounts for the largest share of polyurethane production due to the strength of the US industry. South America accounts for just 16% of regional output, and indeed its PU sector is still at a relatively nascent stage in many applications. Production declined in North America (US and Canada) in 2023, while the picture was much better in Mexico. South America saw overall growth of 1.1% in production.
The US is by far the largest polyurethane market in the Americas, with a 69% share of production, followed at some distance by Brazil and Mexico. Mexico was the best performer in 2023, with a promising growth rate of 4.5% thanks to the acceleration of its economy and it being able to capitalise on its proximity to the US market. By contrast, there was a 5.8% decline in PU output in the US, as it struggled with destocking activity after inventory build in certain sectors in 2022. It also faced a weak construction sector and lower consumer demand for goods such as furniture, mattresses and appliances amid high rates of borrowing and the end of COVID support. US production is expected to bounce back in 2024, with projected growth of 2.6%.
Rigid foam remains the largest end-use market for polyurethane in the Americas region, with a share of 35% (down from 37% in 2022 due to slower growth). It is followed by flexible foam at 30%, while production volumes for CASE products and binders are considerably lower. Only coatings and elastomers showed growth in 2023, while there were considerable production declines for rigid foam and binders.
Production of rigid foam was down a significant 8%, caused by a slowdown in construction activity and also lower spending on refrigerated appliances after the pandemic.
PU elastomers achieved growth of 1% in 2023; they are used in a wide variety of applications and hence are protected somewhat if there are downturns in certain downstream industries. Likewise, PU coatings, which enjoyed an increase of 1.2%.
Production of PU adhesives/sealants was pretty stable, with a small decline of just 0.5%. These products also find usage in a wide range of applications. For all CASE products, an uptick in automotive applications helped to lessen the negative impact of the construction downturn.
The flexible foam sector saw a drop of 1.5%. The resurgence of automotive activity prevented a steeper decline but was not sufficient to compensate for the decline in furniture and bedding foam production.
Production of PU binders fell 5% in 2023 as construction activity was subdued and OSB output decelerated.
All categories are expected to demonstrate a positive performance in 2024, with the exception of PU binders. OSB production levels are down YoY in the US and Canada and the larger production of EVs brings less requirement for foundry binders.
Among the individual end-use applications for polyurethane, the largest categories in 2023 were flexible-faced panels, bedding foam, spray foam, refrigeration foam and forest products binders.
The biggest volume gains in 2023 were in commercial vehicle seating foam, commercial vehicle coatings, NVH foam, rigid continuous panels and automotive seating foam. The largest declines in output came in the categories of flexible-faced panels and forest products binders.
Renewable raw materials have been in the market for some time but have not yet taken any notable market share from conventional materials; they can be difficult to work with due to inconsistencies in product and quality. However, the continued focus of all the major raw material companies on sustainability and their carbon footprints will likely drive further development and uptake. The application of bio-based feedstocks is a relatively simple way to achieve greater sustainability, as there is no requirement for product re-registration.
Chemical recycling of polyurethane remains at a nascent stage but is becoming the focus of attention for the large raw material manufacturers.
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The data in this eight-volume report include raw material consumption by product type, by country and by major end-use industry. The Raw Materials volume contains comprehensive supply and demand data for all the major polyurethane raw material types. The Major End-Use Markets volume contains an overview of the major markets for PU products and a summary of trends and drivers.
The report is available for the following prices:
For more details, please contact:
Mrs Cathy Galbraith
Email: cgalbraith@brggroup.com
Or visit our website: www.ialconsultants.com
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