Global Demand Surges While Production Declines: SPF & OCF Markets Regional Trends and Growth Opportunities
Summary:
Global SPF production declined by 2.1% in 2025, while demand increased by 1.6%. OCF production grew by 1.4%, driven by Eastern Europe.
Western Europe's SPF production and consumption declined by 1.4% and 0.3%, respectively. Central and Eastern Europe recorded growth, supported by construction activity and infrastructure investment. EPBD and building renovation programmes will support future demand.
Middle Easterns SPF and OCF markets expanded, driven by strong construction activity in Saudi Arabia and the UAE. Net-zero projects and energy retrofits are key growth drivers.
Asia-Pacific's SPF production declined by 1.5%, while OCF production and consumption fell by 2.6% and 1.4%, respectively. China's real estate slowdown affected regional performance, while Southeast Asia offers import-led growth opportunities.
North American SPF production declined by 3%, despite a 2.6% increase in consumption. Retrofit projects, commercial roofing, weatherisation and energy-efficiency regulations supported demand. The US accounted for over 93% of regional OCF production.
Spray polyurethane foam (SPF) and one-component foam (OCF) are commonly used in insulation, air sealing, and building. SPF thermally insulates roofs, walls, and other building components, whereas OCF fills gaps, cracks, and spaces around windows and doors. Construction activities, energy efficiency standards, rehabilitation projects, and product innovation all help to drive demand for these commodities. However, regional performance varies depending on economic conditions, production capacity, and end-market demand.
According to IAL, global SPF output dropped by 2.1% in 2025, following a 2.2% increase in 2024. Despite lower output, demand rose by 1.6%. Global OCF production increased by 1.4%, driven by Eastern Europe, which accounted for more than 34% of global output. Despite contractions in some major markets, OCF demand remained relatively stable, highlighting differences in production and consumption patterns.
Global SPF and OCF Production Growth (CAGR), 2025-2030
Source: IAL Consultant
Global SPF and OCF Consumption Growth (CAGR), 2025-2030
Source: IAL Consultant
EMEA
EMEA SPF and OCF Production Growth (CAGR), 2025-2030
Source: IAL Consultants
Europe represents a significant market for SPF and OCF owing to strict decarbonisation targets, stringent energy efficiency standards, and large-scale building rehabilitation requirements. However, Western Europe faced challenging market conditions in 2025, with SPF output falling by 1.4% and consumption falling by 0.3%, reflecting low residential construction activity and increased economic volatility. In contrast, Central and Eastern Europe witnessed an increase in both SPF production and demand as a result of increased industry activity and infrastructural investment. The revised Energy Performance of Buildings Directive (EPBD) and Europe's large stock of inefficient buildings are anticipated to promote long-term insulation demand.
The OCF market has shown better resilience, with Western European output increasing by 1.6% and Central and Eastern Europe growing by approximately 3.0%, strengthening the region's position as a key manufacturing base. Meanwhile, the Middle East experienced growth in both the SPF and OCF markets, driven by robust construction activity in Saudi Arabia and the UAE. Energy retrofit programmes, net-zero construction projects, and the use of sustainable, high-performance insulation technologies are all expected to drive future growth.
Asia-Pacific
APAC SPF and OCF Production Growth (CAGR), 2025-2030
Source: IAL Consultants
In 2025, Asia-Pacific's SPF and OCF markets faced challenges, owing mostly to weakness in China, the region's largest producer and consumer. According to IAL, regional SPF production fell by 1.5%, while OCF production and consumption decreased by 2.6% and 1.4%, respectively. The decline was primarily caused by weaker residential construction and persistent challenges in China's real estate market, which resulted in lower OCF output and demand. Despite these challenges, long-term growth prospects remain promising, thanks to improved energy-efficiency regulations, higher building standards, and increased awareness of innovative insulation technologies.
Southeast Asian markets offer opportunities for international suppliers, as several countries rely heavily on imports and are enforcing stricter environmental and construction regulations. Additional growth opportunities are emerging in industrial applications such as LNG infrastructure, transportation, HVAC systems, refrigeration, and electric vehicle production, where foam technologies are increasingly used for insulation, sealing, and performance enhancement.
Americas
Americas SPF and OCF Production Growth (CAGR), 2025-2030
Source: IAL Consultants
The Americas region continues to be the largest and most developed market for SPF, thanks to tight energy-efficiency standards, building code restrictions, and increasing home renovation activity. Despite rising mortgage rates and construction costs affecting new housing starts in 2025, SPF demand remained strong, driven by retrofit, weatherization, and commercial roofing projects in the United States and Canada.
Open-cell SPF experienced particularly rapid expansion in southern US states like Texas and Florida, while Canada benefited from growing use of net-zero building methods and stricter insulation regulations. According to IAL, North American SPF output declined 3% in 2025, while consumption increased by 2.6%, indicating strong underlying demand. Meanwhile, OCF production has recovered throughout the region, with the United States accounting for over 93% of North American output. Energy-efficient retrofits, unvented attic applications, commercial reroofing, and the increasing substitution of traditional insulation materials such as fibreglass are all expected to drive future growth.
Future Outlook
While economic difficulties and construction sector slowdowns impacted SPF and OCF demand in certain regions in 2025, the industry's long-term fundamentals remain strong. The increased emphasis on energy-efficient buildings, stricter environmental regulations, and large-scale rehabilitation programmes all provide prospects for market expansion. Low-GWP blowing agents, sustainable foam compositions, and new industrial applications are expected to boost growth potential. As governments and industries continue to reduce carbon emissions and enhance building performance, SPF and OCF are poised to play a significant role in the next generation of construction and insulation solutions.
Author: Noor E. Shama
Source: IAL Consultants
Global SPF & OCF data with the base year 2025 is out. To learn more about the report, please follow the link:
For more information, please contact ial@brggroup.com.
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