India’s Polyurethane Market Gears Up for Sustainable Expansion
- ial
- 1 day ago
- 2 min read
India’s polyurethane (PU) sector accelerated to a 9.5% growth rate in 2024, driven by robust end-use industries and supportive policy tailwinds. From adhesives to foams, manufacturers are scaling up capacity, innovating with bio-based chemistries and low-VOC systems, and positioning India as a leader in Asia’s PU landscape.
Segment Mix & 2024 Dynamics
Flexible Foam (50%) remains the backbone of bedding, furniture and automotive seating. Production climbed 10% in 2024 as retail and hospitality demand surged.
Rigid Foam (22%)—notably sandwich panels for cold-chain and prefab buildings—grew 11%, aided by new plants and government cold-storage schemes.
Elastomers (21%), largely for footwear soles, rose 8% on the back of export orders and premium-shoe trends.
Adhesives & Sealants (4%), Coatings (2%) and Binders (1%) are smaller but fast-growing niches, each advancing between 8–9% last year.
The production of PU adhesives and sealants in India has increased significantly due to the country's infrastructure and manufacturing boom, with a nearly 10% increase last year. This expansion is due to projects in rail, road, and renewable energy, as well as the completion of Phase III of Henkel's Kurkumbh plant. PU adhesives now account for the majority of bonding solutions in the automotive segment, complementing a vehicle market that will produce over 30 million units by 2024.
Thermoplastic polyurethane (TPU) elastomer is still mostly imported despite its growth, although new domestic investments in compounding and filmmaking have been made possible by recent anti-dumping duties on Chinese TPU.
Polyurethane coatings, which are known for their durability, chemical resistance, and aesthetics, saw double-digit growth in 2024. Flexible PU foam, which accounts for roughly half of total PU output, also experienced growth, reaching 10% last year.
Rigid PU foams, particularly sandwich panels for cold storage and prefabricated structures, experienced a healthy 10% increase as domestic cold-chain infrastructure expanded.
Short-Term Growth Trends
Most segments sustained—or even accelerated—their 2023 gains. Flexible foam, coatings and rigid foam continued double-digit expansion, while adhesives and binders maintained high single-digit growth. Elastomers saw an uptick in 2024 after a modest 4% rise in 2023, reflecting renewed investment in footwear and industrial seals.
Five-Year Outlook
Over 2021–2024, adhesives & sealants and flexible foam logged the strongest CAGRs (≈10–13%), with rigid foam close behind. Despite slower base growth, elastomers and coatings are expected to rebound, reaching 8–9% annual growth by 2025. This steady trajectory underscores India’s ongoing infrastructure build-out, housing schemes (PMAY), and expanding automotive, packaging and footwear exports.
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