Summary
The PU CASE (Coatings, Adhesives, Sealants and Elastomers) categories, although often overshadowed by the larger foam segments, represent a critical and versatile application area for polyurethane chemistry. However, these are important applications for polyurethanes and the products find use in a wide variety of industries, from cars to furniture, from footwear to wind turbines, from packaging to textiles. The adaptability and performance of PU CASE products highlight their importance in delivering solutions that meet specific functional and aesthetic needs. From enhancing durability and flexibility to providing superior adhesion and sealing properties, the PU CASE segment is a cornerstone of innovation and utility in modern manufacturing and design.
In this discussion, we will delve into the various types of PU CASE products, explore their applications, and identify key growth areas driving their demand.
In 2023, global production of polyurethane CASE products reached 10.9 million tonnes, with Asia leading at 71% of total output. This dominance stems from the region's robust PU elastomer industry, which accounts for over half of global production. Elastomers are the largest segment within the CASE market, driven by demand in industrial applications such as automotive, construction and consumer goods.
The CASE category saw growth in 2023 after a decline in 2022, driven by industries such as construction and automotive. The global surge in infrastructure projects, especially in the Asia-Pacific region, has significantly driven the demand for high-performance materials, as countries invest heavily in modernisation and urbanisation to support growing populations and economies. PU-based products are preferred for their durability, chemical resistance and versatility. The growing automotive production in China and India has led to an increased demand for lightweight, energy-efficient materials such as polyurethane in adhesives and elastomers, supporting the industry's focus on fuel efficiency and reduced environmental impact. Many manufacturers are shifting from petroleum-based to bio-based PU to meet environmental goals and regulatory demands, particularly in Europe.
However, housing construction in North America, particularly in the US and Canada, has slowed because of high inflation and material costs, causing delays and cutbacks in many projects. In Europe, the construction sector faced difficulties due to geopolitical tensions, like the Russia-Ukraine conflict, which worsened energy shortages and inflation. Despite this, demand for the PU CASE category stayed steady. While US construction is supported by federal investments, Europe is focusing more on green building practices and energy-efficient projects.
In 2023, the production of PU elastomers rose by over 3%, while PU adhesives and sealants experienced consistent growth. However, PU coatings saw a decline of more than 2%, largely due to economic uncertainties and reduced demand from major sectors like construction and manufacturing. The picture for 2024 is rather stagnant.
Growth is expected to return for all categories in 2025, with a recovery in elastomers (+3.3%) and coatings (+2.4%), and a continued positive trajectory in adhesives and sealants (+2.5%).
Coatings
PU coatings are primarily used in the wood, construction and automotive sectors, with automotive leading demand. In 2023, global vehicle production surged 10.3%, driving growth in auto OEM and commercial vehicle coatings. APAC dominates the PU coatings market, accounting for over half of global production, with China contributing 74% of the market share.
Adhesives
Polyurethane adhesives, widely used in construction and flexible packaging, experienced robust growth in automotive and flexible packaging applications in 2023. However, the footwear sector saw a decline, with global production down 6% from 2022. Flexible packaging adhesives led the market, accounting for more than 35% of share due to their use in food and pharma packaging and laminating. The Asia-Pacific region is the largest market, holding over 60% of the share, driven by rapid urbanisation and industrial growth in China and India.
Sealants
In 2023, the PU sealants market reflected a tale of two sectors: auto glazing surged by 6%, fuelled by rising vehicle production and the industry's pivot to lightweight materials to enhance fuel efficiency and meet sustainability goals. Meanwhile, the construction segment saw a decline of more than 3%, hindered by macroeconomic headwinds and geopolitical disruptions, notably the Russia-Ukraine war, which stalled numerous projects. These contrasting trajectories underscore the market's susceptibility to both transformative innovation and external instability, shaping its demand landscape.
Elastomers
Polyurethane elastomers stand out as versatile materials, integral to a wide range of industries. Their most significant applications are in synthetic leather and fibres, particularly spandex, with Asia leading global production. In 2023, fibre (spandex) production saw a notable growth of approximately 8.0%, driven by the rising demand for activewear and technical textiles. Meanwhile, synthetic leather increased by about 5.3%, propelled by advancements in sustainability and the growing adoption of eco-friendly alternatives in fashion and upholstery.
In contrast, the production of footwear elastomers recorded a decline, reflecting broader challenges in the global footwear industry, which experienced a 6% drop in production and a 9% reduction in exports. This decline underscores the vulnerability of consumer-driven sectors to economic fluctuations.
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