India Polyurethane Foam Market Size
India Polyurethane Foam Market reached USD 2.8 billion in 2022 and is expected to reach USD 5.18 billion by 2031 and is expected to grow with a CAGR of 8.0% during the forecast period 2024-2031. The India polyurethane foam market trends are expected to be extremely positive on account of strong Indian economic growth in challenging global conditions. Indian GDP growth was 6.8% in 2022 against a global average of 3.4%.
The Indian economy is expected to grow 6.4% in 2024. The strong economic growth across various industries is expected to augment demand for polyurethane foam.
The growth of India’s petrochemicals industry is expected to provide new avenues for the Indian polyurethane foam market growth. The Indian petrochemicals industry was valued at USD 190 billion in 2022 and is expected to contribute nearly 10% to the incremental growth in global petrochemical demand.
Market Scope
| Metrics | Details |
| CAGR | 8.0% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (USD ) |
| Segments Covered | Type, Density, Distribution Channel, End-User and Region |
| Regions Covered | North India, West India, Central India, South India and East India |
| Fastest Growing Region | North India |
| Largest Region | West India |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increase in Infrastructure Capital Expenditure by the Indian Government
The Indian government has significantly increased infrastructure spending to propel economic growth and improve the quality of life for citizens. Infrastructure spending reached an all-time high of 1.7% of GDP in 2022. Furthermore, the government has allocated ₹10 lakh crore (USD 122 billion) for public infrastructure capital expenditure for the 2023-24 financial year.
The increased infrastructure spending is being utilized to build new expressways, bridges, ports, airports, metros, urban rapid transit systems and ropeways. Other major construction projects include public housing, new convention centers and the upgradation of government facilities. Increasing infrastructure spending is creating significant demand for polyurethane foam, which is used for various purposes such as insulation and gap filling.
Rising Consumer Spending on Furniture
As disposable incomes rise and the standard of living improves, Indian consumers are increasingly investing in comfortable and aesthetically appealing furniture for their homes and offices. According to data from the Ministry of Statistics and Program Implementation (MOSPI), consumer spending on furniture is likely to increase by 7% in fiscal year 2023-24 over the previous year.
According to data from the consultancy PwC, the organized furniture market in India was worth USD 710 million (₹50,000 crore) and is expected to grow to more than USD 2.36 billion (₹1,95,200 crore) by 2035. Polyurethane foam is a key component in furniture manufacturing, providing cushioning, support, and durability. The demand for polyurethane foam is directly correlated with the growing furniture market as consumers seek high-quality and comfortable seating options.
Volatility in Raw Material Prices
Polyurethane foam production relies on the availability and cost of raw materials such as polyols and isocyanates. Fluctuations in crude oil prices, as well as global supply and demand dynamics, have resulted in volatile raw material prices. Sudden increases in raw material prices can significantly impact production costs, squeezing profit margins.
Manufacturers may find it challenging to pass on these increased costs to customers, especially in the Indian market where price sensitivity is high. Reduced profit margins can lead to reduced investments in research and development, innovation and capacity expansion, thereby inhibiting the overall growth of the industry.
Market Segment Analysis
The India polyurethane foam market is segmented based on type, density, distribution channel, end-user and region.
A High Degree of Versatility Enables Flexible Foam to have Widespread Adoption
Flexible foam occupies a share of nearly 64.2% in the Indian market. Flexible PU foam is highly versatile and finds extensive applications in various industries such as automotive, furniture, bedding, packaging, and textiles. It is known for its excellent cushioning, comfort, and durability properties, making it a preferred choice for applications where comfort and support are essential.
The popularity of flexible polyurethane foam can be attributed to its ability to conform to different shapes, excellent resilience and its wide range of density and firmness options. It offers better comfort, support and durability compared to other foam materials. Furthermore, flexible polyurethane foam can be customized to meet specific requirements, such as flame retardancy, thermal insulation and sound absorption, making it suitable for various end-users.
Source: DataM Intelligence Analysis (2023)
Market Geographical Penetration
Strategic Location and Industrial Concentration Helps to Propel Market Growth In West India
West India accounts for a 27.5% share in the India polyurethane foam market. West India is known for its robust industrial development, with Maharashtra and Gujarat being key states in this region. The states have a diverse industrial base, including sectors such as manufacturing, chemicals, automobiles and construction. Cities like Mumbai, Pune and Ahmedabad are major manufacturing hubs in West India.
One of the major factors behind the large-share of west India in the Indian market is due to its strategic location. West India has access to major ports such as Mumbai, Kandla, and Mundra, which facilitate international trade and the import and export of raw materials and finished products. The region is therefore, a key hub of various fast-growing, export-oriented industries such as textiles, packaging and automotive.
Source: DataM Intelligence Analysis (2023)
India Polyurethane Foam Companies
The major market players include BASF SE, Evonik, Huntsman, Lanxess, Bayer India, Saint-Gobain , Premratan Concast Pvt Ltd., Cristol, Expanded Polymer Systems Pvt. Ltd. and MITSUI & CO. INDIA PVT. LTD.
COVID-19 Impact on Market
The COVID-19 pandemic has had a significant impact on the India polyurethane foam market. The pandemic led to disruptions across various end-user industries, thereby leading to a drastic deecrease in demand for polyurethane foam. However, some manufacturers took advantage to stock on raw materials at low prices, given the fall in global oil prices during the pandemic.
Various end-user industries are witnessing health recoveries and growth rates in the post-pandemic period. Particularly strong growth is witnessed in construction, bedding and furniture and automotive industries. Rising private sector investment in the post-pandemic period in response to growing consumer demand will boost Indian polyurethane foam market growth.
Ukraine-Russia War Impact
The Russia-Ukraine war presented challenges and opportunities for the Indian polyurethane foam market. Polyurethane foam production relies on raw materials such as crude oil and the war caused disruption in global energy markets, pushing up the prices for crude oil. However, the Indian government was able to reach a deal with Russia for the supply of discounted crude oil, thereby shielding the country from rise in oil prices.
The Indian government deal with Russia has allowed domestic players to lower production and input costs, increasing their competitiveness and giving a boost to Indian polyurethane foam exports. The major players in the market, especially domestic companies are expected to use this opportunity to expand production and develop new products for Indian and global markets.
Key Developments
- In December 2022, Kurl-On, an Indian manufacturer of PU foam matresses, was acquired by another Indian company, Sheela Foam, in a all-inclusive deal for ₹ 2,000 crore. (USD 242.2 million). The deal will consolidate the market share of Sheela Foam, making it the largest player in the Indian organized mattress industry.
- In October 2022, the German multinational chemical company BASF SE, undertook a groundbreaking ceremony for a new polyurethane applications lab in Mumbai, India. The new lab is expected to commence work in Q1 2024. The lab is expected to lead to the development of new applications for polyurethane foam for Indian and global markets.
- In November 2022, a two-judge bench of the Supreme Court of India passed a judgement allowing manufacturers of polyurethane foam for automotive seats to claim income tax deduction under section 80-IB of the Income Tax Act, 1961. The judgement is likely to spur investment in polyurethane foam production for the Indian automotive industry.
Why Purchase the Report?
- To visualize the India polyurethane foam market segmentation based on type, density, distribution channel, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of India polyurethane foam market level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The India Polyurethane Foam Market report would provide approximately 67 tables, 71 figures and 182 Pages.
Target Audience 2024
- End-User Companies
- Petrochemical Companies
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
