Polyurethane Chemicals & Products in the Americas - 2025 Edition

This report provides an in-depth analysis on key product categories including raw materials, flexible foam, rigid foam, coatings, adhesives & sealants, elastomers, binders, and end-use markets. This market report and online database provides a cost-effective tool for strategic decision making, allowing clients to monitor market metrics, trends and forecasts at a country or regional level.

The new study revises and updates the analyst's research of the polyurethane industry in the Americas. It builds upon ongoing research into various sectors conducted in recent years. The information contained within this report is based upon an extensive programme of interviews throughout the industry, involving raw materials producers and suppliers, end users, systems houses and relevant trade associations and industry experts.

Most research for this report was undertaken during the first half of 2025. This report therefore contains both PU product production and raw material consumption figures for the year 2024 and forecasts to 2029.

Market Overview

• Total production of polyurethane products in the Americas was approximately 5.19 million tonnes in 2024. This represents a growth of 2.1% compared to the production in the prior year, a far better performance than that seen in 2023. Output had declined by 3.7% in 2023 compared to 2022.
• The analyst is forecasting a growth rate of just 0.8% for 2025 due to a notable softening of demand in the US and Mexico and a return to recession for Venezuela; on the other hand, the Argentinian market is expected to rebound thanks to strong government intervention, and Brazilian growth is forecast to continue. By 2029, total production of polyurethane is forecast to reach around 6.03 million tonnes.
• North America accounts for the largest share of polyurethane production due to the size and 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, and it has to import most of its raw material requirements, particularly with the closure of some TDI and polyol capacity. Output declined a little in Mexico in 2024 amid tariff uncertainties, while the US and Canada managed some growth. South America saw growth of 2.6%.
• 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. Brazil showcased the best performance in 2024, with an increase of 5.4%, and Peru and Venezuela also did well, although the latter had previous suffered years and years of decline
• There was 2.4% growth in PU output in the US, as it recovered from previous destocking activity. However, US production is expected to soften in 2025 amid destabilising headwinds.
• South America imports most of its PU raw materials, so the currency crisis and shortage of FX in some countries continued to cause problems, notably in Argentina. Indeed, the country’s polyurethane production declined by a sizeable 15%.
• Rigid foam remains the largest end-use market for polyurethane in the Americas region, with a share of 36% (up slightly from 2023). It is followed by flexible foam at 30%, while production volumes for CASE products and binders are considerably lower. Rigid foam also enjoyed the fastest growth acceleration in 2024 (+4.7%), while production of flexible foam was flat.
• PU elastomers saw growth of 1.4% in 2024; they are used in a wide variety of applications and hence are protected somewhat if there are downturns in certain downstream industries. However, the industry faced competition from low-cost imports. Likewise, PU coatings, which enjoyed an increase of 1.6%.
• Production of PU adhesives/sealants was pretty stable, with a small decline of just 0.4%. These products also find usage in a wide range of applications.
• Production of PU binders grew by 2% in 2024 as there was an increase in OSB production in the US and Canada, possibly to compensate for falling imports.
• Flexible foam and binders are anticipated to struggle in 2025. The former due to the downturn in mattress and furniture production in the US, and the latter attributed to the difficulties in the construction market. The imposition of sweeping tariffs by the US government is also causing uncertainty, with many PU producers and consumers adopting a ‘wait and see’ approach. There is also suggested to have been some stockpiling activity at the end of 2024.
• Among the individual end-use applications for polyurethane, the largest categories in 2024 were flexible-faced panels, bedding foam, spray foam, refrigeration foam and forest product 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 biomass-balanced 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 and PU processors.

Flexible Foam

• The Americas region produced a total of 1.54 million tonnes of polyurethane flexible foam in 2024, encompassing both slabstock and moulded foam. Output was completely flat compared to 2023; a hefty decline in Argentina, plus falling production in Canada, Mexico and the US, were not sufficiently offset by growth in Brazil and the smaller South American markets.
• Venezuela continued to be buoyed by a small economic recovery in the country, although its situation remains precarious and the analyst is predicting a return to decline in 2025.
• For 2025, the analyst is forecasting a decline of 1.6% for the region as a whole, with sizeable contractions in the US and Canada and also a decrease in Mexico as it battles tariffs and anti-dumping measures. Argentina is expected to return to growth as its government is successfully turning its fortunes around.
• Slabstock accounts for the larger share of production at 74%, compared to moulded foam at 26%.
• The US is by far the largest producer, with a share of over 57%, but there are also sizeable volumes manufactured in Brazil and Mexico. Most other countries are quite small in comparison. The share of the US is expected to diminish a little as other countries become more important.
• The largest product categories are conventional polyether slabstock, with a 49% share of output, followed by viscoelastic foam at 18%. There were wide variations in growth among the categories in 2024. Output of conventional polyether slabstock fell by ~2%, while the specialty slabstock categories (HR and viscoelastic) did somewhat better. The automotive segments generally saw low growth, with moulded seating at +2.6% for cars and +3.2% for commercial vehicles. The best growth overall was in carpet backing/NVH foam, which increased by nearly 4%.
• Furniture component foam (moulded) production declined 2% in 2024 amid lower demand for commercial furniture.
• North America produced a total of 1.1 million tonnes of flexible polyurethane foam in 2024, a decrease of 1% compared to the previous year.
• Slabstock accounted for 68% of production and moulded foam for the remaining 32% in 2024 - the ratio remained pretty much unchanged. In a continuation of the trend seen in 2023, production of slabstock declined somewhat (-2.2%), while output of moulded foam remained in growth (+1.5%).
• The US accounts for the lion’s share of output at 80%, followed by Mexico with 14% and Canada with 6% - this remained unchanged from 2023. All three countries saw a decline in their output, with Canada the worst performer at -5%. Mexican production fell by 1.1% and US production was down 0.7% across all foam types.
• For 2025, the analyst is forecasting a worsening scenario, with flexible foam production expected to decline by 4%, led by downturns in furniture and bedding. The transport categories are predicted to fare somewhat better.
• The largest product categories are polyether slabstock and viscoelastic foam. Polyether foam output declined by 5% in 2024, while viscoelastic foam managed 1% growth. The ‘pull forward’ of demand for mattresses and residential furniture during the pandemic is still having an impact and was exacerbated by rising imports of mattresses ahead of tariff introductions and anti-dumping measures. This was compounded by a dip in the housing market and falling housing starts in the US. HR/CMHR and polyester foams did better, while there was a decrease in the moulded furniture component foam segment.
• 2024 saw a better performance for all flexible foam categories that serve the automotive sector, including auto seating foam, carpet backing/NVH foam, commercial vehicle seating foam, integral skin foam and semi-rigid foam. The best growth was in NVH foam, as there is a greater requirement for this in electric vehicles.
• Typically, TDI is used for lower density foam grades, while MDI is suited for firmer grades.
• TDI supply is expected to remain long for some time; the uptick of mattress and furniture purchases during the pandemic is unlikely to be repeated before 2027/2028 at the earliest.
• The inclusion of Mexico in the latest wave of US anti-dumping investigations, plus higher tariffs instituted by the Trump administration, may encourage some Asian foamers to relocate to the United States.
• South America produced 448,480 tonnes of flexible polyurethane foam in 2024, representing growth of 2.5% from the previous year. Brazil is by far the largest producer, with an output of nearly 291,000 tonnes in 2024, a share of 64% of the regional total.
• There was some variation among the various countries of South America when it came to the performance of the sector in 2024. Peru, Venezuela and Brazil enjoyed the best growth rates. Output of flexible foam in Argentina declined by 15% amid serious financial issues.
• Venezuela continued its tentative recovery in 2024; however, the situation remains highly fragile, and output remains far below pre-crisis levels. The analyst is expecting it to slip back into negative growth in 2025.
• The outlook for 2025 is still difficult to predict in this volatile region. The analyst is forecasting overall growth of 4.4% for flexible foam for 2025, as Argentina is making a remarkable recovery and Brazil continues to be strong.
• Flexible slabstock accounts for ~90% of South American flexible foam production, with moulded furniture and transport foam making up the remainder. The performance of moulded foam was somewhat better than that of slabstock in 2024, a continuation of the trend seen in 2022 and 2023 and attributed to the growth of the regional car industry, particularly in Brazil.
• The largest product group overall is conventional polyether slabstock, with an 81% share of production; all other sectors remain small or negligible. Polyether slabstock saw low growth in 2024. On the other hand, the segments serving transport did considerably better.
• The best performing sectors in 2024 were integral skin foam and carpet backing/NVH foam, attributable to the uptick in car production in Brazil and trend towards electric vehicles.
• Two companies supplying raw materials for polyurethane production have announced plant closures in Argentina. Petroquímica Río Tercero is to close its TDI plant, reportedly in the light of the government starting to permit TDI imports from Asia. It follows on from reports that Dow Chemical is to stop production of polyols at its site in San Lorenzo, citing global oversupply.

Rigid Foam

• Rigid polyurethane foam is used in a range of end-use applications, including construction, transportation, appliances, tanks and pipes, to provide high quality insulation. For appliances such as refrigerators and freezers, the use of polyurethane is commonplace. Use within the construction industry is also widespread, with applications in both wall and roof insulation. Polyurethane rigid foams are also used in the marine, decorative and packaging industries for noninsulating purposes.
• The Americas region produced ~1.87 million tonnes of rigid polyurethane foam in 2024, an increase of 4.7% compared to the previous year. The US is the largest producer by some margin (with a 73% share of output), followed by Mexico and Canada. Production in the countries of South America is typically much smaller by comparison, although Brazil’s output is sizeable. With the exception of Argentina and Mexico, all countries saw growth in 2024.
• The largest product category is flexible-faced panels, due to the prevalence of this building material in the US, followed by SPF, which also holds an eminent position in the North American construction industry. Refrigeration is also an important category, in which Mexico is dominant thanks to its large domestic refrigerator and freezer industry.
• Previous destocking practices were no longer applicable, so the flexible-faced panel segment (polyiso boardstock) returned to good growth. Growth was highest in rigid continuous panels, and spray foam also continued to do well. SPF continues to be a highly favoured insulation material in the US and Canada, while many countries also began to utilise rigid panels for the rapid construction of commercial and industrial buildings, particularly data centres.
• Sectors such as discontinuous panels, OCF and slabstock continued to track GDP growth, while the appliance segment was quite flat.
• The analyst is forecasting growth of 2.4% for the rigid foam sector in 2025 as the construction markets are expected to suffer and US tariffs will likely start to bite. Boardstock and SPF are expected to achieve growth rates that are considerably lower than those considered ‘normal’.
• The North American demand for PU rigid construction foam showed good growth in 2022 before dropping back in 2023. However, growth was positive again in 2024 thanks to commercial construction activity, particularly warehousing and data centres.
• North America produced 1.72 million tonnes of rigid polyurethane foam in 2024, with the US accounting for the lion’s share at 80%. Production increased by nearly 5% in North America in 2024, by far the best performance of all PU types.
• In contrast to 2023, there was a decline in production in Mexico in 2024, while Canada and the US saw good growth.
• The analyst is forecasting a deceleration to 2.2% growth for all rigid foam products for 2025. There is significant softening of demand across all categories, although panels and slabstock are expected to hold up quite well.
• The largest segments for rigid foam are flexible-faced panels, SPF and refrigeration foam. Rigid-faced panels, pre-insulated pipes and rigid slabstock (commonly known as bunstock) are not large markets in North America, although their applications are growing. The most dynamic segment in 2024 was that of rigid-faced panels, also known as sandwich panels, thanks to their application in the construction of warehousing, data centres and cold storage facilities. Building companies continued to appreciate the benefits of using panels for rapid construction vs. concrete built-up walls. Spray foam also continued its growth trajectory, with a rise of 5.3% in output.
• There was a reversal of fortune once again for flexible-faced panel (boardstock) production, which returned to growth after its previous destocking issues. On the other hand, production of refrigeration foam declined.
• 2024 was another mixed year for the US housing market. Total housing starts for 2024 were 1.36 million, a 3.7% decline from the 1.42 million total from 2023. Single-family starts in 2024 totalled 1.01 million, up 6.9% from the previous year. Multifamily starts ended the year down 25% from 2023.
• The number of single-family homes under construction in the US was down 5.3% from a year ago, at 641,000 homes. The number of apartments under construction was down 21% from a year ago, at 790,000. The count of apartments under construction peaked in July 2023 at 1.02 million and has been trending lower since that time.
• Canada saw a return to growth in housing starts in 2024, with a small increase of 2.1%. However, the Canadian construction industry contracted by 1.8% in real terms in 2024, owing in part to a continued slowdown in the residential construction sector. The sector was impacted by high construction prices, exaggerated by construction labour shortages, as well as rising household debt, lowering housing demand and regulatory delays. According to Statistics Canada, the total value of investment in single dwelling construction fell by 4.4% year-on-year (YoY) in January-September 2024, after an annual decline of 17.3% in 2023.
• The US economy in 2024, according to the Bureau of Economic Analysis (BEA), experienced a 2.8% increase in real GDP compared to 2023. This growth signifies an increase in the production of goods and services within the US economy. Additionally, the BEA reported a decrease in the average goods and services deficit compared to the previous year.
• In 2024, real gross domestic product (GDP) grew in every province in Canada as the national real GDP maintained its annual pace from the previous year at 1.6%. The threat of tariffs by the US could hinder Canadian growth and investment decisions. 
• In 2024, the growth of the real gross domestic product (GDP) in Mexico stood at about 1.5%. While there are some positive factors like falling inflation and the potential benefits of nearshoring, headwinds such as slower US growth and high interest rates are expected to temper expansion.
• Mexico's construction industry is estimated to have expanded by 4.1% in 2024, supported by investment in building activities, particularly in the residential and infrastructure sectors. According to Mexico's National Institute of Statistics and Geography (INEGI), the volume index of construction production in Mexico grew by 6.3% year-on-year (YoY) in the first nine months of 2024, owing to YoY growths in buildings (8.4%), civil engineering works (2.3%) and specialised construction activities (0.8%).
• Polyurethane will continue to be a long-term need in Mexico, but there is still a lack of programs to promote the benefits of rigid foam insulation in homes and social housing. There is strong opportunity for growth in spray foam for roofs.
• In the thermal insulation industry, polyurethane mainly competes with mineral wool and fibreglass and, to a lesser extent, EPS. As consumers have become more aware of the benefits of high-performance insulation in recent years, PU has gained market share. However, the prices of PU raw materials and the importance of fire resistance have hindered growth. Mineral wool tends to be cheaper, but PU insulation is more efficient and the savings in heating costs decrease the costs over the entire life cycle of the building.
• As of January 2021, Environment and Climate Change Canada prohibits any person from manufacturing foam products where a hydrofluorocarbon (HFC) blowing agent is used, in a decision made as part of Canada’s commitment to The Montreal Protocol and Kigali Amendment.
• The United States has not banned HFCs at a federal level; however, the AIM Act of 2020 directed the Environmental Protection Agency (EPA) to phase down production and consumption of HFCs over 150 GWP in the United States by 85% by 2036, mirroring the Kigali Amendment to the Montreal Protocol. It took effect on 1 January 2022 and authorises the EPA to address HFCs in three main ways: (1) phasing down HFC production and consumption through an allowance allocation program, (2) facilitating sector-based transitions to next-generation technologies, and (3) issuing certain regulations for the purposes of maximising reclamation and minimising releases of HFCs from equipment. The first part entails a phasedown schedule starting with a 10% reduction in 2022 and a further decrease in 2024 to 60% of baseline levels. The Technology Transitions Program focuses on the second area of the AIM Act - the transition to substitutes through restrictions on use of HFCs in specific sectors and subsectors. Starting as soon as 1 January 2025, restrictions take effect on the use of higher-GWP HFCs in new 1) aerosols, 2) foams and 3) refrigeration, air conditioning and heat pump equipment.
• The HFC Phasedown Rule prohibits the manufacture and import of products containing restricted HFCs by 1 January 2025, and prohibits the sale, distribution and export of products containing restricted HFCs by 1 January 2026. Manufacturers of spray foams have already transitioned to alternative chemistry.
• Several US states (approximately 10-15, including California and Washington) had already introduced phasedowns or an outright ban on HFCs, but further statelevel activity was suspended pending the federal mandate.
• Usage of HFCs continued in Mexico in 2024, unless products were destined for export. Mexican companies are seeking alternatives to HFCs in anticipation of the phase-out, which will begin with a consumption freeze in 2024 and an 80% reduction compared to baseline by 2045.
• The focus for the fourth generation of fluorinated blowing agents was low- or zero-GWP, while maintaining safety and insulating performance. This led to the development of the hydrofluoroolefin (HFO) family, and over the review period, the transition to the fourth-generation agents continued, particularly in the SPF industry. Open-cell spray foams were typically water blown. For closed-cell SPF, US producers were expected to phase out HFC usage by the end of 2024.
• There was continued concern in the PU industry about the overly broad classification of HFO as a PFAS (polyfluoroalkyl substance) in various venues. Several US state legislatures initiated legislation to ban PFAS, with a broadly defined 2030 ban in place in two states (Maine and Minnesota), but Maine’s regulation was amended to exclude HFO blowing agents for PU end uses from the ban through 2040, as the EPA’s Significant New Alternatives Program (SNAP) has determined that they are an acceptable alternative. Advocacy in the polyurethane industry has focused on narrowing the definition for any such bans and countering the proposal that blowing agents are bio persistent, suggesting instead a more balanced approach. State-based PFAS regulations that go beyond those of the EPA threaten the use of HFO-based formulations if definitions and exemptions are not enacted, and this has caused worry among PU formulators.
• According to the US Department of Energy, buildings consume about 40% of the country's total energy consumption and are responsible for nearly 30% of its carbon emissions. Building energy codes have become increasingly stringent in recent years in order to reduce energy consumption and mitigate the impact on the climate. The 2021 International Energy Conservation Code (IECC), developed by the ICC, for example, included significant improvements in energy efficiency requirements for new commercial and residential buildings, amounting to a 10.5% increase in energy efficiency over the previous 2018 version.
• The US Department of Energy (DOE) has reviewed the updated 2024 International Energy Conservation Code (IECC) and determined the updated edition would improve energy efficiency in residential buildings. DOE analysis indicates that buildings meeting the 2024 IECC, as compared with buildings meeting the 2021 IECC, would result in national site energy savings of 7.80 percent, source energy savings of 6.80 percent, and energy cost savings of approximately 6.60 percent of residential building energy consumption. Under the Energy Conservation and Production Act, as amended (ECPA), upon publication of an affirmative determination, each State must review the energy efficiency provisions of its residential building code and determine whether it is appropriate for such state to revise its building code to meet or exceed the 2024 IECC.
• Going beyond new buildings is the topic of Building Performance Standards (BPS) for existing buildings. To date, nine US localities and four US states (Colorado, Maryland, Oregon and Washington) have enacted laws adopting BPS; most states have building codes for new construction and renovations derived from national model codes, with amendments, and many local governments do too.
• Demand for bio-based isocyanates is on the rise in the US and Canada, but not so much in Mexico.
• China is making a strong entrance in the market with some raw materials and finished products. There is some competition also from Korea and Japan, but this is considerably less.
• South America produced ~157,700 tonnes of rigid polyurethane foam in 2024, an increase of 3.2% compared to the previous year and marking a small acceleration in demand.
• Domestic refrigeration remains the biggest end-use market with a 65% share of output, and the production of rigid polyurethane foam for construction applications remains largely underdeveloped. The largest construction segments are discontinuous and continuous rigid panels.
• The largest producer is Brazil by some margin, with a 74% share of output, followed by Argentina and Colombia. There was a significant decline in Argentina, but all other countries managed to grow. Brazil was the best performer at 7.6% growth, as it remained the economic powerhouse of the region and continued its dynamic economic trajectory. Argentina experienced turbulent economic times and struggled with a lack of FX with which to purchase raw materials.
• The analyst is forecasting a further acceleration to 4.6% for 2025, led by a recovery in Argentina and continuing strength in Brazil. However, a decline is once again expected for Venezuela.
• There was good growth in rigid slabstock, refrigeration foams, pipe-in-pipe and OCF, while panels and spray foam did not fare as well.
• Generally speaking, the countries of South America struggle with a lack of raw materials, since there is little production of isocyanates and polyols there. In a further blow, Dow has announced that it will stop producing polyether polyols at its San Lorenzo plant in Santa Fe province, Argentina, and Petroquímica Rio Tercero (PR3) recently ceased its toluene diisocyanate (TDI) production at its Cordoba plant due to global oversupply.
• The market for PU insulation in South America continues to be underdeveloped, but it is thought that the market shows great potential because thermal insulation is not yet standard in many countries. Governments are, however, expected to increase the thermal properties of buildings to comply with the Paris Agreement and to combat increasing energy prices.
• Generally speaking, buildings designed under South American regulations have shown significantly higher energy consumption compared to those under European standards, primarily due to more lenient requirements related to thermal transmittance in South America.
• There is growing interest in improved energy efficiency in South America, and new regulations setting building codes to achieve a certain energy performance are likely to be introduced soon. This will certainly have a positive impact on the demand for PUR in construction insulation applications and is also likely to increase the demand for PIR foam.
• Generally, the regional construction industry showed a weak performance in 2024. Argentina’s allocation of new building permits fell by 10.5%, and there was also a decline in Colombia. Despite interest rate hikes in September, November and December, Brazil achieved construction growth of 3% in 2024, led by 4.1% in energy and utilities construction. According to the latest Construction Industry Survey - published by the National CNI with the support of the CBIC - the average construction activity index grew marginally by 0.9% year on year (YoY) in the first 11 months of 2024.
• HCFC-141b has been withdrawn from the Brazilian market. Many companies chose methylal and many moved to HFC (it is not restricted by any legislation), but in 2030 HFCs will also be banned. The obstacle to using HFOs is their high price.
• Most developing countries will implement a freeze on HFC consumption levels in 2024, with a few countries freezing consumption in 2028.

CASE Applications

Adhesives and Sealants

• The PU adhesives market is very fragmented, with small volumes used in various applications across a wide and diverse range of end-use sectors. In addition to the construction and transportation sectors, packaging and wood working are key end uses for PU adhesives, while other smaller applications include marine, electronics, footwear, textiles, fibres and industrial/machinery.
• Most demand for PU sealants comes from construction applications, followed by transportation uses, such as automotive direct glazing, i.e., installation of glass into the vehicle body.
• The Americas region produced over 341,000 tonnes of PU adhesives and sealants in 2024, with most production taking place in North America (over 90% in the US alone). Production decreased by 0.4% compared to 2023, led by a downturn in the construction segments that could not be fully compensated for by the uptick in the automotive and flexible packaging sectors.
• The analyst is forecasting growth of 1.6% for the region in 2025, with similar growth rates across segments.
• The largest categories are construction adhesives, construction sealants and flexible packaging adhesives. All segments apart from the construction-related applications saw some growth in 2024, although footwear was quite stagnant. The biggest downturn was in insulated glazing sealants. On the other hand, the sectors of flexible packaging adhesives and transport sealants did quite well.
• The production and demand for PU adhesives and sealants is directly linked to the performance of the economy in the region and downstream sectors such as construction and automotive.
• Most North American PU adhesive and sealant production (over 91%) takes place in the United States, with only limited production located in Canada and Mexico. Most demand in Mexico is met by imports.
• In 2024, the North American polyurethane adhesives and sealants sector experienced varied performance across its end-use segments, leading to a mixed overall outcome for the year. Growth in sectors like flexible packaging and general assembly was not sufficient to offset the decline in construction activity. Furthermore, the auto industry did not perform as well as expected due to the slowing of EV adoption.
• Production of adhesives and sealants in North America decreased by 0.4% to 337,000 tonnes in 2024, with good growth in the Mexico (+4%), a small decline in the US and a static picture in Canada.
• The analyst is forecasting growth of 1.6% overall for 2025 but expects Mexican output to decline a little as it contends with US tariffs on its exports.
• Adhesives account for ~62% of production and sealants for the remaining ~38% in the North America region. The largest categories overall are construction adhesives followed by flexible packaging adhesives and construction sealants. Production of construction adhesives and sealants was in decline due to lower construction activities in the countries, along with a drop in the output of insulated glazing sealants for window installation. There was also a small decline in the production of PU footwear adhesives.
• The best performing categories in 2024 were flexible packaging adhesives and other transport sealants (outside of automotive).
• The United States enjoyed economic resiliency in 2023 and 2024, with GDP growth in the region of 2.8%. However, it is forecast to decelerate to 1.8% in 2025. While the probability of a recession over the next 12 months currently stands at 35%, the risks to the outlook remain skewed to the downside. Tariff uncertainty is adding negative shocks to the economy.
• Most demand for PU adhesives and sealants comes from the construction, flexible packaging and automotive industries. While total housing starts fell 3.7% in the US in 2024, single family starts were actually up 6.9%. Vehicle production was static in 2024, but output of passenger cars declined by over 17%.
• The North American adhesive and sealant industry employs more than 28,000 people. Adhesives and sealants are widely employed in all major markets due to their versatility, low cost, product design freedom, and exceptional strength and durability.
• Real GDP growth of Canada was 1.5% in 2024 according to the IMF, slowing to 1.4% in 2025 according to preliminary estimates. The Canadian economy continues to face headwinds from trade-related uncertainties, although recent indicators suggest the situation may be stabilising.
• Canadian housing starts increased by 2.1% in 2024 after a decline in 2023, while vehicle output declined by 13.6%.
• Mexico's GDP growth decelerated prominently in 2024, slowing to just 1.5%. Mexico's economic outlook for 2025 is uncertain, with forecasts ranging from nearzero growth to a potential recession, largely due to the impact of US trade policy and the undermining of certain free trade agreements. Customers generally sought out cheaper products.
• Polyurethane-based adhesives are widely employed in several end-use industries, although the industry is fragmented due to limited volumes. These adhesives are widely used in construction, packaging, and transportation. Other end-use industries include maritime, electronics, footwear, textiles, fibres, and industrial/machinery applications. The main consumer products include woodworking adhesives, arts and crafts glues, and household and marine repair items.
• Most demand for PU sealants comes from construction applications, followed by transportation uses such as automotive direct glazing, i.e., installation of glass into the vehicle body.
• Polyurethane faces competition from various other materials in adhesive and sealants applications, including epoxies, acrylics and silicones, and the choice of resin varies from end user to end user depending on the properties needed as well as costs. The high cost of PU in comparison to acrylic resin often results in end users choosing the latter.
• PU is also subject to competition from hybrid products in sealant applications, especially silyl-modified polyethers (known as MS polymers) and silyl-modified polyurethanes (known as SPUR polymers). There are also silane-terminated polymers (STPs). Hybrid sealants combine the strength of polyurethanes with the weathering resistance of silicones.
• Domestic production of PU adhesives and sealants in Mexico remains small; most products, as much as 80-90%, are imported, predominantly from the US or Europe. Sometimes these products are imported in bulk drums and then repackaged for the Mexican market, but this should not be counted as local production. The share of polyurethane within the adhesive and sealant product mix in Mexico has grown in recent years because customers increasingly demand better performing adhesives and sealants, in particular in terms of fast curing and drying times.
• In comparison to competing products, PU is often a better sealant or adhesive in terms of properties and performance for binding with a variety of different substrates. It is, however, often replaced with other alternative products due to price concerns.  The Mexican market is reportedly far more price driven than the US or Canada; in the latter countries, users are often prepared to pay more in order to achieve a better quality adhesive or sealant, whereas in Mexico there is still a desire to keep costs as low as possible.
• Solvent-based adhesives remained the most common type in Mexico, with little regulation or incentive to switch to water-based products. Producers making adhesives for the construction sector sought to diversify into high growth areas such as the food industry, waterproofing and packaging.
• There is competition from Chinese products, particularly in Mexico. China is coming to the market with everything, from raw materials to finished products.
• There is only limited adhesive and sealant production taking place in South America, namely in Brazil and also in smaller quantities in Argentina and Chile. For this reason, most demand for polyurethane adhesives in South America is met by imports. Large multinational players such as Sika, Henkel, Bostik, 3M, COIM and HB Fuller are all present in the South American market, which makes it difficult for the domestic producers to remain competitive in this sector.
• Total production of PU adhesives and sealants in the region was around 4,310 tonnes in 2024, representing growth of 3.7% compared to the previous year. Brazil accounts for 84% of output. The ratio of adhesive to sealant production is approximately 73% to 27%.
• There was good growth in Brazil and Chile, but a decline in Argentina as its economic difficulties continued.
• Brazil is the only country in the region where the polyurethane sealants are produced.
• The largest product categories are construction adhesives and flexible packaging adhesives. All sectors saw growth in 2024, but the best growth came from the transport categories.
• There is very little production of polyurethane raw materials in the region, so it relies heavily on imports, which have been in short supply. Producers tend to look to Asia to fulfil their needs.
• Two companies supplying raw materials for polyurethane production have announced plant closures in Argentina. Petroquímica Río Tercero is to close its TDI plant, reportedly in the light of the government starting to permit TDI imports from Asia. It follows on from reports that Dow Chemical is to stop production of polyols at its site in San Lorenzo, citing global oversupply.
• The analyst is expecting that growth will be similar in 2025 at 3.7% overall, led by strong automotive sectors and an economic recovery in Argentina.
• PU is still gaining in popularity, which means it is guaranteed to show further growth, particularly in waterproofing, panelling and dry construction applications.
• The usage of water-based technology is currently limited in South America.

Coatings

• Polyurethane coatings are used across a wide range of end-use applications which include construction, transportation, machinery, furniture, textiles and fibres, industrial, coil, appliances and electronics. They are valued for their chemical resistance, non-yellowing, adhesion and ease of application.
• There are a variety of types of PU coatings, including traditional “pure” polyurethane coatings (e.g., two-component solvent-borne ADI/polyesters), coatings in which isocyanates are used to modify resin systems, and polyurea formulations. Traditionally used primarily as liquid topcoats over epoxies and other primers/basecoats, PU raw materials are found in coatings representing virtually all classification types for use in metal electro-deposition primers, primer coats, basecoats and topcoats.
• The Americas region produced ~504,000 tonnes of polyurethane coatings in 2024, an increase of 1.6% over 2023.
• The US is the largest producer of PU coatings by some margin, followed by Brazil and Mexico. Growth was negative in Argentina and static in Mexico, while the other countries managed a mild to moderate acceleration of output. Growth was highest in Brazil thanks to its positive economic performance.
• The largest end-use applications were industrial and maintenance coatings, in which polyurethane is a well-established technology and the uses are highly varied; wood and furniture coatings also account for a good portion of production. There were declines for architectural, marine and textile/leather coatings in 2024. On the other hand, most other sectors saw growth in the low single digits, with the best performance in plastic coatings.
• For 2025, the analyst is forecasting growth of 1.8%, a slight improvement on 2024 thanks to recovery in Argentina and despite an expected downturn once again for Venezuela.
• Production of polyurethane coatings was 393,390 tonnes in North America in 2024, with the US accounting for the lion’s share at 82%.
• The North American PU coatings industry saw an increase in production of 1.1% in 2024, slightly lower than the 1.4% achieved in 2023. For 2025, the analyst is forecasting a further 1.3% growth amid the backdrop of US tariffs and global uncertainties.
• The two main markets for polyurethane coatings were the construction industry and transportation. The picture across the different end-use segments was very varied in 2024, with the best performances in plastic coatings and industrial coatings. Architectural, marine, wood/furniture and textile/leather coatings observed a decline between 2-4% in 2024.
• For North America as a whole, the largest categories in 2024 were industrial coatings and maintenance coatings, which are both used in a wide variety of enduse applications. These were followed by roof/tank/deck coatings.
• The shift to water-based technology has been ongoing for many years; it started off rapidly in applications that were easily switched but has slowed because the remaining sectors are very difficult to switch.
• PU-based coatings struggled a little again in automotive applications in 2024 as vehicle production stagnated and the adoption of EVs slowed.
• In Canada, the paints and coatings industry is facing increasing regulatory obstacles, which may reduce sales. The Canadian government announced plans in March 2025 to phase out PFAS chemicals from the Canadian economy. Environment and Climate Change Canada (ECCC) and Health Canada proposed, first, to list PFAS chemicals - as a class - as toxic substances under the Canadian Environmental Protection Act, 1999 (CEPA). The agencies further proposed phasing out PFAS use wherever feasible: first in firefighting foams and then across a range of industries where PFAS can be replaced, including in textiles, food packaging, cosmetics, and medical devices. In the final phase of regulation, Canada will evaluate prohibiting PFAS use in industries where alternatives are not available.
• Canada expects to regulate PFAS use in paints and coatings during Phase 2, but will consider costs and benefits, the availability of suitable alternatives, and other socioeconomic considerations when prioritising uses for prohibition.
• In the US, PFAS regulation is evolving at federal and state levels, encompassing both water requirements and product focused bans and restrictions. At a federal level, under the Toxic Substances Control Act (TSCA) Section 8(a)(7), a one-time PFAS reporting rule was introduced for manufacturers and importers of PFAS and PFAS containing articles. Additionally, an increasing number of PFAS are included on the Toxic Release Inventory (TRI) and therefore subject to annual reporting under that program.
• The EV industry has significantly increased its demand for advanced battery coatings to improve efficiency, safety and durability. Battery coatings play a vital role in enhancing thermal management, preventing leakage, and protecting against chemical degradation, all of which are crucial as EV production scales up and battery performance expectations rise.
• Interest in bio-based coatings has grown steadily as companies and consumers prioritise environmentally friendly solutions in the coatings sector. However, despite increased attention, actual demand has not yet shown a corresponding rise. Industry experts anticipate that demand will eventually pick up, especially as sustainability goals become more stringent and bio-based technology matures.
• The indoor agriculture sector, particularly for medical cannabis, began to see a growing need for specialty coatings tailored to the unique conditions of controlledenvironment agriculture. These coatings help optimise light reflection, resist humidity, and provide antimicrobial properties to support plant health in highhumidity, tightly regulated spaces. Both sectors reflect emerging applications in advanced coatings, driven by sector-specific performance requirements and regulatory considerations.
• The total US paints and coatings industry was valued at $34.51 billion in 2024, with a volume of 1.36 billion gallons, according to the ChemQuest Group working on behalf of the American Coatings Association. This represents volume growth of 2.6% compared to 2023. Architectural coatings account for 59% of this volume, OEM for 27%, and special purpose for the remainder.
• In January 2025, it was reported that Kelly-Moore Paints, a major independent paint company in the US, had ceased operations and was orderly winding down all its businesses.
• To accelerate the promotion of its "Coatings+" new strategy and expand its market share in coatings-related businesses, Nippon Paint has intensified its acquisition activities. In October 2024, Nippon Paint announced plans to acquire the US-based AOC company for $2.304 billion; AOC is a producer of coatings, colorants and composites.
• According to recent reports, BASF is looking to sell its coatings business, with a valuation set at approximately €6 billion. The potential buyers identified by Bloomberg News include Carlyle Group and Sherwin-Williams, who reportedly are considering combining their efforts on a bid for BASF’s coatings unit.
• WEG has announced investments of R$100 million in a new industrial liquid paints factory in Mexico. The construction of the new unit will expand WEG Coatings' current production capacity and aims to serve the North and Central American market. The new factory will have approximately 5,300m² of built area and is expected to start operation in early 2026.
• Neuce, a recognised powder paint producer and with a prominent presence in liquid paint, has announced an investment of $600 million for the construction of a new plant in Tlaxcala, mexico. This project is part of its global expansion strategy, with which it seeks to capitalise on the growth of the Mexican market and meet the growing demand in sectors such as automotive, aluminium extrusion, steel, PVC and glass, among others.
• Mexican producers are concerned about the effect of US tariffs on their sector. They will increasingly look to the BRIC markets to export their products.
• Specialty coatings for oil and gas are seen as a growth area, particularly elastomeric coatings for pipelines.
• Production of polyurethane coatings was ~110,840 tonnes in South America in 2024, a 3.1% increase. Brazil is the largest producer, accounting for 76% of output, followed by Argentina at 18%. All countries saw growth in output with the exception of Argentina.
• Venezuela saw a return to growth in 2022 in line with its favourable GDP performance, and this continued into 2023 and 2024; however, this comes after many years of steep declines, and the outlook remains uncertain.
• Coatings companies must import most of their raw materials and are therefore vulnerable to currency fluctuations, rising prices and trade restrictions.
• Two companies supplying raw materials for polyurethane production have announced plant closures in Argentina. Petroquímica Río Tercero is to close its TDI plant, reportedly in the light of the government starting to permit TDI imports from Asia. It follows on from reports that Dow Chemical is to stop production of polyols at its site in San Lorenzo, citing global oversupply.
• The largest PU coatings categories are industrial coatings and wood and furniture coatings. Production of commercial vehicle coatings is negligible and there are also low volumes in textile/leather coatings and auto OEM coatings. Many requirements for these specialist paints have to be imported.
• There was growth in all segments in 2024 with the exception of commercial vehicle coatings. The categories showing the best growth rates were wood and furniture coatings, textile and leather coatings, and maintenance coatings.
• Argentina's economy shrank 1.7% in 2024 compared with the prior year but expanded for the second consecutive time in quarterly terms in the last three months of the year. In the first year of his presidency, Milei’s commitment to a draconian fiscal adjustment has begun to change a country that was prone to economic stagnation and runaway inflation. By January 2025, GDP had reached levels close to those of March 2023, surpassing the decline recorded since the end of 2023.
• Brazil’s robust demand for paint and coatings materials grew a solid 6% during 2024, essentially doubling the national gross domestic product increase. In years past, the industry has typically outpaced GDP acceleration by one or two percentage points, but last year, the ratio accelerated, according to a recent report by Abrafati, the Associação Brasileira dos Fabricantes de Tintas. The Brazilian paint and coatings market ended 2024 with record sales, exceeding all forecasts offered over the course of the year. The pace of sales stayed strong throughout the year in all product lines, pushing the total volume up to 1.983 billion litres - 112 million litres more than the previous year.
• For 2025, Abrafati expects more moderate growth in the range of 2.0% to 2.5% for the Brazilian coatings market overall.
• Venezuela has been a political outlier in Latin America for many years, despite the country’s oil and gas wealth, under the rule of President Nicolás Maduro. The IMF is forecasting an economic contraction for 2025 despite recent improvements.
• The analyst is forecasting growth of 3.9% for the region as a whole in 2025, led by a recovery in Argentina and despite a return to decline in Venezuela.

Elastomers

• The Americas region produced ~478,000 tonnes of polyurethane elastomers in 2024, showcasing an increase of 1.4% compared to the previous year. The US is by far the largest producer, but there are sizeable outputs from Brazil and Mexico too.
• Brazil enjoyed good growth in 2024 of over 4%. There was also moderate growth in Peru and Chile. Argentina, on the other hand, continued to struggle with various economic issues and saw its production decline by nearly 20%.
• Although Venezuela saw growth of above 5%, this should be caveated by mentioning that it had previously witnessed huge declines and that output remains far below pre-crisis levels. Indeed, it produced just 180 tonnes in 2024.
• The largest product sector is cast elastomers with a 38% share, thanks to the breadth of applications served by these products, followed by TPU and footwear elastomers. All sectors saw growth in 2024 with the exception of footwear and synthetic leather elastomers.
• The fastest growth in output was in ‘other’ elastomers and cast elastomers.
• TPU returned to growth in 2024, but this was muted at just 1.5%.
• PU elastomers offer various properties and performance characteristics to the final product, and are particularly well known for their toughness, flexibility (even at low temperatures), strength, abrasion resistance, shock absorbency and chemical resistance.
• The physical properties of PU elastomers can be tailored to fit a range of end uses by adjusting the mix and nature of the raw materials. Because they are relatively expensive compared with most other elastomers, they are used primarily in demanding applications, such as automotive bumper covers/fascias/trim, solid tyres, industrial rollers, shoe soles, sports boots and various mechanical goods.
• The analyst is forecasting growth of 1.4% for 2025, with Argentina returning to growth but Venezuela expected to struggle once again.
• North America produced 388,830 tonnes of PU elastomers in 2024, an increase of 1.5% compared to the previous year; this was something of an acceleration compared to growth in 2023.
• The US is by far the largest producer, accounting for over 83% of output, while Canada is rather small in this industry. Growth was led by the US industry, as the output in both Mexico and Canada remained quite static.
• The largest product category is cast elastomers by a considerable margin (accounting for 47% of production), followed by TPU elastomers. The application of PU cast elastomers is generally very fragmented and is driven by a whole host of downstream industries and indicators. It faces competition from low-cost imports.
• Segment by segment, the picture was mixed in 2024. There was growth in cast, RIM and TPU, while production of fibres, footwear and synthetic leather elastomers (all linked to apparel/consumer goods) declined.
• The TPU industry recovered from its previous dip, registering growth of 1.5%.
• Previous interest in bringing production of synthetic leather to the US does not seem to have materialised into anything concrete.
• For 2025, the analyst is expecting elastomer output to remain quite slow, with growth of around 1.2% led by cast elastomers.
• South America produced ~89,300 tonnes of polyurethane elastomers in 2024, which was an increase of just 1.1% compared to the previous year.
• Brazil is by far the largest producer, with a share of production of over 80%. Argentina and Colombia have small amounts of production, while output elsewhere is negligible. With the exception of Argentina, which saw a staggering decline amid its economic woes, all countries enjoyed growth. Brazil’s output increased by over 4%.
• Venezuela enjoyed another increase in production in 2024, aided by some economic growth. However, the picture remains highly uncertain.
• The largest product category by far is footwear elastomers, with a share of production of 67%; this means that growth or decline in this segment has a big impact on the overall numbers. Overall, the regional footwear industry was quite static in 2024, with production of footwear elastomers falling by 0.2%.
• Spandex has a further 23% share, and the remaining categories are quite small. The share of spandex had increased significantly in 2022 as Hyosung’s creora expansion came online in Brazil. Regional spandex production was up 3.7% in 2024.
• Production of synthetic leather elastomers grew by over 4% in 2024. This growth was boosted by the automotive industry in Brazil. Output of technical microcellular also grew well for the same reason.
• For 2025, the analyst is forecasting 2.4% growth in elastomer production for the region as a whole.
• Elastomer producers must import most of their raw materials and are therefore vulnerable to currency fluctuations, rising prices and trade restrictions.
• Two companies supplying raw materials for polyurethane production have announced plant closures in Argentina. Petroquímica Río Tercero is to close its TDI plant, reportedly in the light of the government starting to permit TDI imports from Asia. It follows on from reports that Dow Chemical is to stop production of polyols at its site in San Lorenzo, citing global oversupply.

Binders

• The Americas region produced nearly 461,000 tonnes of polyurethane binders in 2024, a growth of 1.9% compared to the previous year. Forest products binders make up the majority of production with a 74% share and thus the performance of this category has a large impact on the overall numbers.
• Most production of binders takes place in the US (with an 84% share), due to the large scale of its wood-based panels industry, with small quantities in Canada and Mexico and even smaller amounts in Brazil and Chile. Production of wood panels tends to take place in countries with good timber resources.
• Production of binders saw growth in all countries, with Canada and Brazil the best performers.
• Output of forest product binders grew 2.3% in 2024 amid higher OSB production and fewer imports.
• 2024 was fairly static in foundry core binders, as the automotive industry output slowed down and EV uptake stagnated. Production of rubber crumb binders saw a moderate growth trend as it tends to track GDP changes.
• For 2025, the analyst is forecasting a decline of 0.4%, mainly due to an expected decrease in production of forest products binders amid ongoing construction industry woes in the US and Canada and decelerating production of OSB.
• Binders are predominantly MDI-based products used to adhere particles and fibres of different sizes to manufacture three dimensional products. Polyurethane binders are typically formulated from PMDI in combination with polyether polyols, depending on the application. Their primary areas of use are in the manufacturing of wood panels, rubber or elastomeric flooring surfaces, and sand casting for the foundry industry.
• Production of polyurethane binders in North America was 450,640 tonnes in 2024, representing an increase of 1.9% compared to the previous year. The US is by far the largest producer, accounting for over 86% of the total output.  All countries saw some moderate growth in 2024, but it is expected to turn negative in 2025 amid tariff uncertainties.
• Forest products binders account for the lion’s share of production at 74%. Output of these types of binders increased by 2.3% amid rising OSB production; because this is by far the largest binders category, it impacts heavily on the overall numbers. The domestic OSB industry was boosted by fewer imports and a rise in US single-family housing starts.
• Production of foundry core binders grew just 0.5% in 2024; automotive production was stagnant or declining for the most part, and the trend toward EVs means lower requirements for cast parts.
• Rubber crumb binder production saw growth of 1.6%, driven by investment in soft sports and play surfaces.
• The outlook for 2025 is uncertain amid falling housing starts and there is no improvement foreseen in RMI activity. Also, homes are getting smaller in the US, and more are being built on ‘slab’ (with therefore no requirement for wood floors). However, potential US tariffs on OSB imports from European countries like Latvia and Romania might mean that domestic producers need to pick up the shortfall. OSB imports are typically 400-600 m sq ft per year, and these might need to be replaced. This might balance out the fall in starts/trend toward smaller homes, and lead to a static market overall.
• Production of polyurethane binders in South America was 10,170 tonnes in 2024, an increase of 2.4% compared to the previous year. It is limited to forest products binders and production takes place in Brazil and Chile only as these are the key producers of wood-based panels in the region. Brazil accounts for ~60% of total output.
• The analyst is forecasting 3.5% growth for 2025, with a similar trajectory for both countries.

SCOPE OF THE STUDY

This report describes the supply and demand of raw materials in the following geographic regions:

• North America
  • Canada
  • USA
  • Mexico
• South America
  • Argentina
  • Brazil
  • Chile
  • Colombia
  • Peru
  • Venezuela
  • Rest of South America

METHODOLOGY

Information provided in this volume has been obtained from existing in-house data and an extensive programme of interviews with leading product manufacturers, trade associations, raw materials producers and systems houses across the Americas. Published data and statistics have also been reviewed in order to produce as accurate figures as possible for the consumption of raw materials in the production of polyurethane products. Forecasts for the production of PU products and consumption of raw materials have been calculated for the year 2029, based upon industry and economic forecasts as well as upon other relevant commercial and technical issues likely to affect individual market sectors and products. Slight discrepancies in the totals may occur, due to rounding.

PRODUCTS AND END-USES

The production of polyurethane flexible foam and related raw material demand is broken down as follows:

• Flexible Slabstock Foam
  • Polyether
  • HR/CMHR
  • Polyester
  • Viscoelastic Foam
• Flexible Moulded Foam
  • Automotive Seating Foam
  • Commercial Vehicle Seating Foam
  • Transport Other Foam
  • Carpet Backing & NVH
  • Furniture Components
  • Semi-rigid Foam
  • Integral Skin Foam

UNITS OF VOLUME

All the volumes quoted in this report relate to tonnes of finished PU products and tonnes of raw material consumed, including the additives, fillers and other materials.

FORECASTS

The forecasts included in this report are based upon industry comments and economic indicators. It can be difficult to present a summary of forecasts for all the various types of polyurethane materials because of the many different factors which may affect the market. Manufacturers themselves are often unable to agree whether a market will increase or decrease, preferring instead to quote the factors most likely to influence it. Forecasts for changes in production by product type and by each application are given for each country covered in this report. These are five-year forecasts, derived from industry comments and expectations, both from the end users and raw material sectors of the polyurethane industry. Forecasts for production in 2029 are given alongside the actual production figures provided for 2024.

FORMULATIONS

The multitude of proprietary formulations used in the various product sectors of the polyurethanes industry means that a number of assumptions have to be necessarily made with respect to product formulations. In this section, the assumptions made (expressed as % w/w formulations) in calculating raw material consumption by product are presented. Since volumes are derived from the below formulations, figures therefore are presented as exact figures.