Polyurethane Procurement Intelligence Report 2026-2031

Polyurethane Supply-Demand Overview

As per the polyurethane procurement report, the demand for energy-efficient insulating materials in the construction sector and lightweight components in the automotive industry forms key drivers of demand. Rapid industrialization, urbanization, and infrastructure development provide an entry point in the Asia-Pacific region into the global procurement market, with China and India emerging as contributors in significant numbers. Advancements in the production of bio-based polyurethane also promote sustainability and reduce fossil fuel dependence.

On the supply side, capacity addition and technological enhancement are supporting this market growth; however, market instability and weak category management resulting from raw material price volatility and energy costs in addition to highly stringent environmental standards may impact categories.

Polyurethane Cost Structure

The cost modeling of polyurethane production is influenced by raw materials, energy consumption, catalysts, operational expenses, and regulatory compliance. Polyols and isocyanates, derived from petrochemical feedstocks, constitute the largest cost component. Fluctuations in crude oil prices significantly impact raw material costs.

Other than that, there are energy costs mentioned in the polyurethane procurement report, as manufacturing polyurethane requires a highly energy-intensive polymerisation and foam formation process. In areas with high energy costs, production prices will be much higher, and regions using renewable energy may hold a cost-edge advantage.

Catalytic and additive requirements for performance property enhancement add to the cost but are necessary for ensuring product quality. Operational costs, including labor, maintenance, and logistics, are influenced by plant efficiency and automation levels.

In accordance with the polyurethane procurement market report, environmental compliance costs also impact price, particularly with increasing regulations regarding VOC emissions and waste management. Bio-based polyol innovations and recycling technologies that reduce costs and enhance sustainability will further support procurement research and strategic purchases.

Polyurethane Pricing Trends

The feedstock prices, energy, and market demand determine the pricing models of polyurethane. Higher crude oil prices directly translate to higher prices for polyol and isocyanate, as per the polyurethane procurement report. Market volatility also results from high crude oil prices. Increased demand from the construction and automotive industries has led to price increases, especially in the Asia-Pacific and North America markets. Supply chain disruptions, shortages of raw materials, and transportation costs have recently contributed to surging prices. Nevertheless, continuous capacity expansions and investments in sustainable production modes will improve prices in the long term, helping buyers devise better pricing strategies.

Polyurethane Procurement Best Practices

Procurement strategies in the polyurethane procurement report focus on ensuring a reliable supply chain, cost optimisation, and quality assurance. Key practices include forming long-term contracts with raw material suppliers to manage price fluctuations and maintain steady supply. Diversifying supplier sources minimises risks associated with regional dependencies and geopolitical disruptions. Procurement teams prioritise partnerships with environmentally compliant suppliers to align with sustainability goals. Efficient logistics management, including bulk transportation and optimised warehousing, reduces costs and mitigates supply chain delays. Digital tools and market intelligence platforms play a critical role in forecasting trends, evaluating supplier performance, and enhancing procurement efficiency through market research for procurement professionals.

Key Players in the Polyurethane Industry

Recent Developments in the Polyurethane Procurement Report

• In June 2024, Huntsman introduced SHOKLESTM polyurethane foams for EV batteries, offering lightweight, durable solutions for cell potting and fixation. These flexible, moldable foams enhance structural integrity, provide thermal event protection, and support efficient polyurethane dispensing processes. 
• As per polyurethane procurement report, in January 2024, BASF inaugurated a new polyurethane systems house in Mumbai, India, enhancing production capacity and strengthening its presence in the Asia-Pacific region. 
• In August 2023, DIC Corporation introduced the HYDRAN™ GP series, eco-friendly waterborne polyurethane resins with high solid content, no amines, and reduced VOCs. These resins offer solvent-like performance, suitable for artificial leather, coatings, and adhesives, globally available. 
• In November 2022, Huntsman Corporation launched a bio-based polyurethane product line, focusing on sustainability and reducing carbon footprints in automotive and furniture applications.