PU industry grows by 4.2pc/yr in 2018-2023

: Petrochemicals
25/02/27

Europe's polyurethane industry contributes €233bn/yr ($242bn) to the economy with compound annual growth of 4.2pc in 2018-23, according to a new study.

Data released today by European isocyanate and polyols producer associations Isopa and Alipa aims to measure the economic value added by the polyurethane (PU) industry in the EU, UK, Switzerland, Norway and Turkey.

But while the data shows overall economic growth, it does not fully reflect the effects of the economic crisis that has affected the chemicals industry since 2022-23, the associations said today.

Within the headline figure of €233bn created value in 2023, 5.6pc was attributed to the chemical producers which make basic chemicals and additives for PU production. Producers of PU components accounted for another 21.9pc and final product manufacturers for 36.5pc. Those sectors together accounted for €149.2bn. The remaining 36pc of created value was attributed to sectors that work with PU products, such as the construction industry.

The construction and comfort sectors showed particular growth across the period, but the automotive sector grew only modestly, while footwear was flat. Low growth rates in some sectors "reflect the economic difficulties the industry has faced in recent years," Isopa and Alipa said.

Within Europe, Germany's PU industry-created value was greatest, at €51bn in 2023, followed by France at €28bn and Italy at €25.7bn.

by Laura Tovey-Fall

PU industry economic value added			€bn
Sector	2018	2023	5yr-CAGR

Construction	51.4	67.6	5.6
Industrial goods	44.1	50.5	2.7
Automotive	31.4	34.6	2.0
Furniture and Bedding	26.1	33.2	4.9
Appliances	19.7	24.4	4.4
Footwear	5.7	5.7	0.0
Others	4.4	4.0	-1.9
Isopa, Alipa

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