Market Overview
India Polyurethane Foam Market reached US$ 2.8 billion in 2022 and is expected to reach US$ 5.18 billion by 2030 and is expected to grow with a CAGR of 8.0% during the forecast period 2023-2030.
The India polyurethane foam market is expected to witness significant growth on account of growth in the automotive industry. The automotive industry contributes nearly 7% to the national GDP. The Indian automotive industry is expected to grow to nearly ?15 lakh crore (US$ 18 billion) by 2024. The growth is expected to augment growth in demand for polyurethane foam.
Over the forecast period, the Indian government’s production-linked incentives (PLI) schemes for various industrial manufacturing sectors are likely to boost polyurethane foam market growth. For instance, the government has allocated an outlay of ?24,000 crore (US$ 2.9 billion) for manufacturing high-efficiency solar panels. Similar outlays are allocated for food processing, textiles, automotive, pharmaceutical, and electronic industries, which generate significant demand for polyurethane foam.

Market Dynamics
Growth in Indian E-commerce Activities
The Indian e-commerce industry is witnessing rapid growth. According to the Indian Brand Equity Foundation (IBEF), an industry think tank, the Indian e-commerce market grew by 21.5% to US$ 74.5 billion in 2022. Rising disposable income, increasing digital penetration and improvement in logistical infrastructure are some of the main factors driving e-commerce growth in India.
Large e-commerce players and retail giants such as Ikea, Walmart and Amazon have been actively expanding their presence in India. E-commerce relies heavily on efficient and secure packaging to ensure the safe transportation of products to consumers. Polyurethane foam is commonly used for protective packaging, cushioning, and insulation due to its ability to absorb shocks and vibrations.
Growth in Renewable Energy Production
India has been focusing on increasing its renewable energy capacity to reduce dependence on imported fossil fuels and combat climate change. New government policies are helping to augment the growth of renewable energy in India. For instance, India has allowed 100% foreign direct investment (FDI) in the renewable energy sector.
The country saw the highest Y-o-Y growth in renewable energy addition of 9.8% in 2022. Installed renewable energy capacity has witnessed an increase of around 128 % since 2014. Polyurethane foam is used in the manufacturing of wind turbine blades, solar panel encapsulation and thermal insulation for renewable energy infrastructure.
Lack of High-Value R&D by Indian Companies
According to research by Avendus, an Indian financial services company, Indian chemical manufacturers spend, on average, 3% of their revenue on R&D, as compared to 6-10% for global companies. Another problem is a dearth of highly skilled human resources to undertake high-value R&D work. Furthermore, many Indian science and engineering colleges are woefully underequipped with regard to teaching infrastructure and competent faculty.
The Indian STEM (Science, Technology, Engineering and Mathematics) curriculum is exam-oriented and does not impart industry-focused technical skills, critical thinking skills and experimentation skills. The lack of skilled research personnel coupled with stagnant or low R&D spending by Indian manufacturers means that most companies do not get into the lucrative high-value research work, which enables them to move up the value chain and generate growth. The lack of high-value R&D will be a major challenge to the growth of the Indian polyurethane foam market.

COVID-19 Impact Analysis
The pandemic resulted in a decline in industrial activities, construction projects, and automotive production, leading to reduced demand for polyurethane foam. The slowdown in economic activities and the temporary closure of businesses also affected the furniture and bedding industries, which are major consumers of polyurethane foam.
As the situation gradually improved, industries started to recover and demand for polyurethane foam products witnessed a rebound. The increased focus on hygiene and health-consciousness even in the post-pandemic period has led to a surge in demand for antimicrobial and breathable foam materials, especially in bedding and furniture.
Ukraine-Russia Impact
The Ukraine-Russia war has presented some significant opportunities for the Indian polyurethane foam market. Utilizing cheaper crude oil obtained through a government-to-government deal between India and Russia, Indian producers have been able to keep prices down for certain raw materials, thereby lowering their production costs and improving profit margins.
High energy prices in Europe have eroded its industrial competitiveness. Furthermore, sanctions imposed on Russia have disrupted its exports of polyurethane foam to Europe. Major Indian manufacturers are undertaking production capacity expansion in order to increase polyurethane foam exports to the European markets.

Segment Analysis
The global India polyurethane foam market is segmented based on type, density, distribution channel, end-user and region.
Offline Distribution Channels Remains Most Preferable by the Industry
Offline is by far the most widely used distribution channel in the Indian polyurethane foam market with a market share of nearly 97.5%. Distribution of polyurethane foam principally occurs on a B2B basis with high volumes being traded. Trust is an essential factor in these dealings, therefore deals are closed by signing legally binding contracts.
Despite the rapid growth of the e-commerce industry, it occupies a minuscule share of the overall distribution channel segment. E-commerce is fundamentally unsuited to fulfilling the unique needs of the Indian market. Therefore, small, medium and large players in the Indian polyurethane foam market prefer offline distribution channels.

Geographical Analysis
North India is Expected to Have A Faster Growth Rate
North India is expected to account for nearly 21.2% of the Indian market. It is also stated to have an above-average CAGR of nearly 9.0% during the forecast period. The faster growth rate is mainly on account of new infrastructure projects and increased industrial investment in the region. North India is the country’s most populous region, although it is relatively economically backward.
The Indian government in partnership with state governments is investing in new rail links, expressways, metro systems, new airports and dry ports to spur private sector investment and augment economic growth in the region. In February 2023, the Uttar Pradesh government announced that it received investment proposals worth ?33.5 lakh crore (US$ 40.5 billion) during the recently concluded Global Investor Summit.

Competitive Landscape
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.
Why Purchase the Report?

  • To visualize the global India polyurethane foam market segmentation based on type, density, distribution channel, end-user, 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 2023

  • End-User Companies
  • Manufacturers/ Buyers
  • Industry Investors/Investment Bankers
  • Research Professionals
  • Emerging Companies