Urethane Foam Manufacturing in the US

The Urethane Foam Manufacturing industry experienced growth as favorable economic conditions have driven demand for products from downstream markets. In particular, the construction (IBISWorld report 23) and furniture manufacturing (33712 and 33721) industries. Nonetheless, construction activity has...

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Bibliographic Details
Format:	Market Research
Language:	eng
Subjects:	Carpet and rug, urethane and other foam plastics Flexible foams Hydrophilic plastic foams for absorptive medical products Nonurethane foams Other nonfoam plastic products such as adhesives and coatings Plastic foam ice chests Plastic foam products for furniture and automotive seat cushions Plastic foam products for insulating automobiles and buildings Plastic foam products for reducing noise and vibrations in electronic appliances Plastic foam products to shape, insulate and pad apparel products Plastic foam shipping pads and shaped cushioning Plastic vacuum foam jugs Rigid foams Semi-rigid foams
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Summary:	The Urethane Foam Manufacturing industry experienced growth as favorable economic conditions have driven demand for products from downstream markets. In particular, the construction (IBISWorld report 23) and furniture manufacturing (33712 and 33721) industries. Nonetheless, construction activity has suffered as the Federal Reserve raised interest rates in 2022-2023 to fight inflation, boosting uncertainty for individuals and developers. Still, industry-wide revenue has increased at a CAGR of 0.1% to an estimated $13.8 billion over the five years to 2023, with a projected 0.9% decrease in 2023 alone, when profit is expected to increase to 6.8% of revenue. Research and development (R&D) activities are carried out in the industry to improve product performance. In 2022, Battelle Memorial Institute made an incredible breakthrough in converting coal-derived liquids and biomass-derived feedstocks into polyurethane (PU) foam. In a statement Battle said, "This is an opportunity for the industry to reduce dependence on oil, especially imported oil and reduce the carbon footprint for PU foam." Also, most downstream demand is satisfied by domestic manufacturers that produce specialized, high-value-added products that these markets need. As demand for specialized products increases, new manufacturers will enter the industry. The oil price, which represents a key input for the industry, will expand because of limited refinery capacity and economic uncertainty, affecting revenue growth. Nonetheless, the industry's revenue will continue to boost in response to demand from various downstream industries. So, industry revenue is expected to increase at a CAGR of 0.6% to $14.3 billion over the five years to 2028.