ISOPA and ALIPA are proud to present the newly released polyurethane socio-economic study
ISOPA and ALIPA are pleased to present the latest polyurethane socio-economic study, conducted by Conversio Market & Strategy. This comprehensive analysis highlights the socio-economic value of the polyurethane industry across Europe, showing economic growth despite significant economic and geopolitical challenges. The study demonstrates not only the industry’s contributions to economic growth and job creation but also the pressing need for future investment in the face of recent economic downturns.
The socio-economic study focuses on the state of the industry from 2018 to 2023 in the EU27, Switzerland, Norway, the UK, and Türkiye. 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 2022/2023.
Nonetheless, the findings highlight polyurethane’s indispensable role in sectors such as construction, automotive, industrial goods, furniture, and beyond, underscoring its versatility and long-term economic relevance.
The polyurethane industry, with over 80.000 companies operating within Europe, generates an impressive €149 billion annually and includes nearly 700.000 employees who directly contribute to the production of polyurethane and polyurethane products. In addition, over 1.7 million companies in Europe work with these products, generating another €84 billion and employing over 6.5 million people. This highlights the industry’s importance not only to the European economy but also to its workforce.
Despite the broader challenges facing the chemicals industry, the polyurethane sector has demonstrated overall growth compared to 2018. The construction and furniture sectors, in particular, had shown relatively strong performance with construction remaining the largest application area for polyurethane products.
The construction sector directly generates over €25 billion in value, with more than 3,500 companies and 100,000 employees. Additionally, over a million companies in the installation and crafts sector working with polyurethane products add another €42 billion in value, employing over 4.7 million people.
The construction sector has seen a 5.6% growth since 2018, the highest in the polyurethane industry. However, growth has not been uniform across all sectors. For instance, the automotive industry experienced only modest expansion, with added value increasing by 2%. Moreover, recent growth rates, based on the economic downturn experienced since 2022/2023, are expected to show a more difficult outlook for the industry. At the same time, improvements in employment rates have remained relatively low since 2018.
Still, the polyurethane industry’s economic value across Europe should not be understated. Its influence extends across the continent, with Germany still leading the way, contributing over €50 billion annually and supporting over a million employees. France, Italy, and the UK have also remained significant players in the industry. At the same time, we see Türkiye emerging as a new important market, contributing around €8 billion per year. Particularly in construction, bedding and furniture, the country is making significant progress.
The study underscores the polyurethane industry’s resilience and growth despite significant external challenges. But it also highlights the need to strengthen long-term competitiveness, as low growth rates, particularly in some sectors, reflect the economic difficulties the industry has faced in recent years.
The widespread presence of the polyurethane industry across economic sectors and geographic regions also highlights its importance as a unifying force in Europe’s manufacturing ecosystem. With necessary economic and legislative stimuli, and with continued collaboration and innovation, the polyurethane industry holds the potential to make a substantial contribution to Europe’s socio-economic landscape for many years to come.
For a deeper dive into polyurethane’s transformative role in Europe’s economy, you can read the full study here.
ISOPA represents major European producers of aromatic diisocyanates and polyols, the main raw materials used to make polyurethanes. More information on diisocyanates, their applications and ISOPA’s product stewardship initiatives can be found on the ISOPA website.
ALIPA was created by the major European producers of aliphatic isocyanates and polyisocyanates – key components for high quality coatings, adhesives and elastomers – in order to encourage the safe and proper use of these materials. You can find more information about ALIPA’s objectives and initiatives on the ALIPA website.
