THERMOPLASTIC POLYURETHANE (TPU) FILMS MARKET ANALYSIS

The global thermoplastic polyurethane (TPU) films market size was valued at USD 419.46 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.10% from 2022 to 2030. Growing population and steady development of economy is creating high demand for footwear and clothes. TPU films has important properties which makes it ideal for footwear and clothes. Thus, growing demand from footwear and apparel industry is propelling growth of the global thermoplastic polyurethane (TPU) films market.

Global Thermoplastic Polyurethane (TPU) Films Market: Regional Insights

Regionally, Asia Pacific is expected to dominate the global thermoplastic polyurethane (TPU) films market over the forecast period and this is attributed to the strong growth of textile industry in the region. According to India Brand Equity Foundation (IBEF), India’s textiles sector is one of the oldest industries in the Indian economy. The industry is extremely varied and consists of hand-spun and hand-woven textiles sectors and also capital- intensive sophisticated mills sector. The exports of textiles stood at USD 22.89 billion between April 2021 and October 2021. The textile industry in the country is expected to reach USD 209 billion by 2029.

At the same time, North America is also expected to gain fastest growth in the global market over the forecast period owing to the increasing spending on construction industry. According to the United States Department of Commerce, the total construction spending in the country reached USD 1,521.45 billion in January 2021 which increased by 1.7% compared to USD 1,496.45 billion in December 2020 and increased by 5.8% compared to USD 1,437.72 billion in January 2020. The total construction spending by June 2021 increased by 8.2% and reached USD 1552.2 billion compared to USD 1,435 billion in June 2020.

Figure 1. Global Thermoplastic Polyurethane (TPU) Films Market Value Share (%), By Region, 2021

Global Thermoplastic Polyurethane (TPU) Films Market Drivers:

Expanding apparel and textiles industry is primarily fueling growth of the thermoplastic polyurethane (TPU) films market. According to the India Brand Equity Foundation, the apparel and textiles industry was valued at USD 150 billion in 2020, and it is projected to reach USD 220 billion by 2026. Also, in 2021, the US-based footwear manufacturer Skechers recorded historical revenues of USD 6.29 billion. The company is optimistic about generating revenue of USD 10 billion by 2026.

Increasing application of TPU in manufacturing of lightweight aircraft is again propelling growth of the market. TPU plays an important role in the fabrication of lightweight aircraft components. As per International Air Transport Association (IATA), in 2020, commercial airlines received 805 new aircraft, around half of the number initially expected at the start of the year. Airlines were expected to take possession of 1143 new aircraft in 2021, while the number is anticipated to be 1622 in 2022.

Global Thermoplastic Polyurethane (TPU) Films Market Opportunities:

Emerging bio-based TPU is projected to serve major growth opportunities for the market players in the near future. Bio-based polyurethanes are gaining traction worldwide as they are playing important role in promoting sustainability and reducing waste by increasing the life of natural resources and natural-derived commodities.

Rapid growth in construction activities is again anticipated to bring bright market opportunities over the forecast period. According to the Coherent Market Insights analysis, the global construction industry was valued at about USD 12 trillion in 2019, registering a growth rate of about 4%, compared to the previous year. The value of the global construction industry had declined in 2020, as construction activities were temporarily paused during the government-imposed lockdown to curb the spread of new COVID- 19 cases. However, in 2021, the global construction industry picked up the pace, and it is expected to grow in the coming years.

Global Thermoplastic Polyurethane (TPU) Films Market Trends:

Growing health and wellness trend is increasing participation of people in sports activities, this in turn driving demand for sports equipment. TPU films is widely used in sports equipment as it offers UV resistance, abrasion resistance, scratch resistance, tear resistance, and impact resistance in many of the sports equipment

Growing number of distribution agreements among key players in the market to expand their reach is a growing trend in the market. For instance, in June 2022, Kimpur signs a distribution agreement for TPU with global Wanhua Chemical Group.

Global Thermoplastic Polyurethane (TPU) Films Market Restraints:

Increasing price of raw materials is expected to restrict the market growth. For instance, on October 15, 2021, BASF raised the price of all thermoplastic polyurethane (TPU) products in North America by USD 0.55/lb.

Availability of cheap alternatives is also anticipated to hamper the market growth over the forecast period.

Figure 2. Global Thermoplastic Polyurethane (TPU) Films Market Value Share (%), By Chemical Class, 2021

Global Thermoplastic Polyurethane (TPU) Films Market Segmentation:

The global thermoplastic polyurethane (TPU) films market report is segmented into chemical class, application, and geography

Based on chemical class, the market is segmented into Polyester, Polyether, and Polycaprolactone. Out of which, Polyester is expected to dominate the global market over the forecast period and this is attributed to their high tensile strength and puncture-resistant property. Moreover, they perform well in contact with fuels or solvents, withstanding high abrasion environments, and exhibit excellent heat-activated adhesive. Additionally, they are excellent for use in helium containment, and are also ultrasonic and radio frequency weldable.

Polycaprolactone segment is also expected to witness significant growth in the near future and this is owing to their intrinsic durability, chemical resistance, strong hydrolysis resistance, and low-temperature flexibility and toughness property.

Based on application, the market is segmented into footwear and apparel, medical supplies, sports equipment, building and construction, and others. Out of which, Footwear and Apparel is expected to dominate the global market over the forecast period and this is attributed to increasing production of footwear and apparel worldwide. According to the Portuguese Footwear Components and Leather Goods Manufacturers Association (APICCAPS), by 2020, 20.5 billion pairs of footwear were projected to be produced globally.  In 2019, worldwide footwear production was estimated to be 24.3 billion pairs (as shown in the graph).

Building and Construction segment is also expected to witness significant growth in the near future and owing to the increasing construction activities across developed and developing countries. According to the United States Census Bureau, the total new construction in the United States was valued at about USD 1,469 billion during the year 2020, registering a growth rate of 4.9% compared to the USD 1,391 billion in 2019. The construction industry in the country further saw growth in 2021, owing to the rise in apartment projects and bettering resource and labor shortage issues.

Global Thermoplastic Polyurethane (TPU) Films Market: Key Developments

1. In February 2020, Huntsman Corporation acquires Icynene-Lapolla, a leading North American spray polyurethane foam (SPF) insulation manufacturer and combines it with Demilec to create a leading supplier of SPF products used to insulate commercial and residential structures. The combined business is renamed as Huntsman Building Solutions.
2. In May 2020, Huntsman Corporation acquires CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets.

Global Thermoplastic Polyurethane (TPU) Films Market: Key Companies Insights

The global thermoplastic polyurethane (TPU) films market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global thermoplastic polyurethane (TPU) films market are 3M, American Polyfilm Inc., Avery Dennison Corporation, Covestro AG, Ding Zing Advanced Materials Inc., Gerlinger Industries GmbH, Huntsman International LLC, Okura Industrial Co. Ltd, Permali Gloucester Ltd, Schweitzer-Mauduit International Inc., Wiman Corporation, and The Lubrizol Corporation

*Definition: Thermoplastic polyurethane (TPU) is a class of plastics that have unique properties. It is a thermoplastic elastomer composed of linear segmented block copolymers that have both soft and hard segments. This makes it a popular choice for a variety of applications. TPU is a versatile material that can be molded into a variety of shapes. Its high durability and high flexibility makes it a suitable material for a variety of applications, including automotive parts, wires, and breathable films. TPU is composed of two distinct segments: a hard, elastomeric segment, and a soft segment made of polyol and isocyanate.