Waterborne Polyurethane Market Report 2026

The waterborne polyurethane market size has grown strongly in recent years. It will grow from $5.63 billion in 2025 to $6.04 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to stricter environmental regulations on solvent-based coatings, expansion of construction and furniture manufacturing, growing automotive interior applications, increasing use of water-based adhesives, availability of advanced polymer dispersion technologies.

The waterborne polyurethane market size is expected to see strong growth in the next few years. It will grow to $7.79 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to rising demand for sustainable coating solutions, expansion of electric vehicle component coatings, increasing use in electronics protection, growing investments in green chemistry innovation, rising adoption in packaging and textile applications. Major trends in the forecast period include increasing adoption of low-voc waterborne formulations, rising use in flexible coatings and adhesives, growing demand for high-adhesion eco-friendly polymers, expansion of water-based elastomer applications, enhanced focus on chemical resistance performance.

The expanding chemical industry is expected to support the growth of the waterborne polyurethane market. The chemical industry encompasses the production and distribution of various chemicals and chemical products. With increasing environmental awareness and stricter regulations on volatile organic compound (VOC) emissions, industries - including the chemical sector - are seeking eco-friendly alternatives. For instance, in March 2025, the Baden Aniline und Soda Fabrik (BASF), a Germany-based chemical producer, reported that global chemical production (excluding pharmaceuticals) grew by 3.9% in 2024, compared with 1.4% in 2023. Therefore, growth in the global chemical sector is expected to drive the waterborne polyurethane market.

Major companies in the waterborne polyurethane market are developing innovative solutions, such as high-solids, eco-friendly waterborne polyurethane resin technologies, to meet the demand for low-VOC coatings, reduced environmental impact, and improved processing efficiency. These technologies enhance film properties, reduce drying time, and lower emissions during application compared with traditional water-based polyurethane systems. For instance, in June 2023, DIC Corporation, a Japan-based chemical company, launched the HYDRAN GP series, featuring higher solid content for faster processing and better film formation. Formulated without amines, these resins reduce odors, greenhouse gas emissions, and VOC levels, helping manufacturers meet stringent sustainability standards while maintaining excellent coating performance across industrial, automotive, and consumer applications.

In April 2025, UBE Corporation, a Japan-based provider of chemical products and high-performance materials, acquired the Urethane Systems business of LANXESS for an undisclosed amount. Through this acquisition, UBE aims to broaden its specialty chemicals portfolio and strengthen its capabilities in advanced urethane technologies to enhance its global market position. Urethane Systems is a Germany-based specialty chemicals company offering polyurethane systems, specialty prepolymers, and related materials across multiple industrial applications.

Major companies operating in the waterborne polyurethane market are BASF SE, Covestro AG, Dow Inc., Huntsman Corporation, Wacker Chemie AG, Lubrizol Corporation, Mitsui Chemicals Inc., DIC Corporation, Evonik Industries AG, Arkema SA, Lanxess AG, Synthomer plc, H.B. Fuller Company, PPG Industries Inc., Akzo Nobel N.V., Asahi Kasei Corporation, Eastman Chemical Company, Kuraray Co., Ltd., Sika AG, Momentive Performance Materials Inc., Tosoh Corporation.

Asia-Pacific was the largest region in the waterborne polyurethane market share in 2025. The regions covered in the waterborne polyurethane market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the waterborne polyurethane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The waterborne polyurethane market consists of sales of waterborne polyurethane-based paints, adhesives, and waterborne polyurethane ink binders. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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