Against the backdrop of continuing affluence, PU demand is continuing to shift towards Asia Pacific, due to saturated industrialised markets in Western Europe and the US, says a new report from Ceresana Research, adding that Asia Pacific is the largest market for PUs at 44%, outpacing Europe and the US.

Revenues generated on the global market for PU are also likely to increase to more than US$80 billion, says the Germany-based Ceresana, adding that the global market for PU will continue to grow 4.5% on average a year.

Due to the Increasing demand, Ceresana says the global capacity of 8.8 million tonnes will increase by more than 3 million tonnes by 2020, with a majority (81%) of new capacity to be established in Asia Pacific.

Markets are driven by larger middle classes, which demand greater comfort and from the building sector, for thermal insulation.