The global market for waterborne polyurethane (PUD) is projected to reach $4.8 billion by 2031, with an annual growth rate of 6.9%.

 PUD, a water-based polyurethane material, is produced through water dispersion technology that disperses polyurethane molecules into water to form a colloidal solution. This eco-friendly material features low volatile organic compounds (VOCs), minimal toxicity, and solvent-free properties, making it widely used in industries such as coatings, adhesives, leather, and textiles. Compared to traditional solvent-based polyurethane, PUD better complies with environmental regulations and meets increasingly stringent market demands, thus gaining attention across various sectors.
In the upstream and downstream analysis, the upstream sector of waterborne polyurethane primarily consists of manufacturers of polyurethane raw materials, including suppliers of isocyanates, polyethers, and polyesters. These suppliers significantly influence the production costs and performance characteristics of waterborne polyurethane. The downstream applications span diverse industries such as coatings, construction, automotive, textiles, leather, and adhesives. Within the coatings industry, waterborne polyurethane has become the mainstream choice due to its excellent coating performance and eco-friendly properties. The leather and textile industries also demonstrate strong demand for its wear resistance and water resistance characteristics.
Market Development Opportunities and Key Drivers The growth potential of waterborne polyurethane (PUD) primarily stems from global environmental policies and the rising consumer demand for eco-friendly products. As environmental standards tighten worldwide, many countries have imposed stricter regulations on organic solvents, leading to a gradual shift in market share from traditional solvent-based polyurethanes to waterborne alternatives. Furthermore, economic expansion and the expanding middle class have fueled significant demand for high-quality, sustainable coatings, adhesives, and textiles. These factors collectively drive the market penetration of waterborne polyurethane.
Despite the promising prospects of the waterborne polyurethane market, it faces several challenges and risks. Firstly, the production costs of waterborne polyurethane are relatively high, primarily due to the need for more complex equipment and technical support during manufacturing, which increases cost pressures on manufacturers. Secondly, the relatively low solid content of waterborne polyurethane may affect performance in certain applications, limiting its use in specific fields. Additionally, the formulation and production technology of waterborne polyurethane still require further improvements to enhance its adaptability and durability under low-temperature conditions.
With the growing emphasis on environmental protection and sustainable development, waterborne polyurethane has seen increasing demand in downstream markets. Industries such as coatings, adhesives, and textiles are seeing expanding applications, particularly in automotive coatings, architectural coatings, and coatings for furniture and flooring. Meanwhile, consumers' growing preference for products that are non-toxic, low-volatility, and offer superior mechanical properties has driven continuous innovation and broader market adoption of waterborne polyurethane. Additionally, its applications in leather and textile sectors are expanding, especially in high-end customized products and eco-conscious manufacturing, where the market prospects for waterborne polyurethane appear particularly promising.
According to QYResearch's latest report' Global Waterborne Polyurethane PUD Market Report 2025-2031', the global waterborne polyurethane PUD market is projected to reach $4.8 billion by 2031, with a compound annual growth rate (CAGR) of 6.9% in the coming years.
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Figure 00002. Top 13 Global Waterborne Polyurethane (PUD) Market Share Ranking (Based on 2024 survey data; current figures are subject to our latest research). According to QYResearch's Leading Enterprises Research Center, the global PUD market is dominated by industry leaders including Covestro, BASF, Wanhua Chemical, Mitsui Chemicals, and Lubrizol. In 2024, the top five manufacturers collectively held approximately 42.0% of the global market share.
Figure 00003. Global market size of waterborne polyurethane (PUD) by product type. Currently, polyester-based PUD dominates the market with approximately 63.2% share.