Soft Touch Polyurethane Coatings Market

2021 Analysis and Review: Soft Touch Polyurethane Coatings Market by Base Type– Water Based and Solvent Based For 2021 – 2031

Soft Touch Polyurethane Coatings Market Snapshot

Driven by increasing demand for superior and durable coating, the soft touch polyurethane coatings market will register year on year growth at 7% CAGR between 2021 and 2031, with overall shipping expected to top 313 KT in 2021.

Future Market Insights (FMI) has estimated soft touch polyurethane coatings sales to register 3.50% year-on-year growth in 2021 in response to the implementation of strict laws limiting the emission of volatile organic components around the world.

FMI states that North America soft touch polyurethane coatings market will expand at 5.10% CAGR through the forecast period especially on account of rising application in housing and construction activities.

Key Points Covered in Soft Touch Polyurethane Coatings Market Study

  • Market estimates and forecast 2021 – 2031
  • Key drivers and restrains impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competitive Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact On Soft Touch Polyurethane Coatings Market
  • Recommendation on Key Winning Strategies

2016 – 2020 Global Soft Touch Polyurethane Coatings Market Outlook Compared to 2021 – 2031 Forecast

Soft touch polyurethane coatings market registered growth at a robust pace between 2021 and 2031. Increasing sales of automotive with comfortable and aesthetic interior along with the demand for mobile and laptop cases has bolstered the prospects of the soft touch polyurethane (PU) coatings market growth.

As per FMI analysis, the demand will remain exceptionally high in countries across Asia. Sales uptick registered can be attributed to the booming mobile and telecommunication industries. Considering soft touch PU is used in the manufacturing of mobile and laptop casings and covers, the market is forecast to register accelerated pace of gains.

Among type of coatings available, the ultraviolet (UV) coating segment will weigh in on the back of rising demand in automotive industry for coating the vehicle’s interior.

Introduction of new coating chemicals and resins such as masterbatch and polyurea in coating automobile interior and wooden furniture however might inhibit the market growth. Lack of information among manufacturers in developing nations regarding benefits of soft touch polyurethane coatings will damp down the market growth over the assessment period.

According to FMI’s research, projected rate of expansion of the global market is likely to touch CAGR of 8.7% for the forecast period 2021-2031, due to rising demand for eco-friendly packaging in food and pharmaceutical sector.

Recent launches in soft touch PU coatings will also aid the overall growth. For instance, In June 2020, BASF launched 10 new variations of “Haptex 2.0” polyurethane (PU) solution for the production of synthetic leather. This new solution will assist designers in achieving supreme quality and desired aesthetic appearance using synthetic leather in wide spectrum of application. It is also free from any organic solvents, thus any synthetic leather made with Haptex 2.0 will meet stringent VOC standards.

Will Application Wood and Furniture Sectors Remain the Chief Growth Enabler?

Soft touch PU coatings are applied on both interior and exterior of wooden furniture to protect it from decay, molding, and harsh weathering conditions. Improved standard of living and rising spending power of population in emerging economies has fueled the demand for wooden furniture, subsequently driving the sales of soft touch polyurethane (PU) coatings.

Rise in residential and construction activities like construction of decking boards and sliding doors and cabinets coupled with increase in number of complete renovation projects will boost the demand of soft touch polyurethane (PU) coatings in wood industry.

Implementation of stringent regulations regarding furniture coating products containing volatile organic compounds will positively influence the market growth. Since the soft touch PU coatings do not release any VOCs and are formaldehyde free, they are environment friendly and sustainable. This will help in driving revenue growth of the soft touch PU coatings market during the forecast period.

What is Causing Shift to Soft Touch Polyurethane Coatings across Industries?

Consumers and manufacturers are shifting towards soft touch PU coatings owing to their excellent chemical and temperature resistance. Despite plastic coatings being cheap, durable and lightweight, it failed under certain chemicals and extreme heat. Market players developed ultraviolet soft touch PU coating that is cured under ultraviolet (UV) lights which imparts high resistance against chemicals, insects, fungi and abrasion.

Soft touch polyurethane coatings are finding use in electronic products industry like smartphone and laptop coating, as it provides premium feel to the device and also improves the handling. These coatings also act as a first line of defense against accidental drop and scratches.  Rising sales of smartphones and laptops across the globe will skyrocket the demand of these coating in the future.

Higher productivity of soft touch PU coating, limited waste generation and no environmental pollution will drive the demand for UV soft touch polyurethane coatings in upcoming years.

Country-wise Analysis

What Makes China A Leading Market For Soft Touch Polyurethane Coatings?

Increasing per capita income and rise in air passenger traffic has led to increase in demand of commercial aircrafts with better cabin interiors in China. Increasing sales and production of aircrafts and cabin interiors will directly influence the soft touch polyurethane coatings market in the country.

China is the leading consumer of soft touch PU coatings owing to increasing production of mobile phone and laptop cases along with coating industries for consumer electronic in the country.  Rising per capita income and increase in sales of smartphones and laptops will further accelerate the market growth in China. 

Chinese government is also focusing on limiting the volatile organic compound emissions and reducing the fog dispersed by manufacturing plants by promoting the use of UV soft touch polyurethane coating technology.

In August 2020, China’s State Administration for Market Regulation (SAMR) and the Standardization Administration of the People’s Republic of China (SAC) issued new standards limiting the use of VOCs and other chemicals in coatings and adhesive manufacturing.

Increasing government promotion towards using alternate chemicals to curb the VOC emission will drive the sales of soft touch PU coatings in China. Aggressive implementation of these protocols and rising awareness among the manufacturers regarding the benefits of these coatings will drive the market growth in upcoming years In China.

What Are the Factors Driving Soft Touch Polyurethane Coatings Demand in India?

India is expected to offer lucrative growth opportunities over the forecast period backed by increasing sales of smartphones and rising demand for passenger cars in the country.

According to the report published by India Cellular and Electronics Association (ICEA), the total numbers of smartphone users in India are expected to reach 829 million by the end of 2022. Increasing number of smartphone user will lead to increase in demand for smartphone covers and cases thus driving the demand for soft touch PU coatings in India.

Indian Brand Equity Foundation (IBEF) states that, passenger vehicles sale in India grew by 28.39% in MARCH 2021 when compared with sales in March 2020. The soaring demand of passenger vehicles in India will fuel the demand for polyurethane coating in the country.

Growing consumer preference towards maintaining their interiors good conditions, in terms of appearance and performance and rising demand for coatings to preserve the cabin interior from wear and tear will boost the sales of soft touch PU coatings in India.

Growing initiatives and drafting of specific regulations with regard to the application of UV polyurethane coatings for food packaging will positively influence the market growth in the near future.

How is the Soft Touch Polyurethane Coatings Market in U.S. Set to Fare? 

Rise in housing construction activities along with high demand of wood will drive the sales of soft touch PU coatings in U.S. Soft touch PU coatings protects the word from insect and pest infestations and rising cases of termite infestations in United States will boost the demand for polyurethane coatings over the years.

Owing to rising consumer awareness regarding the usage of eco-friendly coating products, the demand for water based PU coatings is on the rise in U.S. Higher production rate due to fast curing of ultraviolet polyurethane coatings has made them very popular among wood preservative manufacturers in the country.

Pew Research Center reports that U.S. is one of the leading smartphone users in the world with more than 85% of its population owning a smartphone in 2021. Customers are getting more cautious about their smartphone owing to its high cost and increased dependency on the internet. They are using feel good and luxurious back covers to stylize and protect their smartphone. This trend is expected to bode well for the market growth in U.S.

What is the Outlook for Soft Touch Polyurethane Coatings in the Germany?

Rapid infrastructure development and rise in manufacturing activities especially in automotive domain will drive the demand for soft touch PU coatings in the Germany. Leading automotive giants are using acrylonitrile butadiene styrene (ABS) plastics in arm rest, door trims, airbags compartments, steering wheel, and front panels to reduce the overall weight of the vehicle.

Since ABS is lightweight and subjected to high wear and tear, it is required to be coated with high abrasive resistance material. Increasing sales of automobiles and increasing use of acrylonitrile butadiene styrene (ABS) by leading automakers for making cabin interior components will drive the demand for soft touch PU coatings in the country.

In 2019, more than 4.6 million passenger vehicles and 224,009 luxury cars were manufactured in Germany, states German Association of the Automotive Industry.  Rising production of passenger cars in the country and soaring popularity of German made luxury automobiles across the globe will fuel the soft touch PU coatings market growth in the region.

Development and advancements in technology and increase in the production and sales of premium consumer electronics will also play a significant role in propelling the market growth in Germany.

Category-wise Insights

Why Are UV Soft Touch Polyurethane Coatings High in Demand?

Despite 2K soft touch polyurethane coating products owning more than 66% market share in 2021, UV soft touch polyurethane coating segment is forecast to grow at more than 8.1% CAGR throughout the forecast period.

Strict environment regulations limiting the usage of conventional coatings owing to their high volatile organic compounds (VOC) emissions is the key growth drivers for UV soft touch polyurethane coating segment. Growing government support towards incorporating eco-friendly technologies such as UV soft touch polyurethane coatings and rising awareness among the consumer regarding benefits of UV coatings will positively influence the market growth in upcoming years.

Why is Water-Based Soft Touch Polyurethane Coatings Sales Rising?

The production of water-based soft feel polyurethane coating is a complex affair as water reacts with hydroxyl functional group i.e. polyols and polyisocyanate present in the polymer to form polyurethane and release carbon dioxide. Market players are working to control the side reaction which generates urea linkages in order to achieve desired properties.

Superior performance and environment safe nature of water based soft feel polyurethane coating will lead to high demand of these coating during the forecast period. The revenue contribution rate is predicted to surpass 7.5% over the assessment period.

Who is the leading Soft Touch Polyurethane Coatings End Users?

The transport and automotive segment is forecast to hold more than 37% of global market share in terms of value by the end of 2031. Leading car manufacturers are looking to offer superior surface finish and enhanced properties like warm touch and rich look.

Increasing use of acetonitrile butadiene styrene (ABS) plastics in making automobile interiors as fueled the demand for soft touch PU coatings as they protects the plastic components from yellowing, scratching, abrasion and chemicals.

Increasing demand for soft feel polyurethane coatings to coat interior components to provide durable and aesthetically pleasing automobile interiors will drive the market growth in upcoming decade.

Competitive Landscape

As per FMI, the soft touch polyurethane coatings market is dominated by leading market players which include RPM International Inc., The Sherwin Williams Company, PPG Industries Inc., Axalta Coating Systems Ltd., Jotun AS, AkzoNobel N.V., Aexcel Corporation, and Sokan New Materials. Collectively they account for more than 35% of global market share.

Strategic merger and acquisition is the key strategy employed by market players to enter new and potential market and strengthen their market position. New product development in compliance with environment regulations is in the cards during the forecast period.

For instance, on 6th July 2021, RPM International Inc. acquired Dudic Inc. through its Carboline subsidiary. Dudic Inc. is a high performance coating manufacturer with sales in U.S., Taiwan, and South Korea. This acquisition will allow RPM Internationals to enter East Asia market and expand its sales which include soft touch polyurethane coatings.

In October 2018, AkzoNobel N.V. launched a new “Awlgrip high definition technology” (HDT) polyurethane transparent coating for marine applications. The new coating is made from latest AkzoNobel coatings technology and is claimed to be more durable and abrasion resistant, easily repairable and lower in volatile organic compounds (VOCs).

Soft touch polyurethane coatings Market – Report Scope

Attribute

Details

Forecast Period

2021 – 2031

Historical Data Available for

2015 – 2025

Market Analysis

US$ Mn for Value & Units for Volume

Key Regions Covered

North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and Middle East & Africa

Key Countries Covered

U.S., Canada, Brazil, Mexico, Argentina, Rest of Latin America, EU-5, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Denmark, Finland, Iceland, Norway, Sweden), Rest of Western Europe, Poland, Russia, Rest of Eastern Europe, China, India, Japan, GCC Countries, South Africa, Israel, Turkey, Iran, Rest of Middle East & Africa, Australia, New Zealand, South Korea, the Philippines, Malaysia, and Thailand

Key Segments Covered

By Base Type, By Product Type, By End Use Industry, and By Region

Key Companies Profiled

Report Coverage

Market Overview, Market Background, Market Forecast, Segmental Analysis, Regional Profiling and Competition Analysis

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is soft touch polyurethane coatings market size?

    Driven by increasing demand for environmentally safe and wear resistant coating, the soft touch polyurethane coatings market size is forecast to reach US$ 6430 Mn in 2021 with a CAGR of 7%.

  • At what rate did the soft touch polyurethane coatings market expand in the last five years?

    Between 2016 and 2020, the soft touch polyurethane coatings sales grew at 3.0% CAGR.

  • What are the key trends shaping the soft touch polyurethane coatings market?

    Adoption of ultraviolet curable polyurethane dispersion coatings and growing preference for water based formulations are few of the key trends shaping the soft touch polyurethane coatings market.

  • Who are the key exporters of soft touch polyurethane coatings across the globe?

    USA, China, and Germany are the leading exporters of soft touch polyurethane coatings in the world.

  • What is the North America soft touch polyurethane coatings market outlook?

    Demand registered in North America will continue rising, backed by increasing production and export of soft touch polyurethane coatings from U.S. and Canada, the North America market is anticipated to expand at 5.10% CAGR during the forecast period.

  • Who are the leading companies in soft touch polyurethane coatings market?

    PPG Industries Inc, Sherwin Williams, AkzoNobel, RPM International, and Axalta are the top companies operating in the market.

  • What is the cumulative share of top companies in soft touch polyurethane coatings market?

    The cumulative market shares of top players operating in soft touch polyurethane coatings market are around 35% to 45% in 2021.

  • At what rate will soft touch polyurethane coatings sales increase in Europe?

    Soft touch polyurethane coatings sales will increase at 5.8% CAGR in Europe, backed by rising demand in the U.K., Germany and other countries.

  • Which are the top countries driving soft touch polyurethane coatings market demand?

    Leading countries driving demand in the soft touch polyurethane coatings market are U.S., China, Germany, and Japan.

  • What are the key statistics for soft touch polyurethane coatings market in Japan and South Korea?

    Currently in 2021, Japan and South Korea jointly holds around 14% of share respectively in the global soft touch polyurethane coatings market.

Key Segments Covered in Soft touch polyurethane coatings Market Study

By Base Types:

  • Water-based
  • Solvent-based

By Product Types:

  • 2K
  • UV (Ultra Violet)

By End-use industry:

  • Transport and automotive
  • Electrical and electronics
  • Wood and furniture
  • Others (packaging, measuring devices)

Regions:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific excluding Japan
  • Japan
  • Middle East & Africa

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