GVR Report cover Japan Aqueous Polyurethane Dispersion Market Size, Share & Trends Report

Japan Aqueous Polyurethane Dispersion Market Size, Share & Trends Analysis Report By Product, By Application (Water-based Paints, Leather Finishing Agents, Water-based Glue), And Segment Forecasts, 2018 - 2025

  • Report ID: GVR-2-68038-399-7
  • Number of Pages: 60
  • Format: Electronic (PDF)

Industry Insights

The Japan aqueous polyurethane dispersion market size was estimated at USD 121.6 million in 2017. Development of the automotive industry and advancements in the home furnishing & interiors sector is one of the key trends stoking market growth. Polyurethane dispersion (PUD) is a chemical that is extensively used in its soluble form, primarily as a flocculating agent for purification of drinking water as well as in wastewater treatment facilities. In its aqueous form, it finds application in the textile dyeing and printing cloth industries, provided that the solution is alkaline in nature.

The major raw materials involved in the manufacturing of polyurethane resin are polyols and isocyanates. Polyols are combined with isocyanates to produce polyurethane resins. Fluctuating prices of these raw materials are expected to impact prices for aqueous polyurethane in Japan over the forecast period. Manufacturing of the product is a two-step process, where raw materials are first reacted with each other and then synthesized under controlled environmental conditions.

Japan aqueous polyurethane dispersion market

Value chain for aqueous polyurethane dispersion consists of raw material suppliers, manufacturers, distributors/suppliers, and industrial end-users. Companies supply polyurethane resins, polyols, isocyanates, and butanediol that are used in the manufacturing of aqueous PUD. Few manufacturers position themselves across the whole value chain and few sources their raw materials from other suppliers. Since the number of raw material suppliers in Japan is limited, suppliers maintain proximity with manufacturers to reduce transportation costs.

The market is anticipated to expand rapidly due to strong demand from the synthetic leather production industry. This segment has other primary applications in industries such as textile finishing, furniture, and interiors, natural leather finishing, automobiles. Strong growth in the leather industry in Japan is likely to trigger the consumption of aqueous polyurethane dispersion in Japan.

The market is primarily driven by heightened demand for the product from coating applications. Increasing regulations to ensure low VOC emissions are projected to work in favor of the market. Water-based paint reduces VOC emissions. Owing to stringent environmental regulations on the usage of solvent-based PUDs, water-based PUDs are gaining market share. Solvent-based dispersions are poised to be completely replaced by aqueous-based materials.

With the rapid development of the finished leather market in the country, the market for aqueous PUD is estimated to flourish over the coming years. There are multiple global companies, established in Japan, that are working to innovate coating composites. These formulations are made for the manufacturing of high-quality coats and finishes on flexible substrates, particularly on polyvinyl chloride. The current technology of coating agents comprises of high-performance PU dispersions, which possess particular physicochemical properties.

In addition, the growth of the luxury goods segment such as jackets and wallets, owing to the widening base of the youth population, is expected to translate into the greater uptake of aqueous polyurethane dispersion. Affordable luxury brands are focusing on expanding their presence in Japan as well as other Asian countries by introducing more colorful and fashionable designs as compared to high-end luxury goods. Digital advertising is one of the key areas, on which luxury brands are focusing in order to target youth. Leather bags and purses are among the most sold items in the luxury products segment. This is anticipated to positively influence the overall market.

Product Insights

On the basis of product, the Japan aqueous PUD market is segmented into component polyurethane, two component polyurethane, and urethane modified. Component polyurethane held a significant share in the market in terms of value in 2017. Two component polyurethane dispersion systems add exceptional hardness, external appearance, finishes, and chemical resistance to the product. They use multiple crosslinking agents such as polyaziridine, carbodiimide, water-dilutable isocyanate, and water-dilutable epoxy. Since Asia Pacific has no stringent regulations regarding its usage, its market share is likely to increase in Japan over the forecast period.

Urethane modified is projected to be the fastest-growing segment during the forecast period. They are often used as reflective coatings across multiple end-use industries. Urethanes are modified with oil for applications in the coatings industry. Modified urethanes provide good resistance to abrasion and mar and also increase flexibility, toughness, and resistance to various chemicals. Applications of these coatings include industrial floors, gym floors, trim varnishes, wooden floors, and various other applications.

Application Insights

PUD leather finishing agents, PUD coating agents, PUD water-based glue, waterborne wood coatings, and water-based paints are key applications of the product. As of 2017, the water-based paints application segment dominated the market in Japan, accounting for 54.5% of the overall revenue share. This dominance of the segment can be attributed to environmental regulations such as the Clean Air Act and technological advancements that have made water-based paints an effective substitute for solvent-based coatings.

Japan aqueous polyurethane dispersion market

Solvent-based PU lacquers have been gradually replaced by aqueous PUDs owing to their comparatively superior performance and their ecofriendly nature. The major reason for the growth of aqueous PUD as leather finishing agents is the similarity between collagen fiber of leather and polyurethane molecule. Japan has a potentially huge market for finished leather, which is poised to support the growth of the market in the country.

Japan Aqueous Polyurethane Dispersion (PUD) Market Share Insights

The market is characterized by the presence of various global as well as small & medium scale players. Companies use the strategy of mergers & acquisitions and portfolio expansion to consolidate their position in the arena. Some of the key players in the market are BASF SE; Lubrizol Corporation; Alberdingk Boley, Inc.; Hauthaway Corporation; Mitsui Chemicals Inc.; and DIC Corporation.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Volume in kilotons, Revenue in USD Million & CAGR from 2018 to 2025

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments Covered in the Report

This report forecasts revenue growth at a country level and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Japan aqueous polyurethane dispersion market report on the basis of product and application:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Component Polyurethane

    • Two-component Polyurethane

    • Urethane Modified

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • PUD Leather Finishing Agents

    • PUD Coating Agents

    • PUD Water-based Glue

    • Waterborne Wood Coatings

    • Water-based Paints

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