Polyurethane (PU), as a versatile and widely utilized polymer, finds extensive applications in various industries such as refrigerator and automobile. In South America, particularly in Brazil, the demand for polyurethane is witnessing a significant growth.

Refrigerator

The refrigerator market in Brazil is a crucial segment of its consumer appliance industry. The demand for refrigerators has been increasing driven by population growth, accelerated urbanization, and increasing disposable income. According to Eletros, Brazil’s white goods sector saw a 16% increase in sales during the first half of 2024. Leading refrigerator manufacturers such as Whirlpool and Electrolux hold significant market shares. Whirlpool, with a market share of up to 55%, plans to invest R$ 350 million in expanding its factory in Brazil over the next three years. Chinese home appliance manufacturer Midea commenced mass production at its refrigerator manufacturing plant in Brazil in December 2024. Furthermore, Brazil’s energy efficiency program presents new challenges and opportunities. These initiatives not only boost local production but also attract more foreign investments.

Rigid PU foam is known for its excellent insulation properties. It is widely used as the insulation layer in refrigerators. As refrigerator production increases, the demand for polyurethane correspondingly rises.

Automobile

The Brazilian automobile market is growing, driven by increasing consumer spending. Brazil’s automobile production stood at 2.2 million units in 2023, according to Anfavea. During the first 11 months of 2024, production has already reached 2.36 million units. Anfavea predicts total production for 2024 was 2.6 million units, representing an 18.2% year-on-year growth. Car brands such as Fiat, Volkswagen, Chevrolet, Toyota, and Hyundai collectively hold nearly 70% share of the country’s automobile market. Chinese carmaker BYD plans to commence production at a new plant in Brazil in March 2025, leveraging advantages in electric vehicle manufacturing and benefiting from government subsidies.

Brazil’s electric vehicle sector is experiencing a boom as EV sales from January to October surged by a staggering 90.7% year-on-year to 94,000 units. Chinese brands dominate nearly 97% of Brazilian pure electric vehicle market, with BYD particularly excelling. With ongoing advancements in new energy policies, the Brazilian automobile market, especially in the EV sector, holds promising prospects.

Polyurethanes are widely used in car manufacturing, including for seats, seals, coatings, and more. The growth in car production inevitably drives demand for polyurethane.