Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The polyols market has been experiencing notable trends in recent years, driven by a combination of factors influencing demand and supply dynamics. Polyols, which are key components in the production of polyurethane, find extensive applications in various industries including construction, automotive, furniture, and packaging. One significant trend in the market is the growing demand for eco-friendly and sustainable polyols. With increasing awareness about environmental concerns and regulations pertaining to emissions, there has been a noticeable shift towards bio-based polyols derived from renewable sources such as soybeans, corn, and sugarcane. This trend reflects a broader consumer preference for environmentally friendly products and is expected to continue shaping the polyols market in the coming years.
Another prominent trend in the polyols market is the surge in demand from the construction industry. Polyurethane foams, which are produced using polyols, are widely used in insulation applications for buildings and infrastructure projects. The booming construction sector, particularly in emerging economies, has been a key driver for the increased consumption of polyols. Moreover, the trend towards energy-efficient buildings and stringent building codes further amplifies the demand for high-performance insulation materials, thereby fueling the growth of the polyols market.
The harmful emissions from production processes affect the health of the professionals and therefore it adds to the compensation to them and insurance costs. The additional production costs are also considered as the major restraint of polyols market growth.
Furthermore, technological advancements have been instrumental in driving innovation within the polyols market. Manufacturers are continuously investing in research and development to enhance the properties of polyols and develop novel formulations that offer improved performance and sustainability. This includes the development of low-VOC (volatile organic compound) polyols, which address concerns regarding indoor air quality and environmental impact. Additionally, innovations in manufacturing processes have led to cost optimization and increased efficiency, contributing to the overall growth and competitiveness of the polyols market.
The automotive industry represents another significant driver of market trends in the polyols sector. Polyurethane foams produced from polyols are utilized in automotive interiors for seating, cushioning, and sound insulation. With the growing demand for lightweight materials to improve fuel efficiency and reduce emissions, there is a rising preference for polyurethane foams over traditional materials such as metal and wood. Moreover, advancements in automotive design and manufacturing techniques are driving the adoption of polyols-based materials for a wide range of applications, including automotive composites and structural components.
In addition to these demand-side trends, the polyols market is also influenced by supply-side factors such as raw material availability and pricing dynamics. Fluctuations in the prices of key raw materials, such as propylene oxide and ethylene oxide, directly impact the production costs of polyols. Volatility in crude oil prices, geopolitical tensions, and regulatory changes can all contribute to price instability in the raw material market, posing challenges for polyols manufacturers in terms of cost management and supply chain resilience.
Overall, the polyols market is characterized by a dynamic landscape shaped by evolving consumer preferences, technological innovations, and macroeconomic factors. As industries continue to prioritize sustainability, performance, and cost-effectiveness, the demand for polyols is expected to remain robust, driving further innovation and growth in the market. However, market participants must remain vigilant to navigate potential challenges and capitalize on emerging opportunities in this competitive and rapidly evolving industry.
Polyols Market Highlights:
Global Polyols Market Overview
The Polyols Market Size was valued at USD 29.51 Billion in 2023. The Polyols market industry is projected to grow from USD 30.66 Billion in 2024 to USD 41.37 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.2% during the forecast period (2024 - 2032). Polyols have varied applications and they require minimal manufacturing costs as well. Therefore, the organic compound with various hydroxyl contributed to varied applications. Especially polyols are used in the construction industry. The demand for energy-conserving buildings is growing. The growing population with energy-conserving techniques is rapidly gaining momentum. The utilization of polyurethane rigid foams as construction materials are increasing as they possess energy-saving attribute. They are used as insulators and thereby they conserve energy and emit minimal greenhouse gases.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Polyols Market Trends
-
Rapid industrialization & urbanization in developing countries and various infrastructural development projects across the globe.
The advancement in the automotive and construction industries combined with the growing demand is considered the major driver of polyols market growth. For instance, polyurethane foams that are manufactured from polyols are gaining momentum in the automotive and construction industries for cushioning and bedding. The consumption of polyurethane foams is surpassing the growth rate of 65% in recent years.
The production of artificial sweeteners in the food industry is also considered the major driver of polyols market growth. Polyols are also known as sugar alcohols and they possess reduced-calorie carbohydrates, therefore it is intensively used in chewing gums, candies, and ice creams. The growth of the food industry also impacts the growth of the polyols industry.
Additionally, The effectiveness of the end-products that are derived from polyols, such as rigid polyurethane foams is expected to boost the overall growth of the polyols industry during the forecast period. For instance, the manufacturers prefer polyurethane foams over other substitutes for the applications such as building and construction, electronics, automotive, and others due to their supreme efficiency.
Polyols Market Segment Insights
Polyols Product Insights
The Polyols Market segmentation, based on Product, includes Polyether, Polyester. polyether polyols accounted for the largest market share in 2020. The segment is expected to continue its dominance over the forecast period. Polyether polyols have rebound properties, wear and tear resistance, and hydrolytic stability owing to which it is used to formulate rigid polyurethane foams. These are used by various end-use industries such as transportation, construction, furniture, and packaging.
Polyols Application Insights
Based on Application, the Polyols Market segmentation includes Flexible Foam, Rigid Foam, Coatings, Adhesives & Sealants. Flexible foam emerged as the largest application segment in 2017 in the polyols market and accounted for a share of over 27.0% by volume that year. Flexible foams are widely utilized as cushioning material for furniture, bedding and mattresses, seating, and other soft products in several end-use industries such as furniture and mattress, automotive, handbag and luggage, footwear and textile, home appliances, engineering, and packaging.
Figure 2: Polyols Market, by Product, 2023 & 2030 (USD Billion) 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Polyols Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific: The Asia-Pacific region dominates the polyols market, accounting for over 50% of the global market share. The growth of the polyols market in this region is attributed to rapid industrialization, economic growth, and increasing demand for polyurethane products. China and India are the major markets in this region, followed by Japan and South Korea.
Figure 3: POLYOLS MARKET SHARE BY REGION 2023 (%) 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
North America: The North American market for polyols is expected to grow at a moderate pace due to the increasing demand for energy-efficient and sustainable materials in the construction industry. The United States is the largest market for polyols in North America, followed by Canada and Mexico.
Europe: The European market for polyols is driven by the demand for polyurethane products in the automotive and construction industries. Germany is the largest market for polyols in Europe, followed by France, the United Kingdom, and Italy.
Polyols Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Polyols market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Polyols industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Polyols. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Polyols industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Polyols industry to benefit customers and expand the market sector. The Polyols market has recently given medicine some of the most important advantages. Major Polyols market players, including BASF SE (Germany), Covestro AG (Germany), Royal Dutch Shell Plc (Netherlands), The Dow Chemical Company (US), and others, are attempting to increase market demand by funding R&D initiatives.
BASF is a company that provides petrochemicals, intermediates, performance materials, monomers, dispersions and pigments, performance chemicals, catalysts, coatings, and care chemicals. It conducts its operations through six business segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions.
Also, Covestro is a polymer materials company. It operates through two segments: Performance Materials; and Solutions and Specialties. The former segment comprises standard polycarbonates, standard urethane components, and base chemicals businesses. The latter segment's business entities are as follows: engineering plastics, coatings and adhesives, tailored urethanes, thermoplastic polyurethanes, specialty films, and elastomers.
Key Companies in the Polyols market include
- BASF SE (Germany)
- Covestro AG (Germany)
- Royal Dutch Shell Plc (Netherlands)
- The Dow Chemical Company (US)
- Mitsui Chemicals (Japan)
- Wanhua Chemical Group (China)
- LANXESS AG (Germany)
- Huntsman Corporation (US)
- Stepan Company (US)
- Repsol SA (Spain)
Polyols Industry Developments
In September 2021 Mitsui Chemicals, Inc. and SKC Co. Ltd., announced their new plan to terminate their partnership, due to increased discrepancies, and changes in their goals for growth. The future goals of the firm included the use of polyurethane as a raw material for its business operation as per the policy about the basic materials business sector that will be beneficial for the global economy. Therefore, this was one major change, which led to the shift in the growth opportunity for this market
On April 27, 2021 Azelis Americas CASE LLC, was responsible for the distribution of BASF's portfolio of polyurethane catalysts, marketed under the Lupragen brand in North America. Through this collaboration, the company was able to expand its relationship with Azelis providing benefits in terms of coatings, adhesives, sealants, and elastomers. Thus, it offered an advantage to the business, leading to market growth in the forecast period
Polyols Market Segmentation
Polyols Product Outlook
- Polyether
- Polyester
Polyols Application Outlook
- Flexible Foam
- Rigid Foam
- Coatings
- Adhesives & Sealants
Polyols Regional Outlook
-
North America
- US
- Canada
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
-
Middle East
-
Africa
-
Latin America
-
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
