Global Bio Polyols Market Size By Raw Material (Sucrose, Carbon Dioxide), By Material Type (Polyether Polyols, Polyester Polyols), By Application (Foams, Sealants), By End User (Automotive, Furniture), By Geographic Scope And Forecast

Bio Polyols Market Size And Forecast

Bio Polyols Market size was valued at USD 5.4 Billion in 2024 and is projected to reach USD 7.1 Billion by 2031, growing at a CAGR of 10.2% from 2024 to 2031.

Growing environmental concerns about the use of conventional polyols are expected to have a significant impact on the future production of bio polyols over the projection period. The demand for conventional polyols has been harmed by volatile crude oil prices. The growing acceptance of bio polyols in a variety of end-use sectors over the last few years is projected to support the growth of the global Bio Polyols Market. Consumer purchase behavior for bio-based products over synthetic chemicals is projected to benefit the overall growth of the Bio Polyols Market. Key industry participants have made significant investments in R&D activities to develop improved and less expensive bio-based products.

Governments and regulatory organizations such as the Environmental Protection Agency or EPA, REACH, and others have adopted a number of guidelines encouraging the use of bio-based polyols. In the production of traditional polyols, harmful volatile organic compounds or VOCs are used. In their manufacturing process, sustainable bio-based polyols produce zero to low VOCs. Over the anticipated period, all of the aforementioned reasons are anticipated to propel the Bio Polyols Market.

Global Bio Polyols Market Definition

Bio polyols are organic molecules that have a large number of hydroxyl groups. They are made from a variety of natural and renewable sources, including natural oils and their byproducts, sucrose, and recycled polymers. They are also called natural oil polyols. Soybean oil, palm oil, castor oil, coconut oil, and corn oil are some of the natural oils commonly utilized to extract bio polyols. The two most frequent types of bio polyols are polyether polyols and polyester polyols. These materials are utilized for a variety of purposes including adhesives, sealants, coatings, and polyurethane foams.

Global Bio Polyols Market Overview

Coatings, adhesives, and thermoplastic elastomers have seen increased demand from a variety of end-user sectors in recent years. Construction and automotive are the two fastest-growing end-user industries for green polyols and bio polyols. Green and bio polyols have been used in a variety of applications in the automotive and construction industries due to their ecologically friendly characteristics. Green and bio polyols are utilized in automotive applications such as seat backrests, headrests, armrests, automobile interior elements, insulation, and building applications such as residential, commercial, infrastructural, and other industrial uses.

COVID-19 in all regions is projected to reduce consumption from the automobile as well as other end-user sectors. The high cost of the bio polyols is also expected to be a market hindering factor. However, increasing applications for ecofriendly polyols in autos, as well as technical improvements in the construction industry, are projected to drive demand for green and bio polyols in the coming years.

Global Bio Polyols Market Segmentation Analysis

The Global Bio Polyols Market is segmented on the basis of Raw Material, Material Type, Application, End User, and Geography.

Bio Polyols Market, By Raw Material

• Natural oils and their derivatives
• Soybean Oil
• Castor Oil
• Palm Oil
• Others
• Sucrose
• Carbon Dioxide
• Recycled Polymers

Based on Raw Material, the market is segmented into natural oils and their derivatives, carbon dioxide, sucrose, and recycled polymers. Natural oils and their derivatives lead the market and are expected to grow during the forecasted period. Soy polyols outperform their more expensive petrochemical counterparts, allowing producers to boost the sustainability of finished products without sacrificing performance. Products manufactured with these natural oil polyols are lower in weight, stronger, and last longer. Castor oil polyol is one of the purest natural oil polyols available on the market. Castor oil-based polyols require the least amount of modification when compared to other bio polyols. Castor oil polyols are predicted to expand in value during the projection period due to high quality and hydrolysis resistance. The low cost of extracting plant oils and their broad use as polyols has increased the demand for other natural oil polyols such as canola oil, corn oil, and sunflower oil-based polyols.

Bio Polyols Market, By Material Type

• Polyether Polyols
• Polyester Polyols
• Others

Based on Material Type, the market is segmented into Polyether Polyols, Polyester Polyols, and others. The polyether polyols category accounted for the maximum share. Polyether polyols are essential components in the manufacture of polyurethanes. Polyether-based polyurethanes outperform polyester-based polyurethanes in terms of hydrolytic stability and resilience to weak acids and bases. Polyether polyols are so employed in coatings, adhesives, sealants, and elastomers. The lower price of polyether polyols in contrast to polyester polyols supports market expansion internationally. The market is expected to increase during the projected period due to the rising utilization of polyether polyols in elastic foams for the manufacturing of cushioning applications such as furniture, beds, and automobile seats, as well as carpet underlay.

Bio Polyols Market, By Application

• Foams
• Sealants
• Adhesives
• Coatings
• Elastomers
• Others

Based on Application, the market is segmented into foams, sealants, adhesives, coatings, elastomers, and others. The foam segment had the most market share. Polyether polyols are a raw ingredient used in the production of polyurethane foams. Polyurethane (PU) foam is a highly flexible substance with numerous applications in industries including automobile, furniture, construction, and packaging. High persistence flexible foam seating, rigid foam insulation panels, microcellular foam sealants and gaskets, durable elastomeric wheels and tires, auto suspension bushings, electrical potting substances, seals, gaskets, carpet underlay, and hard plastic components are all examples of where foam is used. As PU foams provide high thermal and sound insulation, they are increasingly used in the building industry for soundproofing purposes. PU foams are used in the automotive cushion. Also, the emergence of the electric vehicle also expected to propel market growth.

Bio Polyols Market, By End User

• Automotive
• Furniture
• Packaging
• Building and Construction
• Other End-user Industries

Based on End User, the market is segmented into Automotive, Furniture, Packaging, Building and Construction, and Other End-user Industries. The building industry accounts highest market share of the Bio Polyols Market. The rising demand for foam used as a thermal insulator in the design and building industries is likely to fuel the expansion of the Bio Polyols Market. The construction sector is a large consumer of plastics, with pipe fittings and insulation being two of the most common applications. Thus, bio polyol-based polyurethane has a significant opportunity in this area as a preferable alternative with additional benefits such as low-cost structures, long life term, corrosion resistance, and lightweight. Due to these numerous uses and benefits, the Bio Polyols Market is predicted to expand significantly throughout the forecast period and the construction segment is expected to drive the market.

Bio Polyols Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world
• On the basis of Geography, the Global Bio Polyols Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Bio Polyols Market was dominated by North America. The expansion of end-use industries in the United States, Canada, and Mexico has a direct positive impact on the global Bio Polyols Market. Owing to the great availability of soy, this region has the world's largest market for soy-based bio polyols. The growing awareness of the usage of eco-friendly and sustainable materials in the manufacture of polyurethane foams used in a variety of end-use sectors is projected to fuel the growth of the Bio Polyols Market.
• Government regulations, such as the Weatherization Assistance Program (WAP), that encourage the installation of thermal insulation will help boost demand in the region. As a result, the market is predicted to get benefits. Asia-Pacific is predicted to grow at a faster rate during the forecast period due to ongoing investments to advance the building and furniture segments over the years. Green and bio polyols are used to manufacture rigid and flexible PU foams and adhesives for packaging and furniture applications. Asia-Pacific is a major driving region in the packaging market and one of the top exporters of various products to various locations. China is a major producer and exporter of furniture. Green and bio polyols are utilized in the production of artificial leathers, carpet backing, furniture, and bedding. Certain factors are expected to trigger market growth.

Key Players

The "Global Bio Polyols Market" study report will provide a valuable insight with an emphasis on global market including some of the major players such as BASF S.E, DuPont de Nemours & Co., Invista S.A.R.L., Bayer Material Science, Mitsui Chemicals Inc., Cargill Inc., Arkema S.A., Stepan Company, and Jayant Agro Organics Ltd.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share and market ranking analysis of the above-mentioned players globally.

Key Developments

• In April 2022, Valentino Introduces the First Conscious-Driven Sneaker. As the sneakers are created from recycled and bio-based components, the luxury brand is launching the first-ever 'Open for a Change' program.
• In June 2021, Dow announced a mass-balance approach to the production of innovative polyurethane systems based on a circular feedstock generated from the waste material of the mobility sector that substitutes virgin fossil-fuel-based feedstock in June 2021. In conjunction with major automotive suppliers Adient and Autoneum, the new SPECFLEX C and VORANOL C product lines will be introduced to the mobility industry first.