Polyols Market

Polyols Market Overview

The polyol market is projected to reach USD 49.3 billion by 2027, at a CAGR of 6.1%. Polyols are the key raw materials used in the manufacturing of polyurethane products such as flexible foams, rigid foams, and CASE (coatings, adhesives, sealants, and elastomers) applications. These polyurethane foams are used in several end-use industries such as construction, automotive, refrigeration, and other industrial sectors. Therefore, the increasing construction activities, the developing automotive industry and the high demand for furnishing materials are also the driving factors for the polyols market.

Attractive Opportunities in the Polyols Market

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Polyols Market Dynamics

Driver: Growth of the packaging industry

The significant growth of the e-commerce industry and online businesses require good packaging to ensure product safety for which several packaging companies often use pre-blended polyols packaging, for various containers, including corrugated, plastic, and wooden boxes. Polyol-based polyurethane foams are used for packaging goods of all kinds sensitive to shock or vibration. Polyurethane foams are well-suited for packaging lightweight items since they have a wide shock/vibration attenuation profile. the global packaging industry is estimated to witness significant growth in future owing to the rising demand for e-commerce, healthcare packaging, easy-to-make foods and labelled products, and dairy products, especially in emerging economies such as India and ChinaThus, the rising demand from packaging industry is likely to drive the polyols market.

Restraints: Stringent environmental regulations for polyurethane foam production

Polyurethane foam manufacturing is subject to stringent regulations by several regulatory authorities, especially in North America and Europe. For instance, the National Emission Standards for Hazardous Air Pollutants (NESHAP) of the US  has included rules for new and existing plant facilities that manufacture polyurethane foams. These standards by the regulatory bodies are imposed to reduce hazardous air pollutant (HAP) emissions from all the existing sources of polyurethane foam production by over approximately 70% reduction from the baseline. Overexposure to these harmful emissions can cause skin, eye, nose, throat, and lung irritation in humans. Therefore, several protective measures, including the use of engineering controls (local exhaust ventilation), appropriate personal protective equipment (respiratory protection), and other workplace practices (proper handling and storage), are taken at places where there is potential exposure to airborne concentrations of diisocyanates. These requirements result in additional costs, therefore reducing the profit margins of the producers and it is a major restraint for the polyols market growth.

Opportunities: Increasing demand for bio-based polyols

The demand for products made from renewable polyurethanes made from natural oil polyols, which are used to make polyurethane foams for automotive and other applications is grown significantly in past few years. Bio-based polyols have similar structures and properties and are derived from renewable raw materials such as a soy-based polyols, therefore they act as good alternatives for standard polyols. These bio-based products help in decreasing carbon footprints because the process requires less energy and also emits less methane, CO2, and nitrous oxide into nature. With increasing environmental regulations, these bio-derived materials offer significant advantages over conventional polyols with regard to sustainability and reduction of petroleum dependence therefore these are started using by seating, furniture cushions, and bedding producers.

Challenge: Alternative materials that are eco friendly

petroleum-based raw materials such as Isocyanate and polyol are used in the manufacturing of rigid polyurethane foam. However, petroleum can cause environmental problems since it is a non-renewable resource therefore the use of non-toxic, eco-friendly, and renewable biomass to replace petroleum in polyurethane foam has increased significantly to reduce the environmental risks. Research is being conducted on alternative products, such as corn stalks since they are rich in aliphatic and phenolic hydroxyl groups. In some studies, lignin is used to replace some polyol in polyurethane flexible foam. The use of alternative products and increasing government norms for the use of petroleum-based products will challenge the growth of the polyols market.

Ecosystem Diagram

By Type, the polyether polyols segment accounted for the highest CAGR during the forecast period

The market for polyether polyols is mainly driven by the huge demand from the automotive and furniture industries for several applications such as bedding, furniture, carpets, vehicles interior, and seats. Polyether polyols are majorly used in the production of flexible polyurethane foams. The rising number of construction activities and automotive industry growth especially in developing countries such as India and China is driving the demand for polyols in polyurethane flexible and rigid applications, in turn, drives the demand for the polyether market.

By Application, the Flexible Polyurethane foams accounted for the highest CAGR during the forecast period

Flexible polyurethane foams are used in various applications across several industries, including furniture, carpet cushion, transportation, bedding, packaging, textiles, and fibres. The rapidly growing population and increasing growth of several end-use industries such as automotive, furnishings, and construction are the key factors in driving the demand for flexible polyurethane foams to consist in the forecast period.

By End Use Industry, the building & construction industry accounted for the highest CAGR during the forecast period

The building & construction segment is the fastest-growing segment and also accounted for the largest share of the polyols market in 2021. Polyurethane foams are widely used in several applications of building & construction such as decorative paints & flooring systems, coil coatings for exteriors & roof elements, and Venetian blinds & doors. Therefore, the rapidly growing home refurbishment activities and building insulations for security & protection are driving the growth of the polyols market.

Asia Pacific is projected to account for the highest CAGR in the polyols market during the forecast period

The Asia Pacific region is the largest and fastest-growing market segment for the polyols market. Owing to the rising construction activities, and increasing investment in the automotive and other manufacturing industries drives the polyols market in the region. Additionally, rapid urbanization, high growth in the infrastructure, and changing lifestyle which are attributed to the demand of the furnishing and e-commerce industry in the region have also promoted the growth of the polyols market.

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Key Market Players

The polyols market comprises major manufacturers such as The Dow Chemical Company (US), Covestro AG (Germany), Shell Chemicals (US), Basf SE (Germany), and Huntsman Corporation (US) were the leading players in polyols market. Expansions, acquisitions, joint ventures, and new product developments are some of the major strategies adopted by these key players to enhance their positions in the polyols market.

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Scope of the Report

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This research report categorizes the global polyol market on the basis of Type, Applications, End User Industry, and Region.

Polyol Market, By Type

• Polyether polyols
• Polyester polyols

Polyol Market, By Application

• Flexible polyurethane foam
• Rigid polyurethane foam
• CASE (coatings, adhesives & sealants, and elastomers)

Polyol Market, By End Use Industry

• Building & Construction
• Automotive
• Furnishings
• Packaging
• Electronics
• Others (Footwear)

Polyol Market, By Region

• North America
• Europe
• Asia Pacific (APAC)
• Middle East & Africa
• South America

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In October 2022, Basf collaborated with REMONDIS Electro recycling, RAMPF Eco Solutions, and machine and systems manufacturer KraussMaffei. The project’s objective is to create an industrial method that produces high-quality recycled polyols on par with those made from main fossil raw sources.
• In September 2022, Stepan acquired Performan X, a manufacturer of specialty chemicals. Intellectual property, business connections, and inventory will all be acquired.
• In November 2021, Shell chemicals have done investments in A 35,000 tonnes per annum polyols unit at Shell Jurong Island, Singapore.
• In October 2021, Huntsman Corporation, Huntsman Corporation opened a new 22,000 tonnes TEROL aromatic polyester polyols factory at its systems house in Kuan Yin, Taiwan.
• In August 2021, Huntsman Corporation expanded its Production of Specialty Amines and Polyurethane catalysts in Petfurdo, Hungary.

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