Polyols Market

Polyols Market Outlook (2022 to 2032)

The polyols market is projected to register a CAGR of 6.3% during the forecast period, up from USD 25.5 billion in 2020 to reach a valuation of USD 35.5 billion by 2026. Factors propelling the polyols market expansion are:

• Polyurethane foam use is rising in the construction and automobile industries.
• PU-based foams are in greater demand in the electrical and electronic sectors.
• Stiff foam made from polyol is widely utilized in both home and commercial freezers.
• Rapid urbanization and industrialization in emerging economies.
• Polyols are useful in the chemical industry for making flexible and stiff polyurethane coatings, foams, adhesives, elastomers, and sealants.
• Multiple global infrastructure development initiatives.
• They are utilized as a sugar substitute in low-calorie and sugar-free goods.
• Due to their role in preventing tooth decay, they are utilized in the production of mouthwash, throat lozenges, breath mints, and toothpaste.

Report Attributes	Details
Estimated Base Year Value (2020)	USD 25.5 Billion
Expected Market Value (2026)	USD 35.5 Billion
Projected Growth Rate (2022 to 2032)	6.3%

The development of Bio-polyols is Creating Opportunities in the North American Market Expansion

North America is predicted to lead the global polyols market. Numerous housing projects are now in development, according to the USA Census Bureau and the USA Department of Housing and Urban Development. On the other hand, the International Monetary Fund (IMF) predicts a considerable increase in commercial building projects in Canada. The market for polyols will be driven by the demand for effective thermal insulation materials and energy-efficient buildings, both of which are driving forces.

The need for insulation foams made of polyurethane and polyisocyanurate has been growing, which has helped the North American polyols industry. Demand for low-calorie meals has increased due to customers' rising knowledge and health consciousness in the region. During the forecast period, rising demand for organic personal care products in the USA is predicted to fuel market expansion. Along with expanding food and beverage as well as healthcare industries, rising demand for personal care items is anticipated to fuel regional growth.

The development of end-use industries in the USA, Canada, and Mexico directly benefits the polyols market on a worldwide scale. This area has the greatest market for soy-based bio polyols in the whole globe since soy is so widely available there. The Polyols Market is expected to expand as a result of rising consumer awareness about the use of environmentally friendly and sustainable materials in the production of polyurethane foams used in several end-use industries.

Opportunities are Instituted in Reputable Automotive Sectors

New poly plants get significant financial expenditures to achieve optimum productivity in order to meet rising product demand. To offer items that match customer tastes, Research and Development efforts are widely used. Key market participants are investigating various modifications, formulas, and combinations to create high-quality and durable goods. The ability of several firms to make polyurethane systems is growing.

Market giants have opened the way for smaller businesses to follow using a variety of techniques. In addition, new competitors are searching for bigger chances in the global polyols market as well as polyurethane goods including foams, coatings, elastomers, and sealants.

Companies trying to make a name for themselves in the market must contend with established corporations. For instance, in March 2019, Covestro AG and Genomatica, a biotechnology business with headquarters in the US, worked together on research and development of high-performance materials based on renewable polyols. This partnership aims to cut back on fossil fuel consumption and carbon emissions.

On the other side, some major manufacturers throughout the world have announced that they are going to end their collaboration because of growing differences. For instance, in September 2021, Mitsui Chemicals, Inc. and SKC Co. Ltd. announced their shifting growth objectives. The use of polyurethane as a raw material for company operations was one of the enterprises' future objectives following the policy governing the basic materials business sector, which will be advantageous for the world economy. In light of this, this significant adjustment was what changed the market's growth prospects.

Given growing environmental concerns and the unpredictability of raw material costs, major firms are looking at bio-based polyols to minimize reliance on traditional petrochemical-derived polyols. Many big firms are delving into the research and commercialization of bio-based polyols, looking at the future possibility of bio-based polyols, due to the increasing push from regulatory authorities towards the consumption of eco-friendly goods. The vendor landscape is concentrated and oligopolistic.

In order to make polyurethane, polyol suppliers are also participating in forwarding integration. Long-term logistics expenses and procurement issues are being greatly decreased by this approach. Consumers are getting more knowledgeable about the advantages of products. As a result, suppliers are now under pressure to uphold high standards of quality through integration into the production process.

Sales of polyols are expected to rise as low-income households now have a high demand for energy-efficient insulation. In addition to this, demand for polyols is rising on account of the growing support from the government.

Rising demand for bio-based polyols and flexible polyurethane foam is also projected to contribute to the growth of the polyols market share.

Some of the critical polyols market trends promoting the demand for polyols include a rising polyurethane foam usage in the construction and automotive industries, which will be a prominent factor in boosting worldwide polyol demand.

Another factor driving the polyols market is the rise in refrigerator and freezer production in Asia Pacific. Due to its restricted structure, a lightweight dress, and cost-effectiveness, polyol-based rigid foam is widely utilized in home and commercial freezers.

Polyurethane polyols are made from significant intermediary chemicals or raw materials such as propylene oxide, ethylene oxide, adipic acid, and carboxylic acid. Most of these essential materials are petroleum-based derivatives susceptible to commodity price volatility. Supply constraints for ethylene oxide and propylene oxide arose from crude oil price volatility.

As polyols' primary raw materials are produced from crude oil, any price increase will diminish polyols producers' margins, potentially leading to a price increase. As a result, the polyols industry faces a substantial hurdle in raw material price instability.

What are the Key Drivers to the Polyols Market Share?

Polyols are sugar-free sweeteners, which are used in the same amount as sugar is used in food and beverage products. The chemical structure of polyols is partially sugar and alcohol thus, called sugar alcohols. Different polyols available for use in food and beverage products include erythritol, sorbitol, maltitol, isomalt, and others.

Owing to the demand for low-calorie food and beverage products among consumers to overcome obesity, weight management, and type-2 diabetes, the sales of polyols are predicted to witness significant growth in the next five to six years.

Also, benefits such as non-cariogenic nature, low insulin level for metabolism, less energy utilization, and others have led manufacturers' adoption of polyols as a replacement for sugar in food and beverage products are the factors leading to the demand for polyols.

Consumer inclination towards low-calorie food, growing health concerns, and changing consumer lifestyles are key factors propelling the global demand for polyols.

The application of polyols as blends in food and beverage products, resulting in improved taste and stability, is predicted to increase the usage of polyols in food products. In addition, blending polyols offer flexibility to food manufacturers to take each sweetener's taste in the food product.

In addition, increasing obesity levels and diabetes concerns among the population are anticipated to drive the demand for low-calorie food products, resulting in a significant contribution of these products among consumers and improved sales of polyols.

Increasing awareness among manufacturers of processed food products regarding the benefits of polyols such as suspension, thickness, and stabilization offered by xantham gum is predicted to increase the uptake of polyols in food and beverage products.

Although raw material availability in developing regions is restraining market growth, strategic alliances among players in the global polyols market are expected to increase the sales of polyols in the near future. There are numerous benefits associated with applying polyols in food and beverage products. Regulatory approvals are a significant factor hampering the complete use of all polyols in food and beverage products.

Which Region holds the Highest Growth Potential in the Polyols Market?

The global polyols market is segmented into North America, Latin America, Western Europe, Eastern Europe, and the Asia Pacific excluding Japan, Japan, and the Middle East and Africa to cater to the rising demand for polyols.

Currently, North America dominates the market in terms of sales of polyols. However, the Asia Pacific, excluding Japan and South America, is expected to record high growth compared to the other regions due to the strong demand for polyols in the region.

This is attributed to increasing health concerns among consumers changing lifestyles, particularly in countries such as India, China, and Brazil. There is anticipation for increasing the sales of polyols in the near future.

How is the Competitive Landscape in the Polyols Market?

Some prominent players operating in the global polyols market include Ecogreen Oleochemicals Gmbh, Archer Daniels Midland, Mitsubishi- Kagaku Foods, Jungbunzlauer Suisse AG, American International Foods, and Cargill Inc., among others. The rising demand for polyols has led to increased competition in this industry.

BASF SE partnered with Azelis Americas, LLC (USA) in April 2019 to distribute its polyurethane products in the USA and Canada. This partnership will assist the company in expanding its distribution channels in these two countries and improve the sales of polyols.

Scope of Report

Report Attributes	Details
Growth rate	CAGR of 6.3% from 2022 to 2032
The base year for estimation	2021
Historical data	2015 to 2020
Forecast period	2022 to 2032
Quantitative units	Revenue in USD million and CAGR from 2022 to 2032
Report Coverage	Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, Pricing Analysis
Regional scope	North America; Western Europe; Eastern Europe; Middle East; Africa; ASEAN; South Asia; Rest of Asia
Country scope	USA, Canada, Mexico, Germany, United Kingdom, France, Italy, Spain, Russia, Belgium, Poland, Czech Republic, China, India, Japan, Australia, Brazil, Argentina, Colombia, Saudi Arabia, United Arab Emirates, Iran, South Africa
Key companies profiled	Ecogreen Oleochemicals Gmbh; Archer Daniels Midland; Mitsubishi- Kagaku Foods; Jungbunzlauer Suisse AG; American International Foods; Cargill Inc.
Customization scope	Free report customization (equivalent to up to 8 analysts' working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.

Key Segments

By Type:

• Polyether Polyols
• Polyester Polyols

By Application:

• Flexible Polyurethane Foam
• Rigid Polyurethane Foam
• CASE

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa
• Europe

Frequently Asked Questions

What is the Growth Outlook for the Polyols Market?

The polyols market is predicted to register a CAGR of 6.3% during the forecast period.

Who are the Key Players in the Polyols Market?

Key players holding substantial polyols market share include Ecogreen Oleochemicals Gmbh, Archer Daniels Midland, Mitsubishi- Kagaku Foods, Jungbunzlauer Suisse AG, American International Foods, and Cargill Inc., among others.

What is the Future of the Polyols Market?

As per the analysis, the polyols market share is likely to be USD 35.5 Billion by 2026.