Polyols Marketplace Outlook from 2024 to 2034

The global Polyols market is estimated to be worth USD 28.7 billion in 2024 and is projected to reach a value of USD 40.9 billion by 2034, expanding at a CAGR of 3.6% over the assessment period of 2024 to 2034

Polyols are a type of sugar alcohol which are used as sweeteners and food additives. They are found in many sugar-free and low-calorie products, like candies, gum, and baked goods. Polyols provide sweetness with less calories than regular sugar and they help in reducing blood sugar spikes. Few of the example of polyols are sorbitol, xylitol, and erythritol.

Polyols does more than just adding sweetness to food, they also help in improving the texture and moisture of baked goods. When used in recipes, polyols can make cakes and cookies softer and chewier, giving them a better taste. They help in maintaining moisture, which keeps baked products fresh for longer. This means that products made with polyols can taste good and attractive even after a few days.

Nestlé includes polyols like maltitol and erythritol in their sugar-free and reduced-calorie candies.

Attributes Description
Estimated Global Polyols Business Size (2024E) USD 28.7 billion
Projected Global Polyols Business Value (2034F) USD 40.9 billion
Value-based CAGR (2024 to 2034) 3.6%

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Semi-Annual Demand Space Update

The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for global polyols acid market.

This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision about the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.

Particular Value CAGR
H1 2.7% (2023 to 2033)
H2 3.0% (2023 to 2033)
H1 3.4% (2024 to 2034)
H2 3.9% (2024 to 2034)

The above table presents the expected CAGR for the global Polyols demand space over semi-annual period spanning from 2024 to 2034. In the first half (H1) of the year 2023, the business is predicted to surge at a CAGR of 2.7%, followed by a slightly higher growth rate of 3.0% in the second half (H2) of the same year.

Moving into year 2024, the CAGR is projected to increase slightly to 3.4% in the first half and remain relatively moderate at 3.9% in the second half. In the first half (H1 2024) the market witnessed a decrease of 15 BPS while in the second half (H2 2024), the market witnessed an increase of 26 BPS.

Key Industry Highlights

Expansion of the Pharmaceutical Industry

Polyols are important in the pharmaceutical industry as they are used as excipients, which are ingredients that help in making medicines. They improve the method of how drugs are delivered in the body and help them keeping it stable over time. As the pharmaceutical industry grows, the need for polyols is increasing. They improve the taste of liquid medicines, texture of tablets, and help in releasing active ingredients.

Sorbitol is usually found in liquid formulations, like in cough syrups or oral medicine. As it acts as a sweetener and helps in improving the texture of the medicine.

New Product launches in Personal Care Industry

Polyols are becoming popular in personal care and cosmetics as they help in keeping the skin moisturized. They attract and hold water, which results in more softer and smoother skin. Many brands are using polyols in products like body lotions, creams, and serums to improve hydration and texture. This is further leading to new and better formulas that provide long-lasting moisture.

Burt's Bees uses xylitol in its lip balm as it provides moisturization and helps in keeping the lips soft and hydrated.

Innovative Production Techniques

Current technological advancements are improving how polyols are made, which makes it easier and cheaper to produce. New production methods provide for higher productivity and better quality, which helps in lowering costs. These improvements make polyols more available for different uses in industries like food, pharmaceuticals, and personal care.

As companies are finding it easy to include polyols in their products, their popularity is growing. This is motivating other companies to adopting polyols, further leading to increased demand and innovation in various applications.

Cargill has improved the efficiency of erythritol production using enzymes, which reduces costs and increases yield. This makes erythritol more accessible for use in food and beverages as a low-calorie sweetener.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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2019 to 2023 Global Polyols Sales Analysis Compared to Demand Forecasts for 2024 to 2034

Global Polyols sales increased at a CAGR of 9.8% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on polyols acid will rise at 11.8% CAGR

Polyols is a good alternative for consumers with diabetes as they have a lower glycemic index compared to regular sugar. Which means they do not cause a quick rise in blood sugar levels when consumed. Due to this, many food and beverage companies are using polyols in their products, such as sugar-free snacks, beverages, and desserts.

These products allow consumers with diabetes to enjoy sweet flavors without worrying about their blood sugar levels. This has led to an increase in the availability and popularity of polyol-based food products.

Regulatory support plays an important role in the growing use of polyols in food and pharmaceuticals. Many countries have approved polyols as safe ingredients to be used in various products, which gives manufacturers assurance to include them in their formulations. This approval means that polyols can be used in sugar-free foods, beverages, and medicines without legal issues. As more companies are seeing the advantages of using polyols, they are more likely to produce new products that meets consumer demand.

  • Erythritol is recognized as Generally Recognized As Safe (GRAS) by the FDA.
  • The European Food Safety Authority (EFSA) has approved several polyols, such as sorbitol and maltitol for using it in food products

Market Concentration

Tier 1 companies comprise market leaders with market revenue of above USD 10 million capturing significant sales domain share of 40% to 50% in the global sphere. These business leaders are characterized by high production capacity and a wide product portfolio. These trade leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.

They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include BASF SE, Dow Inc., Stepan Company, Repsol, Sanyo Chemical Industries, Solvay, PCC Group, Purinova Sp. z o.o., KPX Chemical Co., Ltd., and Wanhua Chemical Group Co., Ltd..

Tier 2 companies include mid-size players with revenue of USD 2 to 10 million having presence in specific regions and highly influencing the local retail space. These are characterized by a strong presence overseas and strong consumer base knowledge.

These industry players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Covestro AG, Shell Chemicals, Huntsman International LLC, Manali Petrochemicals Limited, Shandong Longhua New Material Co., Ltd., and Jurong Ningwu New Material Co., Ltd.

Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche demand space having revenue below USD 2 million. These companies are notably oriented towards fulfilling local marketplace demands and are consequently classified within the tier 3 share segment.

They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized field, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.

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Country-wise Insights

The table below highlights revenue from product sales in key countries. The United States and Germany are predicted to remain top consumers, with estimated trade valuations of USD 6.9 billion and USD 6.1 billion, respectively, by 2034.

Countries Market Value (2034)
United States USD 6.9 billion
Germany USD 6.1 billion
China USD 4.1 billion
India USD 3.7 billion
Japan USD 2.0 billion

The following table shows the estimated growth rates of the top sales domains. Japan and India are set to exhibit high Polyols consumption, recording CAGRs of 3.8% and 3.4%, respectively, through 2034.

Countries CAGR 2024 to 2034
United States 1.7%
Germany 2.1%
China 2.6%
India 3.4%
Japan 3.8%

United States to Retain Dominance in Polyols Sales

The ecosystem for Polyols in the United States is projected to exhibit a CAGR of 1.7% during the assessment period. By 2034, revenue from the sales of food-grade ammonium carbonate in the country is expected to reach USD 6.9 billion.

Nowadays consumers are more focused on health and wellness, which leads them to search for products that are made from natural ingredients. This is driven by the desire for clean labels and fewer artificial additives in food and personal care products. Polyols, such as xylitol and sorbitol, are sourced from natural sources like fruits and plants, which makes them appealing to health-conscious consumers.

These natural polyols provide sweetness without the calories of sugar and allows consumers to enjoy treats without guilt. Due to this, manufacturers are increasingly inluding polyols into their products to meet this demand.

Demand Outlook for Polyols in Germany

Polyols demand in Germany is calculated to rise at a value CAGR of 2.1% during the forecast period (2024 to 2034). By 2034, Germany is expected to account for 18.3% of Polyols sales in Europe.

Regulatory support in the European Union (EU) has played an important role in the increased use of polyols in food and pharmaceutical industry. The European Union has approved several polyols, such as xylitol, sorbitol, and erythritol, as safe ingredients for the use in various products. This approval gives manufacturers assurance to include polyols in their formulations without legal concerns.

Due to this, many food and beverage companies are including polyols into sugar-free and low-calorie products, while the pharmaceutical industry is using it in medicines and supplements. The clear regulations and safety assessments provided by the EU uplifts innovation and helps in ensuring that consumers have access to a wide range of products that are both safe and effective.

Rising Diabetes Rate In India is Increasing the Usage of Polyols

Consumption of Polyols in India is projected to increase at a value CAGR of 3.4% over the next ten years. By 2034, the business size is forecasted to reach USD 3.7 billion, with India expected to account for a domain share of 36.5% in South Asia.

The rising rates of diabetes in India has made many consumers more attentive about their sugar intake. As more individuals are diagnosed with diabetes, they are actively searching for sugar alternatives that won’t increase their blood sugar levels.

Polyols is a good alternative to this as they have a lower glycemic index compared to regular sugar, which means they do not cause a rapid increase in blood sugar when consumed. This makes polyols suitable for individuals with diabetes who want to enjoy sweet flavors without any health risks associated with sugar.

As awareness of diabetes is growing, the demand for polyol-based products, such as sugar-free snacks and beverages, is also increasing, further helping consumers in managing their health more properly.

Category-Wise Insights

Growing Demand for Polyester Polyols in Construction and Automotive Applications

Segment Polyester Polyols (Product Type)
Value Share (2024) 28.6%

The growth of the construction and automotive industry is driving up the demand for polyester polyols. In construction, these polyols are used to make insulation materials, sealants, and coatings that helps in improving energy effectively and protect buildings. In the automotive industry, these are important for producing lightweight and durable materials, such as foams for seats and insulation.

Moreover, polyester polyols are important raw materials for making polyurethanes, which are used in many products like flexible and rigid foams, coatings, adhesives, and elastomers. As industries like automotive, construction, and furniture continue to expand, the demand for polyester polyols is increasing which makes them an important part of many applications.

Growing Demand for Natural Ingredients

Segment Natural Polyols (Source)
Value Share (2024) 56.3%

Many individuals are becoming more aware of what they eat and prefer products that do not contain artificial additives. Naturally sourced polyols, which come from fruits and plants, fit this preference completely. They are known as healthier and more dependable choices compared to synthetic ingredients. Due to this, manufacturers are increasingly using naturally sourced polyols in their products to meet consumers growing demand for transparency and quality.

Competition Outlook

Market players are focusing on investing in R&D to develop functional ingredients with enhanced health benefits and sensory properties. They are diversifying product portfolios to meet diverse consumer needs and making strategic partnerships with companies, to leverage expertise and accelerate innovation. These strategies help them stay competitive in the evolving polyols market.

For instance:

  • In 2024, Gulshan Polyols Limited, at its brand-new, 250 thousand-liter-per-day grain-based ethanol factory in Assam, the company begun its commercial operations.

Leading Polyols Brands

  • BASF SE
  • Dow Inc.
  • Covestro AG
  • Shell Chemicals
  • Huntsman International LLC
  • Manali Petrochemicals Limited
  • Stepan Company
  • Repsol
  • Sanyo Chemical Industries
  • KPX Chemical Co., Ltd.
  • Wanhua Chemical Group Co., Ltd.
  • Solvay
  • PCC Group
  • Purinova Sp. z o.o.
  • Shandong Longhua New Material Co., Ltd.
  • Jurong Ningwu New Material Co., Ltd.
  • Others

Key Segments of the Report

By Product Type:

This segment is further categorized into sugar alcohols (sweetener polyols) (sorbitol, mannitol, xylitol, maltitol, erythritol, isomalt, lactitol), polyether polyols (polyurethane raw material), (flexible polyether polyols, rigid polyether polyols, other specialty polyether polyols (e.g., elastomer polyols)), polyester polyols, (aromatic polyester polyols, aliphatic polyester polyols).

By Source:

This segment is further categorized into natural polyols, and synthetic polyols.

By End Use Industry:

This segment is further categorized into food & beverages, pharmaceuticals, personal care & cosmetics, construction, automotive, furniture & bedding, electrical & electronics, textiles, and packaging.

By Form:

This segment is further categorized into solid polyols, and liquid polyols.

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Eastern Europe, Western Europe, East Asia, South Asia & Pacific, Central Asia, Balkan and Baltic Countries, Russia & Belarus and the Middle East & Africa.

Frequently Asked Questions

What is the current value of the Polyols Industry?

The global Polyols industry is estimated at a value of USD 28.7 billion in 2024.

At what rate did the revenue stream for polyols acid grow between 2019 and 2023?

Sales of Polyols increased at 2.9% CAGR between 2019 and 2023.

Who are the leading manufacturers of Polyols?

BASF SE, Dow Inc., Stepan Company, Repsol, Sanyo Chemical Industries, Solvay, PCC Group, Purinova Sp. z o.o., KPX Chemical Co., Ltd., and Wanhua Chemical Group Co., Ltd. are some of the leading players in this industry.

Which region will garner a significant value share by 2034?

The North America domain is projected to hold a revenue share of 34.7% over the forecast period.

What share does Europe  account for in the global Polyols demand space in 2024?

Europe holds 25.3% share of the global demand space for Polyols.

Table of Content
  • 1. Executive Summary
  • 2. Industry Introduction, Including Taxonomy and Market Definition
  • 3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
  • 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
  • 5. Pricing Analysis
  • 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
    • 6.1. Product Type
    • 6.2. Source
    • 6.3. End Use Industry
    • 6.4. Form
    • 6.5. Region
  • 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type
    • 7.1. Sugar Alcohols (Sweetener Polyols)
      • 7.1.1. Sorbitol
      • 7.1.2. Mannitol
      • 7.1.3. Xylitol
      • 7.1.4. Maltitol
      • 7.1.5. Erythritol
      • 7.1.6. Isomalt
      • 7.1.7. Lactitol
    • 7.2. Polyether (Polyurethane Raw Material)
      • 7.2.1. Flexible Polyether Polyols
      • 7.2.2. Rigid Polyether Polyols
      • 7.2.3. Other Specialty Polyether (e.g., Elastomer Polyols)
    • 7.3. Polyester Polyols
      • 7.3.1. Aromatic Polyester Polyols
      • 7.3.2. Aliphatic Polyester Polyols
  • 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Source
    • 8.1. Natural Polyols
    • 8.2. Synthetic Polyols
  • 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use Industry
    • 9.1. Food & Beverages
    • 9.2. Pharmaceuticals
    • 9.3. Personal Care & Cosmetics
    • 9.4. Construction
    • 9.5. Automotive
    • 9.6. Furniture & Bedding
    • 9.7. Electrical & Electronics
    • 9.8. Textiles
    • 9.9. Packaging
  • 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Form
    • 10.1. Solid Polyols
    • 10.2. Liquid Polyols
  • 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
    • 11.1. North America
    • 11.2. Latin America
    • 11.3. Western Europe
    • 11.4. Eastern Europe
    • 11.5. Balkans & Baltic
    • 11.6. Russia & Belarus
    • 11.7. Central Asia
    • 11.8. East Asia
    • 11.9. South Asia & Pacific
    • 11.10. Middle East & Africa
  • 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 15. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 16. Balkans & Baltic Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 17. Russia & Belarus Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 18. Central Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 19. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 20. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 21. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
  • 22. Sales Forecast 2024 to 2034 by Product Type, Source, End Use Industry, and Form for 30 Countries
  • 23. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
  • 24. Company Profile
    • 24.1. BASF SE
    • 24.2. Dow Inc.
    • 24.3. Covestro AG
    • 24.4. Shell Chemicals
    • 24.5. Huntsman International LLC
    • 24.6. Manali Petrochemicals Limited
    • 24.7. Stepan Company
    • 24.8. Repsol
    • 24.9. Sanyo Chemical Industries
    • 24.10. KPX Chemical Co., Ltd.
    • 24.11. Wanhua Chemical Group Co., Ltd.
    • 24.12. Solvay
    • 24.13. PCC Group
    • 24.14. Purinova Sp. z o.o.
    • 24.15. Shandong Longhua New Material Co., Ltd.
    • 24.16. Jurong Ningwu New Material Co., Ltd.
    • 24.17. Others
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