Bio-Based Polyurethane Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

Bio-Based Polyurethane Market Size

Bio-Based Polyurethane Market Trends & Growth Drivers

Growing Demand for Green Projects Supports Market Growth

Green buildings are gaining momentum as they are environment-friendly and help save on operational costs. Several government agencies have acknowledged and incentivized green buildings, including the World Green Building Council, central agencies, such as the Ministry of Skill Development & Entrepreneurship and the Small Industries Development Bank of India (SIDBI) and the General Services Administration (GSA) in the U.S.; as well as state governments and municipal bodies across nations.

Bio-based polyurethanes are used in heavy-duty rubber flooring, wooden flooring, and parquet bonding; window & door profiles, glazing, pipes & guttering, insulation, cement, sealants & adhesives, building panels, and roofing owing to their high strength. Moreover, they are widely used for ceramic tiles, bathtub surrounds, and mirrors, and concrete owing to their ability to bond wet/frozen timber, high green strength, and shear strength.

Additionally, polyurethanes are used in automobiles, such as trucks and trains, due to their short cure time and potential to develop strong flexible bonds.

Higher Cost than Conventionally Produced PU Hampers Market Growth

Despite its alignment with sustainability goals, bio-based polyurethane faces stiff competition from its conventionally sourced counterpart. The biggest reasons behind this are the lower cost and easier availability of PU created from petrochemical feedstock, because the production technology for the latter is mature and easily accessible. Another constraint with bio-based PU is that it is derived from fatty acids, proteins, carbohydrates, vegetable oils, starches, polysaccharides, and cellulose. Since these intermediates are themselves sourced and a variety of agricultural products and by-products, farming for them competes with food crops. With almost a tenth of the global population facing hunger, as per the WHO, the growing of food crops for purposes other than food raises severe concerns. This is one reason bio-based polyurethane is not produced in as high quantities as that sourced from petrochemicals and also why the latter is more expensive.

Bio-Based Polyurethane Market Analysis

Product Insights

• The largest bio-based polyurethane market share, of 55%, is held by the flexible foam category.
• Flexible foam made of bio-based polyurethane is durable, light, supportive, and comfortable.
• The material is used as cushioning for a large variety of consumer and commercial products, such as carpet underlay, automotive interiors, furniture, packaging, mattresses, seating, and specialty items. The popularity of this material stems from the fact that it can be highly firm or soft and even visco-elastic.
• For instance, the footwear industry requires polyurethane adhesives to combine waterproof insole materials and attachments, due to their tremendous water resistance, heat resistance, initial strength, flexibility.
• Moreover, with the increasing consumer demand for sustainable products, the rubber and textile industries are dedicatedly working to incorporate these bio-based materials into their products.
• Flexible foam can be developed in almost any shape and level of firmness.
• It is molded, particularly for use in the automotive industry, predominantly for car seats.
• Other prominent applications are seats for office furniture and recreational vehicles.
• The coatings, adhesives, and sealants category will witness the highest CAGR in the forecast period.
• This will be on account of the wide range of applications for CAS products, including construction, automotive, footwear, packaging, and electricals, where PU offers strong adhesion to diverse substrates, including plastics, metals, glass, and wood.
• Moreover, because of their room-temperature curability, strong thermal shock and vibration resistance, and endurance, adhesives made from bio-based PU are used for surface-fix conductive adhesion, copper foil bonding, die-stamped PCB bonding, and electronic coil fabrication.
• Similarly, coatings made from this material offer a durable and smooth finish, which is why they are prized in wood, construction, textile, automotive, and other applications where aesthetics are important.

We have analyzed the following products:

• Rigid Foam
• Flexible Foam (Largest Category)
• Coatings, Adhesives, & Sealants (Fastest-Growing Category)
• Others

End Use Insights

• Building & construction is the dominant category in the market on account of the wide application of PU here, majorly as insulation.
• With the growing energy consumption, the need for effective insulation to keep buildings cool and warm, as needed, is rising.
• As per the IEA, 2022 was the second consecutive year when buildings’ demand for electricity for space cooling increased.
• Further, according to studies, building electricity consumption can come down by as much as 15% if all the walls are effectively insulated.
• Apart from insulation, PU offers low weight, corrosion resistance, and long life, thereby further reducing energy bills and maintenance expenses for building owners and tenants.
• Hence, as construction activities continue to grow with a focus on sustainability, the demand for bio-based PU will increase, especially in highly populated and rapidly industrializing and urbanizing countries.
• In this regard, the government initiatives and spending for infrastructure development in India, China, and Southeast Asian and Middle Eastern countries will drive the market in this end use category.
• The packaging category is projected to record the fastest growth during the forecast period, of 11.0%.
• Snack food bags, printed films, and shopping bags use one-component polyurethane adhesives on a large scale.
• In addition to this, a tailored two-component polyurethane adhesive is applied to attach polyvinyl chloride to aluminum sheets for medical applications.
• Moreover, hot-melt polyurethane is highly suitable for wrapping applications owing to its low viscosity and low application temperature.
• Additionally, PU foam is widely used for securing breakable items and protecting them from shocks and vibration inside pallets during transit and storage.
• Such products include electrical equipment, medical devices, glassware, and massive pieces of industrial machinery.
• Further, PU’s effective insulation and moisture resistance makes it ideal for use as packaging to transport perishable goods, such as pharmaceuticals, cosmetics, and processed food and fresh produce.

The report offers insights into the following end uses:

• Automotive
• Building & Construction (Largest Category)
• Consumer Goods
• Electrical & Electronics
• Packaging (Fastest-Growing Category)
• Others

Regional Analysis

In 2024, the APAC region holds the largest share, of 40%, and it is projected to continue its industry dominance in the long run. This is ascribed to the growing demand for this material from the automotive, construction, packaging, and consumer goods industries in various nations. For instance, China has been incessantly recording high automobile production and sales. Moreover, India, Indonesia, Vietnam, and the Philippines have established a large number of public–private construction partnerships, which fortifies the use of bio-based polyurethane in the region.

North America is the fastest-growing region in the bio-based polyurethane market, with 12.0% CAGR. This is due to the proliferating construction expenditure in the U.S. Further, the industry growth is expected to be supported by the rising investments in transportation, water, renewable energy, and housing projects. Additionally, the ongoing commercial construction projects, including corporate office buildings, hotels & resorts, outdoor leisure facilities, and retail buildings, support the growth prospects of the industry.

For instance, in the U.S., construction projects, such as Steel Mini Mill, Osceola Steel Plant, Pearson Ranch Mixed-Use Development, and Atlas Power Data Center, which were all initiated in quarter 1 of 2022, are expected to be completed in the coming years. These projects are likely to fuel the demand for bio-based polyurethane in the country.

Further, Europe is projected to be the third-fastest-growing region in the coming years. Polyurethanes can significantly curb heat loss in homes and offices during the winter season, and during summers, they play an imperative role in keeping buildings cool, which decreases the need for air conditioners. Further, Germany, the U.K., Italy, and Poland are the major furniture-producing and -exporting countries. Thus, the increasing demand for office and residential furniture and the rising investment in office spaces stimulates the need for this plastic in the region.

The geographical breakdown of the market is mentioned below:

• North America (Fastest-Growing Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • France
  • Germany (Largest and Fastest-Growing Country Market)
  • Italy
  • Spain
  • U.K.
  • Europe
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest and Fastest-Growing Country Market)
  • Rest of MEA

Bio-Based Polyurethane Market Share

• The market is highly fragmented, and several key players are strongly focusing on entering into partnerships and collaborations, with the objective of achieving higher sales and generating more revenue.
• Additionally, companies use a variety of feedstock to produce these products, including soybeans, palm oil, sugarcane, and corn.
• As there are a variety of raw materials so there are different technologies to process them into PU, such as chemical modification, direct substitution, and biocatalysis.
• Since these technologies and raw materials offer varying yields and enable product customization for different applications, no single company has a clear edge.

Bio-Based Polyurethane Market News

• In July 2024, Mitsui Chemicals Co. Ltd. entered into a partnership with KRAHN Chemie Benelux to distribute BENEBiOL and BENEBiOL, produced by Mitsui Chemicals. Both these bio-based polycarbonatediols are used to make adhesives, TPUs, coatings, elastomers, sealants, fibers, and many other products from polyurethane.
• In July 2024, BASE SE launched certified traceability for bio-based footwear solutions, including polyurethane.
• In March 2024, University of Liège’s Center for Education and Research on Macromolecules publicized the development of a new method for mass-producing bio-based polyurethane.