Bio-Based Polyurethane Market Size and Share Analysis by Product (Rigid Foam, Flexible Foam, Coatings, Adhesives, & Sealants), End Use (Automotive, Building & Construction, Consumer Goods, Electrical & Electronics, Packaging) -Global Industry Growth Forecast to 2030

Market Overview

The bio-based polyurethane market size was $34.8 million in 2021, and it is expected to reach $63.3 million in 2030, with a growth rate of 6.9% during 2021–2030. The market growth is ascribed to the wide range of applications of this polymer, including footwear, biomedical, packaging, and transportation. Bio-based polyurethane coatings have been extensively replacing petrochemical-based coatings as they have a lower environmental impact and low cost and are easily available and biodegradable.

Synthetic polyurethane materials are non-biodegradable and poisonous and utilize petrochemical-based raw materials, which are now exhausting, thus leading to inflations in polyurethane production costs. The bio-based variant possesses better properties than petroleum-based polyurethanes, such as high compressive strength, tensile strength, bending strength, and water absorption.

By changing the raw materials, additives, and manufacturing procedures, polyurethanes can be customized and produced in a wide gamut of forms, such as fibers, adhesives, foams, sealants, coatings, and elastomers. Moreover, several properties of the polymer, such as strong adhesion, resistance to chemicals and corrosion, flexibility, low-temperature stability, and chemical structure adaptability, play a pivotal role in its booming popularity among researchers. Moreover, the plastic helps in meeting environmental goals, including waste reduction and sustainability.

Flexible Foam To Dominate Market

The largest bio-based polyurethane market share, over 50%, was held by the flexible foam category, followed by rigid foam and coatings, adhesives, & sealants. 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.

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.

Further, rigid foam accounted for a significant market share as it is used primarily in the insulation of doors, buildings, and appliances.

Product Use in Packaging To Escalate Fastest in Coming Years

Among the end uses, the packaging category is projected to record significant growth during the forecast period, at a CAGR of around 9%. 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.

Further, consumer goods will have the second-fastest-improving bio-based polyurethane market outlook in the coming years. For instance, the shoe 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.

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.

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APAC Is Principal Revenue Contributor

In 2021, the APAC market revenue was more than 35% of the global revenue, and this region 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 and second-largest region in the bio-based polyurethane market 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.

Market Players’ Recent Strategic Activities

The market is highly competitive, and several key players are strongly focusing on entering into partnerships and collaborations, with the objective of achieving higher sales and generating more revenue. For instance:

In February 2022, Huntsman International LLC, a company specializing in the production and distribution of polyurethane, advanced materials, and performance products, entered into a collaboration with KEEN Inc. The objective was to help KEEN Inc. produce a range of field-to-foot (F2F) sneakers using bio-based polyurethane systems from Huntsman International LLC, which consist of a by-product of agricultural processing.

Key Players in Bio-Based Polyurethane Market Are:

• BASF SE
• Mitsui Chemicals Inc.
• Covestro AG
• Huntsman International LLC
• Lubrizol Corporation
• Woodbridge Foam Corporation
• Rhino Linings Corporation
• Malama Composites Inc.

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Product

• Rigid Foam
• Flexible Foam
• Coatings, Adhesives, & Sealants

Based on End Use

• Automotive
• Building & Construction
• Consumer Goods
• Electrical & Electronics
• Packaging

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • Spain
  • U.K.
  • Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa