Green and Bio Polyols Market To Generate $9.3 Billion Revenue by 2030

The global green and bio polyols market size is expected to advance at a CAGR of 9.3% during 2022–2030, to reach USD 9.3 billion by 2030.

The growth is mainly ascribed to the proliferating use of these materials in home furnishings, such as armrests of sofas and bedding; construction substrates, car engines, carpet backing, green electronics, and footwear.

Polyurethane Foam Is Largest Category in Application Segment

Polyurethane foam held the largest market revenue share in 2022, and it is expected to be at the same position in the coming years. The growth in PU foam usage is because of its several uses, such as bedding, cushions, carpets, transportation, packaging, textiles, and fibers. The automobile industry uses it as a cushion material for back support. Additionally, various OEMs are using this foam to increase the performance of vehicles in terms of mileage, by reducing their weight.

Other uses of polyurethane foam in the automotive industry are interior panels & skins, headrests, acoustic insulation, air conditioning products, and fenders/bumpers. It can also be used to lower the heat and noise in the automobile engine. For instance, Ford utilizes bio-polymers made from soybean, such as polyurethane, in headrests in some car models. In addition, many rich people love boating, as a result of which the usage of this material is increasing to make boats lighter and strong and enhance their performance.

Asia-Pacific Region Is Expected To Grow at Highest Rate

The Asia-Pacific region is expected to be the fastest growing over the next few years. China, South Korea, Japan, and India are among the largest automobile and woodworking markets in the world. Further, APAC is the largest exporter of various chemical products to many other regions. For instance, in March 2023, BASF SE has started the production of its bio-based polyol Sovermol at its production facility in Mangalore, India. This product will fulfill the rapidly growing demand for eco-friendly products for windmills, flooring, new-energy vehicles, and protective industrial coatings in the APAC region.

In addition, in the region, manufacturing equipment, land, raw material, and skilled labor are easily available at low costs. Moreover, China and India are heavily spending on sustainable development initiatives, such as green and bio-based organic compounds. The increasing demand for these chemicals in the electronics industry is a major contributor to the market growth in the region.

Additionally, all over the world, China is the largest producer and exporter of furniture. Green and bio-based polyols are used to make artificial leather and wooden items. In India, the strict government policies to boost the usage of plastic alternatives, rapid urbanization, and growing economic development are boosting the country’s polymer demand. For instance, in the latest union budget, the Indian government has sanctioned approximately USD 143 million (INR 1,126 crore) for urban development, which would lead to the rising demand for green and bio-based organic compounds in India.

Some of the major players operating in the green and bio polyols market are BASF SE, The Dow Chemical Company, Cargill Inc., Synthesia Technology Group, Covestro AG, Emery Oleochemicals, Arkema, Bayer AG, Mitsui Chemicals Inc., and Huntsman International LLC.