1 Global Green and Bio Polyols Market Insight Analysis
The global Green and Bio Polyols market is valued at USD 4,064.3 million in 2024, with a CAGR of 5.90% from 2024 to 2033.
Green polyols and bio polyols are eco-friendly organic alcohol solutions containing multiple hydroxyl groups. Green polyols are derived from polyurethanes and polyethylene terephthalates. Bio polyols are derived from oils such as canola oil, castor oil, coconut oil, corn oil, rapeseed oil, palm oil, and soya bean oil.
Figure Global Green and Bio Polyols Market Size (M USD) and CAGR (2024-2033)
2 Green and Bio Polyols Market Growth Drivers and Restraints
Environmental protection policy promotion: As the world’s attention to environmental protection continues to increase, countries have introduced environmental protection policies. For example, China’s carbon trading policy increases the production and use costs of fossil fuels and products through the market and laws and regulations, making bio-based products have cost advantages and guiding industrial transformation. This has prompted people to increase research on renewable green and bio-polyols, and promote the continued expansion of the market.
Development of the bio-based market: Polyurethane is widely used in life and industry, and its main production raw materials, polyols and isocyanates, are currently derived from petroleum resources. With the gradual depletion of petroleum resources, the bio-based polyurethane market has ushered in development opportunities.
Green and bio-polyols, as the main raw materials for the production of bio-based polyurethanes, benefit from the growth of the bio-based polyurethane market and the demand continues to increase. For example, in the construction field, bio-based polyurethanes can replace traditional petroleum-based polyurethanes for insulation, which can not only save energy and reduce emissions, but also ensure living comfort.
Wide range of raw material sources: The biomass raw materials for the preparation of green and bio-polyols are abundant, including vegetable oils, starch, sucrose, etc. These raw materials can generate green and bio-polyols through a variety of chemical reactions, and compared with traditional petroleum-based polyols, they are easy to obtain and renewable, providing strong support for market development.
Fluctuations in raw material prices and supply: Green and bio-polyol manufacturers are highly dependent on major suppliers, and raw material procurement is greatly affected by suppliers. Once there is a problem in the cooperative relationship between the company and the major supplier, or the supplier’s operating and financial conditions are not good, the company may not be able to purchase the normal amount of raw materials in a timely and sufficient manner.
At the same time, fluctuations in raw material prices will also have an impact on the company’s production costs. If the price of raw materials rises, the product profit margin will decrease, and the company may adjust its production and operation plans, which is not conducive to the development of the industry.
Challenges facing bio-based polyurethanes: Green and bio-polyols are mainly used to synthesize bio-based polyurethane materials, but the market currently faces many challenges. Downstream customers have doubts about the performance of bio-based polyurethane products. Their stability is relatively poor compared to petroleum-based polyurethanes, and their structural controllability is not good. It is difficult for people to design biomass polyethers and synthesize corresponding products according to the structure of petroleum-based polyethers.
At the same time, although the special structure of biomass improves the performance of some materials, it damages some basic properties of the polyurethane material itself, such as thermal stability and thermal conductivity, which limits its application and promotion in the downstream market, thereby reducing the market demand for green and bio-polyols.
3 Technological Innovations in the Green and Bio Polyols Market
Innovation in raw material utilization: Many companies are constantly exploring innovation in raw material utilization. For example, the Sovermol® series of products developed by BASF uses renewable raw materials such as rapeseed oil and castor oil, and the product has zero volatile organic compounds (VOC), which meets the demand for environmentally friendly products in the fields of new energy vehicles and wind power generation. Covestro uses bio-recycled raw materials to produce polyether polyols, and gradually replaces fossil-based raw materials with bio-recycled raw materials through mass balance methods to improve the sustainability of products.
Innovation in production processes: Some companies have made breakthroughs in production processes. In 2016, Covestro opened a factory in Dormagen, using waste gas and carbon dioxide as plastic raw materials. This is a world-first scientific breakthrough. After testing, the materials produced by this process are of the same quality as those produced by traditional methods. In addition, Cargill has acquired advanced production processes through the acquisition of related companies, such as the reaction of vegetable oils such as soybean oil with hydrogen peroxide to produce epoxidized vegetable oils for the manufacture of bio-based plasticizers and polyols.
Enhance corporate competitiveness: Companies integrate resources through mergers and acquisitions and reorganizations to enhance their own competitiveness. In 2021, Cargill acquired Arkema’s epoxide business and a plant in Bloomington Prairie, Minnesota, which gave Cargill end-to-end production capabilities in the field of bio-based plasticizers and polyols, enabling it to better serve industrial customers and consolidate its position in the market. In the same year, Stepan Company acquired Invista’s aromatic polyester polyol business and related assets, including manufacturing plants and intellectual property in the United States and the Netherlands, accelerating the company’s product leadership plan and improving production efficiency and output.
Promoting changes in the market landscape: Corporate mergers and acquisitions have driven the evolution of the market landscape. Some small companies have been acquired by large companies, and market resources have been concentrated on dominant companies. For example, Vithal Castor Polyols is a joint venture between Jayant Agro – Organics Ltd., Mitsui Chemicals Inc. and Itoh Oil Chemical Co. Ltd.
Its establishment helps to integrate the advantages of all parties and establish a stable biopolyol supply base in India, changing the competitive landscape of the regional market. These mergers and acquisitions and restructuring activities have prompted companies to integrate and coordinate in terms of technology, production and market, and have driven the market to develop in a more centralized and scaled direction.
4 Global Green and Bio Polyols Market Size by Type
Soybean oil is projected to be a major contributor to the green and bio polyols market in 2024, with a revenue of $1,190.64 million. This represents approximately 29.30% of the total market share, making it the largest segment. The dominance of soybean oil is attributed to its widespread availability, cost-effectiveness, and the versatility it offers in various applications such as furniture, bedding, automotive, and construction.
Castor oil is another significant source, with a projected revenue of $510.82 million in 2024, accounting for 12.57% of the total market share. Castor oil is valued for its unique properties, including high viscosity and excellent resistance to oxidation, making it suitable for high-performance applications in industries like automotive and construction.
Carbon dioxide (CO2) is an emerging source with a projected revenue of $510.82 million in 2024, representing 12.57% of the total market share. The use of CO2 in polyol production is part of the broader trend towards carbon capture and utilization, offering a sustainable alternative to traditional petrochemical sources.
Sucrose is projected to contribute $256.43 million to the market in 2024, holding a share of 6.31%. While it is a smaller segment compared to soybean oil and castor oil, sucrose-based polyols find applications in food and beverage industries, pharmaceuticals, and personal care products.
Recycled polymers, a symbol of the circular economy, are projected to generate a revenue of $345.49 million in 2024, representing 8.50% of the total market share. The use of recycled polymers in polyol production is driven by environmental considerations and the need to reduce waste and conserve resources.
Table Global Green and Bio Polyols Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Soybean Oil | 1190.64 | 29.30% |
Castor Oil | 1088.06 | 26.77% |
CO2 | 510.82 | 12.57% |
Sucrose | 256.43 | 6.31% |
Recycled Polymers | 345.49 | 8.50% |
Others | 672.87 | 16.56% |
5 Global Green and Bio Polyols Market Size by Application
Furniture and bedding was the largest application segment in 2024. It generated a revenue of 1328.15 million USD, accounting for 32.68% of the total market. This significant share can be attributed to the increasing consumer preference for sustainable and eco – friendly materials in home furnishings. As more people become environmentally conscious, the demand for green and bio polyols in furniture foams and bedding products has been on the rise.
The automotive industry also played a crucial role in the green and bio polyols market. In 2024, it brought in a revenue of 939.75 million USD, holding a market share of 23.12%. With the automotive sector’s growing focus on reducing its carbon footprint and improving fuel efficiency, green and bio polyols are increasingly used in components such as seats, interior trims, and insulation materials. These materials help in reducing the weight of vehicles, thus contributing to better fuel economy.
The construction and insulation segment had a revenue of 673.32 million USD in 2024, with a market share of 16.57%. In the construction industry, there is a growing trend towards sustainable building materials. Green and bio polyols are used in insulation foams, which not only provide excellent thermal insulation but also meet the environmental requirements. As governments around the world enforce stricter building codes related to energy efficiency, the demand for these materials in construction is expected to continue to grow.
Carpet backing accounted for a revenue of 404.75 million USD in 2024, with a market share of 9.96%. The use of green and bio polyols in carpet backing materials offers advantages such as durability, flexibility, and environmental friendliness. As the flooring industry also moves towards more sustainable options, the demand for green and bio polyols in this application is likely to remain stable.
The packaging application generated a revenue of 301.83 million USD in 2024, with a market share of 7.43%. With the increasing awareness of environmental protection and the push for reducing single – use plastics, green and bio polyols are being explored as alternatives in packaging materials. Although the current share is relatively small compared to some other applications, it has growth potential as more sustainable packaging solutions are sought after.
Engineered components had a revenue of 195.79 million USD in 2024, accounting for 4.82% of the market. These components, which require specific material properties such as strength and durability, are also seeing the adoption of green and bio polyols to meet both performance and environmental standards.
Table Global Green and Bio Polyols Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Furniture and Bedding | 1328.15 | 32.68% |
Construction/Insulation | 673.32 | 16.57% |
Automotive | 939.75 | 23.12% |
Packaging | 301.83 | 7.43% |
Carpet Backing | 404.75 | 9.96% |
Engineered Components | 195.79 | 4.82% |
Others | 220.71 | 5.43% |
6 Global Green and Bio Polyols Market Size by Region
In 2024, North America generated a revenue of 1342.86 million USD from the green and bio polyols market. This region has been at the forefront of adopting sustainable materials in various industries. The United States, in particular, has a well – established manufacturing base across sectors like automotive, construction, and furniture. Stringent environmental regulations and a growing consumer preference for eco – friendly products have been driving the demand for green and bio polyols.
The region also benefits from advanced research and development capabilities, which facilitate the innovation and application of these materials. For example, in the automotive industry, car manufacturers in North America are increasingly using green and bio polyols in interior components to meet sustainability goals and consumer expectations.
Europe recorded a revenue of 1104.83 million USD in the green and bio polyols market in 2024. Europe has long been a pioneer in environmental protection and sustainable development. The European Union’s strict environmental policies, such as the Green Deal initiative, have spurred industries to seek more sustainable alternatives. In sectors like construction and automotive, the use of green and bio polyols has been on the rise.
Moreover, European consumers are highly environmentally conscious, which further drives the demand for products made from these sustainable materials. Many European companies are also investing in research and development to improve the performance and cost – effectiveness of green and bio polyols, enhancing their competitiveness in the global market.
The Asia – Pacific region had a revenue of 1312.49 million USD in 2024. This region is experiencing rapid economic growth, along with an increasing focus on environmental sustainability. China, as the largest economy in the region, has been promoting green development and has set ambitious carbon neutrality goals. This has led to a surge in demand for green and bio polyols in various industries, including construction, packaging, and automotive. Additionally, emerging economies in Southeast Asia are also starting to embrace sustainable materials. The growing middle – class population in the Asia – Pacific region, with its increasing awareness of environmental issues, is driving the consumption of products made from green and bio polyols.
Latin America generated a revenue of 178.56 million USD in 2024. While the market size in this region is relatively smaller compared to the larger economic regions, it has growth potential. The region has rich natural resources, which can potentially be used as raw materials for green and bio polyols production. Some countries in Latin America are gradually increasing their focus on sustainable development, and as industries such as construction and automotive develop further, the demand for green and bio polyols is expected to grow. However, challenges such as limited technological capabilities and infrastructure development need to be addressed to fully realize this potential.
The Middle East and Africa region had a revenue of 125.56 million USD in 2024. This region is in a transition phase in terms of sustainable development. In the Middle East, with the increasing focus on diversifying the economy away from oil – dependence, there is a growing interest in sustainable materials. In Africa, some countries are starting to recognize the importance of environmental protection and sustainable industrial development. The use of green and bio polyols in sectors like construction and packaging is gradually increasing, but the region still faces challenges such as lack of investment in research and development and limited access to advanced technologies.
Figure Global Green and Bio Polyols Market Size (M USD) by Region in 2024
7 Global Green and Bio Polyols Market Analysis by Major Players
BASF SE
- Company Profile: BASF SE is a leading global chemical company, established in 1865 and headquartered in Germany. It operates worldwide, offering a broad range of products including chemicals, plastics, crop protection products, and performance products.
- Business Overview: BASF’s business spans multiple sectors, including construction, furniture, agriculture, electronics, paints and coatings, automotive, and more. The company is committed to sustainable development and innovation, working closely with global customers, scientists, and partners.
- Product Offered: BASF offers a range of green and bio polyols under the Sovermol® brand. These products are used in flooring coatings, water pipe coatings, adhesives, and putties. Sovermol® products are made from renewable resources, contain zero volatile organic compounds (VOCs), and help reduce the carbon footprint.
- 2023 Revenue and Gross Profit Data: In 2023, BASF’s green and bio polyols business generated revenue of USD 530.62 million, with a gross profit of USD 220.16 million, resulting in a gross margin of 41.49%.
Dow Chemical Company
- Company Profile: Dow Chemical Company, established in 1897 and headquartered in the USA, is a global leader in the production of chemicals, plastics, synthetic fibers, and agricultural products.
- Business Overview: Dow serves a diverse range of industries with its extensive product portfolio, which includes plastics, performance materials, coatings and silicones, and industrial intermediates. The company focuses on delivering sustainable, high-performance solutions to meet global challenges.
- Product Offered: Dow’s green and bio polyols include products like SPECFLEX™ NC 630 Polyol, which is a high-functionality, EO-capped polyether product suitable for high-resilience, flexible molded foams.
- 2023 Revenue and Gross Profit Data: In 2023, Dow Chemical Company’s green and bio polyols business achieved revenue of USD 415.01 million, with a gross profit of USD 140.68 million, achieving a gross margin of 33.90%.
Covestro
- Company Profile: Covestro, founded in 2015 and headquartered in Germany, is a leading supplier of high-quality polymers. It operates globally, providing innovative and sustainable solutions across various industries.
- Business Overview: Covestro focuses on delivering high-performance materials through its business units in performance materials and solutions & specialties. The company is committed to sustainability, innovation, and digitalization.
- Product Offered: Covestro offers a range of green and bio polyols, including Baycoll® polyether and polyester polyols, which are used in the production of solvent-based two-component adhesives for applications in furniture, construction, automotive, and packaging.
- 2023 Revenue and Gross Profit Data: In 2023, Covestro’s green and bio polyols business generated revenue of USD 297.29 million, with a gross profit of USD 121.50 million, resulting in a gross margin of 40.87%.