Global Green Polyols Market - 2021-2028

Global Green Polyols Market - 2021-2028

Market Overview

The global green polyols market reached US$ XX million in 2020 and is expected to reach US$ XX million by 2028, growing at a CAGR of XX% during the forecast period 2021-2028.

A polyol, or polyhydric alcohol, is a type of alcohol with three or more hydroxyl groups. Polyols are chemical substances that come in a variety of shapes and sizes. Green polyols are mostly manufactured by recycling polyurethanes foam waste and other sources and are used to manufacture polyurethanes. All green polyols have comparable sources and applications, but the materials themselves might be extremely diverse depending on how they're manufactured. Green polyols are liquids and can be transparent to medium yellow. The viscosity of green polyols varies and is typically determined by the molecular weight and average amount of hydroxyl groups per molecule.

Market Dynamics

The growing demand for polyurethanes manufactured from sustainable ingredients boosts the demand for green polyols in the global market. However, the complexities in manufacturing compared to synthetic polyols restricts the market growth.

Growing demand for polyurethanes with eco-friendly properties in varied industrial sectors

Due to environmental concerns, new government laws and changing market demands, renewable substitutes for petrochemical polymeric material have been researched extensively over the last decade. Polyurethane is one of such alternatives manufactured by the reaction between a polyisocyanate moiety and a polyol component containing hydroxyl groups (OH). Since polyurethanes are versatile and could be designed for applications such as coatings, adhesives, elastomers, foams, thermal insulation and structural materials, the demand for the respective polymer in varied markets such as automotive and construction, among others, are growing extensively.

As the properties of polyurethanes depend on the chemical properties of raw materials, additives and production technology, green polyols are considered the most promising method to incorporate sustainable ingredients and properties into PU materials. As per data provided by Global Trade Center, the global export quantity of polyurethanes increased from 1,802,069 tons in 2016 to 1,952,502 tons in 2017. The respective indicator witnessed a further hike to 1,960,341 tons in 2018. The respective growth in demand for polyurethanes is associated with its increased utilization in varied industrial verticals.

Nonetheless, as environmental concerns and demand for green polymers that don't harm the environment, such as polyurethane, are rising, the demand for green polyols is expected to increase in the global market as green polyols are vital for the manufacture of polyurethanes incorporated with sustainable ingredients. As a result, the growing demand for polyurethane integrated with sustainable ingredients in varied industrial sectors could act as a market driver for the global green polyols market.

Complexities in manufacturing in comparison to traditional polyols

Green polyols are manufactured by recycling used polyurethane foam waste and similar materials. However, compared to traditional polyols, which are directly manufactured utilizing non-expensive chemicals such as ethylene and propylene, the manufacturing procedures of green polyols are complex and expensive.

The expensive nature of the manufacturing procedure and complexities in the respective process force many new manufacturers to opt out of entering the market. Since the lack of new entrants could diminish the overall market potential of the respective market, the Complexities in manufacturing compared to traditional polyols could be considered a market restraint.

COVID-19 Impact Analysis

Due to the following concerns, COVID-19 had a detrimental impact on the global green polyols market during the pandemic's initial waves:

The production of green polyols has been hampered by a lack of raw materials, skilled labor and production disruptions caused by industry lockdowns and the demand for social isolation.

The global lockdown imposed as a response to the COVID-19 pandemic has hampered not only the availability of raw materials but also the supply of finished products, causing major disruptions in the supply-demand dynamics.

The decline in demand and sales in the automotive industry, a major end-user of polyols for the manufacture of polyurethanes used in vehicles, decreased overall market activity of the global green polyols market, limiting overall demand of the respective product.

However, when the pandemic's effects diminish, the global market for green polyols is expected to grow rapidly. The projected resurgence in car sales and construction activities in the post-COVID-19 scenario is a critical component of the market's expansion. Further, the growing environmental concerns and consumer adoption of products with less environmental impact also play a major role in the growth of the respective market in the post-COVID-19 market scenario.

Segment Analysis

The global green polyols market is segmented on raw materials, application, grades, end-user and region.

The growing demand for thermally insulating materials and environmentally friendly products in the construction segment helps the respective segment to dominate the global green polyols market

Based on end-user, the global green polyols market is segmented into furniture and bedding, automotive, construction, packaging, carpet backing and others.

The construction industry dominates the end-user segment of the global green polyols market. The growing demand for foam as a thermally insulating material in the construction industries is predicted to boost the growth of green polyols used in the production of construction-grade foams. Further, the rise of green and energy-efficient buildings has sparked a surge in demand for environmentally friendly building materials such as green polyols to manufacture Coatings, Adhesives, Sealants & Elastomer (CASE) systems.

The growing awareness regarding eco-friendly products in the construction market and their associated benefits, such as reduced overall energy use and carbon footprint, also boosts the construction segment's market share and helps the respective segment dominate the end-user segment of the global green polyols market.

Geographical Analysis

The explosive growth of construction and automotive markets in Asia-Pacific allows it to dominate the global green polyols market

Given the extremely developed automobile sectors in China, Korea, Japan and India and ongoing investments in the region to advance the construction and furniture segments, Asia-Pacific is estimated to dominate the global green polyols market.

Green polyols are employed to produce rigid and flexible polyurethane foams and adhesives for packaging and furniture applications. Since Asia-Pacific is a major market in the packaging industry and is one of the leading exporters of a multitude of products of the respected industry's to various locations, the demand and sales of green polyols in the respective market are very high. For instance, China, in particular, is a major producer and exporter of furniture, artificial leathers, carpet backing, furniture and bedding applications, which all utilize green polyols.

Competitive Landscape

In terms of the strength and number of global and local competitors, the global green polyols market is quite active and competitive. The market is categorized as fragmented because a few key competitors control most of the market share. The global green polyols market's increased competitiveness is due to the swift and colossal growth of the automotive, construction, furniture and bedding industries.

BASF SE, Bayer AG, Stepan Company, Cargill, Incorporated, Emery Oleochemicals, Arkema, Mitsui Chemicals, Inc, Huntsman Global LLC, Koch Industries, Inc, DuPont are some of the major market players. The key market stakeholders utilize market tactics such as mergers, acquisitions, product launches, contributions and partnerships to gain competitive advantages and recognition in their respective markets.

Emery Oleochemicals

Overview: Emery Oleochemicals focuses on manufacturing high-value and customizable derivatives utilized in numerous markets such as textiles, electrical and electronics, furniture and bedding, among others. Emery Oleochemicals was founded in 1840 and is headquartered in Ohio, U.S. The company's product portfolio includes segments such as agro green, bio-lubrication, eco-friendly polyols, green polymer additives, oleo basics and home & personal wellness. The company has a presence in 50 countries globally and employs 1,000 personnel.

Product Portfolio:

INFIGREEN: The product is recycled content polyols, made from polyurethane scrap foam that has been recycled. The respected polyols can be either reintroduced into the same foaming process (closed-loop) or employed in completely new applications (open loop).

Key Development:

On September 16, 2016, Emery Oleochemicals, a natural-based chemicals manufacturer from North America, showcased its Infigreen recycled content polyols at the 2016 Polyurethanes Technical Conference in Baltimore, Maryland.

Why Purchase the Report?

To visualize the global green polyols market segmentation by raw materials, application, grades, end-user and region, as well as understand key commercial assets and players.

Identify commercial opportunities in the global green polyols market by analyzing trends and co-development.

Excel data sheet with numerous data points of green polyols market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Product mapping available as excel consisting of key products of all the major market players

The global green polyols market report would provide approximately 69 tables, 71 figures and almost 180 pages.

Target Audience 2022

Green Polyols Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies

Logistics companies

Distributors/ Suppliers