Global bio polyols market is expected to witness significant growth over the next seven years. Growing environmental concerns regarding conventional polyols usage is presumed to play a critical role in shaping the future development of bio polyols over the forecast period. Demand for these bio-based products is estimated to witness annual growth rate of over 9%. Volatile crude oil prices have negatively impacted the conventional polyols demand. Increasing acceptance across multiple end-use industries over the past few years is expected to further compliment the global market development. Shifting consumer preference for bio-based materials over synthetic chemical is expected to be beneficial for the overall market growth. Major industry participants have invested heavily in R&D initiatives for superior and cheaper bio based products. Governments and regulatory associations such as Environmental Protection Agency (EPA), REACH etc. have implemented several guidelines favoring bio based polyols usage. Volatile organic compounds (VOCs) which are environmentally hazardous are used in conventional polyols manufacturing. Sustainable bio based polyols emits zero to minimal VOCs in their manufacturing process. All the above mentioned factors are expected to drive the overall market over the next seven years.
Construction industry has started using bio-based polyols over conventional polyols. Increasing infrastructure spending in emerging countries such as China, India, Malaysia, Indonesia, Russia, Brazil and Vietnam is expected to have positive impact on the market. Coatings and food industry growth in numerous economies is also anticipated to add value to the overall market revenue. Other major applications include transportation, adhesives, carpeting, furniture, sealants and bedding.
High recycling of foam based waste for the production of bio polyols has helped in reducing raw materials prices for the conventional polyols. High unconventional hydrocarbon production in North America has helped in reducing petro related raw material prices for the conventional polyols. Iran recently started exporting their oil reserves and this is expected to reduce overall petrochemical prices for the next few years. All mentioned recent activities across various regions may emerge as a major concern for the bio-based polyol producers. Since bio polyol products are novel in the market, production cost for these polyols are still extremely high. This may create hindrance for the overall market growth. Innovations in terms of product development and acceptance across wide range of end-use applications are anticipated to create ample lucrative opportunities for the industry participants.
North America bio polyols market dominated the overall the overall market revenue. Growing end-use industries in U.S., Canada and Mexico had direct positive impact on the overall market. Italy and Germany have the largest market share in the European region. Europe bio polyols market is also expected to witness significant growth over the period. Asia Pacific is expected to witness fastest growth over the next seven years. China India, Japan, Indonesia, Vietnam and Malaysia are the biggest economies in the Asia Pacific region in terms of growing end-use industries. Other regional markets which are expected to grow at a faster pace include Brazil, Russia, Argentina, South Africa and Australia.
Prominent bio polyols industry participants include Arkema S.A., Global Bio Chem Technology Group Co. Ltd., The Dow Chemical Company, BASF S.E. Other manufacturers include Stepan Company, Bayer Material Science, Mitsui Chemicals Inc., Bio Based Technologies Llc, Johnson Controls Inc., Cargill Inc., Jayant Agro Organics Ltd., E.I. DuPont de Nemours & Co., Invista S.A.R.L. and Emery Oleo Chemicals (M) Sdn Bhd. The industry is moderately fragmented. Major participants hold over 30% of the overall market share. Entry barriers are high for the market. The new entrants require innovative and strong R&D initiatives and product development process to enter the market.
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