The global bio-based polyurethane market size was estimated at USD 36.39 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.97% from 2023 to 2030. The development of green buildings and the implementation of several sustainable construction initiatives are expected to augment the demand for bio-based plastics over the forecast period. Bio-based polyurethane coatings find application in the automotive industry. Properties such as abrasion resistance, scratch resistance, and durability are paving the demand for bio-based polyurethane coatings in the automotive industry. The increasing need to reduce dependency on foreign oil and rising concern over CO2 emissions are propelling the demand for bio-based polyurethane among automobile manufacturers. The growth of the automotive industry on account of growing industrialization and increasing income levels is also expected to have a positive impact on the global market.
The U.S. dominated the regional market in 2022 and is projected to remain dominant over the forecast period. The rising product demand from the automotive, building & construction, and packaging sectors in the U.S. is expected to drive the market over the forecast period. The U.S. automotive industry has been witnessing growth in automobile production in the past few years. Major players in the market are entering into joint ventures and forming alliances to increase their production and reach in the country. Capacity expansion in the countries by major players is expected to positively impact the demand for bio-based polyurethane demand in the coming years.
National initiatives fostering the recovery of the housing industry are projected to have a favorable impact on future construction trends, fueling market expansion in the U.S. from 2022 to 2030. The increased manufacturing of bio-based polyurethane in the country, resulting in increased usage in the healthcare and packaging industries in the U.S. Other significant factors contributing to the growth in the country revolves around the change in behavior of consumers resulting in the use of bio-based plastics and the presence of major enterprises in the country.
The availability of labor at a low cost as compared to that in the U.S. and rising foreign investment policies in the country are attracting the attention of foreign players to set up their plants across North America. Moreover, the rise in demand for green technology and the increase in the number of construction projects are expected to fuel the growth of bio-based polyurethane in the country.
The building & construction sector dominated the end-use segment and accounted for the largest market share based on revenue of over 34.0% in 2022. Growing urbanization and industrialization, especially in emerging economies, such as China and India, coupled with rising infrastructure development activities in the Middle East are expected to fuel the growth of the construction industry, in turn, creating demand for bio-based polyurethane.
Packaging is one of the major end-use of bio-based polyurethane owing to the growing need for rigid bio-based plastic packaging for the food sector. Along with its shock-absorbing properties, bio-based polyurethane is ideal for storing and transporting things such as electronics, consumer goods, wines, and medical and healthcare products. Polyurethane's moisture resistance and thermal insulation properties aid in the preservation of perishable foodstuffs like seafood and fruits and vegetables.
Bio-based polyurethane is also used in medical implants in various forms such as plates, rods, pins, screws, and anchors. This is expected to be a major advantage of bio-based polyurethane over other biocompatible polymers used in the medical industry. North America and Europe are expected to witness significant growth owing to the increasing penetration of bio-based polyurethane and rising demand for bio-based polymers in the medical industry.
Automotive is another major industry with a large market penetration increasing demand for bio-polyurethane in automobile parts such as automotive coatings, seat backs, armrests, seat cushions, head restraints, and others. Technological improvements and the growing popularity of electric vehicles have boosted the demand for recyclable and long-lasting items. A gradual increase in the number of electric vehicles on the road is predicted to drive the growth of the bio-based polyurethane industry throughout the forecast period.
The flexible foam sector dominated the end-use segment and accounted for the largest market share of over 50.0% in 2022. This is largely due to its broad usage as cushioning for consumer and commercial products, including carpet underlay, beds, furniture, automotive interiors, and packaging.
Bio-based polyurethane adhesives & sealants are primarily used to improve the flexibility and binding of products across various applications such as construction, footwear, windshield bonding, automotive interiors, and others. Growing demand for bio-based adhesives & coatings in the construction, automotive, and footwear industries is expected to fuel their growth over the forecast period.
Bio-based polyurethane coatings are widely used in wood, construction, automotive, textile, and other applications to improve the durability and appearance of a product. Increasing demand from the above-mentioned end-use industries in China, India, Japan, and Brazil, is expected to create demand for PU coatings over the forecast period.
Asia Pacific accounted for the largest regional share of over 38.0% in 2022. This is due to rising demand from key industries such as automotive, consumer goods, electrical & electronics, packaging, and building & construction in emerging economies such as China and India. Asia Pacific region is characterized by a large amount of skilled labor at low cost along with easy availability of land. The shift in the manufacturing landscape toward emerging economies including China and India, is likely to boost market growth throughout the forecast period. Construction, automotive, electronics, consumer products, and other rapidly expanding industries in the region provide lucrative growth potential for bio-based polyurethane makers.
Rapid infrastructure development in the U.S., Canada, and Mexico is anticipated to augment product demand in the coming years. National policies promoting the housing sector’s recovery are expected to positively influence future construction trends. These factors are expected to propel the demand for bio-based polyurethane over the forecast period.
The global market is a highly competitive market due to the presence of major industries across the region as these companies are comparatively concentrated and fiercely competitive with strategic initiatives such as acquisitions, mergers, and collaborations. For Instance, In January 2023, Johnson Controls announced the acquisition of Hybrid Energy AS. Hybrid Energy's innovative technology will provide customers with fresh, cost-effective solutions composed of plastic polymers including bio-based polyurethane while tackling de-carbonization and sustainability efforts in Europe and beyond. Some prominent players in the global bio-based polyurethane market include:
RAMPF Holding GmbH & Co. KG
Huntsman International LLC
MCPU Polymer Engineering LLC
WeylChem International GmbH
Market size volume in 2023
USD 37.77 million
Volume forecast in 2030
USD 58.28 million
CAGR of 7.97% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Volume in tons, revenue in USD thousand, and CAGR from 2023 to 2030
Volume forecast, company ranking, competitive landscape, growth factors, trends
Product, end-use, region
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; UK; France; Italy; China; India; Japan; Malaysia; South Korea; Brazil; Argentina, Saudi Arabia; South Africa
Key companies profiled
BASF SE; MCNS; RAMPF Holding GmbH & Co. KG; Covestro AG; Cargill, Incorporated; Huntsman International LLC; MCPU Polymer Engineering LLC; WeylChem International GmbH
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This report forecasts revenue & volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global bio-based polyurethane market report based on product, end-use, and region:
Product Outlook (Volume, Tons; Revenue, USD Thousand, 2018 - 2030)
Coatings, Adhesives & Sealants
End-Use Outlook (Volume, Tons; Revenue, USD Thousand, 2018 - 2030)
Building & Construction
Electrical & Electronics
Regional Outlook (Volume, Tons; Revenue, USD Thousand, 2018 - 2030)
Central & South America
Middle East and Africa
b. The global bio-based polyurethane market size was estimated at USD 36.39 million in 2022 and is expected to reach USD 58.28 million in 2030.
b. The global bio-based PU market is expected to grow at a compound annual growth rate of 7.97% from 2023 to 2030 and it is expected to reach USD 37.77 million by 2023.
b. The flexible foam segment dominated the bio-based polyurethane market with a share of 50.46% in 2022. This is attributable to the rising demand for flexible foam in applications such as automotive seating, shoe soles, thermal insulations, and sports equipment.
b. Some key players operating in the bio-based polyurethane market include BASF SE , MCNS , RAMPF Holding GmbH & Co. KG, Covestro AG , Cargill, Incorporated, Huntsman International LLC, MCPU Polymer Engineering LLC, and WeylChem International GmbH.
b. Key factors that are driving the bio-based PU market growth include high demand for green buildings and increasing demand from the automotive industry.
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