Bio-based Polyurethane Market Size, Share & Trends Analysis Report By Product (Rigid Foam, Coatings, Adhesives & Sealants, Flexible Foam), By End Use (Packaging, Building & Construction), And Segment Forecasts, 2021 - 2028

Report Overview

The global bio-based polyurethane market size was valued at USD 34.73 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2021 to 2028. Factors, such as the rising number of green building construction projects and increasing product demand from the automotive industry, boost the market growth. Bio-based polyurethane (PU) coatings are utilized in construction, wood, textile, automotive, and other end-uses to improve the appearance and durability of a product. Bio-based polyurethane resins are derived from the reaction of natural oils, such as castor, soybean, and sunflower, with diisocyanates. These resins are utilized for various applications, such as rigid and flexible foams, coatings, adhesives, sealants, elastomers, membranes, and fibers across end-use industries including automotive, building & construction, electrical & electronics, packaging, and consumer goods.

To cater to the rising demand for green buildings, bio-based polyurethane foams are being utilized as an efficient insulation material, leading to higher energy savings. These foams are widely used in spray form for sealing the holes, cracks, joints, and boding other building materials, ultimately reducing the amount of conditioning or heat required inside the building. On the other hand, low prices of conventional polyurethane are keeping bio-based polyurethane from achieving competitive pricing, which may hamper the market growth.

However, increasing concerns regarding toxic issues pertaining to petrochemicals along with depleting crude oil reserves have been driving the development of bio-based polymers like bio-based polyurethane. Regulations imposed by most governments restricting the consumption of petroleum-based plastics in certain end-uses like medical devices are expected to further incentivize the production of bio-based polyurethane during the forecast period.

Major players continuously use technological advancements for introducing new, advanced products. For instance, in September 2020, Covestro AG teamed up with FoamPartner, a Swiss company, to develop foams that are partially based on CO2. Carbon dioxide is used as a raw material to produce polyol instead of fossil raw materials, such as crude oil. CO2 polyol available under the Cardyon brand name is used as a raw material by FoamPartner to produce polyurethane foams for various parts used in the vehicle interior.

Product Insights

The flexible foam segment dominated the global market in 2020 with a revenue share of more than 49%. Bio-based flexible polyurethane foam is light, durable, supportive, and comfortable and is used in various industries, such as automotive, furniture & mattress, footwear, textile, handbag & luggage, home appliances, and packaging. It is widely utilized as cushioning for a variety of consumer and commercial products, including bedding, furniture, automotive interiors, carpet underlay, and packaging.

Bio-based polyurethane coatings are used to provide a smooth durable finish with high resistance to UV and chemical exposure. These coatings are utilized in the construction, wood, textile, automotive, and other end-use sectors to improve the appearance and durability of a product. Bio-based rigid polyurethane foam is used in several end-use industries, such as automotive, building & construction, and industrial insulations & appliances. Rigid foam is an effective insulation material that is suitable for use in roof and wall insulation, insulated windows, doors, and air barrier sealants.

End-use Insights

The building & construction end-use segment dominated the global Bio-based PU market in 2020 accounting for more than 35% of the total revenue share. The growth is credited to the high product demand in the building & construction end-use industry due to its beneficial characteristics including excellent insulation, low weight, long life span, and corrosion resistance among others.

Bio-based polyurethane is also extensively used in electrical & electronics applications, such as smartphones, mobile devices, laptops, and TVs owing to its electrical insulation, shock resistance, adhesion, and other properties. Furthermore, technological advancements and increasing demand for Electric Vehicles (EVs) have increased the need for durable and recyclable products. A gradual increase in EVs on roads is expected to positively propel the market growth over the forecast period.

The product is widely utilized in packaging applications due to the shock-absorbing properties that make it ideal for storage and transportation of products, such as electronic equipment, consumer goods, wines, and medical & healthcare products. Other properties, such as moisture resistance and thermal insulation, offered by polyurethane help retain the freshness of perishable products, such as seafood and fruits & vegetables. All these factors drive its demand in the packaging end-use segment.

Regional Insights

Led by China, Asia Pacific was the largest regional market in 2020 with a revenue share of more than38%. It is anticipated to maintain its dominance over the forecast period owing to rising demand from key industries, such as automotive, consumer goods, electrical & electronics, packaging, and building & construction in emerging economies like China and India. In addition, the region is home to several rapidly expanding industries, such as construction, automotive, electronics, and consumer goods, which offer lucrative growth opportunities to bio-based polyurethane manufacturers.

Moreover, the region is characterized by the easy availability of land and skilled, low-cost labor. A shift in the production landscape in emerging economies, particularly China and India, is expected to positively influence market growth over the forecast period. Foams and other bio-based polyurethane products are expected to gain significance in the region on account of rising consumer awareness regarding eco-friendly products. Increasing construction spending owing to the growing need for sustainable infrastructure is also expected to drive product demand in the region during the forecast period.

Key Companies & Market Share Insights

The market is highly competitive with the presence of a few medium- and small-scale regional and several global players. Strategic partnerships and acquisitions are some of the prominent strategies adopted by players operating in this market. For instance, in May 2017, Cargill, Inc. acquired BioBased Technologies, which manufactures polyols from renewable sources, such as soy, cashew nutshell liquid, and castor oil. The company offers polyols under the Agrol brand name, which has applications in lubricants, building products, diesel additives, furniture, automotive, adhesives, agricultural products, carpet backings, industrial coatings, and printing inks. Some of the prominent players operating in the global bio-based polyurethane market are:

• BASF SE

• MCNS

• RAMPF Holding GmbH & Co. KG

• Covestro AG

• Cargill, Inc.

• Huntsman International LLC

• MCPU Polymer Engineering LLC

• WeylChem International GmbH

Bio-based Polyurethane Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. 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, 2017 - 2028)

  • Rigid Foam

  • Flexible Foam

  • Coatings, Adhesives& Sealants

  • Others

• End-use Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)

  • Automotive

  • Building & Construction

  • Consumer Goods

  • Electrical & Electronics

  • Packaging

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Thousand, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa