Natural Oil Polyols Market Size, Share & Trends Analysis Report By Product (Soy Oil Polyols, Palm Oil Polyols), By End Use (Construction, Electronics & Appliances, Furniture & Interiors), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global natural oil polyols market size was valued at USD 6.80 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.6% from 2021 to 2028. The market growth is attributed to the increasing demand for lightweight and highly durable products in industries including automotive, construction, and electronics, especially in emerging economies such as China, India, and Indonesia. The growth of the market is likely to be propelled by the increasing consumption of bio-based polyurethane foams in automotive, construction, electrical and electronics, and other sectors. Regular efforts to reduce vehicle weight to enhance fuel efficiency and reduce carbon emissions have propelled the automotive OEMs to embrace the use of polyurethane foams obtained from natural oils polyol in different automotive components, such as seat covers and interiors.

The growing demand for environmentally-friendly plastic products, coupled with volatile prices of key raw materials used for manufacturing conventional (petrochemicals-based) polyols, is expected to remain a key driving factor for the market. Major petrochemical-based polyol manufacturers such as Cargill Incorporated and BASF have shifted their focus towards manufacturing eco-friendly products in order to reduce reliance on conventional polyols, thus reducing the risks associated with its price volatility.

Increasing environmental concerns, coupled with the volatile prices associated with conventional polyurethane, have spurred the adoption of bio-based polyurethane globally. Favorable regulations for manufacturing bio-based products, coupled with stringent environmental sanctions on petrochemicals and synthetic polymers, are expected to have a positive impact on the bio-based polyurethane market growth.

The growing number of specialty retail shops, salons, spas, online sales platforms, and direct response television platforms, such as the home shopping channels and infomercials, has pushed the personal care product sales in the last few years and this is expected to continue over the forecast period. The growing preference for beauty and skin care products in Germany, India, the U.K., and France is expected to drive the demand for bio-based polyols over the forecast period.

Product Insights

The soy oil polyols segment dominated the market with a revenue share of over 35.0% in 2020. The surging demand for soy oil polyols for use in food and animal feed is estimated to fuel the growth of this segment.

Castor oil is one of the commercially available products produced directly from oilseeds. It is used to manufacture a variety of polyurethane products such as foams and coatings. This oil is increasingly used for manufacturing polyurethane foams. Surging demand for high-purity natural oil polyols at low prices, coupled with the advancements in extraction technologies, has led to the development of castor oil polyols.

Palm oil is one of the most economical oil crops in the world. It is a readily available renewable and crucial bio-based polyol raw material suitable for the production of semi-rigid or rigid polyurethane foams, polyurethane adhesives and coatings, composites, and elastomers used in various industrial applications. Growing R&D expenditure for developing alternate vegetable polyol sources, along with increasing palm oil extraction for industrial purposes, is estimated to have a positive impact on the growth of the palm oil polyol segment over the forecast period.

End-use Insights

The construction segment dominated the market with a revenue share of more than 30.0% in 2020. This is attributed to the growing use of polyurethanes in the construction of roofs and walls of buildings. The global construction industry is projected to witness rapid growth in the coming years with the U.S. construction market growing at a faster rate than the market in China. Increased construction activities worldwide are expected to create a surged demand for rigid polyurethane foams made from natural oil polyols in the coming years.

The furniture and interiors segment held the second-largest revenue share in 2020. Natural oil polyols are primarily used for manufacturing polyurethane products. Polyurethane, inflexible form, is a popular material used for developing carpet underlays, bedding, and furniture. Flexible polyurethane foams produced from natural oil polyols are used in furniture to make them comfortable, durable, and reliable. They are also used as cushioning materials in upholstered furniture.

Polyurethanes are used in the automotive industry to develop numerous parts of automobiles, including bumpers, spoilers, vehicle bodies, interior ceiling sections, windows, and doors. The demand for high-strength but lightweight materials for use in automobiles is increasing across the world owing to the overall structural blends, weight benefits, and crash performance offered by them.

Non-foam polyurethanes, also known as potting compounds, are most commonly used in the electrical and electronics industries to seal, encapsulate, and insulate microelectronic components, pressure-sensitive systems, fragile devices, underwater systems, and printed circuit boards. Increased consumption of non-foam polyurethane in electrical and electrical appliances will propel the demand for natural oil polyols.

Regional Insights

North America dominated the market with a revenue share of over 40.0% in 2020. This is attributed to the increasing biofuel demand due to the rising energy costs associated with volatile petrochemical prices. The growing demand from the end-use industries such as construction, electrical and electronic appliances, and furniture and interiors across the region is also likely to favor the market growth.

Germany is one of the most prominent automotive markets in Europe. The country is a prominent producer of passenger cars among all the member countries of the European Union and accounts for more than 29.0% share in the European automotive market. These factors are expected to contribute to the growth of the market over the forecast period.

The growing manufacturing sector in the region on account of cheap raw material costs, the availability of skilled labor, and low manufacturing costs are expected to drive natural oils polyol production in the region. Major overseas companies are expanding their production capabilities in the region on account of the above-stated factors. This trend is expected to further strengthen the production landscape of the regional market.

The growing utilization of soy-based, palm-based, and other oilseed-based polyurethane in appliances, along with the developments in the electronics industry, is creating a strong growth potential for the market in Central and South America. Saudi Arabia is one of the fastest-growing real estate and construction markets in the Gulf, which has increased the demand for oilseed-based polyurethane for applications such as tapes and adhesives, roofing, and flooring. Thus, the growing construction industry is expected to propel the demand for natural oil polyols over the forecast period.

Key Companies & Market Share Insights

The market is highly competitive due to the presence of a large number of multinationals that are engaged in constant research & development activities. The global companies are also focusing on capacity expansions, signing partnership agreements with advanced biotechnology companies, and various other operational strategies to gain an edge in the competitive market space. For instance, companies such as Cargill, Incorporated purchased Agrol, a product line of natural oil polyols, from BioBased Technologies LLC. These competitive strategies are likely to reflect higher rivalry in the coming years. Some prominent players in the global natural oil polyols market include:

• Stepan Company

• BASF SE

• Emery Oleochemicals

• Cargill Inc.

• Biobased Technologies

• Vertellus

Natural Oil Polyols Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global natural oil polyols market report on the basis of product, end use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Soy Oil Polyols

  • Castor Oil Polyols

  • Palm Oil Polyols

  • Canola Oil Polyols

  • Sunflower Oil Polyols

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Furniture & Interiors

  • Construction

  • Electrical & Electronic Appliances

  • Automotive

  • Footwear

  • Packaging

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa