Natural Oil Polyols Market Size, Share & Trends Report

Natural Oil Polyols Market Size, Share & Trends Analysis Report By Product (Soy Oil, Castor Oil), By End-use (Construction, Electronics & Appliances), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: 978-1-68038-296-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 120

Report Overview

The global natural oil polyols market size was valued at USD 7.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2020 to 2027. The market is driven by the growing focus of the manufacturers on the adoption of sustainable feedstock and the production of green polyurethane products. The significant availability of natural oils across the geographies, along with their ease of accessibility, is expected to accelerate the market growth in the near future. Rising demand for polyurethane, which is one of the most prominent applications in the market, is expected to increase the consumption of natural oil polyols (NOP) over the forecast period. Macroeconomic factors such as increasing manufacturing output as a consequence of the rising disposable income of consumers in developing nations, including India and China, are expected to boost industries, such as construction, packaging, automotive, and consumer goods.

The U.S. natural oil polyols market size

An increase in the manufacturing of the above-mentioned industries is likely to create a demand for natural oil polyols. Natural oil polyols are majorly used for cushioning, furniture, mattresses, thermal and sound insulation in the form of polyurethanes. Additionally, cost-effective and environment-friendly production from bio-based ingredients has helped augment the popularity of natural oil polyols amongst the manufacturers.

The COVID-19 outbreak of 2020 that led to the temporal shutdown of a significant number of manufacturing industries and factories, along with national lockdowns, resulted in a decline in the production of most of the construction, automotive, consumer appliances, and furniture products. This is likely to slow the growth of the market in 2020 with prominent uncertainties in countries, such as India, China, the U.K., the U.S., Italy, and Germany, which are some of the worst-hit economies. Trade halts have further enhanced the uncertainties in feedstock availability and product movement across the geographies. However, the demand is expected to regain its growth once the manufacturing units regain their momentum.

Product Insights

Polyols extracted from soy oil (soy oil polyol) emerged as the largest product segment with a revenue share of 36.02% in 2019. The segment is majorly driven by its ability to compete with high-priced petroleum-based polyols, without compromising on the performance. Furthermore, soy oil polyol-based polyurethane is known for its lightweight, durability, and better strength. These features have increased their acceptability amongst the manufacturers and thus are expected to witness prominent growth in the near future.

Castor oil polyols are expected to witness lucrative growth over the forecast period owing to their high demand on account of purity and hydrolysis resistance properties.  Castor oil polyol is reported to be one of the cleanest natural oil polyols available commercially in the market. Their production requires minimalistic amendments as compared to soy oil or palm oil polyol. These factors collectively are expected to result in lucrative growth of the castor oil polyol segment throughout the forecast period.

Technological advancement, coupled with biotechnological research and developments, has pushed the economical and cost-effective extraction of plant oils and their widespread use as polyols. This factor has augmented the demand for the rest of the natural oils polyols, including palm oil, canola oil, and sunflower oil-based polyols, which are expected to witness moderate growth over the forecast period.

End-use Insights

The construction end-use segment accounted for the largest revenue share of 32.8% in 2019. The rising adoption of polyurethanes due to their excellent thermal and sound insulation properties is expected to be the prime factor fueling the growth of the segment. Rapid industrialization, coupled with residential buildings and infrastructural development, is expected to drive the product demand in the near future.

The electronics and appliances end-use segment is likely to witness healthy growth throughout the forecast period. This is attributed to a hike in demand for polyurethanes in cushioning, seating, and upholstery among other applications. The drive to decrease the products’ toxic quotient among consumers is one of the prime factors behind the adoption of natural oils polyols based rigid polyurethane for consumer goods and appliances.                                                                                    

Global natural oil polyols market share

Other applications such as automotive, transportation, and packaging are expected to witness lucrative growth over the forecast period on account of the adoption of natural oil polyols-based polyurethane for sound and thermal insulation, coupled with the rising popularity of green packaging among the consumers.

Regional Insights

In 2019, North America emerged as the largest regional market for natural oils polyols with a revenue share of 45.0%. Several government initiatives promoting the production and consumption of bio-based materials, including polyurethanes, are expected to boost the market growth in the U.S. and Canada. The high availability of soy in the U.S. is likely to add to the regional market growth and accelerate exports from the country.

The market in Europe is driven by the growing adoption of bio-based feedstock in nearly all the manufacturing industries. According to the European Commission, the bioeconomy adopted by the region highly supports the application of bio-based ingredients in the manufacturing industries. In addition, biotechnology and plant-based extraction methods are highly advanced in Europe, supported by its prominent involvement in R&D. These factors project significantly lucrative growth opportunities for the market in Europe.

Other emerging regions including the Asia Pacific and Central and South America are expected to follow suit. Asia Pacific countries such as Malaysia, Indonesia, and China gain a competitive edge over others in terms of the economical availability of raw material and burgeoning manufacturing industries, such as automotive, construction, and consumer appliances. Comparatively slower growth is expected to be witnessed in the Middle East and Africa, where petrochemical-based industries are dominant.

Key Companies & Market Share Insights

Key manufacturers of the product include players such as The Dow Chemical Company, Cargill Inc., BASF SE, Emery Oleochemicals, and Biobased Technologies LLC that have timely identified the advantages of bio-based products over the conventional petrochemical-based products. Increasing attempts of the manufacturers to reduce their carbon footprint and fall into the national or international standards of sustainability and good manufacturing practices have supported a higher adoption of natural oil polyols amongst the manufacturers.

The ease in the availability and procurement of raw materials project a lower entry barrier for the new entrants in the market. However, high investments required for a bio-refinery installation and for the efficient plant oil extraction technology adoption are expected to restrict the entry of small players. Prominent operational strategies of the global market players include optimization of supply chains, investments in high-growth players and high-growth regions, and patent filing for efficient technologies. Long-term supply contracts with end-users and raw material suppliers are expected to witness a rise in the near future to avoid price fluctuations and maintain uninterrupted operational activities. Drive towards application diversification and customer base expansion is likely to boost the product application-based R&D amongst the manufacturers. Some of the prominent players in the natural oil polyols market include:

  • BASF SE

  • Cargill Incorporation

  • The Dow Chemical Company

  • IFS Chemicals Group

  • Emery Oleochemicals

Natural Oil Polyols Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 7.7 billion

Revenue forecast in 2027

USD 13.7 billion

Growth Rate

CAGR of 8.4% from 2020 to 2027 (Revenue-based)

Market demand in 2020

 2,575.79 kilotons

Volume forecast in 2027

 4,177.38 kilotons

Growth Rate

CAGR of 6.6% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in kilotons, revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume and revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, end-use, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

The U.S.; Canada; The U.K.; Germany; France; China; India; Japan; South Korea, Brazil; South Africa

Key companies profiled

BASF SE; Cargill Incorporation; The Dow Chemical Company; IFS Chemicals Group; Emery Oleochemicals

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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 2016 to 2027. 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, 2016 - 2027)

    • Soy Oil Polyol

    • Castor Oil Polyol

    • Palm Oil Polyol

    • Canola Oil Polyol

    • Sunflower Oil Polyol

    • Others

  • End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • Furniture and Interiors

    • Construction

    • Electronics & Appliances

    • Automotive

    • Footwear

    • Packaging

    • Others (Industrial insulation, CASE, and others)

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

      • Canada

    • Europe

      • Germany

      • The U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

    • Central and South America

      • Brazil

    • Middle East & Africa

      • South Africa

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