Polyols Procurement & Supplier Intelligence Report, 2030

Polyols Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

  • Published Date: ---
  • Base Year for Estimate: 2023
  • Report ID: GVR-P-UC-171
  • Format: Electronic (PDF)
  • Historical Data: 2021 - 2022
  • Number of Pages: 0

Polyols Category Overview

The procurement of polyols typically involves sourcing these versatile compounds, which are primarily used in the production of various materials like polyurethane foams, coatings, and adhesives. The global polyols market is predicted to grow at a CAGR of 7.5% from 2024 to 2030. Key factors driving the growth of this industry include growing demand from the construction industry, rise in automotive production, expanding furniture and bedding sector, increasing use in packaging applications, and rising demand for sugar substitutes. Some of the major trends in the market include a rise in demand for bio-based polyols, growing emphasis on sustainability practices, increasing usage of customized or specialty polyols, and a surge in collaborative partnerships among suppliers. For instance, Cargill Inc. offers bio-based polyether polyols named as “BiOH Polyols” derived from natural oils such as soybean oils. Such products have proven to be a sustainable alternative to conventional petroleum-based polyols as they have a lower environmental impact.

A few of the major restraining factors include volatility in raw material prices, requirement of specialized manufacturing equipment, health and safety concerns, challenges in adhering to regulatory and environmental standards, and supply chain disruptions. For instance, in Asia, in Q4 2023, prices of propylene oxide (PO, a key raw material) witnessed a lot of fluctuations - falling in December after rising in November and October 2023. Weak energy prices coupled with ample domestic crude oil and gas production amid falling polypropylene demand impacted PO prices negatively.

Key technology trends and innovations driving the global polyols industry include catalytic polymerization, acrylic esterification, water-blown foaming, use of self-healing agents, hydrogenation of natural oils, bioprocess optimization, and use of blowing agents. Catalytic polymerization facilitates the controlled catalysis of raw materials such as ethylene oxide, propylene oxide, or other monomers, leading to the formation of polyols with the desired molecular weights, properties, and functionalities. Additionally, this process facilitates precise control over polyol characteristics, such as hydroxyl content and viscosity, thus catering to diverse end-use requirements. Acrylic esterification involves the reaction of acrylic acid and its derivatives with conventional polyols, leading to the formation of functionalized acrylic polyols. These products are endowed with enhanced reactivity and compatibility, thus making them valuable materials for use in coatings, adhesives, and sealants. Moreover, acrylic esterification enables customization of specific properties of polyols such as adhesion strength and curing rate, thus meeting precise application requirements.

The industry is moderately consolidated and consists of a small number of global players accounting for a significant portion of the market share. Key players are setting themselves apart by implementing sustainability initiatives, investing in innovations and R&D, setting up state-of-the-art production facilities, engaging in strategic partnerships, ensuring resilience in the supply chain, and complying with regulatory standards to stay competitive. Additionally, they are also focusing on enhancing the customer experience by providing customized materials tailored to match specific end-use requirements, optimizing ordering processes, and enhancing after-sales support. For instance, Covestro AG has developed an innovative technology using water-blown foaming agents in place of ozone-depleting blowing agents in polyol mixtures used for polyurethane production, thus reducing its environmental footprint. Buyers that are looking to source polyols are focusing on quality, cost-effectiveness, consistency, flexibility, and lead-time. Buyers in the industry possess moderate-to-low negotiating capability owing to a limited supply base.

Raw materials, labor, energy and equipment, packaging, and distribution are some of the key costs associated with the production of the commodity. Other cost components involve compliance, R&D, rent, sales and marketing, general and administration, and taxes. Raw materials and labor embrace the largest segment of the cost structure. Key suppliers usually deploy the cost-plus pricing model for pricing their products. Key reasons affecting product prices include fluctuations in the prices of raw materials such as propylene oxide, dicarboxylic acid, ethylene oxide, and glycerine. Other reasons include variations in labor costs, deviations in equipment and energy costs, and geographic location. For instance, in February 2024, the price of propylene oxide in the U.S. stood at USD 1.34/KG, 0.8% up from January 2024. On a similar note, prices of propylene oxide in Europe in February 2024 were USD 1.63/KG, 1.9% up as compared to the previous month. In Q4 2023, polyol prices in North America witnessed a bearish trend due to low demand and slow-moving manufacturing activities among the downstream sectors such as polyurethane.

Asia Pacific holds the largest market share in this industry. Key driving factors include rising demand from electronics and packaging sectors, high infrastructure growth, increasing usage in furnishings, growth in demand from emerging countries, and an increase in polymer consumption. As of December 2023, the top exporters of polyols internationally are China, the U.S., and South Korea. Most of these commodity exports from the world are shipped to India, Vietnam, and the U.S. At the end of 2023, China accounted for 59,088 shipments in exports. Northeast Asia dominates the market in terms of capacities. China is among one of the largest manufacturers of polyols. Hence, China is considered one of the most cost-effective countries for sourcing polyols. The presence of skilled labor, advancements in manufacturing processes, and an increase in the production of downstream commodities, such as flexible polyurethane foams, have significantly contributed to the ability of category managers to refine their procurement strategies and source from China.

Key drivers in regions such as Europe and North America include the presence of large-scale companies, high adoption of advancements in manufacturing processes, constructive government initiatives, robust infrastructure, and a rise in sustainability initiatives. Companies, as part of their polyols procurement strategy, prefer engaging with reliable suppliers either through direct purchases or by negotiating contracts, ensuring the quality, quantity, and pricing align with their requirements. Additionally, buyers or clients also consider factors such as delivery time, technology used in manufacturing, product range, sustainability, and regulatory compliance when selecting suppliers during polyols procurement. 

Polyols Procurement Intelligence Report Scope

Report Attribute


Polyols Market Growth Rate

CAGR of 7.5% from 2024 to 2030

Base Year for Estimation


Pricing Growth Outlook

5% - 10% increase (Annually)

Pricing Models

Cost-plus pricing, Competition based pricing, Volume-based pricing, Demand-based pricing

Supplier Selection Scope

Cost and pricing, Past engagements, Productivity, Geographical presence

Supplier Selection Criteria

Geographical service provision, industries served, years in service, employee strength, revenue generated, regulatory certifications, key clientele, material type, end-product, sustainable product offerings, customer service, supply chain reliability, lead time, and others

Report Coverage

Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key Companies Profiled

BASF SE, Cargill Incorporated, Covestro AG, Huntsman Corporation, PCC SE, Repsol S.A., Shell plc, Sinopec Group, Solvay S.A., and The Dow Chemical Company

Regional Scope


Revenue Forecast in 2030

USD 53.4 billion

Historical Data

2021 - 2022

Quantitative Units

Revenue in USD billion and CAGR from 2024 to 2030

Customization Scope

Up to 48 hours of customization free with every report.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Frequently Asked Questions About This Report

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Add-on Services

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

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