Polyols Market Research Report Information by Type (PPG Series, Polyether Polyol for Flexible Foam, Polyether Polyol for Rigid Foam, Polyester Polyol, Polymeric Polyol, Others), by Molecular Weight (1-1000, 1000-2000, 2000-5000, Above 5000), by Application (Flexible polyurethane foam, Rigid polyurethane foam, Coatings, Adhesives & sealants, Elastomers), by End-Use (Building & Construction, Automotive, Furnishings, Packaging, Electronics, Others) and Region (North America, Europe, Asia-Pacific, South America, Middle East & Africa) - Forecast

Polyols Market Summary

As per MRFR Analysis, the Global Polyols Market was valued at USD 29.51 Billion in 2023 and is projected to grow from USD 30.66 Billion in 2024 to USD 41.37 Billion by 2032, with a CAGR of 6.2% during the forecast period. The market is driven by increasing demand in the construction and automotive industries, particularly for energy-efficient polyurethane products. Polyether polyols dominate the product segment, while flexible foam is the largest application segment. The Asia-Pacific region holds over 50% of the market share, led by China and India, with North America and Europe following due to their demand for sustainable materials.

Key Market Trends & Highlights

Key trends driving the Polyols market include industrialization, energy efficiency, and diverse applications.

• Polyols market projected to reach USD 41.37 Billion by 2032; CAGR of 6.2% from 2024 to 2032.
• Asia-Pacific accounts for over 50% of global market share; driven by rapid industrialization.
• Flexible foam segment held over 27.0% market share by volume in 2017; widely used in furniture and automotive.
• Polyether polyols expected to maintain dominance due to their properties and applications in various industries.

Market Size & Forecast

2023 Market Size: USD 29.51 Billion

2024 Market Size: USD 30.66 Billion

2032 Market Size: USD 41.37 Billion

CAGR: 6.2%

Largest Regional Market Share in 2023: Asia-Pacific.

Major Players

Major players include BASF SE, Covestro AG, Royal Dutch Shell Plc, The Dow Chemical Company, Mitsui Chemicals, Wanhua Chemical Group, LANXESS AG, Huntsman Corporation, Stepan Company, and Repsol SA.

The rising demand for polyurethane foam in the construction industry and expanding automotive sector increases polyurethane foam consumption are driving the growth of the Polyols Market.

As per the Analyst at MRFR, the global polyols market has been significantly driven by the escalating demand for polyurethane (PU) foams within the construction industry. Polyurethane foams, produced using polyether or polyester polyols, are highly valued for their versatility, durability, and superior insulation properties. In construction, these foams are widely used for thermal insulation, soundproofing, waterproofing, and structural enhancement, contributing to energy efficiency and building longevity. 

The growing emphasis on energy conservation and sustainable building practices has fueled the adoption of polyurethane foams, making them a preferred choice for both residential and commercial construction projects. As countries worldwide tighten energy efficiency regulations, the demand for effective insulation materials, particularly PU foams, has surged, directly boosting the polyols market.

 FIGURE 1: POLYOLS MARKET VALUE (2019-2035) USD BILLION

 Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Polyols Market Opportunity

INCREASING DEMAND FOR BIO-BASED POLYOLS IN GREEN PRODUCTS

The global polyols market is witnessing a notable shift towards sustainability, driven by the rising demand for bio-based polyols in green products. Bio-based polyols, derived from renewable resources like soybean oil, castor oil, rapeseed oil, and other natural oils, offer an eco-friendly alternative to conventional petroleum-based polyols. This transition aligns with the growing emphasis on reducing carbon footprints, promoting environmental conservation, and adhering to strict regulatory frameworks targeting greenhouse gas emissions. As industries increasingly prioritize sustainable practices, bio-based polyols are becoming integral to the production of environmentally friendly products, especially in sectors like construction, automotive, packaging, and consumer goods.

One of the primary drivers of this trend is the global focus on reducing dependency on fossil fuels. Petroleum-based polyols, widely used in the production of polyurethane foams, coatings, adhesives, and sealants, have long been criticized for their environmental impact. In contrast, bio-based polyols not only reduce reliance on non-renewable resources but also offer advantages such as lower volatile organic compound (VOC) emissions and improved recyclability. Governments and regulatory bodies worldwide are implementing stringent environmental policies, incentivizing manufacturers to incorporate renewable materials in their product lines. For example, the European Union’s Green Deal and the U.S. Environmental Protection Agency’s (EPA) guidelines on sustainable materials are pushing industries to adopt bio-based alternatives, thereby creating significant market opportunities for bio-based polyols.

The construction and automotive industries are among the key sectors embracing bio-based polyols due to their role in reducing carbon emissions and enhancing energy efficiency. In the construction sector, bio-based polyols are extensively used in producing rigid polyurethane foams for building insulation. These foams not only offer superior thermal insulation but also contribute to energy-efficient buildings, which are increasingly favored in modern urban planning. Similarly, in the automotive industry, lightweight polyurethane components made from bio-based polyols help reduce vehicle weight, thereby improving fuel efficiency and lowering emissions. With global initiatives promoting green construction and eco-friendly vehicles, the demand for bio-based polyols is expected to grow exponentially.

Consumer awareness and preferences are also playing a crucial role in driving the demand for bio-based polyols. Modern consumers are increasingly conscious of the environmental impact of their purchasing decisions, favoring products that promote sustainability. This has encouraged manufacturers of furniture, bedding, packaging, and even personal care products to integrate bio-based polyols into their offerings. For instance, memory foams used in mattresses and pillows, produced using bio-based polyols, are marketed as eco-friendly and non-toxic alternatives, appealing to environmentally conscious buyers. Additionally, major consumer goods companies are investing in sustainable packaging solutions, where bio-based polyurethane foams serve as recyclable and biodegradable protective materials.

Polyols Market Segment Insights

Polyols by Type Insights

Based on Type, this segment includes PPG Series, Polyether Polyol for Flexible Foam, Polyether Polyol for Rigid Foam, Polyester Polyol, Polymeric Polyol, Others. The Polyether Polyol for Flexible Foam segment dominated the global market in 2024, while the Polyester Polyol segment is projected to be the fastest–growing segment during the forecast period. Polyether Polyol for Flexible Foam represents one of the largest market segments due to its widespread use in producing flexible polyurethane foams. 

These foams are key components in a variety of consumer and industrial products, such as furniture cushions, mattresses, automotive seating, and packaging materials. The primary appeal of polyether polyols in flexible foam production lies in their ability to offer excellent elasticity, softness, and resilience, ensuring high levels of comfort and durability. In the furniture and bedding industry, the demand for high-resilience foams, which provide superior comfort and durability, has boosted the consumption of polyether polyols. Automotive manufacturers also utilize these foams in car seats and interiors to enhance comfort and safety while meeting lightweight design standards that contribute to fuel efficiency.

FIGURE 2: POLYOLS MARKET SHARE BY TYPE 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Polyols by Molecular Weight Insights

Based on Molecular Weight, this segment includes 1-1000, 1000-2000, 2000-5000, Above 5000. The 2000-5000 segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Polyols falling within the 2000-5000 molecular weight range are known for their enhanced elasticity, softness, and resilience. These properties make them the preferred choice for manufacturing high-performance flexible foams and elastomers. In the furniture and bedding industry, polyols of this range are extensively used to produce soft cushions and mattresses that offer superior comfort and durability. 

Their higher molecular weight results in lower cross-linking density, which translates into increased flexibility and better impact absorption—ideal for cushioning applications. In the automotive sector, these polyols contribute to energy-absorbing components such as seat cushions and armrests, enhancing passenger comfort and safety.

Polyols by Application Insights

Based on Application, this segment includes Flexible polyurethane foam, Rigid polyurethane foam, Coatings, Adhesives & sealants, Elastomers. The Flexible polyurethane foam segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Flexible polyurethane foam (FPF) is the largest application segment in the global polyols market, accounting for a significant share due to its widespread use in furniture, bedding, automotive, and packaging industries. 

Known for its softness, flexibility, and cushioning properties, FPF is a preferred material for enhancing comfort and support. In the furniture and bedding sector, it is extensively used in mattresses, sofas, cushions, and pillows, offering superior comfort, durability, and resilience. The rising demand for high-quality, ergonomic furniture and the growing preference for memory foam mattresses have significantly boosted the use of FPF.

Polyols by End-Use Insights

Based on the End-Use, this segment includes Building & Construction, Automotive, Furnishings, Packaging, Electronics, Others. The Building & Construction segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. The Building & Construction sector represents one of the most prominent end-users of polyols, driven by the increasing need for energy-efficient materials and sustainable construction practices. 

Polyols are primarily utilized in the production of rigid polyurethane (PU) foams, which are extensively used as thermal insulators in walls, roofs, and floors of residential, commercial, and industrial buildings. These foams offer superior insulation properties, helping to reduce energy consumption and carbon emissions.

Polyols Regional Insights

Based on the Region, the global Polyols are segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia-Pacific dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the Asia-Pacific market are the rising demand for polyurethane foam in the construction industry and expanding automotive sector increases polyurethane foam consumption. China holds the largest share, contributing over 38% of the regional market, primarily due to its massive polyurethane (PU) consumption in construction and automotive sectors. The rising demand for energy-efficient buildings, especially in China, Japan, and South Korea, has significantly fueled the adoption of PU rigid foams, where polyols play a critical role. 

Government mandates like China’s "Green Building Action Plan" and Japan's "ZEB (Net Zero Energy Building) Roadmap" have further accelerated the use of PU insulation materials, increasing the demand for polyether polyols in particular. India, as the fastest-growing market in Asia Pacific, has witnessed a surge in polyol demand, driven by its booming construction and automotive industries. The "Smart Cities Mission" and "Housing for All" initiatives have led to substantial infrastructure development, where polyols are extensively used in roofing, wall insulation, and flooring applications.

FIGURE 3: POLYOLS MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, France, UK, Spain, Italy, China, India, Japan, Thailand, South Korea, Brazil, Argentina, Saudi Arabia, UAE, Qatar, Oman, South Africa and others.

Global Polyols Key Market Players & Competitive Insights

Many global, regional, and local vendors characterize the Polyols Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.

The major competitors in the market are Covestro AG, BASF SE, Dow, Shell, Huntsman International LLC, Coim USA Inc., Stepan Company, Palmer Holland, Inc., Solvay, PCC Group are among others. The Polyols Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Polyols Market include

• Covestro AG


• BASF SE


• Dow


• Shell,


• Huntsman International LLC


• Coim USA Inc.


• Stepan Company


• Palmer Holland, Inc.


• Solvay


• PCC Group

Polyols Market Segmentation

Polyols by Type Outlook

• PPG Series


• Polyether Polyol for Flexible Foam


• Polyether Polyol for Rigid Foam


• Polyester Polyol


• Polymeric Polyol


• Others

Polyols by Molecular Weight Outlook

• 1-1000


• 1000-2000


• 2000-5000


• Above 5000

Polyols by Application Outlook

• Flexible polyurethane foam


• Rigid polyurethane foam


• Coatings


• Adhesives & sealants


• Elastomers

Polyols by End-Use Outlook

• Building & Construction


• Automotive


• Furnishings


• Packaging


• Electronics


• Others

Polyols Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • Thailand
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• 
  Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • Qatar
  
  
  • Oman
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  

Report Attribute/Metric	Details
Market Size 2024	USD 32.40 Billion
Market Size 2025	USD 34.47 Billion
Market Size 2035	USD 64.66 Billion
Compound Annual Growth Rate (CAGR)	6.49% (2025-2035)
Base Year	2024
Forecast Period	2025-2035
Historical Data	2019-2023
Forecast Units	Value, Volume (USD Billion, Kilo Tons)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered	By Type, By Molecular Weight, By Application, By End-Use
Geographies Covered	North America, Europe, Asia Pacific, South America, Middle East & Africa
Countries Covered	The US, Canada, Mexico, Germany, France, UK, Spain, Italy, China, India, Japan, Thailand, South Korea, Brazil, Argentina, Saudi Arabia, UAE, Qatar, Oman, South Africa
Key Companies Profiled	Covestro AG, BASF SE, Dow, Shell, Huntsman International LLC, Coim USA Inc., Stepan Company, Palmer Holland, Inc., Solvay, PCC Group
Key Market Opportunities	·         Increasing Demand for Bio-Based Polyols in Green Products ·         Expanding packaging industry driving demand for rigid foams
Key Market Dynamics	·         Rising Demand for Polyurethane Foams in the Construction Industry ·         Expanding Automotive Sector Increases Polyurethane Foam Consumption