The natural oil polyols market has seen considerable growth due to a variety of factors.
• The natural oil polyols market has shown robust growth in recent years. It will grow from $7.55 billion in 2024 to $8.17 billion in 2025, at a CAGR of 8.2%.
This expansion is attributed to rising disposable incomes, increased research and development activities, growing demand in various industries, consumption in the automotive sector, and a growing focus on eco-friendly products.
The natural oil polyols market is expected to maintain its strong growth trajectory in upcoming years.
• The natural oil polyols market is forecast to reach $11.12 billion by 2029 at a CAGR of 8.0%.
This growth is driven by increasing consumption of bio-based polyurethane foams, rising demand for lightweight and durable products, environmental concerns, and a trend towards reducing reliance on petrochemicals. Key trends include a preference for beauty products, eco-friendly solutions, bio-based products, and advancements in extraction techniques.
Gain Insights Into The Natural Oil Polyols Global Market Report 2025 With A Free Sample Report Here:
The rising demand in the automotive sector is expected to drive the natural oil polyols market forward. The automotive industry is growing due to rising incomes, technological advancements, and population growth. Natural oil polyols help make sustainable automotive materials, such as polyurethane foams and adhesives, and contribute to reducing the carbon footprint of vehicle production. The European Automobile Manufacturers Association reported that global passenger car production increased by 7.9% in 2022. This demand for eco-friendly automotive materials is driving the growth of the natural oil polyols market.
The natural oil polyols market covered in this report is segmented –
1) By Type: Polyester Oil, Polyether Oil
2) By Application: Polyurethane Foams, Metallic Coatings, Cushioning, Feed Stocks, Bakery Products, Other Applications
3) By End-User: Construction, Automobile, Food, Transportation, Other End-Users
Subsegments:
1) By Polyester Oil: Vegetable Oil-Based Polyester Polyols, Animal Fat-Based Polyester Polyols, Other Polyester Oils
2) By Polyether Oil: Propylene Oxide-Based Polyether Polyols, Ethylene Oxide-Based Polyether Polyols, Other Polyether Oils
Key players in the natural oil polyols market are innovating products made from bio-circular raw materials in pursuit of increased sustainability and lessened ecological footprint. These polyols are crafted through the mass balance method, which mathematically assigns renewable raw materials sourced from biowaste and plant remnants to the resulting product. As an example, in September 2022, Covestro AG, a materials production firm based in Germany, introduced eco-friendly polyether polyols created from bio-circular raw materials. Through this strategy, fossil-based raw materials can be slowly replaced with bio-circular alternatives, thereby reducing the carbon footprint compared to typical fossil fuel-derived products. In manufacturing, the mass balance methodology is used, allocating renewable starting materials to the products via computation. This practice ensures an accurate allocation of bio-circular raw materials in the end products.
Major companies operating in the natural oil polyols market are:
• Shell Chemicals
• Cargill Incorporated
• Mitsui Chemicals Inc.
• BASF SE
• Repsol S.A
• The Dow Chemical Company
• Wanhua Chemical Group
• Covestro AG
• Evonik Industries AG
• Arkema
• Huntsman International LLC.
• Chevron Phillips Chemical Company LLC
• Stepan Company
• Croda International Plc
• Ingevity Corp.
• Perstorp Holding AB
• Sanyo Chemical Industries Ltd.
• Kukdo Chemical Co. Ltd.
• Jayant Agro Organics Ltd.
• Oleon NV
• Emery Oleochemicals
• Elevance Renewable Sciences Inc.
• Inolex Inc.
• Novomer Inc.
• DAICEL ChemTech Inc
North America was the largest region in the natural oil polyols market in 2023. The regions covered in the natural oil polyols market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.