Polyester polyols Market

Polyester Polyols Market Outlook (2024 to 2034)

The polyester polyols market size is estimated to be valued at US$ 10,189.2 million in 2024. Projections indicate an expansion with a CAGR of 5.10% through 2034. The anticipated growth is set to propel the market to an impressive size of US$ 16,755.9 million by 2034. The growing application of polyester polyols in the production of flexible and rigid polyurethane foams is the key driver of the market growth.

The last few years have seen a revival of industries such as construction, automotive, consumer goods, etc. This has pushed the demand for effective materials and solutions, driving a significant uptick in the polyester polyols market. Polyester polyols are gaining a lot of impetus in the international marketplace due to their durability, stability, and resistance to harsh UV sunlight.

These polyols are used in various industries apart from construction and automotive, such as furniture manufacturing, textiles, and packaging. This versatility is also one of the key drivers for the market growth of polyester polyols in the past few decades. They are also used in the manufacturing of consumer goods, where polyester polyols are utilized in producing foams and coatings.

The polyester polyols market generated an estimated revenue of US$ 7,945.6 million in 2019. In five years, the market grew by 28.23% and added a revenue of US$ 2,243.6 million.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 10,189.2 million
Forecasted Market Value (2034F)	US$ 16,755.9 million
Global Market Growth Rate (2024 to 2034)	5.10% CAGR
Aliphatic Segment Growth Rate (2024 to 2034)	5.30%
Aromatic Segment Growth Rate (2024 to 2034)	4.80%
North America Market Share (2024)	25.80%
East Asia Market Share (2024)	30.70%
Key Companies Profiled	BASF SE Dow Inc. Covestro AG Huntsman Corporation Mitsui Chemicals, Inc. Stepan Company Perstorp Holding AB Emery Oleochemicals INVISTA Shell Chemicals Lanxess AG Chemtura Corporation DIC Corporation Adeka Corporation The Dow Chemical Company Evonik Industries AG Polimeri Europa Repsol S.A. Kukdo Chemical Co., Ltd. Novomer Inc.

Which Factors Have Driven the Global Surge in Polyester Polyols Demand?

“Growing End-use Industries and Boom in the Sector”

The demand for polyester polyols is touching the skies as they find extensive applications in the construction sector. They are used in the production of insulation materials, adhesives, sealants, coatings, and other construction-related products. With the construction industry witnessing substantial growth globally, driven by urbanization, infrastructure development, and increased housing demands, the sales of polyester polyols have seen considerable growth recently.

Apart from the construction sector, polyester polyols also play a crucial role in the automotive industry, where they are used in manufacturing various components such as seating foams, interior trim, and sound insulation materials. They are also utilized in the production of textiles, particularly in manufacturing synthetic fibers.

“Consumer Goods Manufacturing and Energy-Efficient Insulation Also to Boost Market Growth”

Polyester polyols are commonly used in the production of flexible and rigid foams for furniture. Their demand in the industry is increasing exponentially as these foams provide comfort, durability, and structural support in items like sofas, mattresses, and chairs. Evolving consumer preferences towards more comfortable, aesthetically pleasing, and durable furniture and appliances have also driven its demand in the consumer goods industry.

The world is pushing toward sustainability, and individuals and businesses are increasingly preferring environmentally friendly products. Stringent environmental regulations and initiatives to reduce carbon footprints have encouraged the adoption of energy-efficient insulation materials. The demand for polyester polyols has also skyrocketed in the last few years as they support these sustainability objectives, promoting their application in manufacturing insulation materials for residential and commercial uses.

Which Factors Present Challenges to the Expansion of the Polyester Polyols Market?

“Competition from Alternative Materials, Technological Advancements, and Consumer Perception to Slow down Market Growth”

The market for polyester polyols is slowing down primarily due to the rigorous competition from alternative materials. These include bio-based polyols, recycled materials, and innovative substitutes that offer environmentally friendly and sustainable solutions. These alternatives are considered more cost-effective and in line with the increasing emphasis on eco-conscious practices. Also, the market is plunging due to technological advancements in materials or manufacturing processes that compete with or surpass the performance of traditional polyester polyols. Besides this, there are still a lot of concerns regarding the environmental impact or health concerns associated with polyester polyols. Such negative perceptions or myths in the general population and business communities substantially hamper the adoption of polyester polyols. All these factors negatively contribute to the growth of the polyester polyols market.

Country-wise Insights

The North American polyester polyols market is poised for exceptional growth, projecting a modest CAGR of 5.30% through 2034. The surge is primarily attributed to increasing demand for polyester polyols in key countries, notably the United States and Mexico. In 2024, the United States dominates the polyester polyols industry with an estimated 68.30% market share. Meanwhile, the East Asian polyester polyols market is anticipated to exhibit substantial progress, aiming for a 6.10% CAGR in 2024. In this region, China emerges as the key player in the industry, commanding a significant share of 59.40% in 2024.

Why is the United States Leading the Polyester Polyols Market in the North American Region?

“Strong Industrial Base and Automotive Industry Demand in the Country to Augment Growth”

The North American market stood at US$ 2,628.8 million in 2024, acquiring a revenue share of 25.80%, and is further projected to expand at a CAGR of 5.30% through 2034. The United States polyester polyols industry is estimated to be worth US$ 1,795.5 million in 2024. The demand for polyester polyols in the United States is expected to rise at a CAGR of 6.00% through 2034.

The United States is blessed with a robust industrial base, including a well-established manufacturing sector that heavily utilizes polyester polyols in various applications. This demand from industries such as construction, automotive, textiles, and furniture manufacturing has positioned the United States as one of the leading countries in the market for polyester polyols. Besides this, the booming automotive industry in the country, which uses polyester polyols in the production of lightweight and high-performance materials, is also contributing to the exponential expansion of the market.

Why is China Commanding the East Asian Polyester Polyols Market?

“Large Manufacturing Hub and Rapid Industrialization to Help Market Expansion”

The China polyester polyols industry is estimated to be worth US$ 1,858.1 million in 2024, garnering a share of 59.40% in the East Asian region. The sales of polyester polyols are likely to record a CAGR of 5.70% through 2034.

China is one of the leading manufacturing hubs in the world, contributing significantly to the global production of various industries. This extensive industrial infrastructure and capabilities make it a central player in producing and consuming polyester polyols. The market for polyester polyols is also gradually surging as China goes through rapid industrialization. This leads to increased demand for polyester polyols across various sectors, including construction, automotive, textiles, and consumer goods manufacturing.

Category-wise Insights

Based on the product type, the aliphatic segment is estimated to hold a 60.3% market share in 2024. Simultaneously, the aromatic segment is anticipated to secure a 39.70% share, contributing significantly to the market's resource diversity and stability. Based on end users, the market is segmented into virgin raw material and recycled polyester material.

Why are Aliphatic Polyols Gaining Popularity across Industries?

“UV Stability, Color Stability, and Durability”

Polyester polyols are gaining tremendous popularity in the industrial landscape as they exhibit excellent resistance to ultraviolet (UV) radiation, making them ideal for outdoor applications. This UV stability is particularly crucial in industries like coatings, where protection against sunlight and weathering is essential. They are also used to produce coatings for outdoor furniture, automotive components, and construction materials.

Also, aliphatic polyols are known for their color stability, maintaining their original color over time. This ability is highly valued in applications such as coatings, adhesives, and sealants, where color retention is important for aesthetic and functional reasons. The demand for aliphatic polyols is also surging in the manufacturing world as they enhance the overall performance and lifespan of products, making them suitable for applications in industries such as automotive manufacturing.

Competitive Landscape

Key players in the polyester polyols market include BASF SE, Dow Inc., Covestro AG, Huntsman Corporation, Mitsui Chemicals, Inc., Stepan Company, Perstorp Holding AB, Emery Oleochemicals, and INVISTA. These companies cater to various industries and manufacturing units, including construction, automotive, textiles, and furniture. These companies invest in research and development activities to enhance their polyester polyols' performance, versatility, and sustainability. Many companies in the industry are increasingly focusing on sustainability and environmental responsibility to cater to the demands of eco-conscious consumers and businesses.

Recent Development

• Huntsman, the US chemical producer, inaugurated its 22,000 t/y plants for aromatic polyester polyols in Kuan Yin, Taiwan, under the Terol brand. Commencing operations in May 2023, it marked Huntsman's first facility for these polyols outside the US, boosting polyurethane capabilities in Asia Pacific.
• In December 2022, Pearl Group doubled its locally produced polyester output through a comprehensive plant upgrade in Dubai. Leveraging strategic geographic advantages and competitive shipping costs, the company planned significant exports to Europe, Africa, and Southeast Asia.
• Recently, Italian-based polyurethane system specialist Coim expanded in Europe with the acquisition of Dutch alkyd resin specialist Synres from Hoek van Holland. This followed Coim's takeover of Spain's Neoflex, signaling a strategic increase in polyol production for the Italian PU specialist.

Key Segments Covered in Polyester Polyols Industry Research

• By Product Type:

  • Aliphatic
  • Aromatic

• By Source:

  • Virgin Raw Material
  • Recycled Polyester

• By Application:

  • Panels & Boards
  • Flexible Foam
  • Spray Foam
  • Coatings
  • Adhesives & Sealants
  • Elastomers
  • Others

• By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • The Middle East & Africa