Global Natural Oil Polyols Market by Product (Soy Oil, Castor Oil), by End-use (Construction, Electronics & Appliances) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global natural oil polyols market was worth USD 7.2 billion in 2019. It is projected to grow at an 8.4% compound annual growth rate (CAGR), between 2020 and 2027. Manufacturers are focusing more on sustainable feedstock and green polyurethane production to drive the market. Market growth will be accelerated by the availability of natural oils in all geographies and their accessibility. The market's most important application, urethane, will drive up the demand for natural oil polyols (NOPs) during the forecast period. The rise in disposable incomes of consumers in developing countries, including India, China and Brazil, will have a positive impact on the economy and boost industry sectors such as construction, packaging and consumer goods.

Natural oil polyols will be in demand as a result of an increase in manufacturing in the above-mentioned sectors. Natural oil polyols can be used to make cushions, furniture, mattresses, and thermal insulation. Natural oil polyols are also more popular because of their cost-effectiveness and environmental friendliness.

Due to the COVID-19 epidemic of 2020, which caused the temporary shutdown of many manufacturing industries and factories and national lockdowns, there was a decrease in production of most construction, automotive, consumer appliance, and furniture products. This will likely slow down the growth of 2020's market, with significant uncertainties in some countries such as India and China. Trade halts have increased uncertainty in feedstock availability, product movement between geographies, and further exacerbated this. The demand will likely recover its momentum once the manufacturing units are back in motion.

Product Insights

Soy oil polyols, which are extracted from soybean oil, emerged as the most important product segment in 2019, with a revenue share 36.02%. This segment is primarily driven by its ability compete with high-priced petroleum based polyols without compromising on performance. Soy oil-based polyurethane has a reputation for being lightweight, durable, and stronger than other polyols. These attributes have made them more popular among manufacturers, and they are expected to continue growing in the future.

Due to their purity and hydrolysis resistance, castor oil polyols will see a significant increase in demand over the forecast period. Castor oil polyol has been reported to be the most pure natural oil polyols on the market. They require minimal modifications to produce than soy oil and palm oil polyol. The forecast period will see a lucrative growth in the castor oil polyol market.

Biotechnological research has enabled the efficient and economical extraction of plant oils, which can be used in a wide variety of products called polyols. This has increased the demand for other natural oils polyols like sunflower oil-based and canola oil. They are expected to see moderate growth in the future.

End-use Insights

In 2019, the construction segment was responsible for 32.8% of the total revenue. This segment is expected to grow due to its high thermal and sound insulation capabilities. The rapid industrialization and development of infrastructure will drive product demand in the future.

Over the forecast period, electronics and appliances will experience healthy growth. This can be attributed to an increase in demand for polyurethanes for cushioning, seating and upholstery, among other uses. Natural oils-based rigid polyurethanes are being adopted for appliances and consumer goods because of their ability to lower the product's toxic quotient.

Other applications, such as transportation and packaging, are also expected to see lucrative growth during the forecast period. This is due to the increasing popularity of green packaging and the adoption of natural oil-based polyurethane for sound insulation and thermal insulation.

Regional Insights

North America was the largest regional market in natural oils polyols, with a 45.0% revenue share. The U.S. and Canada will see a rise in market growth due to several government initiatives, including those promoting bio-based materials such as polyurethanes. High availability of soy products in the U.S. will likely increase regional market growth and boost exports from that country.

The growing use of bio-based feedstocks in almost all manufacturing industries in Europe drives the market. The European Commission states that the region's bioeconomy supports the use of bio-based materials in manufacturing industries. Furthermore, Europe is a leader in R&D and biotechnology. This means that Europe has significant growth potential.

Others emerging regions, including Central and South America and Asia Pacific, are likely to follow their lead. In terms of economic availability and the burgeoning manufacturing industry, Asia Pacific countries like China, Indonesia, Malaysia, and China have an advantage over other regions, including South America, Central and South America, and Malaysia. The Middle East and Africa will experience slower growth, as petrochemical-based industries dominate.

Market Share Insights & Key Companies

Some of the key players in the product's manufacturing include The Dow Chemical Company and Cargill Inc., BASF SE and Emery Oleochemicals. These companies have recognized the benefits of bio-based products as a viable alternative to conventional petrochemical-based ones. Manufacturers are making greater efforts to reduce their carbon footprint, meet international sustainability standards and use good manufacturing practices. This has led to a rise in the adoption of natural oil poulols.

New entrants to the market will have a lower barrier of entry due to the ease with which raw materials can be procured and available. Small players will be restricted by the high investment required to build a bio-refinery and adopt efficient plant oil extraction technology. Global market players have prominent operational strategies that include optimizing supply chains, investing in high-growth countries and players, and filing patents for efficient technologies. In order to prevent price fluctuations and continue uninterrupted operations, long-term supply agreements with end-users as well as raw material suppliers will likely see a rise in the future. Manufacturers will likely increase product-based R&D by encouraging application diversification and expanding their customer base. The following are some of the major players in the natural oils polyols market:

• BASF SE

• Cargill Incorporation

• Dow Chemical Company

• IFS Chemicals Group

• Emery Oleochemicals

Up Market Research published a new report titled “Natural Oil Polyols Market research report which is segmented by Product (Soy Oil, Castor Oil), by End-use (Construction, Electronics & Appliances), By Players/Companies Cargill Incorporation, IFS Chemicals Group, Emery Oleochemicals, The Dow Chemical Company, BASF SE”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Natural Oil Polyols Market Report Segments:

The market is segmented by Product (Soy Oil, Castor Oil), by End-use (Construction, Electronics & Appliances).

Natural Oil Polyols Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Natural Oil Polyols Market

Overview of the regional outlook of the Natural Oil Polyols Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Natural Oil Polyols Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Natural Oil Polyols Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Soy Oil

                2. Castor Oil

                1. Construction

                2. Electronics & Appliances

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Natural Oil Polyols Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Natural Oil Polyols Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.