Polyols Market worth $22.49 billion by 2031 - Exclusive Report by MarketsandMarkets™
DELRAY BEACH, Fla., Aug. 7, 2026 /PRNewswire/ -- According to MarketsandMarkets™, the Polyols Market is projected to grow from USD 17.53 billion in 2026 to USD 22.49 billion by 2031, at a CAGR of 5.1% during the forecast period.
Browse 250 market data Tables and 50 Figures spread through 300 Pages and in-depth TOC on 'Polyols Market - Global Forecast to 2031'
Polyols Market Size & Forecast:
- Market Size Available for Years: 2022-2031
- 2026 Market Size: USD 17.53 billion
- 2031 Projected Market Size: USD 22.49 billion
- CAGR (2026-2031): 5.1%
Polyols Market Trends & Insights:
- With the new developments of polyurethane formulations, the performance of products is being enhanced, and the application range is extended. Polyols are seeing an upward trend in consumption as the emerging economies, especially in the Asia Pacific region, experience rapid industrialization, urbanization, and infrastructure development.
- Asia Pacific's polyols market dominated, with a share of 45.3% in 2025.
- By type, the polyether polyols segment is expected to lead, with a share of 73.8% in 2025, in terms of value.
- By application, flexible polyurethane foam is expected to be the leading segment in terms of value.
- By end-use industry, building & construction is expected to dominate the market, with a share of 28.7% in 2025, in terms of value.
- DOW, Covestro AG, BASF SE, Huntsman International LLC, Shell, Stepan Company, and Wanhua Chemical Group were identified as star players in the polyols market. These companies maintain strong market positions through a few agreements and partnerships to cater to the growing demand for polyols across various end-use industries.
- Zibo Dexin Lianbang Chemical Industry Co., Ltd., Shandong Longhua New Material Co., Ltd., Zhejiang Huafon New Materials Corp., Ltd., Shakun Industries, and InterPur Chemicals, among others, have distinguished themselves among startups and SMEs. These companies are gaining traction through expanding production capacities and investing in sustainable manufacturing technologies.
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The polyols industry is expected to grow due to rising demand for polyurethane products across the construction, automotive, furniture, and electronics industries. Polyol use is being boosted by the growth of energy-efficient insulation materials, automotive lightweight materials and high-performance coatings. Furthermore, initiatives towards a more sustainable environment and technological advances in the production of polyurethanes are anticipated to drive market growth during the forecast period.
By type, the polyester polyols segment accounted for the second-largest market share in 2025
By type, the polyester polyols segment recorded the second-largest market share in 2025, due to its better mechanical strength, chemical resistance, and durability. These polyols are commonly used in coatings, adhesives, sealants, elastomers (CASE), and rigid polyurethane foams. The segment has been further bolstered by growing demand from the construction, automotive and industrial sectors.
By application, the flexible polyurethane foam segment accounted for the largest market share in 2025
Flexible polyurethane foam had the largest market share because it is widely used in furniture, bedding, automotive seating and packaging. It is used for consumer and industrial products due to its outstanding cushioning, comfort and durability. Demand for lightweight and high-performing foam products is still fueling growth in the segment.
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By end-use industry, the automotive segment accounted for the second-largest share of the polyols market in 2025
By end-use industry, automotive was the second-largest market in 2025, driven by the use of polyurethane foams, coatings, adhesives, and elastomers in car production. Polyols can be used to reduce vehicle weight, improve fuel economy, and enhance comfort for the driver and passengers. The rise in electric vehicle production and demand for lightweight materials further boosts market growth
Europe accounted for the second-largest share of the polyols market in 2025
Europe accounted for the second-largest market share in 2025, due to the strong automotive, construction and furniture manufacturing industries. High environmental standards in the area also promote the use of sustainable and bio-based polyols.
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Key Players
The leading polyols companies include Dow (US), Covestro AG (Germany), BASF SE (Germany), Huntsman International LLC (US), Shell (UK), Stepan Company (US), Wanhua Chemical Group (China), Repsol S.A. (Spain), PCC SE (Germany), and LANXESS (Germany). Partnerships, acquisitions, agreements, and product launches are major strategies these key players adopt to enhance their positions in the polyols market.
Investment Funding
The polyols market has seen selective yet steady investment activity, reflecting growing interest in sustainable materials, bio-based polyols, and capacity expansion initiatives. The market maintained a steady pace of investment activity in 2023 and 2024, with three disclosed investment deals each year. Total funding rose from USD 51.1 million in 2023 to USD 73.0 million in 2024, a 42.9% year-over-year increase. This growth reflects rising investor confidence in the market, driven by increased investments in production capacity expansion, sustainable polyols, and innovation to meet growing demand from polyurethane end-use industries.
Revenue Shift
The polyols market is witnessing a gradual shift toward sustainable and high-performance product offerings, driven by increasing demand for bio-based and specialty polyols across key end-use industries. Polyether polyols accounted for over 73.8% of the global polyols market in 2025, supported by their extensive use in flexible and rigid polyurethane foams.
Mergers and Acquisitions
Mergers and acquisitions in the polyols market have been driven by the need to strengthen specialty polyol portfolios, expand manufacturing capabilities, and enhance positions in high-value polyurethane applications. Recent transactions include Stepan Company's acquisition of PerformanX Specialty Chemicals' surfactant business to broaden its specialty chemicals portfolio; Covestro AG's acquisition of DSM's Resins & Functional Materials business to expand its coatings, adhesives, sealants, and specialties (CAS) offerings; and Stepan Company's acquisition of INVISTA's aromatic polyester polyol business to strengthen its polyester polyol portfolio and increase its manufacturing footprint.
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