Increasing Petroleum Prices to Spur Natural Oil Polyols Demand

The global natural oil polyols (NOP) market is expected to reach USD 11.30 billion by 2024, according to a new report

As per the report by Grand View Research, Inc., the Natural Oil Polyols Market is poised to rise to a valuation of USD 11.30 billion and is estimated to witness a CAGR of 7.3% over the forecast period (2016-2024). Rising demand for eco-friendly polymers owing to volatile prices of conventional polymers/plastics is anticipated to propel the natural oil polyols demand in the future.

Castor, soy, sunflower, and palm are foremost vegetable oil sources used as feedstock in the industry. Rising investments in research and development coupled with improving extraction techniques are likely to drive the natural oil polyols growth over the forthcoming period.

The surge in petroleum prices and increasing global demand for a decrease in dependency on petroleum-derived polyurethane is anticipated to drive the demand for NOP in the years to come. On the other hand, increasing rates of natural oil coupled with agricultural uncertainty is likely to hamper the market demand in the years to come.

The Biomass Nippon Strategy was decided post-adoption of the Kyoto Protocol has encouraged players such as NEC and Toyota to surge their R&D levels to raise the bio-based plastics and bio-based content of their products. Furthermore, Toyota is scheduling to switch 20% of the plastics used in its vehicles to bio-sourced plastics and expect the change to help achieve its company goal of reducing CO2 emissions.

Press Release: Natural Oil Polyols (NOP) Market Worth $11.30 Billion By 2024

Geographically, North America was the leading region in natural oil polyols and is estimated to grow substantially in the forecast period. The availability of major raw materials such as soy in the U.S., along with the rising demand for bio-based polyurethane is anticipated to propel the regional market growth in the years to come.

Leading players effective in the natural oil polyols market include Cargill Incorporation, Jayant Agro-Organics Ltd., Huntsman Corporation, Bio Based Technologies LLC, BASF SE, Dow Chemical Company, Emery Oleochemicals, IFS Chemicals Group, Vertellus Specialties, and Bayer Material Science AG.

The foremost petrochemical based polyol players such as BASF and Dow Chemical Company have inclined their attention towards the production of natural oil polyols in order to decrease dependency on conventional polyols thus decreasing risks associated with its cost fluctuations.