Graft Polyols Market - Forecast(2024 - 2030)

Graft Polyols Market Overview

Graft polyols market size is estimated to reach US$ 1.4 billion by 2027 and it is projected to grow at a CAGR of 5.4% during 2022-2027. Polyols can be majorly categorized in two groups such as amino and hydroxyl terminated groups. The characterization of polyols is based on molecular weight, equivalence weight, viscosity, reactivity, and acid value. The most commonly used polyols are polyether and polyester polyols. Polyether polyols are formulated using the polymerization of cyclic ethers. Graft polyols also known as polymer polyols primarily comprises of acrylonitrile, styrene acrylonitrile, or polyurea polymer solids. These polymers are grafted to a high molecular weight to form polyether base. These are utilized to increase the toughness to foam, cat elastomers, and surge the load bearing properties of high-resiliency foam. Graft polyols are extensively used to enhance the properties of products such as polyurethane foam, flexible foam, and urethane elastomers.  

COVID-19 Impact

Many industries across the globe have faced several challenges due to the COVID-19 pandemic. The industries such as automotive, packaging, furniture, construction, and footwear including many others have experienced pitfalls. Many projects in such industries have been halted due to an interrupted supply chain and employee shortages due to quarantines. Also, the production and demand in automotive industry has declined due to an interrupted supply chain and cessation in transportation of raw materials. Moreover, there was a sharp decrease in the construction projects due to unavailability of labor. Thus, the global pause in industrial production and distribution, the demand and consumption of graft polyols has hampered to an extent in several industries. 

Report Coverage

The report: “Graft Polyols Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the graft polyols industry outlook.

By Material: Styrene-Acrylonitrile, Acrylonitrile, Polyurea, and Others

By Application: Automotive Seating, Carpets, Cushions, Mattress, Rigid Foam, Flexible Foam, CASE (Coatings, Adhesive, Sealants, Elastomers), and Others

By End Use Industry: Automotive (Passenger Cars, Light Commercial Vehicle, Heavy Commercial Vehicle), Furniture, Packaging, Construction (Residential, Commercial, and Industrial), Footwear, and Others

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), and South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East and Africa)

Key Takeaways

• Asia Pacific is the largest and fastest growing region in the global graft polyols market. This growth is mainly attributed to the increased demand for graft polyols in automotive and furniture industry.   
• CASE (Coatings, Adhesive, Sealants, Elastomers) is expected to be the significant segment owing to the surge in demand from several applications such as car seats, furniture seating, and bedding including others.
• Graft polyols play an important role in several industries especially in the automotive and construction which is expected to provide significant growth opportunity for the global market.
  

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Graft Polyols Market Segment Analysis – By Application

The CASE (Coatings, Adhesive, Sealants, Elastomers) segment held the largest share in the graft polyols market share in 2021 and it is expected to grow with a CAGR of around 5.7% during the forecast period. Graft polyols are largely used in wide range of applications such as foam for furniture, car seats, bedding, adhesive, sealants, coatings, and elastomers including many others. These polyols are extensively used for CASE applications and offer superior hydrolysis resistance and mechanical properties. Graft polyols are manufactured using the co-polymerized styrene and acrylonitrile which enhances the properties of elastomers. It provides beneficial qualities to adhesive, sealants, and elastomers such as resistance to chemical and environmental attack and superior weatherability. CASEs are further used in range of industries such as footwear, shipbuilding, and electronic products. Thus, increase in demand for CASE products is boosting the market growth.  

Graft Polyols Market Segment Analysis – By End-Use Industry

The furniture segment is expected to grow at a fastest CAGR of 6.0% during the forecast period in the global graft polyols market. These polyols are widely used in range of industries such as automotive, footwear, construction, furniture, and packaging including many others. These are utilized in the production of upholstering car seats, mattresses, and carpets which are used in furniture industry. Graft polyols possess load bearing properties, thus, used in furniture applications such as bedding, carpet cushions, and protective packaging. These are also used to produce coatings, adhesive, and sealants which are further used in furniture industry. According to Zhejiang Tangshifu Furniture Co., Ltd, the development in construction industry, changing lifestyle of people, and global economic recovery has increased the demand for furniture globally. Thus, growth in furniture industry is fueling the demand for graft polymers and it is expected to do so in the forecast period.

Graft Polyols Market Segment Analysis – By Geography

The Asia Pacific is the leading region accounts for the largest share in the graft polyols market in 2021 and held nearly 35% of market share. This growth is mainly attributed to the increase in demand for graft polyols in several end use industries in this region such as automotive, construction, footwear, and packaging including others. Graft polymers are widely utilized in the production of coatings, adhesives, sealants, and elastomers. Increase in construction projects in Asia Pacific is boosting the demand for coatings and adhesives, in turn, fueling the growth of graft polyols in this region. According to Coatings World, Asia Pacific is the leading region in world accounting for around 46% of global coating market by value in 2019 and has grown with a CAGR of 3.3% during the same year. Thus, the growth in construction industry and surge in demand for coatings, in turn boosts the market growth.

Graft Polyols Market – Drivers

Increase in Building and Construction Activities

Graft polyols are extensively used in wide range of end use industries such as automotive, footwear, furniture, and construction including others. These are used in order to grow the load-bearing properties of low-density foam and offers toughness to cast elastomers. Graft polyols are extensively used in the production of coatings, adhesives, sealants, and elastomers. The increased construction activities across the globe boosting the demand for coatings, construction sealants, and adhesives. Graft polyols are also used to formulate pavement composition such as construction aggregates and binder which includes graft polyols and isocyanate. For instance, according to Invest India, infrastructure activities accounted for 13% share of the overall FDI inflows of US$ 81.72 billion for FY21. Thus, the growth in construction sector increases the demand for coatings and adhesives, in turn, fueling the growth of global graft polyols market.

Growth and Rise in Demand from Automotive Industry  

Automotive industry is one of the fastest growing industries across the globe. Graft polyols are mainly used in range of applications such as foam for furniture, car seats, bedding, adhesive, sealants, coatings, and elastomers including many others. These polyols increase the load bearing properties of flexible slabstock products such as carpet cushions, automotive cushioning, and furniture seating. These polyols also meet the specifications for automotive seating, thus, significantly used in automotive application. Moreover, polyol based coatings are also used as automotive basecoats. Thus, the growing demand of graft polyols in automotive industry in driving the market growth. For instance, according to Wallenius Wilhelmsen ASA, global light vehicle (LV) sales are anticipated to reach 80 million units in 2021, which is higher that 2020 value of 76 million. Thus, growth in automotive industry is further expected to provide the ample growth opportunities to the global market players.    

Graft Polyols Market – Challenges

Volatile Raw Material Prices

Graft polyols are manufacturing using range of products such as styrene-acrylonitrile, acrylonitrile, and polyurea including many others. The production and prices of these raw materials are largely dependent on petroleum based sources. Thus, any change or fluctuations in the crude oil prices directly affects the prices of these raw materials and ultimately affects the prices of graft polyols. For instance, according to U.S. Energy Information Administration, prices of crude oil in 2021 have increased up to $71/lb from $42/lb in 2020. Thus, volatile crude oil prices or change supply demand of the other application market may impact the prices and supply of graft polyols market. Thus, volatile crude oil prices directly impacts the prices of raw material for graft polyols which is restraining the growth of global market.

Graft Polyols Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the graft polyols market. Graft polyols top 10 companies include -

1. BASF SE
2. Jilin Shenhua Group
3. Monument Chemical
4. Oltchim SA
5. Repsol S.A.
6. Royal Dutch Shell Plc.
7. Shandong INOV Polyurethane Co., Ltd.
8. ShanDong Longhua New Material Co., Ltd.
9. Sinopec
10. The Dow Chemical Company

Recent Developments

• In November 2021, BASF SE has collaborated with BTC Europe GmbH as the distributor for its aromatic isocyanates and polyols products such as Lupranat, Lupranol, and Lupraphen. This helped the company to make their products available for the customers from a single source.
• In July 2021, Rapsol entered into an agreement with RAMPF Eco Solutions in order to develop recycled flexible polyol manufactured from different sources and distribute it throughout Europe.
• In February 2021, Rapsol entered into technology licensing agreement for its propylene oxide and styrene monomer co-production plant in Jiangsu province. The annual production capacity of this plant is 200,000 tonnes/year of polyether polyol.

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