The ASEAN green and bio-based polyol market is expanding at a high rate of growth due to rising demand for green products, rising pressure from regulatory agencies to reduce carbon emissions, and shifting regional industries towards circular economy operations.
As industries such as construction, automobile, and furniture increasingly rely on bio-based products, natural oil-based, sugar-based, and CO₂-based green polyols are being demanded more and more as polyurethane (PU) foam, coatings, adhesives, and sealants.The ASEAN green and bio-based polyol market in 2025 was USD 664.7 million and is expected to grow to USD 1,544.8 million by 2035 with a CAGR of 10.0% during the forecast period.
With government subsidization, foreign investment, and growing environmental concerns, the ASEAN nations are making it increasingly appealing to move towards alternatives of green chemistry-based polyols rather than petroleum-based polyols. The ASEAN bio-based polyol market is not only the next wave it's a new emerging strategic move by producers to be in a position to differentiate and offer supply chain sustainability worldwide.
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 664.7 Million |
| Projected Market Size in 2035 | USD 1,544.8 Million |
| CAGR (2025 to 2035) | 10.0% |
Advances in technology are propelling adoption at a rising pace. Businesses increasingly rely on advanced catalytic conversion, enzymatic, and carbon capture utilization technologies to produce polyols from vegetable oils (palm and castor), sugar alcohols, and recycled CO₂. The products not only match petroleum-based polyols but also have much lower VOC emissions and environmental impact.
ASEAN's green regulation is tightening. They are confronted with greening supply chains by multinationals and local. Bio-based polyols are increasingly seen in green building materials, automobile lightweight parts, and eco-mattress in eco-foam.
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Consolidated rural feedstock base and government policy support under the Bio-Circular-Green (BCG) economic model position Thailand as the leader in ASEAN's bio-based polyol market. Thai chemical makers are investing in research and development to create palm- and soy-based polyols to meet local as well as export demand.
Demand is being driven because of use in green building chemicals, bio-foam application in automobile interior use, and green packaging. Foreign investment is also being placed in the Eastern Economic Corridor (EEC) to use as a Thai base of production.
Vietnam more and more is an emerging market economy that is industrially driven, government-dependent on foreign investment, as well as one that is growing with interest for sustainable development.
Green polyols gain wider acceptance by footwear and furniture industries, especially those that make products destined for exportation to Europe and America, where environmentally friendly procurement practices are a buying priority. Pressure from the government's focus on green growth strategies is driving bio-material domestic consumption. In the near future with increased modernization of construction and automobile sectors low-emission PU systems on the basis of green polyols will be needed.
Challenges
High Production Cost and Short Feedstock Supply Chain
The ASEAN green and bio-based polyol market also faces some key challenges such as the high production cost and short feedstock supply chain, and few commercial-scale facilities. In contrast to fossil-based polyols, bio-based polyols involve costly catalysts and advanced conversion technologies such as epoxidation or ring-opening polymerization.
There is not a reliable supply chain of bulk feedstock suppliers such as soybean oil, castor oil, and palm derivatives industrial bio-polyol grade. Moreover, climate uncertainty-driven unpredictable farm harvests and country inconsistent policies discourage supply chain reliability and integration in the market. Domestic industry is also faced with aggressive low-cost Chinese and Middle Eastern traditional polyol import competition.
Opportunities
Sustainability Drive and Regional Manufacturing Expansion
Excess in the region of agricultural crops offers untapped opportunities for regional bio-polyol production, i.e., palm oil (Malaysia, Indonesia), coconut oil (the Philippines), and castor oil (Thailand, Vietnam). ASEAN's new car and construction industries also generate strong demand for bio-based polyol-based green foams, coatings, adhesives, and sealants (CASE).
Regional free trade agreements and green tax credits also stimulate market development. Academia-government research center-industry R&D partner research project opportunities may trigger high-volume, cost-efficient production technology development. Technology Drivers in the ASEAN Green and Bio-based Polyol Market
Malaysia and Singapore pilot schemes are implementing continuous flow vegetable oil conversion to polyols with greater yield and reduced solvent consumption, allowing modular manufacturing plants. Technologies will improve to recycle refined glycerin (biodiesel waste product) and used cooking oil to become polyols, pushing ASEAN city circularity and feedstock diversification.
From 2020 to 2024, pilot-scale production and studies were conducted by governments in bio-based material. Pioneers in Indonesia, Malaysia, and Thailand initiated commercial pilot trials of palm kernel oil and soybean oil-based bio-polyols for mainly flexible foams and insulation. High-cost of production and COVID-19 pandemic deterred commercial scale.
Looking forward to 2025 to 2035, ASEAN will be an intra-regional center for low-carbon green polyurethane production driven by policy-led low-carbon strategies and growing exports of bio-based chemicals. Malaysia and Thailand will initiate bio refinery clusters, while Vietnam and Indonesia will set up investments based on bio-circular economy models. Advances in enzyme catalysis technology, glycerol-based conversion, and flow systems in continuous operation will lower the cost of production and drive end-use industry adoption.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Bio-content labeling, limited tax incentives in select ASEAN countries |
| Production Scale | Small-scale or pilot operations, research institution involvement |
| Technology Adoption | Basic esterification and ring-opening polymerization from epoxidase oils |
| Material Innovation | Use of soy, castor, and palm-based oils with moderate purity |
| Market Competition | Dominated by imports from EU and China, limited local suppliers |
| Customer Preferences | Growing awareness among manufacturers; limited green mandates for end-users |
| Application Expansion | Flexible foams, coatings, and footwear |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Stronger mandates on carbon footprint, green procurement laws, regional harmonization |
| Production Scale | Industrial-scale bio-polyol plants co-located with agro-industrial zones |
| Technology Adoption | Shift toward enzyme-catalyzed processes, reactive distillation, and AI-optimized reactors |
| Material Innovation | Adoption of lignin, waste cooking oil, algae oil, and glycerol-derived high-functionality polyols |
| Market Competition | Growth of domestic players with export capabilities; emergence of ASEAN-based polyol brands |
| Customer Preferences | Demand for carbon-neutral, certified green polyurethanes in automotive, packaging, and insulation |
| Application Expansion | Expanded use in construction panels, automotive interior, cold-chain insulation, bio-adhesives |
Myanmar's green and bio-based polyol industry is slowly unfolding, propelled by growing regional integration and the trend towards greener manufacturing and building technologies. While not yet established but nevertheless, regional manufacturing industries, most notably in flexible foam, insulation, and furniture production, already look to sustainable raw materials as global equivalents and NGOs place a high value on sustainable supply chains.
Increased environmental focus, combined with foreign direct investment in Myanmar light industry sectors, is encouraging infant adoption of bio-based polyols, especially castor and soybean oil derivatives. National moves to meet regional environmental goals are also supporting this green move.
| City | CAGR (2025 to 2035) |
|---|---|
| Myanmar | 9.2% |
Indonesia is one of the shining beacons of ASEAN markets for bio- and green-based polyols owing to its robust production platform and huge agricultural assets. Being the largest economy in Southeast Asia, Indonesia is going the extra mile to greener its automotive, construction, and packaging industries, being among the large users of polyols-based polyurethane.
Being endowed with palm oil, coconut oil, and other local feedstock will make domestic production of bio-based polyols have sound reasons to look back. At the same time, the government's green legislation and pressure for circular economy policies are driving local and multinational businesses equally to invest in sustainable alternatives. With increasing demand coming from flexible foam, paint, and adhesives industries, Indonesia will have high growth.
| City | CAGR (2025 to 2035) |
|---|---|
| Indonesia | 10.5% |
The Philippines is experiencing continued growth in its green and bio-based polyol industry as the palate of people turns towards greenness and local manufacturers try low-emitting options in foam and furniture manufacturing. The growing emphasis of the country on green urban development has been prompted by demand for green insulation and bio-based flexible foam products.
Government agencies promoting green building codes and material reuse and recycling, the bio-based polyols market will gain momentum. The agricultural base of the country in coconut oil supplies raw material foundations for local manufacturing or value-added treatment. Even being in the development phase, the market is characterized by strong growth prospects in industrial markets and consumer markets.
| City | CAGR (2025 to 2035) |
|---|---|
| Philippines | 9.8% |
Singapore is regional green innovation leadership, and its bio-based polyols sector is a manifestation of such a drive. Being an international R&D and advanced manufacturing hub, Singapore has become a springboard for green chemistry innovations, e.g., polyols from renewable feedstock.
State-supported sustainability programs, like the Singapore Green Plan 2030, are encouraging collaboration between academia, start-ups, and chemical firms to encourage the development of green products. With a strong base of multinational chemical corporations and sophisticated industries that consume polyurethane autos, coatings, and electronics Singapore propels regional development in high-performance, low-emission polyols that support global ESG goals.
| City | CAGR (2025 to 2035) |
|---|---|
| Singapore | 10.7% |
Bio-based polyols, in terms of type, possess the ASEAN green and bio-based polyol market in considerable size owing to their increased compatibility across various industrial uses as well as being manufactured using renewable feedstock like soy, castor oil, palm oil, and coconut oil substances commonly available in Indonesia, Malaysia, and Thailand.
These bio-polyols maintain performance profiles equal to or similar to conventional petrochemical equivalents with lower carbon footprints and green manufacturing plans for local facilities. ASEAN countries are adopting international sustainability objectives and Bio-economy master plans, and processors are opting for bio-based polyols as an initial choice for eco-labels and LEED structures.
Bio-based polyols have also drawn special interest by multinationals establishing regional production facilities to supply increasing consumer demand for cleaner material in packaging, automobile interior trim, and consumer products, especially for Vietnam and the Philippines.
With its application, foam insulation has the greatest market share in the ASEAN Green and Bio-based Polyol market. Urbanization and infrastructural growth in the Southeast Asian nations Malaysia, Indonesia, Vietnam, and Thailand are fueling demand for green and energy-efficient construction materials.
Green and bio-based polyol-based foam insulation has improved thermal performance when applied to green building certifications such as EDGE, BREEAM, and GreenRE, which are applied extensively across residential and commercial buildings.
ASEAN governments also encourage low-emission building development with incentives and forward-looking building standards, further increasing the use of green insulation technology. Climate resilience and energy efficiency on the ASEAN building agenda increasingly, renewable polyol-based foam insulation is the optimal option for sustainable building envelopes and HVAC energy efficiency, further consolidating its market leadership.
The ASEAN green and bio-based polyol market is finally gaining real momentum as the region increasingly focuses on sustainability, green building, and green manufacturing codes. As Southeast Asian countries accelerate decarbonizing their economies and greener materials adoption in industries such as furniture, automotive, packaging, and construction, demand for bio-based polyols namely from soybean oil, castor oil, palm oil, and recycled feedstock is increasing.
Multinational chemical corporations, national manufacturers, and a few native bio-innovators are vying to supply flexible as well as rigid polyol systems conforming to environmental as well as performance requirements. Although the market is relatively in its infancy relative to Europe or North America, favorable government policies, expansion of green building certifications, and demand from PU foam manufacturers are pushing it towards spectacular growth.
Recent Developments
Market Share Analysis by Key Players
| Company Name | Estimated Market Share (%) |
|---|---|
| Cargill Incorporated | 18-22% |
| BASF SE (ASEAN Division) | 14-18% |
| Emery Oleochemicals (Malaysia) | 10-14% |
| Dow Chemical Southeast Asia | 8-12% |
| Covestro AG | 6-10% |
| Other Local/Regional Players & Startups (combined) | 30-35% |
| Company Name | Key Offerings |
|---|---|
| Cargill | Offers soy-based bio-polyols under the BiOH® brand , widely used in flexible foam applications for furniture and bedding. Partners with regional foam producers in Malaysia and Indonesia. |
| BASF | Produces castor and palm oil-based polyols , marketed as part of its sustainable MDI/PU systems. Supplies to major automotive and appliance manufacturers in Thailand and Vietnam. |
| Emery Oleochemicals | A Malaysia-based leader specializing in green polyol systems for rigid and semi-rigid foam, adhesives, and coatings. Emphasizes palm kernel-based polyol innovation. |
| Dow Chemical | Offers flexible bio-based and hybrid polyol solutions for spray foam and insulation, used in Singapore and the Philippines' green building sectors. |
| Covestro AG | Provides low-carbon CO₂-based and partially bio-sourced polyols , with technical service hubs in ASEAN for downstream polyurethane converters. |
The overall market size for ASEAN green and bio-based polyol market was USD 664.7 Million in 2025.
The ASEAN green and bio-based polyol market is expected to reach USD 1,577.8 Million in 2035.
Increasing demand of bio-based products, natural oil-based, sugar-based, and CO₂-based green polyols will drive the demand for green and bio-based polyol market.
The top 5 countries which drive the development of ASEAN green and bio-based polyol market are Indonesia, Thailand, Malaysia, Vietnam, and the Philippines.
Bio-based Polyols and foam Insulation are the leading segment in the green and bio-based polyol market.
On the basis of product, the ASEAN green and bio-based is categorized into Green Polyol and Bio-based Polyol.
On the basis of application, the ASEAN green and bio-based market is categorized by FoamInsulation, Coatings and Paints, Adhesives and Sealants, Composites, Electronics, Textiles and Apparel, and Others
ASEAN Green and Bio-based Polyol Market
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