The global Polyols market is estimated to be worth USD 28.7 billion in 2024 and is projected to reach a value of USD 40.9 billion by 2034, expanding at a CAGR of 3.6% over the assessment period of 2024 to 2034
Polyols are a type of sugar alcohol which are used as sweeteners and food additives. They are found in many sugar-free and low-calorie products, like candies, gum, and baked goods. Polyols provide sweetness with less calories than regular sugar and they help in reducing blood sugar spikes. Few of the example of polyols are sorbitol, xylitol, and erythritol.
Polyols does more than just adding sweetness to food, they also help in improving the texture and moisture of baked goods. When used in recipes, polyols can make cakes and cookies softer and chewier, giving them a better taste. They help in maintaining moisture, which keeps baked products fresh for longer. This means that products made with polyols can taste good and attractive even after a few days.
Nestlé includes polyols like maltitol and erythritol in their sugar-free and reduced-calorie candies.
| Attributes | Description |
|---|---|
| Estimated Global Polyols Business Size (2024E) | USD 28.7 billion |
| Projected Global Polyols Business Value (2034F) | USD 40.9 billion |
| Value-based CAGR (2024 to 2034) | 3.6% |
The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for global polyols acid market.
This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision about the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 2.7% (2023 to 2033) |
| H2 | 3.0% (2023 to 2033) |
| H1 | 3.4% (2024 to 2034) |
| H2 | 3.9% (2024 to 2034) |
The above table presents the expected CAGR for the global Polyols demand space over semi-annual period spanning from 2024 to 2034. In the first half (H1) of the year 2023, the business is predicted to surge at a CAGR of 2.7%, followed by a slightly higher growth rate of 3.0% in the second half (H2) of the same year.
Moving into year 2024, the CAGR is projected to increase slightly to 3.4% in the first half and remain relatively moderate at 3.9% in the second half. In the first half (H1 2024) the market witnessed a decrease of 15 BPS while in the second half (H2 2024), the market witnessed an increase of 26 BPS.
Expansion of the Pharmaceutical Industry
Polyols are important in the pharmaceutical industry as they are used as excipients, which are ingredients that help in making medicines. They improve the method of how drugs are delivered in the body and help them keeping it stable over time. As the pharmaceutical industry grows, the need for polyols is increasing. They improve the taste of liquid medicines, texture of tablets, and help in releasing active ingredients.
Sorbitol is usually found in liquid formulations, like in cough syrups or oral medicine. As it acts as a sweetener and helps in improving the texture of the medicine.
New Product launches in Personal Care Industry
Polyols are becoming popular in personal care and cosmetics as they help in keeping the skin moisturized. They attract and hold water, which results in more softer and smoother skin. Many brands are using polyols in products like body lotions, creams, and serums to improve hydration and texture. This is further leading to new and better formulas that provide long-lasting moisture.
Burt's Bees uses xylitol in its lip balm as it provides moisturization and helps in keeping the lips soft and hydrated.
Innovative Production Techniques
Current technological advancements are improving how polyols are made, which makes it easier and cheaper to produce. New production methods provide for higher productivity and better quality, which helps in lowering costs. These improvements make polyols more available for different uses in industries like food, pharmaceuticals, and personal care.
As companies are finding it easy to include polyols in their products, their popularity is growing. This is motivating other companies to adopting polyols, further leading to increased demand and innovation in various applications.
Cargill has improved the efficiency of erythritol production using enzymes, which reduces costs and increases yield. This makes erythritol more accessible for use in food and beverages as a low-calorie sweetener.
Global Polyols sales increased at a CAGR of 9.8% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on polyols acid will rise at 11.8% CAGR
Polyols is a good alternative for consumers with diabetes as they have a lower glycemic index compared to regular sugar. Which means they do not cause a quick rise in blood sugar levels when consumed. Due to this, many food and beverage companies are using polyols in their products, such as sugar-free snacks, beverages, and desserts.
These products allow consumers with diabetes to enjoy sweet flavors without worrying about their blood sugar levels. This has led to an increase in the availability and popularity of polyol-based food products.
Regulatory support plays an important role in the growing use of polyols in food and pharmaceuticals. Many countries have approved polyols as safe ingredients to be used in various products, which gives manufacturers assurance to include them in their formulations. This approval means that polyols can be used in sugar-free foods, beverages, and medicines without legal issues. As more companies are seeing the advantages of using polyols, they are more likely to produce new products that meets consumer demand.
Tier 1 companies comprise market leaders with market revenue of above USD 10 million capturing significant sales domain share of 40% to 50% in the global sphere. These business leaders are characterized by high production capacity and a wide product portfolio. These trade leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include BASF SE, Dow Inc., Stepan Company, Repsol, Sanyo Chemical Industries, Solvay, PCC Group, Purinova Sp. z o.o., KPX Chemical Co., Ltd., and Wanhua Chemical Group Co., Ltd..
Tier 2 companies include mid-size players with revenue of USD 2 to 10 million having presence in specific regions and highly influencing the local retail space. These are characterized by a strong presence overseas and strong consumer base knowledge.
These industry players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Covestro AG, Shell Chemicals, Huntsman International LLC, Manali Petrochemicals Limited, Shandong Longhua New Material Co., Ltd., and Jurong Ningwu New Material Co., Ltd.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche demand space having revenue below USD 2 million. These companies are notably oriented towards fulfilling local marketplace demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized field, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The table below highlights revenue from product sales in key countries. The United States and Germany are predicted to remain top consumers, with estimated trade valuations of USD 6.9 billion and USD 6.1 billion, respectively, by 2034.
| Countries | Market Value (2034) |
|---|---|
| United States | USD 6.9 billion |
| Germany | USD 6.1 billion |
| China | USD 4.1 billion |
| India | USD 3.7 billion |
| Japan | USD 2.0 billion |
The following table shows the estimated growth rates of the top sales domains. Japan and India are set to exhibit high Polyols consumption, recording CAGRs of 3.8% and 3.4%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 1.7% |
| Germany | 2.1% |
| China | 2.6% |
| India | 3.4% |
| Japan | 3.8% |
The ecosystem for Polyols in the United States is projected to exhibit a CAGR of 1.7% during the assessment period. By 2034, revenue from the sales of food-grade ammonium carbonate in the country is expected to reach USD 6.9 billion.
Nowadays consumers are more focused on health and wellness, which leads them to search for products that are made from natural ingredients. This is driven by the desire for clean labels and fewer artificial additives in food and personal care products. Polyols, such as xylitol and sorbitol, are sourced from natural sources like fruits and plants, which makes them appealing to health-conscious consumers.
These natural polyols provide sweetness without the calories of sugar and allows consumers to enjoy treats without guilt. Due to this, manufacturers are increasingly inluding polyols into their products to meet this demand.
Polyols demand in Germany is calculated to rise at a value CAGR of 2.1% during the forecast period (2024 to 2034). By 2034, Germany is expected to account for 18.3% of Polyols sales in Europe.
Regulatory support in the European Union (EU) has played an important role in the increased use of polyols in food and pharmaceutical industry. The European Union has approved several polyols, such as xylitol, sorbitol, and erythritol, as safe ingredients for the use in various products. This approval gives manufacturers assurance to include polyols in their formulations without legal concerns.
Due to this, many food and beverage companies are including polyols into sugar-free and low-calorie products, while the pharmaceutical industry is using it in medicines and supplements. The clear regulations and safety assessments provided by the EU uplifts innovation and helps in ensuring that consumers have access to a wide range of products that are both safe and effective.
Consumption of Polyols in India is projected to increase at a value CAGR of 3.4% over the next ten years. By 2034, the business size is forecasted to reach USD 3.7 billion, with India expected to account for a domain share of 36.5% in South Asia.
The rising rates of diabetes in India has made many consumers more attentive about their sugar intake. As more individuals are diagnosed with diabetes, they are actively searching for sugar alternatives that won’t increase their blood sugar levels.
Polyols is a good alternative to this as they have a lower glycemic index compared to regular sugar, which means they do not cause a rapid increase in blood sugar when consumed. This makes polyols suitable for individuals with diabetes who want to enjoy sweet flavors without any health risks associated with sugar.
As awareness of diabetes is growing, the demand for polyol-based products, such as sugar-free snacks and beverages, is also increasing, further helping consumers in managing their health more properly.
| Segment | Polyester Polyols (Product Type) |
|---|---|
| Value Share (2024) | 28.6% |
The growth of the construction and automotive industry is driving up the demand for polyester polyols. In construction, these polyols are used to make insulation materials, sealants, and coatings that helps in improving energy effectively and protect buildings. In the automotive industry, these are important for producing lightweight and durable materials, such as foams for seats and insulation.
Moreover, polyester polyols are important raw materials for making polyurethanes, which are used in many products like flexible and rigid foams, coatings, adhesives, and elastomers. As industries like automotive, construction, and furniture continue to expand, the demand for polyester polyols is increasing which makes them an important part of many applications.
| Segment | Natural Polyols (Source) |
|---|---|
| Value Share (2024) | 56.3% |
Many individuals are becoming more aware of what they eat and prefer products that do not contain artificial additives. Naturally sourced polyols, which come from fruits and plants, fit this preference completely. They are known as healthier and more dependable choices compared to synthetic ingredients. Due to this, manufacturers are increasingly using naturally sourced polyols in their products to meet consumers growing demand for transparency and quality.
Market players are focusing on investing in R&D to develop functional ingredients with enhanced health benefits and sensory properties. They are diversifying product portfolios to meet diverse consumer needs and making strategic partnerships with companies, to leverage expertise and accelerate innovation. These strategies help them stay competitive in the evolving polyols market.
For instance:
This segment is further categorized into sugar alcohols (sweetener polyols) (sorbitol, mannitol, xylitol, maltitol, erythritol, isomalt, lactitol), polyether polyols (polyurethane raw material), (flexible polyether polyols, rigid polyether polyols, other specialty polyether polyols (e.g., elastomer polyols)), polyester polyols, (aromatic polyester polyols, aliphatic polyester polyols).
This segment is further categorized into natural polyols, and synthetic polyols.
This segment is further categorized into food & beverages, pharmaceuticals, personal care & cosmetics, construction, automotive, furniture & bedding, electrical & electronics, textiles, and packaging.
This segment is further categorized into solid polyols, and liquid polyols.
Industry analysis has been carried out in key countries of North America, Latin America, Eastern Europe, Western Europe, East Asia, South Asia & Pacific, Central Asia, Balkan and Baltic Countries, Russia & Belarus and the Middle East & Africa.
The global Polyols industry is valued at USD 28.7 billion in 2024.
Polyols saw a 2.9% CAGR between 2019 and 2023.
BASF, Dow Inc., and Stepan Company are key players.
North America is expected to account for 34.7% of the market share.
Europe holds 25.3% of the global Polyols market.
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