UK green and bio-based polyol market is projected to showcase faster growth during 2025 to 2035 following the quick move of the UK towards the circular economy, regulations on carbon emissions, and growing use of renewable materials in furniture, automotive, and construction sectors.
Renewable biomass feedstock including soy, vegetable oils, and castor are being used on a large scale as a substitute for petroleum-derived polyols for producing polyurethane. United Kingdom bio-based and green polyol market worth USD 434.9 million in 2025 is anticipated to grow at a rate of 10.1% over the forecast period to reach USD 757.5 million by 2035.
Because of the UK government's green initiative and increased utilization of ESG-compatible raw material, the company is making its value chain low-VOC and bio-based material. Green building certification programs and vehicle lightness regulations also facilitate the utilization of bio-polyol in fuel intake regulation and recycling rates.
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 434.9 Million |
| Projected Market Size in 2035 | USD 757.5 Million |
| CAGR (2025 to 2035) | 10.1% |
It is a movement on a pathway of R&D and innovation-driven. UK academia and industry as a whole are moving in the correct direction in terms of innovating for scalability performance of bio-based polyols to match or surpass the conventional counterparts.
There is bio-based rigid foam, hybrid polymers, and recyclable thermoplastic polyurethane in progress in a pipeline to meet the increasing demand across different applications. Sustainability trends like cradle-to-cradle production, greenhouse gas emissions reduction, and green purchasing are driving the use of green polyols in industrial polymer science and coating in the future.
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With its strong industrial capacity and adjacency to Teesside's chemical production clusters, North East is seeing take-up of bio-based polyols in the automotive, construction, and low-carbon paints industries. Process innovation and low-carbon investment within the chemicals industry is driving take-up.
North West, Liverpool and Manchester for example is at the forefront of green materials technology and sustainable production. Cutting-edge industrial engineering and research and development, rising demand from manufacturers of furniture, building chemicals, and flexible foam for bio-based products in bulk.
One of the world's motor-manufacturing powerhouses, West Midlands also employs bio-based polyols in interior car parts, thin panels, and foam seats. Tier-1 companies and original equipment makers in Coventry and Birmingham are shifting to green polymers as part of efforts to drive decarbonization.
East Midlands growth is supported by its growing building sector and robust furniture and packaging manufacturing foundation. Bio-based polyols are being used increasingly in thermal insulation and protective packaging foams, rigid and flexible, and SMEs utilizing bio-solutions to enable client agendas for sustainability.
South East, being the most extensive and sophisticated regional marketplace and as a combination with London, is the most extensive and sophisticated marketplace. Bio-based polyols are growing immensely in specialty coatings marketplaces, high-end furniture, and low-carbon material buying and green construction marketplaces. Regional demand due to green construction and low-carbon material buying is driving it towards becoming a demand center.
Challenges
High Production and Feedstock Volatility Expenses
The UK green and bio-based polyol market is plagued by the high costs of production in terms of expensive bio-based feedstock such as soy, castor, and palm oil derivatives. Fluctuation in agricultural commodity prices and foreign imported bio-feedstock equally undermine price stability and long-term contract agreements.
A second issue is the technical difference between green polyols and their fossil fuel-based counterparts in viscosity, reactivity, and end-product performance, especially in industrial-grade elastomers and foams. Furthermore, a lack of domestic manufacturing capacity and the absence of specialized bio-refineries constrain market up-scaling. Regulatory uncertainty post-Brexit in terms of REACH compliance and green chemistry incentives further complicates investment planning.
Opportunities
Circular Economy Push and Polyurethane Industry Decarbonization
The UK 's aggressive policy drive towards carbon neutrality, green manufacturing, and circular economy is offering tailwinds to bio-based polyol demand. With increasing regulatory and business pressure to reduce carbon emissions across industries, green polyols are surfacing in the automotive, construction, furniture, and packaging sectors to produce low-VOC foams, adhesives, and paints.
Opportunities are also developed through recycled and CO₂-based polyol technology facilitated by R&D centers and green material-specialized universities. Development policies in UK green public procurement and the push by the construction industry towards low-impact insulation choices drive market uptake further.
UK green and bio-based polyol market Technological Developments
Chemical industries and researchers are utilizing carbon capture and utilization (CCU) to convert CO₂ waste in industries into deployable polyols. These polyols show 30-40% embodied carbon savings and are
attracting rising commercial interest from the packaging and insulation industries. The UK universities and bio-chemical start-ups are investing in enzyme-based and fermentation-based technologies to produce more reactive functional polyols from biomass and agro-food waste at lower energy input in the production process.
There are new technologies for recycling polyols from waste cooking oils, algae, and lignin that aid local circular bio-economies and reduce reliance on imports. These materials are of specific interest to SME-sized foam producers searching for affordable sustainable substitutes.
During the period between 2020 and 2024, growth in the market was average with growth being driven by increased consciousness about sustainable materials, EU-initiated directives for sustainable products, and sustainability objectives spearheaded by brands.
Low penetration in the market resulting from cost competitiveness issues, raw material low localization, and risk-averse industrial adoption occurred at a very slow pace. Demand centered on mass-market applications like mattresses comprised of ecologically sound component materials, bio-based coatings, and premium motor vehicle interiors.
During 2025 to 2035, the market will shift to mainstream adoption, especially for rigid and flexible polyurethane foam, driven by net-zero building regulations, EV deployment, and packaging decarbonization. Scalability will be initiated by next-generation technology for CO₂-based polyols, enzyme conversion technology, and valorization of local feedstock. Chemical industry players and UK -based start-ups. will probably collaborate to produce bio polyols in-house from waste oils, lignocellulosic biomass, and recycling streams of polyol.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Brexit-aligned REACH, voluntary green certifications (BREEAM, ISO 14001) |
| Market Penetration | Limited to premium insulation, green furniture, and sustainable interiors |
| Technology Evolution | Use of soy, castor oil, and palm-based polyols with moderate replacement ratios |
| Material Innovation | Plant-oil based polyols with lower reactivity and process adaptability |
| Market Competition | Imports from EU and global players; limited local processing |
| Customer Preferences | Sustainability as a branding tool in select sectors (e.g., hospitality furniture) |
| Integration with Net-Zero Goals | Limited to voluntary offsets and brand reputation gains |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Mandatory bio-content targets, low-VOC limits, and circular economy product mandates |
| Market Penetration | Expansion into construction foams, EV parts, adhesives, and packaging |
| Technology Evolution | Advanced bio-based polyols from lignin, CO₂, and recycled PET with equal or better performance |
| Material Innovation | High-functionality polyether and polyester bio-polyols with customizable formulations |
| Market Competition | Emergence of UK -based joint ventures and integrated local supply chains |
| Customer Preferences | Strong demand for carbon-labeled, renewable raw materials in procurement policies |
| Integration with Net-Zero Goals | Key enabler of UK manufacturing sector’s decarbonization and circularity mandates |
Greater London is the largest market for bio-based and green polyols in the UK driven by pro-sustainability policy in the city, concentration of environmentally friendly producers, and a growing demand for sustainable polyurethane alternatives by the construction and furniture industries.
London, the global hub of sustainability, experiences high demand in green building projects and circular economy initiatives and both of them are driving demands for bio-based materials. Apart from that, consumer packaging’s are also moving towards bio-based packaging’s and cushioning with increasing market adoption.
| City | CAGR (2025 to 2035) |
|---|---|
| Greater London | 10.7% |
Scotland's low-carbon and sustainable production policy is driving the green polyol market. Financing of bio-economy clusters and research on renewable feedstock is growing, and urban areas such as Glasgow and Edinburgh are helping to drive innovation in bio-based chemicals.
Green building and insulation projects in Scotland are growing and opening up new markets for green polyols, and green public procurement supported by government is driving commercial-scale adoption in public sector buildings and homes.
| City | CAGR (2025 to 2035) |
|---|---|
| Scotland | 10.0% |
Wales is gradually unfolding as a potentially feasible UK green and bio-based polyol market aided by its strong focus on sustainable development and indigenous manufacturing development. Domestic companies are gradually beginning to make the transition to environmentally friendly raw materials, most notably in the area of coating, furniture, and packaging.
With government incentives to environmentally friendly production and circular technology, the demand for Welsh industries will slowly pick up for more bio-based polyols, with mid-range firms being major players in order to reduce carbon emissions.
| City | CAGR (2025 to 2035) |
|---|---|
| Wales | 9.8% |
Yorkshire and the Humber is becoming one of the important regional players for UK green polyol, especially regarding industrial restructure, sustainable construction processes, and enhanced regional demand emanating from its healthy automobile and insulation industries.
Existence of innovation parks and university-bio-based start-up ties are driving product innovation and application tests for green polyols. Other than this, increases in green purchasing activities among local governments are putting pressure on commercial and infrastructure stakeholders to pay more attention to bio-based materials.
| City | CAGR (2025 to 2035) |
|---|---|
| Yorkshire and the Humber | 10.1% |
In the UK green and bio-based polyol market, bio-based polyols dominate with the highest percentage due to their widespread feedstock sources e.g., recycled biomass, castor oil, and soybean oil and great support for the country's circular economy and sustainability plans. Bio-based polyols are increasingly preferred in industrial applications due to their reduced carbon footprint and ability to match or even surpass petroleum-based equivalents.
The UK 's net-zero campaign, coupled with extended producer responsibility (EPR) legislation and mounting consumer demand for environmentally friendly products, has promoted expanded uptake of bio-based inputs to production.
Bio-based polyols are also well-suited for backward compatibility with traditional polyurethane production, making them an appealing drop-in replacement for industries looking to switch to cleaner chemistry. Their capacity for providing consistent mechanical properties, thermal stability, and process ability across a broad spectrum of end applications solidifies their market leadership.
Through consumption, foam insulation accounts for the highest share of the UK green and bio-based polyol market due to the rapidly increasing rate of green building activity and retrofitting processes in residential, commercial, and industrial buildings.
Increasing energy efficiency standards like the Future Homes Standard and net-zero building standards have driven demand for green insulation products significantly. Green and bio-based polyol-derived polyurethane foam is also gaining popularity because they possess better thermal insulation, water tightness, and reductions in energy consumption in buildings.
Government energy policy to encourage energy-efficient retrofitting of buildings and public sector decarbonization policy have also contributed to increased demand for application of foam insulation. In addition, the increased emphasis on ESG performance by construction and property players is driving the transition towards sustainable material use, where foam insulation has led the way in the development of bio-polyol applications in the UK
UK green and bio-based polyol market is seeing growth that is profitable with business houses eager to transition to eco-friendly and carbon-free industries. Bio-based polyols from natural materials like soybean oil, castor oil, and derivatives of sugar are in rising demand with significant applications in flexible and rigid foams, coatings, adhesives, sealants, and elastomers.
Supported by strong regulatory backing (initiated in the UK by the REACH system), consumer purchasing power via sustainability, and increasing applications of circular chemistry across the automotive, furniture, and construction industries green polyols are increasingly replacing petrochemical-based solutions. Companies in this field are investing in local R&D, purification of bio-feedstock, and partnerships with downstream manufacturers to integrate bio-based inputs into mass production streams.
Recent Developments
Market Share Analysis by Key Players
| Company Name | Estimated Market Share (%) |
|---|---|
| Covestro AG | 20-25% |
| BASF SE | 15-20% |
| Huntsman Corporation | 12-16% |
| Cargill Incorporated | 10-14% |
| Emery Oleochemicals | 7-10% |
| Other Companies | 20-30% |
| Company Name | Key Offerings |
|---|---|
| Covestro AG | Offers bio-based polyether polyols under its cardyon® brand, made from CO₂ feedstock and bio-attributed sources. Active partnerships with UK-based furniture and insulation foam makers. |
| BASF SE | Supplies castor oil- and sugar-derived polyols, tailored for insulation panels, automotive interiors, and floor coatings; R&D collaboration with British universities. |
| Huntsman Corporation | Produces sustainable MDI-based polyols for rigid foams used in UK’s green construction sector; emphasizes closed-loop chemical recycling. |
| Cargill Incorporated | Offers bio-based polyols under the BiOH® brand; works with UK mattress and upholstered furniture manufacturers to replace petroleum-derived foam. |
| Emery Oleochemicals | Specializes in high-purity bio-polyols from natural oils and glycerin, catering to coatings and adhesives in the British packaging industry. |
The overall market size for UK green and bio-based polyol market was USD 434.9 Million in 2025.
The UK green and bio-based polyol market is expected to reach USD 757.5 Million in 2035.
The increasing use of renewable materials in furniture, automotive, and construction sectors will drive the demand for green and bio-based polyol market
The top 5 countries which drive the development of UK green and bio-based polyol market are United Kingdom, Germany, United States, France, and Japan.
Bio-based Polyol and Foam Insulation are the leading segments in the green and bio-based polyol market.
On the basis of product, the UK green and bio-based is categorized into Green Polyol and Bio-based Polyol.
On the basis of application, the UK green and bio-based market is categorized by Foam Insulation, Coatings and Paints, Adhesives and Sealants, Composites, Electronics, Textiles and Apparel, and Others
United Kingdom Green and Bio-based Polyol Market
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