Graft Polyols Market

Recently, the growth of the global graft polyols market has been defined by the steady rise in demand for flexible polyurethane foams. Besides the improved load bearing capabilities, graft polyols provide several other functional properties such as solid content, cell opening, color retention, mechanical strength, and improved resilience. In recent years, growing awareness about these wide range of benefits has thus helped in pushing the overall growth of the global frat polyols market. With the growing demand for luxurious and comfortable seating systems in the global furniture and automotive industries, the usage of flexible polyurethane foams has been on the rise. This in turn has helped in further improving the overall dynamics of the global graft polyols market.

According to the research report published by Transparency Market Research, the global graft polyols market stood at valuation worth US$668.4 mn back in the year 2014. With a projected CAGR of 5.0% over the course of the assessment period of 2015 to 2023, the graft polyols market is then expected to reach a new valuation worth US$1,037.5 mn by 2023-end.

Growing Economic Stability to Pave Way for More Market Demand

There are several factors that are helping to shape the overall development of the global graft polyols market. One of the biggest driving factor for the market growth has been the increasing demand for these polyols from the prominent end-use industries such as furniture and automotive. As the economic conditions of masses across the globe strengthen, they are more inclined towards buying more premium and luxurious products. This has helped in pushing up the demand for flexible polyurethane foams, and thus ultimately the growth of the global market.

There are however, some factors that may impede the growth of the market in coming years and may stop it from reaching its full potential. One of the key restraining factors for market growth has been constant fluctuations in the prices of raw materials. A large amount of raw materials needed for the production of graft polyols are derived from crude oil. Thus, fluctuations in the prices of crude oil are thus projected to create some hindrances in the development of the global market. However, with an increasing use of natural oils such as castor, increasing number of lucrative avenues are projected to open up for the development of the global graft polyols market in the near future. Moreover, the use of alternatives based on natural oil are projected to increase in production of mattresses and cushions. This is ultimately expected to help the development of the global market.

Asia Pacific to Show Maximum Growth Potential

In terms of regional segmentation, there are five key regions of the global graft polyols market. These regions are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Of these, the regional segment of Asia Pacific is projected to dominate the global market in the coming years of the forecast period. The region accounted for a share of around 45% in the year 2014. With constant economic development and increasing disposable income of the end-users in nations such as China, India, and Japan, the region is expected to present good growth opportunities for the development of graft polyols market. An emerging trend that has been observed in the Asia Pacific market is of increasing preference towards luxurious and premium comfortable seating in vehicles. This has also worked in favor of developing a strong market for graft polyols in Asia Pacific.

The regional segments of Europe and North America are also expected to offer promising avenues for growth of their respective graft polyols market. The Middle East and Africa region is also expected to provide huge development opportunities in the coming years of the forecast period.

The competition in the global graft polyols market is quite intense as there are several notable brands operating to reach to the top spot. Some of the key players in the global market are The Dow Chemical Company, Oltchim SA, Jilin Shenhua Group, and Royal Dutch Shell Plc. among others.