Bio-based Polyurethane Market – Global Industry Size, Share, Trends, Opportunity, & Forecast, Segmented By Application (Foams, Coatings, Adhesives & Sealants, and Others), By End User Industry (Transportation, Footwear & Textile, Construction, Packaging, Furniture & Bedding, Electronics and Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 0.05 Billion
CAGR (2026-2031)	6.14%
Fastest Growing Segment	Footwear and Textile
Largest Market	Asia Pacific
Market Size (2031)	USD 0.07 Billion

Market Overview

The Global Bio-based Polyurethane Market will grow from USD 0.05 Billion in 2025 to USD 0.07 Billion by 2031 at a 6.14% CAGR. Bio-based polyurethane is a versatile polymer synthesized by reacting diisocyanates with polyols derived partially or wholly from renewable biological feedstocks, such as vegetable oils, serving as a sustainable alternative to fossil-fuel-based counterparts. The market’s growth is fundamentally supported by stringent global environmental regulations aiming to lower carbon footprints and the strategic shift of the automotive and construction industries toward circular economy goals. These distinct structural drivers provide a long-term foundation for adoption, separating them from temporary consumption trends.

Despite this progress, a significant challenge impeding rapid market expansion is the production cost differential between bio-based feedstocks and established petrochemical alternatives, which often limits competitive pricing. To illustrate the sector's scale, according to European Bioplastics, in 2024, the global bioplastics production capacity reached 2.47 million tonnes, a metric that highlights the strengthening industrial base necessary to support the wider commercialization of renewable performance polymers.

Key Market Drivers

The growing adoption of bio-based polyurethane in the automotive industry is a primary catalyst for market expansion, driven by the sector's urgent need to lightweight vehicles and reduce interior emissions. Manufacturers are aggressively integrating renewable materials into seating, insulation, and coatings to meet circular economy targets without compromising performance. This shift is exemplified by strategic collaborations aimed at commercializing low-carbon solutions for vehicle aesthetics and functionality. For instance, according to Covestro, November 2025, in a strategic partnership announcement, the company expanded its collaboration with Nippon Paint to co-develop bio-based automotive coatings, building upon a solution that enables matte-finish gradient colors for OEMs. Such initiatives highlight how bio-based polyurethanes are evolving from niche experimental materials into essential components for next-generation vehicle design, directly addressing the demand for sustainable luxury and reduced environmental impact in the automotive supply chain.

Simultaneously, stringent environmental regulations and escalating corporate commitments to carbon neutrality are accelerating the development of advanced bio-polyol technologies. Chemical producers are responding to these pressures by innovating biomass-balance production methods that significantly lower the carbon footprint of polyurethane systems used in construction and furniture. A notable advancement in this domain occurred when, according to BASF, April 2025, in a news release regarding flexible foam systems, the company introduced biomass balance grades that offer a potential product carbon footprint reduction of up to 75% compared to conventional fossil-based equivalents. These technological strides are essential for scaling the broader industry, which is poised for substantial capacity growth. Reflecting this trajectory, according to European Bioplastics, in 2024, global bioplastics production capacity is projected to rise to approximately 5.73 million tonnes by 2029, signaling a robust industrial shift toward renewable performance polymers.

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Key Market Challenges

The primary challenge impeding the expansion of the Global Bio-based Polyurethane Market is the persistent production cost differential between renewable feedstocks and established petrochemical alternatives. Unlike fossil-fuel-based polyurethane, which benefits from mature, low-cost supply chains and massive economies of scale, bio-based variants incur higher expenses related to the cultivation, harvesting, and complex chemical conversion of renewable raw materials. This structural price gap makes it difficult for manufacturers to offer competitive pricing, thereby deterring cost-conscious procurement teams in high-volume industries such as automotive manufacturing and construction.

Consequently, widespread adoption is stalled, keeping the market confined to premium segments rather than achieving mass commercialization. The struggle to gain traction against cheaper incumbents is evident in the wider renewable polymer sector. According to European Bioplastics, in 2024, bioplastics accounted for roughly 0.5 percent of the total global plastic production. This statistic underscores the immense difficulty bio-based materials, including polyurethanes, face in capturing significant market share from cost-efficient fossil-fuel counterparts.

Key Market Trends

The development of algae-derived polyol feedstocks is gaining prominence as a transformative trend, addressing the "food vs. fuel" debate associated with traditional vegetable oil sources like soy and castor. By utilizing non-arable land and aquatic systems, manufacturers are creating high-performance polyurethanes that do not compete with global food production, a critical advantage over first-generation bio-polymers. This innovation is rapidly moving from laboratory research to commercial viability through strategic alliances focused on scaling novel chemical pathways. For instance, according to P2 Science, November 2025, the company entered a collaboration with Algenesis to commercialize 100% bio-based polyurethane materials derived from algae, leveraging a proprietary ozonolysis process to eliminate petrochemical reliance entirely.

Simultaneously, the adoption of fully biodegradable polyurethane foams for footwear is reshaping the consumer goods sector, driven by the industry's urgent need to mitigate microplastic pollution and landfill waste. Unlike conventional bio-based options that may only offer partial renewable content and still require industrial composting, next-generation foams are being engineered to degrade safely in natural environments at the end of their product life. This shift is supported by measurable advancements in carbon reduction capabilities. According to Rymbal, September 2025, its BioSafe polyurethane system enables the replacement of 20 to 60 percent of fossil-based carbon with renewable inputs, resulting in a carbon footprint reduction of 2 to 5 kilograms of CO2 per kilogram of polyol.

Segmental Insights

The Footwear and Textile segment constitutes the fastest growing category within the Global Bio-based Polyurethane Market, propelled by the rising adoption of sustainable materials in apparel production. Manufacturers are prioritizing bio-derived polyurethanes for shoe soles and synthetic coatings to reduce dependence on fossil fuels and lower carbon emissions. This momentum is reinforced by guidelines from the European Chemicals Agency regarding chemical safety, which drive companies toward low-emission, renewable alternatives to comply with stringent environmental standards. Consequently, the sector is witnessing a significant transition toward green chemistry solutions to meet evolving regulatory and consumer expectations.

Regional Insights

Asia Pacific dominates the Global Bio-based Polyurethane Market, primarily driven by rapid industrialization and urbanization in major economies like China and India. The region's leadership stems from substantial demand within the construction and automotive sectors, where manufacturers increasingly adopt bio-based materials to meet strict environmental regulations and sustainability goals. Additionally, the region benefits from a robust supply chain anchored by the abundant availability of renewable raw materials, such as vegetable oils. This combination of strong manufacturing capabilities, local feedstock accessibility, and supportive government policies for green infrastructure solidifies Asia Pacific’s position as the primary hub for bio-based polyurethane production.

Recent Developments

• In November 2025, P2 Science and Algenesis Corporation announced a strategic partnership to develop and commercialize 100% bio-based, biodegradable polyurethanes. This collaboration leverages proprietary green chemistry processes to convert algae-derived oils into key chemical intermediates, which are then combined with bio-based isocyanates to create high-performance sustainable materials. The partnership aims to establish a scalable supply chain for renewable alternatives suitable for applications in footwear, apparel, and coatings, effectively eliminating reliance on petrochemicals. By utilizing plant-based feedstocks, the companies intend to provide brand owners with materials that address microplastic pollution while maintaining the durability and quality required for consumer products.
• In October 2024, the Mitsubishi Chemical Group reported the commercial adoption of its plant-derived polyol, a key raw material for bio-based polyurethane, by a manufacturer of synthetic leather goods. The material, which features a biomass content exceeding 92%, was selected for its ability to impart essential properties such as flexibility, durability, and high resilience to the final product. This development highlights the successful integration of bio-synthetic leather into consumer items like bags and accessories, significantly reducing the usage of petroleum resources. The initiative aligns with the company's broader strategy to accelerate the distribution of sustainable, plant-derived materials that contribute to carbon neutrality and the circular economy.
• In September 2024, BASF and Future Foam announced the first commercial production of flexible polyurethane foam for the bedding industry utilizing 100% domestically produced biomass-balanced toluene diisocyanate (TDI). Manufactured at a facility in Louisiana, this sustainable raw material enables a significant reduction in the product carbon footprint without requiring alterations to existing formulations or supply chain logistics. The collaboration underscores a mutual commitment to sustainability, allowing for the production of high-quality bedding components that support circular economy goals. This milestone represents a major advancement in the availability of drop-in bio-based solutions for the North American furniture and home comfort market.
• In August 2024, Covestro and Carlisle Construction Materials entered into a collaboration to incorporate bio-circular raw materials into the production of high-performance polyurethane building insulation. Under this agreement, Covestro supplies methylene diphenyl diisocyanate (MDI) based on ISCC PLUS certified mass-balanced bio-circular feedstocks, which offers a substantially lower carbon footprint compared to fossil-based equivalents. This partnership enables the manufacturing of insulation boards with reduced embodied carbon, directly addressing the construction sector's increasing demand for sustainable building solutions. The initiative demonstrates the practical application of bio-circular attributed materials in maintaining the rigorous performance standards necessary for energy-efficient building envelopes.

Key Market Players

• Arkema SA
• BASF SE
• Covestro AG
• Huntsman International LLC
• Miracll Chemicals Co. Ltd
• Mitsui Chemicals Inc.
• Stahl Holdings BV
• Toray Industries Inc.
• Teijin Limited
• The Lubrizol Corporation

By Application	By End User Industry	By Region
Foams Coatings Adhesives & Sealants and Others	Transportation Footwear & Textile Construction Packaging Furniture & Bedding Electronics and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bio-based Polyurethane Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Bio-based Polyurethane Market, By Application:

• Foams
• Coatings
• Adhesives & Sealants
• and Others

• Bio-based Polyurethane Market, By End User Industry:

• Transportation
• Footwear & Textile
• Construction
• Packaging
• Furniture & Bedding
• Electronics and Others

• Bio-based Polyurethane Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE