Polyols Market
Polyols Market by Type (Polyether Polyols, Polyester Polyols), Application (Flexible Polyurethane Foam, Rigid Polyurethane Foam, CASE), End-use Industry (Building & Construction, Furnishing, Automotive, Electronics), and Region - Global Forecast to 2031
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The polyols market is projected to grow from USD 17.53 billion in 2026 to USD 22.49 billion by 2031, at a CAGR of 5.1% during the forecast period. The polyols market is anticipated to experience substantial growth during the forecast period, due to growing demand for polyurethane products in the packaging, furniture, automobile and construction industries. The use of rigid polyurethane foams for thermal insulation is growing as investments in energy-efficient buildings continue to rise. The flexibility foam and interior material applications are driving the increasing adoption of polyols in the automotive industry for lightweight and fuel-efficient cars. The increasing need of consumers for comfortable furniture, mattresses and cushioning products is further contributing to the growth of the market. In addition, the use of bio-based and recycled polyols is growing, as is the use of stringent environmental standards and sustainability initiatives, resulting in new growth opportunities.
KEY TAKEAWAYS
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By RegionAsia Pacific's polyols market dominated, with a share of 45.3% in 2025.
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By TypeBy type, the polyether polyols segment is expected to lead, with a share of 73.8% in 2025, in terms of value.
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By ApplicationBy application, flexible polyurethane foam is expected to be the leading segment in terms of value.
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By End-use IndustryBy end-use industry, building & construction is expected to dominate the market, with a share of 28.7% in 2025, in terms of value.
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Competitive Landscape - Key PlayersDOW, Covestro AG, BASF SE, Huntsman International LLC, Shell, Stepan Company, and Wanhua Chemical Group were identified as star players in the polyols market. These companies maintain strong market positions through a number of agreements and partnerships to cater to the growing demand for polyols across various end-use industries.
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Competitive Landscape - StartupsZibo Dexin Lianbang Chemical Industry Co., Ltd., Shandong Longhua New Material Co., Ltd., Zhejiang Huafon New Materials Corp., Ltd., Shakun Industries, and InterPur Chemicals, among others, have distinguished themselves among startups and SMEs. These companies are gaining traction through expanding production capacities and investing in sustainable manufacturing technologies.
With the new developments of polyurethane formulations, the performance of products is being enhanced, and the application range is extended. Polyols are seeing an upward trend in consumption as the emerging economies, especially in the Asia Pacific region, experience rapid industrialization, urbanization, and infrastructure development.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The polyols market is experiencing a transformation as bio-based and recycled polyols gain widespread acceptance, demand for polyols in construction, automotive, furniture, and insulation sectors continues to rise, and polyurethane technologies are constantly improving. Meanwhile, the market is experiencing disruptions due to fluctuating feedstock prices, uncertainty in supply chains, and increasingly stringent environmental regulations, leading manufacturers to diversify raw materials and invest in sustainable production processes.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Growth of packaging industry

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Automotive light-weighting trend
Level
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Complexity in recycling polyurethane products
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Stringent environmental regulations for polyurethane foam
Level
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Growing adoption of bio-based polyols
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High-purity polyols for medical-grade applications
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Eco-friendly alternatives
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Cross-border compliance complexity for CASE polyols
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Automotive light-weighting trend
Lightweight vehicle design is a significant growth factor for the polyols market, as polyurethane foams contribute to minimizing the weight of vehicles while maintaining comfort, durability, and safety standards. Polyether polyols are used in the manufacture of seating, headrests, dashboards, and other interior parts, while rigid polyurethane foams offer lightweight insulation and structure. Automotive manufacturers are increasingly turning to advanced polyurethane materials as they strive to enhance fuel economy and increase driving range for EVs. The use of polyols in next-generation vehicle design and sustainable mobility is gaining momentum.
Restraint: Complexity in recycling polyurethane products
Polyurethanes are not easily melted and reprocessed like thermoplastics, making recycling polyurethane products difficult. The methods for recycling most plastics, including glycolysis and hydrolysis, are complex, expensive, and not yet commercialized. As a result, much polyurethane waste is disposed of by landfill or incineration, which pose environmental issues and regulatory pressures. These restrictions make it difficult to embrace circular economy practices and slow the sustainable growth of the polyols market.
Opportunity: Growing adoption of bio-based polyols
With rising demand for sustainable materials, bio-based polyols made from soybean oil, castor oil, and other renewable feedstocks are creating significant opportunities. These products will help reduce reliance on fossil-based raw materials and lower the carbon footprint in polyurethane production. Their use is gaining momentum across the construction industry and in the automotive, furniture, coatings, adhesives, sealants, and elastomers sectors, driven by supportive government policies, tougher environmental regulations, and growing consumer demand for green products. Market opportunities are expected to expand further through continuous innovation and investment in bio-based technologies.
Challenge: Cross-border compliance complexity for CASE polyols
CASE (Coatings, Adhesives, Sealants, and Elastomers) polyol manufacturers face significant challenges in meeting diverse regulatory requirements across international markets. Chemical regulations vary by region, including REACH in Europe, TSCA in the US, and the growing safety standards for Asian chemicals, which require comprehensive testing and certification. Operating under VOC limits and environmental standards also increases operating expenses and delays product approvals. These regulatory differences make international trade difficult, complicate supply chains, and pose challenges for companies seeking to expand internationally.
POLYOLS MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Covestro developed a sustainable cast polyurethane elastomer for offshore wind energy applications using Cardyon®, a CO2-based polyol. The solution was designed to deliver high durability, mechanical stability, and resistance to hydrolysis in harsh marine environments, while reducing dependence on fossil-based feedstocks and supporting environmental sustainability. | The CO2-based elastomer delivers excellent performance under dynamic loading, resists hydrolysis, and reduces the carbon footprint. It demonstrates the feasibility of using captured CO2 in demanding industrial applications, promoting circularity and sustainability across renewable energy sectors. |
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Huntsman produced TEROL® polyester polyols from recycled PET bottles to manufacture rigid polyurethane insulation foams. The goal was to divert plastic waste from landfills, improve building energy efficiency, and meet insulation performance and fire safety regulations for residential, commercial, and industrial applications. | TEROL® polyols improve compressive strength, thermal insulation, and flame-retardant performance while converting more than one billion PET bottles annually into valuable materials. This approach reduces plastic waste, lowers building energy consumption, and supports scalable, circular, and environmentally compliant construction solutions. |
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BASF engineered low-emission Lupranol® polyether polyols to reduce aldehyde emissions from polyurethane foams used in automotive interiors. The goal was to help OEMs meet strict VOC regulations while maintaining foam properties, including resilience, durability, and processability, for components such as headrests, seats, and insulation panels. | Low-emission polyols reduce formaldehyde and acetaldehyde by up to 20%, meeting VDA276 and BMW GS 97014-3 standards. The solution improves in-cabin air quality without affecting foam processing, supporting regulatory compliance and healthier environments for vehicle occupants. |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The polyols market ecosystem is characterized by a well-organized value-added chain that spans raw material sourcing, polyols production, distribution, and end-use products across various industries. Primary raw materials include petrochemical feedstocks such as propylene oxide, ethylene oxide, and glycerol, as well as renewable sources for bio-based polyols. Using sophisticated polymerization and modification technologies, polyol manufacturers such as BASF, Covestro, Dow, Huntsman, and Mitsui Chemicals convert these inputs into polyether polyols, polyester polyols, and specialty polyols. Distribution channels include direct bulk delivery, third-party distributors, and storage terminals, ensuring effective and timely supply to downstream industries. Polyols have wide-ranging end-use applications, including flexible and rigid polyurethane foams, coatings, adhesives, sealants, elastomers (CASE), automotive and construction applications, furniture, bedding, and packaging solutions.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Polyols Market, By Type
Polyether polyols propellant accounted for the largest share of the polyols market in 2025 due to their wide use in manufacturing flexible and rigid polyurethane foams. They are flexible, hydrolytically stable, and economical, and can be used for a variety of applications. They have excellent mechanical properties and are compatible with a wide range of additives, improving the performance of polyurethane. They also benefited from strong demand for their products from the construction, automotive, furniture, and appliance sectors.
Polyols Market, By Application
In 2025, flexible polyurethane foam accounted for the largest segment of the polyols market, as it is widely used in the furniture and bedding, automotive seating, and packaging industries. Due to its lightweight construction, durability, cushioning, and high level of comfort, it is the material of choice for consumer and industrial products. Urbanization has driven up consumption, as has the rising demand for comfortable furniture and vehicle interiors. The material also offers good resilience and durability, leading to more widespread use across end-use sectors.
Polyols Market, By End-use Industry
Building & construction accounted for the largest share of the polyols market in 2025, driven by rising demand for polyurethane insulation to improve the energy efficiency of residential and commercial buildings. Polyols are used in rigid polyurethane foam for wall insulation, roofing systems, doors, windows, and structural panels. Adoption is accelerating worldwide due to rapid urbanization, infrastructure development, and strict energy-efficiency regulations. The push for green buildings and sustainable construction has also contributed to demand. Government programs that encourage energy-efficient buildings are also driving long-term market growth.
REGION
Asia Pacific is the leading region in the global polyols market
By region, Asia Pacific is the leading region in the polyols market, as the construction, automotive, furniture, and appliance industries are booming, especially in China, India, Japan, and South Korea. Polyurethane-based products have seen a significant surge in demand due to strong urbanization, infrastructure development, and rising disposable incomes in India. The region also has a strong manufacturing heritage, low manufacturing costs, and an abundant supply of raw materials. Polyol consumption is further driven by increased investments in industrial development and government support for energy-efficient buildings.

POLYOLS MARKET: COMPANY EVALUATION MATRIX
In the polyols market matrix, DOW (Star) leads due to its large production capacity, diversified polyols portfolio, and extensive global distribution network. Repsol S.A. (Emerging Leader) is gaining visibility for its innovative polyols solutions, focus on bio-based and specialty polyols, and strategic alliances to improve technological efficiency.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- DOW (US)
- Covestro AG (Germany)
- BASF SE (Germany)
- Huntsman International LLC (US)
- Shell (UK)
- Stepan Company (US)
- Wanhua Chemical Group (China)
- Repsol S.A. (Spain)
- PCC SE (Germany)
- LANXESS (Germany)
- Zibo Dexin Lianbang Chemical Industry Co., Ltd. (China)
- Shandong Longhua New Material Co., Ltd (China)
- Zhejiang Huafon New Materials Corp., Ltd. (China)
- Shakun Industries (India)
- InterPur Chemicals (Spain)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 (Value) | USD 16.68 Billion |
| Market Size in 2026 (Value) | USD 17.53 Billion |
| Market Forecast in 2031 (Value) | USD 22.49 Billion |
| CAGR | 5.1% |
| Years Considered | 2022–2031 |
| Base Year | 2025 |
| Forecast Period | 2026–2031 |
| Units Considered | Value (USD Billion), Volume (Kiloton) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East & Africa |
WHAT IS IN IT FOR YOU: POLYOLS MARKET REPORT CONTENT GUIDE

DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Asia Pacific-based Polyols Market | Detailed company profiles of polyols market competitors (financials, product portfolio), type (polyether polyols and polyester polyols), and end-use industry (building & construction, automotive, furnishing, packaging, and other end-use industries) | Identified & profiled 20+ polyol producers across Asia Pacific Mapped demand trends across high-growth segments (building & construction, automotive, furnishing, packaging, and other end-use industries) |
| Europe-based Polyols Market | Detailed company profiles of polyols market competitors (financials, product portfolio), type (polyether polyols and polyester polyols), and end-use industry (building & construction, automotive, furnishing, packaging and other end-use industries) | Identified & profiled 20+ polyol producers across Europe Mapped demand trends across high-growth segments (building & construction, automotive, furnishing, packaging, and other end-use industries) |
RECENT DEVELOPMENTS
- May 2025 : Covestro formed a strategic distribution partnership with PolySource (US), making Covestro’s polycarbonate portfolio available across North America. While focused on polycarbonate, it would entail indirect support or cross-selling with Covestro’s polyurethane/polyol business lines.
- May 2025 : BASF introduced the Sovermol® bio-based polyol line, including rapeseed-, soybean-, and castor-oil-derived, low-viscosity, 100% solids products ideal for coatings, adhesives, PU foams, and reactive diluents, expanding global availability (including Sovermol 805ap from India).
- December 2024 : Dow launched VORANOL™ WK5750, a next-generation polyether polyol produced at its Freeport, Texas facility. The product was tailored for soft and hypersoft foams and also functions as an effective cell opener for viscoelastic and high-resilience applications.
Table of Contents
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Methodology
The study involved four major activities to estimate the current size of the global polyols market. Exhaustive secondary research was carried out to collect information on the market, the peer product market, and the parent product group market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of polyols through primary research. The top-down and bottom-up approaches were employed to estimate the overall size of the polyols market. After that, market breakdown and data triangulation procedures were used to determine the size of different market segments.
Secondary Research
The market for companies offering polyols was arrived at through secondary data available through paid and unpaid sources, analyzing the product portfolios of major companies in the ecosystem, and rating the companies by their performance and quality. For this study, various secondary sources, such as Business Standard, Bloomberg, the World Bank, and Factiva, were referred to identify and collect information on the polyols market. In the secondary research process, various secondary sources were referred to identify and collect information related to the study. Secondary sources included annual reports, press releases, and investor presentations of polyols vendors, forums, certified publications, and whitepapers. Secondary research was used to obtain critical information on the industry’s value chain, the total pool of key players, market classification, and segmentation from market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side included industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology and innovation directors, and related key executives from several key companies and organizations operating in the polyols market. After the complete market engineering (calculations for market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at.
Primary research was also conducted to identify the segmentation types, industry trends, competitive landscape of polyols offered by various market players, and key market dynamics, such as drivers, restraints, opportunities, challenges, trends, and key player strategies. In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods were extensively used to perform the market estimation and market forecasting for the overall market segments and subsegments listed in this report. Extensive qualitative and quantitative analysis was performed throughout the market engineering process to list key information/insights throughout the report.

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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the size of the global polyols market. These approaches were also used extensively to estimate the size of various dependent market segments. The research methodology used to estimate the market size included the following:

Data Triangulation
After arriving at the overall market size using the market size estimation processes, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment. The data was triangulated by studying various factors and trends from the demand and supply sides.
Market Definition
According to the Polyurethane Manufacturers Association (PMA), a polyol is a chemical compound containing more than one reactive hydroxyl (–OH) group per molecule. These hydroxyl groups are vital for the polyol’s role in polyurethane production because they chemically react with di- or poly-isocyanates to create urethane linkages. This reaction forms the core of polyurethane polymers, which are used in many applications, including flexible and rigid foams, coatings, adhesives, sealants, and elastomers. The number and arrangement of hydroxyl groups within a polyol molecule determine its reactivity and functionality, directly impacting the physical, mechanical, and thermal properties of the final polyurethane material.
Key Stakeholders
- Raw material suppliers
- Polyol manufacturers
- Retailers and distributors
- Research & development entities
- Industry associations and regulatory bodies
- End users
Report Objectives
- To define, describe, and forecast the size of the global polyols market, by type, application, and end-use industry, in terms of value and volume
- To forecast the market size of segments for North America, Europe, Asia Pacific, South America, and the Middle East & Africa, along with their respective countries, in terms of value and volume
- To provide detailed information on the significant drivers, restraints, opportunities, and challenges influencing the market
- To strategically analyze micromarkets concerning individual growth trends, prospects, and their contribution to the market
- To assess the growth opportunities in the market for stakeholders and provide details on the competitive landscape for market leaders
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To analyze competitive developments, such as acquisitions, product launches, investments, expansions, and agreements in the polyols market
- To provide the impact of AI/Gen AI on the market
- To provide the macroeconomic outlook for each region covered under the study, and the impact of the 2025 US tariff on the market
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to client-specific needs.
The following customization options are available for the polyols report:
Product Analysis
- A product matrix that gives a detailed comparison of the product portfolio of each company
Regional Analysis
- A further breakdown of the polyols market for additional countries
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Key Questions Addressed by the Report
What are the major drivers influencing the growth of the polyols market?
The main drivers are the growth of the packaging industry, the automotive lightweighting trend, and the expanding use of flexible polyurethane (PU) in wearables and footwear.
What are the major challenges in the polyols market?
Eco-friendly alternatives and cross-border compliance complexity pose significant challenges for the polyols market.
What are the restraining factors in the polyols market?
Complexity in recycling polyurethane products and strict environmental regulations for polyurethane foam are key restraining factors.
What is the key opportunity in the polyols market?
The growing adoption of bio-based polyols and high-purity polyols for medical-grade applications offers substantial growth opportunities.
Who are the key players in the polyols market?
Key players include DOW (US), Covestro AG (Germany), BASF SE (Germany), Huntsman International LLC (US), Shell (UK), Stepan Company (US), Wanhua Chemical Group (China), Repsol S.A. (Spain), PCC SE (Germany), and LANXESS (Germany).
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Get 10% Free CustomisationTESTIMONIALS
- China Polyols Market
- India Polyols Market
- Japan Polyols Market
- South Korea Polyols Market
- Thailand Polyols Market
- Indonesia Polyols Market
- Germany Polyols Market
- UK Polyols Market
- France Polyols Market
- Italy Polyols Market
- Russia Polyols Market
- Turkey Polyols Market
- Canada Polyols Market
- Mexico Polyols Market
- US Polyols Market
- Saudi Arabia Polyols Market
- UAE Polyols Market
- South Africa Polyols Market
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- Argentina Polyols Market
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- Rest Of Asia Pacific Polyols Market
Growth opportunities and latent adjacency in Polyols Market
Laleh
Jul, 2019
Would like to understand polyester polyols via PET scrap technology and difference between Polyol polyester based and polyether based polyol.
Ravi
Jan, 2019
Opportunities in Polyol Trading for various applications in India.
Ravi
Jan, 2019
Information on Polyol trading in India and APAC..
LANDUCCI
Mar, 2013
Need information on PUR raw materials.
LANDUCCI
Mar, 2013
UV stabilization market and heat applications.
LANDUCCI
Mar, 2013
Marke data for Heat and UV stabilization market and raw materials information.
LANDUCCI
Mar, 2013
Specifc information on uses of heat and UV stabilization during Polyol and PU system production.
LANDUCCI
Mar, 2013
Antioxidants and UV stabilizers for Polyol and Polyurethane appliucation.
LANDUCCI
Mar, 2013
Information on heat and UV stabilization needs (antioxydants, UV stabilizers and HALS) of PUR at raw material producers (polyol)and systems house & processors. .
LANDUCCI
Mar, 2013
Information on heat and UV stabilization needs (antioxydants, UV stabilizers and HALS) of PUR at raw material producers (polyol)and systems house & processors .
LANDUCCI
Mar, 2013
General information on polyols and understand UV stabilization needs (antioxydants, UV stabilizers and HALS) of PUR at raw material producers levels.
LANDUCCI
Mar, 2013
Specific interest in PUR market .
LANDUCCI
Mar, 2013
Interested in Polyurethane Resin market.
LANDUCCI
Mar, 2013
heat and UV stabilization needs (antioxydants, UV stabilizers and HALS) of PUR at raw material producers (polyol)and systems house & processors..
LANDUCCI
Mar, 2013
UV curing market /UV stabilizers.
LANDUCCI
Mar, 2013
UV stabalizer market report.
WALTER
Jan, 2015
Interested in information for Flexible PU Slabstock foam.
Patrícia
Mar, 2019
General information on polyols.
paul
Jul, 2019
Demand of polyol polyurethane production and its application in construction industry .
J
Oct, 2014
Information about the polyester polyol market for Paints and coatings, by demand, by application, any sub-segment applications .
tondamanati
Dec, 2015
Information on xylitol study.
Jeff
Jul, 2019
Market information on Global Specialty Polyols.
James
Feb, 2013
Beginning the commercialization of the bio-based polyester polyol, interested in obtaining more market info..
Jason
Dec, 2017
Interested in the South-Korean PPG market (sample) to make a full report purchase.
Raja
Jul, 2015
Important physical delivery points, relevant quality labels/specifications for polyols and average Transaction Volume/Value. .
Ralph
May, 2014
Interested in Polyols market.
Doug
Mar, 2013
market and competitive dynamics for aliphatic polyester polyol within the Query not ClearFTA region with understanding of captive production vs. merchant market .
Doug
Mar, 2013
Specific information on North America aliphatic polyester polyol market .
Maciej
Feb, 2014
Interested in polyester polyol market, manufacturers, new trends in production and application.
Mustafa
Feb, 2019
Interested in Polyols market, use of Polyester and Polyether in flexible polyurethane foam application..