Japan Green and Bio-based Polyol Market Size, Share, and COVID-19 Impact Analysis, By Product (Green Polyol and Bio-based Polyol), By Application (Foam Insulation, Coatings and Paints, Adhesives and Sealants, Composites, Electronics, Textiles and Apparel, and Others), and Japan Green and Bio-based Polyol Market Insights, Industry Trend, Forecasts to 2035

Japan Green and Bio-based Polyol Market Size Insights Forecasts to 2035

• The Japan Green and Bio-based Polyol Market Size Was Estimated at USD 614.8 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 8.6% from 2025 to 2035
• The Japan Green and Bio-based Polyol Market Size is Expected to Reach USD 1,523.4 Million by 2035

According to a Research Report Published by Spherical Insights & Consulting, the Japan Green and Bio-Based Polyol Market Size is anticipated to reach USD 1,523.4 million by 2035, growing at a CAGR of 8.6% from 2025 to 2035. The Japan green and bio-based polyol market is growing rapidly owing to rising environmental consciousness, strong regulations, and advances in environmentally friendly production processes. It is driven by growing demand for eco-friendly products and government policies encouraging carbon neutrality and sustainable materials.

Market Overview:

The Japan green and bio-based polyol market refers to environmentally friendly subsitutes for polyols derived from petroleum, made from renewable feedstocks such as vegetable oils, sugar, biomas residues, and carbon dioxide. These polysols are critical to the manufacture of polyurethanes utilized in foams (rigid and flexible), coatings, adhesives, sealants, and elastomers. Japan sound chemical engineering infrastructure allows for the manufacturing of high-purity, performance-grade bio-polyols, integrated smoothly into current polyurethane systems. Emerging opportunities include EV interiors, green building insulation, sustainable packaging, and consumer products, driven by circular-economy trends and low-VOC regulations. The increasing automobile, building, furniture, and packagings sectors require lightsweight, low-VOC, and recyclable materials, fueled by sustainbility targets and green-building certification. Government policy support for low-carbon products, green chemistry research and development, and circular-economy initiatives, in line with Japans 2050 carbon-neutralization targets, are accelerating market momentum.

Report Coverage

This research report categorizes the market for the Japan green and bio-based polyol market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan green and bio-based polyol market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan green and bio-based polyol market.

Driving Factors

The Japan green and bio-based polyol market is driven by growing demand for sustainable materials in the automotive, construction, packaging, and consumer goods industries. Government policies supporting carbon neutrality and circular economy approaches drive the use of bio-based solutions. Improvements in fermentation, enzymatic processing, and Carbon dioxide based synthesis improve product functionality and cost-effectiveness. Also, increasing green concerns and strict regulations on petrochemical-based polyols are forcing manufacturers and end-users to migrate toward renewable, green polyol solutions, consequently driving market growth even faster.

Restraining Factors

The Japan green and bio-based polyol market is hindered by high production costs, restricted availability of raw materials, and scaling issues. Competition from established petrochemical polyols and the absence of mass consumer consciousness further retard quicker adoption in some industrial segments.

Market Segmentation

The Japan green and bio-based polyol market share is classified into product and application.

• The bio-based polyol segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan green and bio-based polyol market is segmented by product into green polyol and bio-based polyol. Among these, the bio-based polyol segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to their relatively lower carbon footprints compared to their petroleum-based alternatives. Bio-based polyols also blend more compatibly into traditional polyurethane formulations, enabling easier application within current manufacturing processes without compromising functionality.

• The foam insulation segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan green and bio-based polyol market is segmented by application into foam insulation, coatings and paints, adhesives and sealants, composites, electronics, textiles and apparel, and others. Among these, the foam insulation segment held the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is attributed to rising electricity prices and stricter building standards in Japan drive demand for bio-based polyol polyurethane foams. These energy-efficient foams increase thermal insulation in roofs, walls, and refrigeration, offering improved thermal performance and mechanical strength in residential and commercial buildings.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan green and bio-based polyol market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Asahi Kasei Corporation
• Kaneka Corporation
• Mitsui Chemicals
• DIC Corporation
• Covestro Japan Ltd.
• Sanyo Chemical
• Mitsubishi Chemical Group
• Tosoh Corporation
• BioBased Technologies
• Cargill
• Emery Oleochemicals
• BASF
• Others

Recent Developments:

• In November 2024, Asahi Kasei announced a successful pilot operation of a carbon dioxide-to-polyol process plant at the Nobeoka site. The technology converts industrial carbon dioxide emissions into renewable polyol feedstock for flexible foams with a reduced carbon intensity up to 40%.

• In July 2024, Mitsui Chemicals doubled the 25% capacity at its Nagoya green polyol plant as demand from Japans automotive interior and consumer durables industries expanded.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan green and bio-based polyol market based on the below-mentioned segments:

Japan Green and Bio-based Polyol Market, By Product

• Green Polyol
• Bio-based Polyol

Japan Green and Bio-based Polyol Market, By Application

• Foam Insulation
• Coatings and Paints
• Adhesives and Sealants
• Composites
• Electronics
• Textiles and Apparel
• Others