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Polyester Polyol Market Cutthroat Competition Between North America and Europe in Terms of Adoption Rate

Polyester Polyol Market Cutthroat Competition Between North

At present, there have been developments for the production of aromatic polyester polyols (APPs) from PET industrial wastes. This has been an important trend driven by the fact that in 2013, China declared that it would no longer be accepting poor qualities of recyclable waste from foreign exporters. This has resulted in a focused procedural development of recycling polyethylene terephthalate (PET) bottles to manufacture aromatic polyester polyols.

In the manufacturing procedure, some renewable resources, such as oils or modified oils, could also be introduced into the process before PET is added to adjust properties of the APP, for instance, for the improvement of solubility of pentane or chlorinated hydrocarbons. Also, for any PET manufacturer, the performance of such a procedure would be advantageous, both with respect to waste deployment as well as upsurge in profits from a side stream. PET recycling offers highest possible profit margins as well. The APP produced from this procedure leads to high performance polyurethanes with outstanding properties. Furthermore, the APPs are produced very economically, especially when using in-house wastes of the PET production.

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China to lead among all regions in terms of consumption

Rising demand for polyurethane and polyisocyanurate insulation foams for insulation applications has been contributing to demand growth of the aromatic polyester polyols market. This has been proving to be an important driver, especially in the developed North America and North-Western European regions. Besides, the demand for aromatic polyester polyols has also been on the rise in China owing to the rising applications in energy efficient buildings, an initiative aggressively promoted by the Chinese government.

Moreover, the advanced properties of polyester polyol will also benefit the market in China across several industries. Manufacturers of polyester polyol products have been focusing on developing product improvement know-how, such as structure property progress, alongside developing a diverse range of products for CASE (coatings, adhesives, sealants and elastomers) applications. Manufacturers have been developing products that meet a diverse and demanding set of requirements. For instance, they have been using phthalic anhydride as the building block to provide enhanced hydrolytic stability with an ortho-ester linkage and diverse substrate adhesion.

The process also imparts diverse substrate adhesion and improves overall hardness. Besides, polyester polyol products display advantages in polyurethane applications as well. Polyester polyols offer benefits in terms of hydrolytic stability based on their aromatic substitution pattern. That apart, various polyester polyols with high molecular weight have been developed which are appropriate for polyurethane prepolymer synthesis as well. Such advantageous characteristics have been proving to be reasons for increased use of polyester polyol items, thereby boosting global market demand.

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Europe to closely trail China owing to strategic moves by companies

In the past few years, core producers of polyester polyols have been focusing on expanding their production capacities by setting up new plants or capacity addition to existing plants, in regions where the demand rise has been enough to facilitate higher production capacity to meet the same. For instance, in June 2016, Stepan Company completed the expansion of its polyester polyol facility in Brzeg Dolny, Poland. The new plant is expected to support the company’s growth in the Coatings Adhesives Sealants and Elastomers (CASE) business for its European customers. Simultaneously, the company also confirmed the completion of a project to relocate its European research and development and technical service center to new laboratories in Wroclaw, Poland. The prolonged facilities would serve its business in insulation foams as well as the varied CASE business.

Persistence Market Research (PMR) is a third-platform research firm. Our research model is a unique collaboration of data analytics and market research methodology to help businesses achieve optimal performance. To support companies in overcoming complex business challenges, we follow a multi-disciplinary approach. At PMR, we unite various data streams from multi-dimensional sources. By deploying real-time data collection, big data, and customer experience analytics, we deliver business intelligence for organizations of all sizes.

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