Graft Polyols Market Analysis by Global Segments, Size and Forecast By 2023

Graft polyols contain fine particles of polymers dispersed in polyether polyol medium. Most commonly, styrene acrylonitrile (SAN) copolymers are grafted on polypropylene glycol or polyethylene glycol medium. Graft polyols are primarily used in the manufacture of flexible polyurethane foams. The major function of graft polyols is to increase the load-bearing capacity of polyurethane foams. Usage of graft polyols improves several mechanical properties of polyurethane foams such as tear strength, tensile strength, viscosity, and density. Furthermore, graft polyols enhance the resilience of foams.

Unsaturated monomers and polyether polyols are key raw materials used in the production of graft polyols. Styrene and acrylonitrile are commonly used as monomers, whereas polypropylene glycol or polyethylene glycol is used as polyether polyols. Styrene and acrylonitrile are copolymerized via the free radical or step addition process. Polyether polyols are prepared from polymerization of propylene oxide or ethylene oxide. The resulting styrene acrylonitrile (SAN) copolymer is then grafted to the polyether polyol backbone, thus producing stable dispersion of graft polyols.

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Steady growth in the flexible polyurethane foams market drives significant demand for graft polyols. In addition to improved load-bearing capacities, graft polyols enhance numerous functional properties of polyurethane foam such as resilience, cell opening, mechanical strength, solid content, and color retention. Rising demand for high comfort and luxurious seating system from furniture and automotive industries is projected to boost the flexible polyurethane foams market. This, in turn, is likely to generate substantial demand for graft polyols in the flexible foams market during the forecast period. However, instability in prices of raw materials is anticipated to hinder the market growth during the forecast period.

Key raw materials required in the production of graft polyols are obtained as crude oil derivatives. Therefore, volatility in crude oil prices has considerable impact on raw material prices. This, in turn, hampers growth of the graft polyols market. However, usage of natural oils such as castor oil is anticipated to open up lucrative avenues in the graft polyols market in the next few years. Consumption of natural oil based graft polyols are increasing in mattresses, cushions, and wheelchairs used in healthcare sectors. This is expected to create attractive opportunities in the graft polyols market during the forecast period.

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Europe and North America generated significant demand for graft polyols in the past few years. Europe accounted for the second-largest share of the graft polyols market in 2014. In terms of volume, Germany was the largest consumer of graft polyols in Europe in 2014, followed by Italy and the U.K. Demand for high resilient foams in carpets, cushions, automotive seating, and protective packaging boosted the graft polyols market in developed countries in Europe. Germany is projected to register the fastest-growth rate in the graft polyols market in Europe during the forecast period. In terms of demand, the U.S. dominated the market for graft polyols in North America in 2014.

Middle East & Africa is likely to be the lucrative market for graft polyols in the next few years. Furniture and automotive industries are likely to witness potential growth in Middle East & Africa during the forecast period. This, in turn, is expected to drive significant demand for graft polyols. GCC held considerable share of the graft polyols market in Middle East & Africa in 2014. GCC and South Africa are likely to exhibit remarkable growth rate during the forecast period. Latin America is also anticipated to be another attractive market for graft polyols in the next few years. The graft polyols market in Brazil is anticipated to be the fastest-growing market in Latin America by 2023.

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