Saudi Arabia Polyols Market

Saudi Arabia Polyols Market Overview:

The Saudi Arabia polyols market size reached USD 265.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 462.2 Million by ​2033​, exhibiting a growth rate (CAGR) of 5.70% during ​2025-2033​. Growth in the construction, automotive, and furniture industries is boosting demand for polyurethane foams made from polyols. Government support for domestic manufacturing, rising insulation needs, and sustainability initiatives using CO₂-based polyols are further driving market expansion in Saudi Arabia across flexible and rigid foam applications.

Saudi Arabia Polyols Market Trends:

Push toward Sustainable Polyol Innovation

There is a growing shift in Saudi Arabia’s polyols market toward sustainable and environmentally responsible production methods. Advanced manufacturing techniques are now being used to incorporate carbon dioxide into polyol formulations, significantly lowering the carbon footprint of final products. This direction supports national goals of reducing industrial emissions while meeting the demand for high-performance materials across sectors such as coatings, adhesives, sealants, and elastomers. By integrating up to 40% CO₂ by weight, producers are aligning with both global sustainability expectations and domestic diversification plans. The application potential spans multiple high-growth industries, positioning Saudi Arabia as a forward-looking player in polyurethane development. Local capabilities are expanding not just to serve internal consumption but also to open export channels for innovative, eco-conscious chemical products. As market demand leans toward performance and compliance, low-carbon polyol solutions are emerging as a viable pathway to meet evolving industrial and environmental objectives. For example, in January 2024, Aether Industries, H.B. Fuller, and Saudi Aramco Technologies Company jointly announced the first commercialization of sustainable Converge polyols technology. This innovation uses up to 40% carbon dioxide by weight, reducing overall CO2 emissions, and is targeted for applications in the CASE (coatings, adhesives, sealants, elastomers) industry.

Rising Demand for Polyurethane Foam Applications

Expanding global demand for polyurethane foam is influencing Saudi Arabia’s polyols market outlook. With increasing consumption across furniture, insulation, packaging, and automotive applications, the requirement for core raw materials like polyols continues to grow. Strong construction activity and infrastructure development in the region, coupled with rising emphasis on energy-efficient buildings, are accelerating the use of rigid foams. Simultaneously, demand for flexible foams remains high in consumer goods and transport sectors. As international markets anticipate steady growth in polyurethane applications over the next decade, local producers are scaling up capacity to meet both domestic and export needs. This environment is encouraging investment in advanced polyol technologies and enhancing supply chain resilience. The sustained global expansion in polyurethane use is positioning Saudi Arabia as a strategic base for production, especially as the country aims to broaden its manufacturing capabilities and reduce reliance on imports across key downstream chemical segments. For instance, the global polyurethane (PU) foam market size reached USD 55.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 89.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.57% during 2025-2033.

Saudi Arabia Polyols Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for ​2025-2033​. Our report has categorized the market based on type, application, and industry.

Type Insights:

• Polyether Polyols
• Polyester Polyols

The report has provided a detailed breakup and analysis of the market based on the type. This includes polyether polyols and polyester polyols.

Application Insights:

• Flexible Polyurethane Foams
• Rigid Polyurethane Foams
• CASE (Coatings, Adhesives, Sealants and Elastomers)
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes flexible polyurethane foams, rigid polyurethane foams, CASE (coatings, adhesives, sealants and elastomers), and others.

Industry Insights:

• Carpet Backing
• Packaging
• Furniture
• Automotive
• Building and Construction
• Electronics
• Footwear
• Others

A detailed breakup and analysis of the market based on the industry have also been provided in the report. This includes carpet backing, packaging, furniture, automotive, building and construction, electronics, footwear, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Polyols Market News:

• In March 2025, Econic Technologies and Saudi Aramco Technologies signed a strategic global license agreement to develop CO2-based polyols. This partnership aims to advance carbon-neutral solutions in the polyols market, contributing to sustainable product development.
• In December 2024, BCI Group inaugurated a modern chemical production facility in Riyadh, boosting Saudi Arabia’s downstream capabilities. The plant would manufacture specialty chemicals, including polyurethane-related materials, supporting local production of polyols used in insulation, automotive, and construction sectors. This investment aligns with the Kingdom’s industrial strategy to enhance domestic manufacturing and reduce dependency on imports.

Saudi Arabia Polyols Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia polyols market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia polyols market on the basis of type?
• What is the breakup of the Saudi Arabia polyols market on the basis of application?
• What is the breakup of the Saudi Arabia polyols market on the basis of industry?
• What are the various stages in the value chain of the Saudi Arabia polyols market? 
• What are the key driving factors and challenges in the Saudi Arabia polyols market?
• What is the structure of the Saudi Arabia polyols market and who are the key players?
• What is the degree of competition in the Saudi Arabia polyols market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia polyols market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia polyols market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia polyols industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.