Global Diols and Polyhydric Alcohols Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Diols and Polyhydric Alcohols Market Size

• The global diols and polyhydric alcohols market size was valued at USD 1.76 billion in 2024 and is expected to reach USD 2.63 billion by 2032, at a CAGR of 5.10% during the forecast period
• The market growth is primarily driven by increasing demand for sustainable and eco-friendly chemical solutions across various industries, coupled with advancements in production technologies
• The rising adoption of diols and polyhydric alcohols in pharmaceuticals, personal care, and automotive sectors, along with growing consumer preference for bio-based products, is significantly boosting market expansion

Diols and Polyhydric Alcohols Market Analysis

• Diols and polyhydric alcohols are versatile chemical compounds used as key intermediates in the production of polymers, resins, and other industrial applications, offering enhanced performance characteristics such as durability, flexibility, and chemical resistance
• The demand for these compounds is fueled by their widespread use in high-growth industries such as pharmaceuticals, personal care, and construction, as well as increasing focus on sustainable and bio-based alternatives to traditional petrochemical-based products
• North America dominated the diols and polyhydric alcohols market with the largest revenue share of 42.5% in 2024, driven by advanced manufacturing capabilities, strong R&D investments, and the presence of key industry players
• Asia-Pacific is expected to be the fastest-growing region during the forecast period, attributed to rapid industrialization, increasing demand for personal care products, and expanding construction activities in countries such as China and India
• The diols segment dominated the largest market revenue share of 62.5% in 2024, driven by their extensive use in producing polyesters, polyurethanes, and coatings, particularly in industries such as automotive and construction

Report Scope and Diols and Polyhydric Alcohols Market Segmentation       

Diols and Polyhydric Alcohols Market Trends

“Increasing Integration of Sustainable and Bio-based Production Technologies”

• The global diols and polyhydric alcohols market is experiencing a notable trend toward the adoption of sustainable and bio-based production methods
• These technologies enable environmentally friendly manufacturing processes, reducing carbon footprints and aligning with global sustainability goals
• Advanced bio-based production solutions allow for more efficient resource utilization, minimizing waste and enhancing the eco-friendliness of diols and polyhydric alcohols
• For instance, several companies are developing bio-derived diols for use in eco-friendly resins, coatings, and personal care products, catering to growing consumer demand for sustainable materials
• This trend is enhancing the market appeal of diols and polyhydric alcohols, making them more attractive to industries such as pharmaceuticals, personal care, and automotive
• Sustainable production methods can optimize supply chains by leveraging renewable feedstocks, reducing dependency on fossil-based raw materials

Diols and Polyhydric Alcohols Market Dynamics

Driver

“Rising Demand for High-Performance Materials in Diverse Applications”

• The increasing demand for high-performance materials in industries such as pharmaceuticals, personal care products, automotive, construction, textiles, and resin and fiber industries is a major driver for the global diols and polyhydric alcohols market
• Diols and polyhydric alcohols enhance product performance by providing properties such as flexibility, durability, and chemical stability in applications such as coatings, adhesives, and polymers
• Regulatory support for sustainable and non-toxic materials, particularly in regions such as North America, which dominates the market, is contributing to the widespread adoption of these compounds
• The proliferation of advanced manufacturing technologies and the development of high-purity diols are enabling the expansion of applications, offering improved performance for specialized industrial needs
• Manufacturers are increasingly incorporating diols and polyhydric alcohols as key components in formulations to meet consumer expectations for high-quality, sustainable products

Restraint/Challenge

“High Production Costs and Regulatory Compliance Issues”

• The substantial initial investment required for advanced production facilities, raw materials, and sustainable technologies can be a significant barrier to adoption, particularly in emerging markets within the Asia-Pacific region, which is the fastest-growing market
• Developing and scaling bio-based production processes for diols and polyhydric alcohols can be complex and costly
• In addition, stringent environmental and safety regulations pose a major challenge. The production and use of diols and polyhydric alcohols involve handling chemicals that must comply with strict safety and environmental standards, raising concerns about emissions and waste management
• The fragmented regulatory landscape across different countries regarding chemical production, usage, and disposal further complicates operations for international manufacturers
• These factors can deter potential investors and limit market expansion, particularly in regions where cost sensitivity is high or where regulatory compliance is a significant concern

Diols and Polyhydric Alcohols market Scope

The market is segmented on the basis of type and application.

• By Type

On the basis of type, the global diols and polyhydric alcohols market is segmented into diols and polyhydric alcohol. The diols segment dominated the largest market revenue share of 62.5% in 2024, driven by their extensive use in producing polyesters, polyurethanes, and coatings, particularly in industries such as automotive and construction. Their versatility and compatibility with various chemical formulations contribute to their dominance.

The polyhydric alcohol segment is expected to witness the fastest growth rate of 8.7% from 2025 to 2032, fueled by increasing demand in pharmaceuticals and personal care products. Polyhydric alcohols such as glycerol and sorbitol are valued for their humectant properties and eco-friendly profiles, aligning with the growing trend toward sustainable formulations.

• By Application

On the basis of application, the global diols and polyhydric alcohols market is segmented into pharmaceuticals, personal care products, automotive industry, construction industry, textile, resin and fiber industries, and others. The resin and fiber industries segment accounted for the largest market revenue share of 38.5% in 2024, driven by the critical role of diols in manufacturing polyester resins and fibers for textiles, packaging, and industrial applications. The rising demand for durable and lightweight materials supports this segment’s dominance.

The personal care products segment is anticipated to experience the fastest growth rate of 9.2% from 2025 to 2032. The increasing consumer preference for natural and sustainable ingredients in cosmetics and skincare products, coupled with the humectant and emollient properties of polyhydric alcohols, is accelerating adoption in this sector.

Diols and Polyhydric Alcohols Market Regional Analysis

• North America dominated the diols and polyhydric alcohols market with the largest revenue share of 42.5% in 2024, driven by advanced manufacturing capabilities, strong R&D investments, and the presence of key industry players
• Consumers and industries prioritize diols and polyhydric alcohols for their versatility in enhancing product performance, such as improving moisture retention in cosmetics and durability in coatings, particularly in regions with diverse industrial needs
• Growth is supported by advancements in production technologies, including bio-based diols, and increasing adoption across OEM and aftermarket segments in various industries

U.S. Diols and Polyhydric Alcohols Market Insight

The U.S. diols and polyhydric alcohols market captured the largest revenue share of 85.4% in 2024 within North America, fueled by strong demand in pharmaceuticals and personal care products, alongside growing awareness of sustainable and high-performance materials. The trend towards eco-friendly formulations and stringent regulations promoting safer chemical standards further boost market expansion. The integration of diols in industrial coatings and adhesives complements growth in both manufacturing and aftermarket applications.

Europe Diols and Polyhydric Alcohols Market Insight

The Europe diols and polyhydric alcohols market is expected to witness significant growth, supported by regulatory focus on sustainability and product safety. Industries seek these compounds for their role in improving product formulations, particularly in pharmaceuticals and construction. Growth is prominent in both new product formulations and retrofit applications, with countries such as Germany and France showing strong adoption due to environmental concerns and advanced industrial sectors.

U.K. Diols and Polyhydric Alcohols Market Insight

The U.K. market for diols and polyhydric alcohols is expected to witness rapid growth, driven by demand for high-performance materials in personal care and construction industries. Increased focus on sustainable chemical solutions and rising awareness of their benefits in enhancing product durability and functionality encourage adoption. Evolving regulations on chemical safety influence industry choices, balancing performance with compliance.

Germany Diols and Polyhydric Alcohols Market Insight

Germany is expected to witness the fastest growth rate in the diols and polyhydric alcohols market, attributed to its advanced manufacturing sector and strong consumer focus on sustainability and efficiency. German industries prefer technologically advanced diols for applications in coatings and resins, contributing to energy efficiency and product longevity. The integration of these compounds in premium products and aftermarket solutions supports sustained market growth.

Asia-Pacific Diols and Polyhydric Alcohols Market Insight

The Asia-Pacific region is expected to witness the fastest growth rate, driven by expanding industrial production and rising disposable incomes in countries such as China, India, and Japan. Increasing awareness of the benefits of diols and polyhydric alcohols in pharmaceuticals, personal care, and automotive applications boosts demand. Government initiatives promoting sustainable manufacturing and product safety further encourage the use of advanced chemical solutions.

Japan Diols and Polyhydric Alcohols Market Insight

Japan’s diols and polyhydric alcohols market is expected to witness rapid growth due to strong consumer preference for high-quality, technologically advanced compounds that enhance product performance and safety. The presence of major manufacturers and the integration of diols in OEM applications, particularly in automotive and electronics, accelerate market penetration. Rising interest in sustainable aftermarket solutions also contributes to growth.

China Diols and Polyhydric Alcohols Market Insight

China holds the largest share of the Asia-Pacific diols and polyhydric alcohols market, propelled by rapid industrialization, rising demand for consumer goods, and increasing adoption in pharmaceuticals and construction. The country’s growing middle class and focus on advanced manufacturing support the use of high-performance diols. Strong domestic production capabilities and competitive pricing enhance market accessibility.

Diols and Polyhydric Alcohols Market Share

The diols and polyhydric alcohols industry is primarily led by well-established companies, including:

• A & Z Group.(China)
• Atlantic Chemicals Trading GmbH (Germany)
• Cargill, Incorporated (U.S.)
• Roquette Freres (France)
• Sanxinyuan Food Industry Limited (China)
• CHRYSO GROUP (France)
• Dupont (U.S.)
• BASF SE (Germany)
• Arkem S.A. (France)
• Bayer AG (Germany)
• Shell (The Netherlands)
• Dow (U.S.)
• Lonza group (Switzerland)
• Mitsui Chemicals Corporation (Japan)

What are the Recent Developments in Global Diols and Polyhydric Alcohols Market?

• In April 2024, BASF SE introduced a groundbreaking bio-based propylene glycol derived from renewable plant sources, marking a significant step toward sustainable chemical innovation. This eco-friendly diol caters to the increasing demand for green alternatives in sectors such as cosmetics and pharmaceuticals. By leveraging renewable feedstocks, BASF reinforces its dedication to reducing environmental impact while enhancing its leadership in the global diols market. The launch aligns with the company’s broader sustainability goals and supports industries seeking safer, more responsible raw materials for product development
• In March 2024, Archer Daniels Midland Company (ADM) and Cargill, Incorporated, formed a strategic alliance to boost the production of bio-based glycerol for food and personal care applications. By combining their strengths in renewable feedstocks, the partnership aims to streamline supply chains and respond to the growing consumer preference for natural, sustainable ingredients. This initiative not only supports cleaner product formulations but also contributes to the expansion of the polyhydric alcohols market, reinforcing both companies’ leadership in green chemistry
• In February 2024, Roquette Frères launched an advanced sorbitol-based polyhydric alcohol tailored for low-calorie food and beverage applications. This innovation responds to the rising global demand for sugar alternatives by delivering improved sweetness and formulation stability. The product reinforces Roquette’s leadership in plant-based ingredients and highlights its commitment to health-conscious innovation. By offering a sustainable, functional sweetener, Roquette strengthens its position in the evolving polyhydric alcohols market, catering to both consumer wellness trends and industry reformulation needs
• In January 2024, DuPont de Nemours, Inc. finalized the acquisition of a prominent glycerol production facility from a regional competitor, strategically expanding its polyhydric alcohol portfolio. This move strengthens DuPont’s ability to meet rising demand for high-purity glycerol in the pharmaceutical and personal care sectors, while reinforcing its position as a key player in the bio-based chemicals market. The acquisition aligns with DuPont’s broader strategy to enhance supply chain resilience and deliver innovative, sustainable solutions to customers seeking reliable, high-quality ingredients
• In November 2023, Ingredion Incorporated partnered with A & Z Food Additives to co-develop a new range of xylitol-based polyhydric alcohols tailored for oral care applications. This strategic collaboration leverages Ingredion’s advanced production infrastructure and A & Z’s deep market insights to meet the growing demand for natural sugar substitutes. With xylitol’s proven dental benefits and consumer preference for clean-label ingredients, the initiative aims to deliver innovative, health-conscious solutions that support the evolving needs of the personal care industry

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