Bio-based Isocyanate Market By Type (Aliphatic Isocyanates, Aromatic Isocyanates, Others), By Source (Vegetable Oils, Lignin, Starch, Others), By Application (Foams, Adhesives & Sealants, Coatings, Elastomers, Others), By End-User (Construction Industry, Automotive Industry, Furniture & Bedding Manufactures, Textiles Industry, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

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Industry Outlook

The Bio-based Isocyanate market accounted for USD 5.82 Billion in 2024 and USD 6.18 Billion in 2025 is expected to reach USD 11.19 Billion by 2035, growing at a CAGR of around 6.12% between 2025 and 2035. Bio-based Isocyanate Market includes the production of isocyanates obtained from renewable biological sources rather than traditional petroleum-based feedstocks. These are mainly used in the manufacture of permanent polyurethane products for applications in the motor vehicle, construction, and coatings industries.

With increasing environmental concerns and strict rules over VOC emissions, demand for environmentally friendly options such as bio-based isocyanate is accelerating. Technological progress in green chemistry and increasing investment are expected to expand the market. The scope of the future seems promising because the industry circular economy changes towards practices and reducing carbon footprints. 

Industry Experts Opinion

“Bio-based isocyanates represent a pivotal shift towards reducing reliance on fossil fuels in polymer chemistry. Their integration not only lowers carbon footprints but also enhances biodegradability and performance in coatings and foams. Continued innovation and scaling of these materials are critical for achieving truly sustainable industrial applications”.

• Dr. Michael Hummel, Senior Scientist at the Fraunhofer Institute for Chemical Technology

Report Scope:

Market Dynamics

Rising demand for eco-friendly and sustainable polyurethane products in key industries.

The demand for the Bio-based Isocyanate Market is going up as the use of eco-friendly and sustainable polyurethanes becomes more prevalent in several industries. The automotive sector is starting to rely on bio-based isocyanates to build lighter parts that help consume less fuel and release less pollution. Also, the construction industry is using these materials to enhance the energy efficiency of buildings, which helps it comply with tight energy rules.

More consumers are looking for environmentally friendly goods, which is driving the furniture industry to make greener products. Research papers published since 2015 that focus on polyurethane include approximately 8% discussing green resources, which suggests more and more research is being done on the sustainable production of isocyanates. It is further fueled by government support and funding, which motivates manufacturers to work on bio-based isocyanate, removing some cost problems and promoting cooperation between the government and industry.

Stringent environmental regulations promote the use of low-VOC and renewable isocyanate sources.

The Bio-based Isocyanate Market is experiencing growth because of strict environmental rules. To control emissions of hazardous air pollutants, the Environmental Protection Agency (EPA) of the United States created NESHAP, which issues regulations for hexamethylene-1,6-diisocyanate and certain other isocyanates. Because of this, industries decide on bio-based isocyanates that comply with the set emission requirements. Low-VOC and renewable isocyanates are important because of the VOC regulations set by the EPA for polymer plants. They make efforts to reduce the negative impact on nature and encourage the making of environmentally friendly products for industry.

Governments from various nations are imposing regulations and offering incentives that help use sustainable chemicals, which makes the Bio-based Isocyanate Market more popular. To illustrate, the European Union’s REACH regulation stops the use of dangerous chemicals, creating an incentive to use eco-friendly products. Bio-based chemical rules help inspire progress and attract businesses to use eco-friendly ways to produce chemicals.

Higher production costs compared to conventional petroleum-based isocyanates hinder adoption.

The expense of producing bio-based isocyanates is much higher than that of conventional petroleum-based products, which is inhibiting the Bio-based Isocyanate Market growth. Producing bio-based materials is more complex and uses costly oils and lignin, which adds to the expense of production. Difficulty in finding enough raw materials and reliance on crops and farming add to changes in prices. Besides, creating the major structures for producing bio-based isocyanates is in the early stages, which leads to less advantage from economies of scale.

Due to the higher costs, the Bio-based Isocyanate Market struggles to compete with the existing, affordable synthetic ones in markets where price is important to consumers. It can be hard for small and medium-sized businesses to update their equipment with new technology. In addition, little awareness and reluctance among people to try something new hampers the process. If the process of producing products is slow and costly, the price will remain a big problem for further market growth.

Emerging markets embracing sustainable materials create new growth avenues for manufacturers.

The rising use of sustainable materials in emerging markets is making room for greater growth opportunities for the Bio-based Isocyanate Market. Attempts by the government are aimed at steering traditional chemical industries toward choosing low-impact alternatives. With the help of BIRAC, the Indian Department of Biotechnology has boosted the number of bio-incubators and offered support to startups developing bio-based innovations. These institutions are contributing to bringing green technologies to market, including materials found in isocyanate for bio-based use.

In Asia-Pacific and Latin America, the same kinds of policies are helping domestic companies make renewable materials by offering help with funding, training, and technology. Because of this strategy, global businesses can enter new countries, build partnerships with local firms, and help their host nations achieve sustainability-related goals. Thanks to government rules and more attention to the environment, developing nations are becoming prime destinations for sustainable isocyanates.

Technological advancements in bio-based chemistry improve scalability and product performance.

Advances in tech related to bio-based chemistry are increasing the effectiveness and manufacturability of goods in the bio-based isocyanate market. The use of enzymes and microbes is helping to create organic isocyanates that are suitable for different business applications. To help with these updates, the Indian Ministry of Science & Technology has started several programs in its Technology Development and Transfer division. These initiatives foster collaboration between research institutions and industry, accelerating the commercialization of sustainable materials. As a result, the bio-based isocyanate market is poised for significant growth and innovation.

They support research and industrial groups to use green technology, which covers how polyurethane is produced sustainably. The Bio-based Isocyanate Market benefits a lot from policy-supported research and capacity development initiatives. Besides boosting product development, they also address the common challenges in cost and performance. As this field develops, firms can use sustainable materials to meet the needs of the construction, automotive, and textiles industries.

Segment Analysis

Based on the Type, the Bio-based Isocyanate Market has been classified into aliphatic isocyanates, aromatic isocyanates, and others. Aliphatic isocyanates are the major segment known for their UV resistance and durability, making them ideal for coatings and outdoor applications; Their segments include hexamethylene diisocyanate (HDI) and isophorone diisocyanate (IPDI). Aromatic isocyanates offer higher reactivity and are often used in rigid foam and glue, with important examples such as toluene diisocyanate (TDI) and methylendiphenyl diisocyanate (MDI). The second category includes specialized or less common isocyanates derived from biobased sources and serves niche applications. This segmentation helps to target different industrial needs in the biobased isocyanate market and balance the performance of sustainability.

Based on the Source, the Bio-based Isocyanate Market has been classified into Vegetable oils, lignin, starch, and others. Vegetable oils are widely used due to their availability and durability, including segments, as soybean oil, castor oil, and palm oil. A complex organic polymer, lignin, found on the walls of the plant cells, usually from wood and agricultural waste, attracts attention as a renewable raw material for Bio-based Isocyanate. Starch serves as another biodegradable source, is usually taken from corn, potatoes, or cassava, and is used in the production of ecological Isocyanate. Other categories include less common sources, such as cellulose and algae, which are emerging options with the possibility of future development. This division highlights the variety of raw materials that support the growth and durability of the Market.

Regional Analysis

The North America Bio-based Isocyanate Market is currently rapidly growing, due to the well-established industrial base and the high speed of adoption of sustainable materials in key sectors, such as the automotive industry, construction, and furniture production. The presence of leading global chemical manufacturers with advanced R&D facilities strengthens the market base in this region. Strict environmental regulations used by the US Environmental Protection Agency (EPA) increase demand for low and renewable-isocyanate products. In addition, authority incentives and subsidies are designed to promote green chemistry and reduce carbon emissions for manufacturers to change to biologically based options.

The Asia Pacific Bio-based Isocyanate Market is driven by rapid industrialization, urbanization, and increasing environmental awareness among industries and consumers. Emerging economies such as China, India, Japan, and South Korea are seeing the intense demand for biosphere isocyanate in the fields of car production, construction, and consumer areas. In countries like China, the government's policy emphasizes sustainable development and has introduced incentives to support green chemical production. In addition, this area benefits from the increasing investment in technical upgrades for the expansion of chemical production structure and the construction of environmentally friendly materials. Foreign direct investments (FDIs) and cooperation between local and global companies are growing.

Competitive Landscape

There is dominance of the Bio-based Isocyanate companies such as BASF, Cowstoro, Hunsman, Dow, Vanhua Chresic, Evonic, and Ledorp, who prefer stability and innovation in their strategies. These main participants invest considerably in research and development to create advanced biological-based isocyanates that meet the growing demand for ecological products. The expansion of production capacity and the updating of production functions are common approaches to increasing global demand, especially in rapid growth areas such as Asia -Asia-Pacific. Strategic collaboration with startups, research institutes, and other industry participants helps to accelerate technology development and market entry.

Many companies are focused on the integration of renewable carbon footprints to follow strict environmental rules. They also hang their products to meet specific requirements for final use industries such as the automotive industry, construction, coating, and glue. By combining innovation, stability obligations, and regional expansion, these participants strengthen their competitive positions and increase overall growth in the Bio-based Isocyanate Market.

Bio-based Isocyanate Market, Company Shares Analysis, 2024

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Recent Developments:

• In May 2025, Huntsman introduced two bio-based resins, I-BOND® PB BIO 1025 and I-BOND® OSB BIO 1025, at LIGNA 2025. These resins incorporate up to 25% bio-based content, reducing the carbon footprint of composite wood products by up to 30%.
• In August 2024, Covestro announced a partnership with Carlisle Construction Materials to supply bio-circular MDI for polyurethane insulation, achieving up to a 99% reduction in CO₂ emissions compared to fossil-based MDI.

Report Coverage:

By Type

• Aliphatic Isocyanates
• Aromatic Isocyanates
• Others

By Source

• Vegetable Oils
• Lignin
• Starch
• Others

By Application

• Foams
• Adhesives & Sealants
• Coatings
• Elastomers
• Others

By End-User

• Construction Industry
• Automotive Industry
• Furniture & Bedding Manufactures
• Textiles Industry
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• ASF SE
• Covestro AG
• Huntsman Corporation
• Dow Inc.
• Wanhua Chemical Group Co., Ltd.
• Evonik Industries AG
• Mitsui Chemicals, Inc.
• Tosoh Corporation
• Vencorex Chemicals
• LANXESS AG
• Asahi Kasei Corporation
• Lubrizol Corporation
• Perstorp Holding AB
• MCPU Polymer Engineering LLC
• Bayer MaterialScience

Frequently Asked Questions (FAQs)