Liquid Sugar Alcohol Market Size, Share, Growth, and Industry Analysis, By Type (Sorbitol, Maltitol, Xylitol, Erythritol, Others), By Application (Food Industry, Daily Chemical Industry, Pharmaceutical Industry, Others), Regional Insights and Forecast to 2035

Liquid Sugar Alcohol Market Overview

Global Liquid Sugar Alcohol market size is estimated at USD 4939.14 million in 2026, set to expand to USD 7152.55 million by 2035, growing at a CAGR of 4.20%.

The global Liquid Sugar Alcohol Market Report indicates a robust expansion driven by the increasing demand for low calorie sweeteners across the food and pharmaceutical sectors. Industry analysis shows that the shift toward healthier dietary choices has accelerated the adoption of polyols, which offer 40% to 60% fewer calories compared to sucrose while maintaining similar bulk and texture properties. Manufacturers are increasingly incorporating liquid sugar alcohols like sorbitol and maltitol into sugar free confectionery, creating a surge in production volumes which now exceed 2.5 million metric tons annually. The market is also benefiting from the functional properties of these ingredients, such as their non cariogenic nature, which has led to a 15% increase in their utilization within the oral care segment for toothpaste and mouthwash formulations.

The U.S. Liquid Sugar Alcohol Market represents a significant portion of North American demand, driven by a high prevalence of lifestyle related health conditions such as obesity and diabetes affecting over 37 million Americans. Market Research Report data highlights that United States food processors utilize approximately 450000 tons of liquid polyols annually to meet the clean label requirements of modern consumers. The pharmaceutical sector in the region also contributes substantially to consumption, with liquid sorbitol and glycerin serving as critical excipients in 25% of over the counter liquid medications. Regulatory support for sugar reduction initiatives continues to propel the market forward, with major beverage and snack companies reformulating products to achieve a 20% reduction in added sugars by 2030.

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Key Findings

• Key Market Driver: Rising global diabetic population reaching 537 million adults drives a 12% annual increase in demand for low glycemic index sweeteners in food and beverage applications.
• Major Market Restraint: Excessive consumption of polyols leading to digestive discomfort limits daily intake levels to 20 grams per serving in sensitive individuals, restricting wider formulation adoption.
• Emerging Trends: Clean label reformulations have pushed 35% of confectionery manufacturers to replace high fructose corn syrup with natural liquid sugar alcohol alternatives.
• Regional Leadership: Asia Pacific dominates global production with 45% of total output capacity attributed to large scale manufacturing facilities in China and India.
• Competitive Landscape: Top five manufacturers control approximately 60% of the global supply chain through strategic vertical integration and capacity expansion projects.
• Market Segmentation: The Food Industry application segment commands 42% of the total market volume due to extensive use in sugar free chewing gums and candies.
• Recent Development: Technological advancements in hydrogenation processes have improved production efficiency by 18% while reducing energy consumption in manufacturing plants.

Liquid Sugar Alcohol Market Latest Trends

The Liquid Sugar Alcohol Market Trends reflect a significant shift towards plant based and non GMO ingredients, with 28% of new product launches in the sweetener category featuring natural claims. Consumers are increasingly scrutinizing labels, prompting manufacturers to source raw materials like corn and wheat from sustainable supply chains. This trend is particularly evident in the bakery sector, where liquid maltitol is being used to replace sugar in cakes and cookies, offering a 50% reduction in calories without compromising on texture or moisture retention. Furthermore, the industry is witnessing a 22% rise in the demand for organic certified liquid polyols, driven by health conscious demographics in Western Europe and North America who prioritize clean eating habits.

Another prominent trend identified in the Liquid Sugar Alcohol Market Insights is the growing integration of these ingredients into the personal care sector. Beyond their sweetening properties, liquid sugar alcohols like sorbitol and xylitol are valued for their humectant capabilities, which help retain moisture in skin care and hair care products. Market analysis indicates that the cosmetic industry consumption of liquid polyols has grown by 14% year over year, with 3000 new formulations containing these ingredients entering the market annually. Additionally, the development of sugar free pharmaceutical syrups has accelerated, with 40% of pediatric liquid medications now utilizing liquid maltitol or sorbitol to improve palatability while avoiding the negative health impacts associated with traditional sugars.

Liquid Sugar Alcohol Market Dynamics

DRIVER

"Escalating Demand for Low Calorie Food Products"

The primary driver for the Liquid Sugar Alcohol Market is the escalating global demand for low calorie and sugar free food products. With the World Health Organization reporting that obesity rates have tripled since 1975, consumers are actively seeking dietary modifications to manage weight and reduce sugar intake. Liquid sugar alcohols provide a caloric value ranging from 0.2 to 2.6 kilocalories per gram, significantly lower than the 4 kilocalories per gram found in sucrose. This caloric advantage has led to a 25% year over year growth in the sugar free confectionery segment. Manufacturers are responding by increasing the inclusion of liquid sorbitol and maltitol in formulations, enabling them to market products as guilt free indulgences. The functional benefit of these ingredients in managing blood glucose levels also appeals to the 10% of the global population living with diabetes.

RESTRAINT

"Gastrointestinal Tolerance Issues"

A significant restraint identified in the Liquid Sugar Alcohol Industry Analysis is the gastrointestinal tolerance issues associated with high intake of polyols. Liquid sugar alcohols are not fully absorbed in the small intestine, and their fermentation in the large intestine can cause bloating, gas, and laxative effects when consumed in excess. Clinical studies suggest that consumption exceeding 20 to 50 grams per day can trigger these symptoms in sensitive adults. This physiological limitation forces food manufacturers to place warning labels on products, which can deter 15% of potential consumers from purchasing sugar alcohol containing goods. Furthermore, regulatory bodies in certain regions mandate strict labeling requirements regarding laxative effects, which creates a marketing challenge for brands attempting to position these products as completely unrestricted healthy alternatives.

OPPORTUNITY

"Expansion in Pharmaceutical Applications"

The Liquid Sugar Alcohol Market Opportunities are expanding significantly within the pharmaceutical sector, particularly for liquid dosage forms. Liquid sorbitol and glycerin are increasingly preferred as vehicles and stabilizers in syrups, suspensions, and soft gel capsules due to their chemical stability and compatibility with active pharmaceutical ingredients. The pharmaceutical excipients market consumes approximately 18% of global liquid polyol production. As the geriatric population grows, projected to reach 2.1 billion by 2050, the demand for easy to swallow liquid medications is rising. This demographic shift presents a lucrative avenue for manufacturers to supply high purity liquid sugar alcohols that meet pharmacopeial standards. Additionally, the non cariogenic property of these liquids makes them ideal for pediatric formulations, addressing parental concerns about dental health associated with sugary medicinal syrups.

CHALLENGE

"Competition from High Intensity Sweeteners"

A major challenge detailed in the Liquid Sugar Alcohol Market Forecast is the intense competition from high intensity sweeteners such as stevia, monk fruit, and sucralose. While liquid sugar alcohols provide bulk and texture, high intensity sweeteners offer zero calories and are 200 to 600 times sweeter than sugar, requiring significantly smaller quantities for formulations. This cost in use advantage can make high intensity sweeteners 30% more economical for manufacturers focusing solely on sweetness rather than texture. Consequently, beverage manufacturers often prefer high intensity options over liquid polyols to achieve zero calorie claims without the laxative risk. To maintain market share, liquid sugar alcohol producers must innovate by creating blends that combine the bulking properties of polyols with the high sweetness of stevia, although this adds complexity to the supply chain and production process.

Liquid Sugar Alcohol Market Segmentation

The Liquid Sugar Alcohol Market Segmentation reveals a diverse landscape categorized by product type and application. The market is characterized by the versatility of polyols in liquid form, which are essential for applications requiring moisture retention and viscosity control. Market Share data indicates that the food industry remains the dominant consumer, accounting for the largest portion of volume.

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By Type

Sorbitol: Sorbitol in its liquid form, often a 70% solution, represents the largest segment within the Liquid Sugar Alcohol Market. It is widely valued for its humectant properties, preventing moisture loss in products ranging from toothpaste to baked goods. Industry data indicates that liquid sorbitol accounts for approximately 35% of the total market volume due to its cost effectiveness and versatile functionality. In the oral care industry, it is a standard ingredient in over 60% of toothpaste formulations, where it prevents the paste from drying out and provides a pleasant texture. The production of liquid sorbitol involves the hydrogenation of glucose syrup, a process that has been optimized to achieve conversion rates above 98%. Its widespread availability and regulatory approval as a safe food additive in over 90 countries solidify its position as a market leader. Additionally, its usage in surimi production as a cryoprotectant consumes roughly 150000 tons annually, showcasing its importance beyond simple sweetening.

Maltitol: Liquid maltitol is gaining significant traction as a direct sugar substitute because its sweetness profile is 90% similar to that of sucrose, lacking the cooling effect associated with other polyols. This characteristic makes it highly suitable for confectionery applications, particularly in the production of sugar free chocolates and hard candies, where it mimics the texture and mouthfeel of sugar without the calories. The segment is experiencing a growth rate of 5.5% annually as manufacturers seek to reformulate premium products for health conscious consumers. Liquid maltitol syrups are produced by hydrogenating high maltose corn syrup, resulting in a stable ingredient that resists crystallization. In the bakery sector, it is used in 20% of sugar reduced products to maintain crumb softness and shelf life. Its lower glycemic index compared to sugar makes it a preferred choice for diabetic friendly foods, driving its adoption in specialized dietary products across North American and European markets.

Xylitol: Liquid Xylitol is a premium segment within the market, distinguished by its unique dental health benefits and significant cooling sensation. Although naturally found in fruits and vegetables, commercial production typically utilizes corn cobs or birch wood as raw materials. The market for liquid xylitol is driven by its ability to inhibit the growth of Streptococcus mutans, the primary bacteria responsible for tooth decay, leading to its inclusion in 45% of sugar free chewing gums and oral rinses. The production cost of xylitol is generally higher than sorbitol, often 5 to 6 times more expensive, which positions it in higher end product categories. Despite the price premium, demand is growing at 4.8% per year, supported by clinical studies validating its efficacy in caries prevention. Beyond oral care, liquid xylitol is finding applications in nasal sprays, where a 5% concentration helps reduce bacterial adhesion, offering a natural remedy for sinus infections.

Erythritol: Erythritol is unique among liquid sugar alcohols as it contains zero calories and has no effect on blood glucose or insulin levels. Produced via fermentation rather than hydrogenation, liquid erythritol formulations are highly sought after for the keto and low carb diet markets. It possesses approximately 70% of the sweetness of sugar and is rapidly absorbed in the small intestine, which minimizes the laxative effects common with other polyols. Usage of liquid erythritol in beverage applications has increased by 18% over the last three years, as it provides bulk without the caloric penalty. While solid erythritol is more common, liquid blends are being developed to improve solubility in cold beverages and dairy products. Its high digestive tolerance allows for higher usage rates, up to 1 gram per kilogram of body weight, making it a versatile ingredient for meal replacement shakes and nutritional beverages targeting weight management.

Others: The Others segment encompasses less common liquid sugar alcohols such as mannitol, isomalt, and lactitol syrups. These ingredients serve niche applications where specific functional properties are required. Liquid mannitol, for instance, is often used as a dusting agent for chewing gum to prevent sticking, though its liquid form usage is more specialized in pharmaceutical injections where it acts as an osmotic diuretic. Isomalt syrup is favored in sugar art and cake decorations due to its low hygroscopicity, meaning it does not absorb moisture from the air, maintaining structural integrity in humid conditions. This segment collectively accounts for approximately 10% of the total market volume. Lactitol is utilized in prebiotic applications, as it promotes gut health, and is found in 12% of functional food formulations targeting digestive wellness. Though smaller in volume compared to sorbitol, these specialized polyols offer unique solutions for technical challenges in food processing and pharmaceutical formulation.

By Application

Food Industry: The Food Industry is the primary consumer of liquid sugar alcohols, utilizing them to address the dual challenge of calorie reduction and texture preservation. This sector absorbs approximately 42% of the global liquid polyol supply, with confectionery and bakery being the leading sub segments. In sugar free gum manufacturing, liquid sorbitol and xylitol are indispensable, constituting up to 60% of the product's weight to provide flexibility and sweetness. The bakery industry utilizes liquid maltitol to reduce sugar content by 30% to 50% in muffins, cakes, and cookies while maintaining moisture and extending shelf life. Recent trends show a 12% increase in the launch of low glycemic index snacks, where liquid polyols serve as the key functional ingredient. Additionally, these ingredients function as cryoprotectants in frozen desserts, preventing ice crystal formation and ensuring a smooth texture in sugar reduced ice creams and frozen yogurts.

Daily Chemical Industry: The Daily Chemical Industry application refers primarily to personal care and oral hygiene products, where liquid sugar alcohols serve as humectants and stabilizing agents. This segment accounts for roughly 25% of the market share. In toothpaste formulations, liquid sorbitol prevents the product from hardening in the tube and adds a mild sweetness to mask the taste of surfactants, with typical inclusion rates between 20% and 30%. Beyond oral care, these ingredients are increasingly found in skin creams and lotions, where their hygroscopic nature helps skin retain moisture. Market Analysis shows that the demand for liquid polyols in natural and organic personal care products has risen by 8% annually. Manufacturers value them for their non toxic profile and compatibility with other cosmetic ingredients. Liquid xylitol specifically is used in 15% of premium mouthwash brands for its cooling effect and ability to neutralize plaque acids.

Pharmaceutical Industry: In the Pharmaceutical Industry, liquid sugar alcohols are critical excipients used to improve the stability, palatability, and viscosity of liquid medications. This segment represents a high value portion of the market, requiring pharmaceutical grade purity standards. Liquid sorbitol and glycerin are the most commonly used vehicles for cough syrups and antacids, replacing sucrose to prevent crystallization around the bottle cap and to make medicines suitable for diabetic patients. Industry statistics indicate that 35% of liquid oral dosage forms now utilize non cariogenic polyols as the primary sweetening base. Furthermore, these ingredients act as plasticizers in the production of soft gelatin capsules, improving the capsule's flexibility and shelf life. The demand in this sector is driven by the 4% annual growth in the global over the counter liquid medicine market, particularly for pediatric and geriatric formulations where ease of swallowing and taste masking are essential.

Others: The Others application category includes diverse industrial uses such as textile processing, tobacco manufacturing, and chemical synthesis. In the tobacco industry, liquid sorbitol is used as a humectant and conditioner in cigarette tobacco and chewing tobacco to maintain moisture and flexibility, with inclusion rates around 1% to 3%. In the chemical sector, liquid sugar alcohols serve as intermediates for the production of resins, surfactants, and polyurethane foams. Specifically, polyols are reacted with isocyanates to produce rigid foams used in insulation and construction materials. This industrial segment accounts for approximately 15% of the total liquid sugar alcohol consumption. Additionally, research is ongoing into the use of liquid polyols in biodegradable plastics production, aiming to replace petrochemical derivatives. The versatility of the hydroxyl groups in sugar alcohols makes them valuable building blocks in green chemistry initiatives, contributing to a 5% annual growth in their industrial applications.

Liquid Sugar Alcohol Market Regional Outlook

The Liquid Sugar Alcohol Market Regional Outlook highlights distinct consumption patterns and production capabilities across the globe. Strategic industry analysis reveals that regional growth is closely tied to local raw material availability, such as corn and wheat, and the regulatory environment regarding sugar reduction. Asia Pacific leads the global landscape, followed by established markets in North America and Europe.

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North America

North America holds a 24% share of the global market, driven by a mature food processing industry and high consumer awareness regarding sugar intake. The United States is the largest contributor within the region, where the demand for diet and low calorie products is substantial due to obesity concerns. Industry data shows that U.S. manufacturers import and produce over 650000 tons of liquid polyols annually to meet domestic needs. The region is characterized by strict FDA labeling regulations that necessitate clear ingredient disclosure, which has actually bolstered consumer trust in recognized sugar alcohols like sorbitol and erythritol. Growth in this region is also supported by the clean label movement, with a 9% annual increase in products featuring plant based polyol claims. Canada contributes to the market with a strong focus on confectionery and maple syrup alternatives, utilizing liquid maltitol blends to achieve desired viscosities.

Europe

Europe holds a 22% share of the global market, characterized by stringent food safety regulations and a strong preference for non GMO ingredients. The European Union's approval of various polyols for use in food has established a stable regulatory framework, encouraging innovation in sugar free bakery and dairy sectors. Germany and France are key production hubs, leveraging local wheat and maize supplies to manufacture high quality liquid sorbitol and maltitol. Market Research Report findings indicate that European consumption of liquid xylitol is the highest globally per capita, largely due to its widespread endorsement by dental associations in Scandinavian countries. The region has seen a 7% year over year rise in the use of liquid polyols in pharmaceutical applications, driven by an aging population requiring liquid medication formats. Environmental sustainability is also a major factor here, with manufacturers investing 15% of R&D budgets into energy efficient production methods.

Asia Pacific

Asia Pacific holds a 45% share of the global market, cementing its position as the dominant manufacturing and export hub for liquid sugar alcohols. China serves as the primary production engine, accounting for over 70% of the region's output due to its vast corn processing infrastructure and competitive manufacturing costs. Major companies in China export millions of tons of liquid sorbitol to global markets annually. The region's consumption is also rising rapidly, with a 6.5% annual growth rate driven by changing dietary habits in developing economies like India and Indonesia. In these markets, the growing middle class is increasingly adopting westernized diets, boosting the demand for processed foods and oral care products containing liquid polyols. The presence of key manufacturers such as Shandong Tianli and Roquette's Asian facilities ensures a steady supply chain. Additionally, the region is witnessing a 12% increase in industrial applications of polyols.

Middle East and Africa

Middle East and Africa holds a 9% share of the global market, representing a developing region with significant growth potential. The market is primarily import driven, although local production capabilities are gradually expanding in countries like Saudi Arabia and South Africa. The demand in this region is heavily influenced by the rising prevalence of diabetes, which is among the highest in the world in Gulf Cooperation Council (GCC) countries. This health crisis is driving a 10% annual increase in the importation of sugar free food ingredients and pharmaceutical excipients. Liquid sorbitol finds extensive use in the region's growing halal certified personal care industry, particularly in alcohol free mouthwashes and toothpastes. Furthermore, the modernization of the food processing sector in Egypt and Nigeria is creating new opportunities for liquid polyol suppliers, with imports of these ingredients projected to grow by 15000 tons annually over the next five years.

List of Top Liquid Sugar Alcohol Market Companies

• Roquette
• Cargill
• Ingredion
• ADM
• Ecogreen Oleochemicals
• Gulshan Polyols
• Maize Products
• B Food Science
• Shandong Tianli Pharmaceutical
• Zhaoqing Huanfa Biotechnology
• Qinhuangdao Lihua Starch
• Zhejiang Huakang Pharmaceutical
• Futaste Pharmaceutical
• Shandong Bailong Chuangyuan
• Shandong Longlive Biotechnology
• Shandong Sanyuan Biotechnology
• Dongxiao Biotechnology
• Baolingbao Biology
• Luzhou Bio-chem Technology
• Qingdao Bright Moon Seaweed Group
• Dancheng Caixin Sugar Industry

Top Two Companies with Highest Market Share

• Roquette: Roquette maintains a leading position with a global network of 25 production sites, delivering over 600 different distinct ingredients and generating annual turnover exceeding 5 billion euros through its plant based solutions.
• Cargill: Cargill operates in 70 countries with 160000 employees, leveraging its massive corn milling infrastructure to supply millions of tons of sweeteners and liquid polyols to the global food and beverage industry annually.

Investment Analysis and Opportunities

The Liquid Sugar Alcohol Market presents attractive investment opportunities driven by the global shift towards health and wellness. Investors are increasingly focusing on companies that are expanding capacity for non GMO and organic certified polyols, as these segments command a price premium of 15% to 20% over conventional options. Market Forecast data suggests that capital expenditure in the sector is set to increase by USD 400 million by 2027, primarily directed toward modernizing production facilities to improve yield and reduce carbon footprints. Private equity firms are also showing interest in specialized manufacturers that produce high value niche polyols like liquid erythritol and xylitol, which have higher barriers to entry but offer better profit margins. The scalability of corn wet milling processes allows for efficient capacity expansion, making it a viable long term asset class for institutional investors seeking exposure to the stable food ingredients sector.

Furthermore, strategic partnerships and mergers are reshaping the investment landscape. Large multinational ingredient suppliers are acquiring smaller regional players in Asia Pacific to secure low cost production bases and access local distribution networks. Analysis shows that cross border acquisitions in the sugar alcohol space have totaled over USD 1.2 billion in the last three years. Investment in research and development is another critical area, with companies allocating approximately 4% of revenue to develop next generation liquid polyol blends that offer superior taste profiles and digestive tolerance. The development of proprietary hydrogenation technologies that reduce energy consumption by up to 25% is also attracting venture capital, aligning with global sustainability goals. These financial flows indicate a robust confidence in the long term trajectory of the market.

New Product Development

New Product Development in the Liquid Sugar Alcohol Market is centered on enhancing functionality and versatility. Manufacturers are actively launching customized liquid blends that combine multiple polyols, such as sorbitol and maltitol, to optimize cost and performance for specific applications like sugar free gummies. These tailored solutions allow for a 20% reduction in formulation costs for confectionery manufacturers while maintaining the desired chewiness and shelf life. Additionally, there is a surge in the development of liquid polyol systems fortified with prebiotic fibers. These hybrid ingredients address two consumer trends simultaneously: sugar reduction and digestive health. Recent product introductions in this category have shown a 30% faster adoption rate among functional food brands compared to standard single ingredient polyols.

Innovation is also evident in the clean label space, where companies are refining purification processes to produce ultra clear and neutral tasting liquid sugar alcohols. This is particularly important for the beverage industry, where flavor clarity is paramount. New filtration technologies have enabled the production of liquid erythritol with 99.9% purity, eliminating any residual metallic aftertaste often associated with lower grades. Furthermore, development cycles are accelerating, with the average time from concept to commercial launch reducing from 24 months to 18 months due to advanced pilot plant capabilities. The industry is also exploring the use of alternative raw materials, such as cassava and tapioca, to produce liquid polyols, offering a non corn alternative for markets with specific allergen concerns or supply chain diversification needs.

Five Recent Developments (2023 to 2025)

• January 16, 2025: Ingredion released its 2025 Sugar Reduction Insights, revealing that 53% of manufacturers plan to increase the use of polyols and rare sugars in their formulations to meet new regulatory guidelines.
• October 24, 2024: Cargill announced the opening of a new specialized innovation center in Gurugram, India, to support bakery and dairy manufacturers in developing sugar reduced products using their portfolio of polyols and sweeteners.
• June 12, 2024: Roquette inaugurated a new pharmaceutical grade production unit at its site in Lestrem, France, increasing its capacity for high purity liquid excipients by 20% to serve the European market.
• February 27, 2024: ADM expanded its regenerative agriculture program to over 2.8 million acres, securing a sustainable supply of corn and wheat for its sweetener and starch production lines, including liquid sorbitol.
• November 8, 2023: Gulshan Polyols Ltd announced the successful commissioning of its new ethanol and grain processing plant in Madhya Pradesh, which enhances its overall grain processing capabilities including sorbitol derivatives by 500 kiloliters per day.

Report Coverage of Liquid Sugar Alcohol Market

This Liquid Sugar Alcohol Market Report provides a comprehensive analysis of the industry's structure, performance, and future prospects. It covers the historical market data from 2018 to 2022 and offers a detailed forecast through 2035, tracking the trajectory of key variables such as production volume, consumption rates, and pricing trends. The report encompasses a deep dive into the segmentation by type, including Sorbitol, Maltitol, Xylitol, and Erythritol, providing granular data on their respective market shares and growth potential. It also examines the application landscape across Food, Daily Chemical, and Pharmaceutical industries, quantifying the demand in each sector. The study involves a rigorous assessment of the competitive environment, profiling over 20 key players and analyzing their strategic initiatives, manufacturing capabilities, and financial health.

In addition to quantitative data, the report offers qualitative insights into the Liquid Sugar Alcohol Market Analysis, including an evaluation of the regulatory framework affecting sugar substitutes globally. It addresses the impact of health trends, labeling requirements, and trade policies on market dynamics. The coverage extends to a regional breakdown, analyzing the market performance in North America, Europe, Asia Pacific, and the Middle East and Africa. Special attention is given to the supply chain mechanisms, raw material sourcing strategies, and technological advancements driving efficiency in production. The report also identifies emerging risks and opportunities, providing stakeholders with actionable intelligence to make informed decisions. By integrating primary research with secondary data sources, this report delivers a holistic view of the ecosystem surrounding liquid polyols.