Bio-Based Propylene Glycol Market Size

Global Bio-based Propylene Glycol (PG) Market Overview

The Bio-based propylene glycol (PG) Market Size was valued at USD 4.51 billion in 2023. The Bio-based propylene glycol (PG) industry is projected to grow from USD 4.70 Billion in 2024 to USD 6.65 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.41 % during the forecast period (2024 - 2032). The increase in demand for bio-based propylene glycol’s (PG) unsaturated polyester adhesives, which are widely used in reinforced plastic as well as the fiberglass composite in transportation, construction, automobiles, or any marine industries are driving the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Bio-based propylene glycol (PG) Market Trends

Increasing awareness to achieve sustainability and applications in pharmaceuticals to boost the market growth

Propylene glycol is traditionally produced from propylene oxide, a petrochemical product and is widely used in various end-use industries, such as plastic, food, electronic, and pharmaceutical. However, the growing environmental concerns related to the production and usage of propylene glycol, major industry participants have been developing bio-based routes for producing propylene glycol. Entering this attractive market will not only give these industry participants’ early movers advantage but will also help them to achieve sustainability soon. According to the Department of Energy, substitution of renewable propylene glycol made from biomass can reduce greenhouse gases by 61 percent, as compared to using petroleum-based propylene glycol.

In addition, the abundant availability of crude glycerin (obtained as a byproduct of biodiesel) has also been one of the major factors prompting companies to get along with the production of bio-based propylene glycol. Eyeing opportunity in this lucrative market, large multinational corporations such as Huntsman and Dow Chemical have also announced to enter the market. Existing innovation and sustainability R&D concepts are being further developed and applied to future paradigm parameters, such as the generation of extremely consistent recycling management approaches. Transformative innovations that link organizational and technological solutions help develop new patterns in Production Consumption 3.0, a transformation increasingly being in demand from politics, research, economy, and industry to achieve the necessary drastic reductions in the ecological footprint of human economic activities.

In 2024, Primient Covation LLC, operating its PDO business under the name CovationBio PDO (formerly DuPont Tate & Lyle Bio Products LLC), proudly announces 2024 as the 20-year anniversary of the first investment to commercialise Susterra® propanediol (known as Susterra® PDO or Susterra 1,3 propanediol) and Zemea® propanediol (known as Zemea® PDO or Zemea 1,3 propanediol), the high-performance, renewably sourced biomaterials helping to reduce global dependence on petroleum.

Figure 1: Green technology and sustainability market size worldwide from 2021 to 2030 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The low toxicity of bio-based propylene glycol as compared to ethylene glycol is expected to boost the usage in cosmetics and personal care accessories on a huge scale. As ethylene glycol is considered a poisonous material, it must be handled with caution to restrict animal or human submission, which will witness her demand within the market during the estimated forecasting period of the manufacturing process of the glycol with high performance and unsaturated polyester adhesives or pastes for numerous uses like reinforced plastic laminating work for marine construction, gel coats, synthetic marble casting and sheet molding compounds are projected to witness significant demand in the world. It is also a huge midway in the production sectors as well as the in the alkyd adhesives industries. The most considerable fact is to demand the expectation for propylene glycol from the pharmaceutical industry as it is a well-known and huge industry in the bio-based propylene glycol market field.

 The bio-based propylene glycol from this pharmacy industry has been utilized for several issues. It is considered as the usage purpose of the broad range of pharmaceutical medication as a humectant in tropical medication which is a preservative in solution. The bio-based propylene glycol market growth. Thus, the increasing demand in the Bio-based propylene glycol (PG) for styrene market driving the growth of the Bio-based propylene glycol (PG) market revenue.

Bio-based propylene glycol (PG) Market Segment Insights

Bio-based propylene glycol (PG) Application Insights

The  Bio-based propylene glycol (PG) market segmentation, based on application, unsaturated, polyester resin, solvent, antifreeze & coolant, chemical intermediates, and others. The antifreeze & coolant segment held the majority share in 2021 contribution to around ~30-35% in respect to the  Bio-based propylene glycol (PG) market revenue. This is primarily owing to the rising demand of Bio-based propylene glycol (PG) in transportation. For instance, as per the report of Society of Indian Automobile Manufacturers published in 2021, there is rising demand for Bio-based propylene glycol (PG) in automotive.

November 2021: ORLEN Poludnie, an ORLEN Group company, has brought on stream Poland’s first and Europe’s largest green propylene glycol production unit at its biorefinery in Trzebinia. The unit has a capacity of 30,000 tons a year, enough to cover as much as 75% of the domestic demand for the product. This PLN 400m capital project will add over PLN 50m to the Group’s annual EBITDA. An integral part of the complex is Poland’s first hydrogen hub. The projects implemented in southern Poland are another step towards achieving the Group’s strategic goals for low- and zero-carbon energy.

December 2021: Metadynea LLC, part of Metafrax Group, signed a license agreement and an agreement on the basic design of production of bio-based propylene glycol with Air Liquide Engineering and Construction. A facility to produce bio-based propylene glycol and glycerin will be built at the Metadynea site in the town of Orekhovo-Zuevo in the Moscow Region. It is planned to complete the design development of the complex in 2022, and the start of production of Metadynea is scheduled for 2024.

Bio-based propylene glycol (PG) End-Use Industry Insights

The  Bio-based propylene glycol (PG) market segmentation, based on end-use industry, cosmetics, building & construction, automotive, pharmaceutical, detergent & household, others. The Pharmaceutical segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The increased use of Bio-based propylene glycol (PG) in pharmaceuticals and cosmetics to drive the bio-based propylene glycol (PG) market. The most considerable fact is to demand the expectation for propylene glycol from the pharmaceutical industry as it is a well-known and huge industry in the bio-based propylene glycol market field. The bio-based propylene glycol from this pharmacy industry has been utilized for several issues. It is considered as the usage purpose of the broad range of pharmaceutical medication as a humectant in tropical medication which is a preservative in solution. The bio-based propylene glycol market growth has been driven by the increase of unsaturated polyester adhesives, which are widely used in reinforced plastic as well as the fiberglass composite in transportation, construction, automobiles industries. Due to the rise of emerging new technologies in the market, some of the market heavy industries want to increase the most advanced manufacturing product, which has helpful for these sectors. All these bio-based propylene glycol market sectors have been hugely and rapidly increasing on the platforms. Hence, demand in different applications positively impacts market growth.

September 2021: In air travel industry, propylene glycol has emerged as a replacement for ethylene glycol, which is used as the base fluid for aircraft de-icing formulations. De-icing fluids performs a vital operation in providing safe, uninterrupted and timely air travel during extreme winter conditions. According to International Air Transport Association, in 2021, North American airlines passenger capacity, based on available seat kilometres (ASK) register a year on year (y-o-y) growth of 4.9% while European airlines passenger capacity, based on ASK, register a year on year (y-o-y) growth of 6.6%. The growth in the airlines passenger capacity in these two regions would play a pivotal role in escalating the usage of bio-based propylene glycol in air the travel industry. This has further increased market share in the  Bio-based propylene glycol (PG) industry.

Figure 2:  Bio-based propylene glycol (PG) Market, by Application, 2021 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Additionally, bio-based propylene glycol (PG) has relatively high boiling point and low freezing point. Bio-Based Propylene Glycol offers fruity odor and can be used efficiently in the industries that manufacture perfumes and colognes. It has a broad spectrum of applications such as antifreeze, waste heat recovery, coolants, solar system, which will boost the bio-based propylene glycol (PG) market in the coming years.

Bio-based propylene glycol (PG) End-Use Industry Insights

Based on end-use industry, the  Bio-based propylene glycol (PG) industry has been segmented into cosmetics, building & construction, automotive, pharmaceutical, detergent & household, others.  Bio-based propylene glycol is used in the manufacturing of unsaturated polyester resins, which are used to build electric elements, paints & coatings, pipes, tanks, and ducts, all imperative products in the construction sector. The sector and the consumers are trying to be more in charge concerning the environment, as an outcome of which they need for green buildings has been raised. Supervisory pressure to minimize carbon footprint and an overall shift towards eco-friendly products to improve maintenance of progressions is projected to boost the market for bio-based propylene glycol. The other segment is expected to bolster at a 4.79% CAGR during the assessed timeline.

Bio-based propylene glycol (PG) Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, Latin America, and Middle east & Africa. North America dominating market accounted for USD 1.44 billion in 2021 and is expected to exhibit a 4.75% CAGR during the study period. This is attributed to the strict regulation regarding carbon footprint, greenhouse gases emission, and sustainability initiatives. In North America, U.S. has led this market sector to raise so tremendously.

Further, the major countries studied are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  BIO-BASED PROPYLENE GLYCOL (PG) MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Bio-based propylene glycol (PG) market accounts for the second-largest market share due to the products that are made from bio-based propylene glycol are utilized in building panels, bathroom components, corrosion-resistant tanks, and others. Further, the Germany Bio-based propylene glycol (PG) market held the largest market share, and the UK Bio-based propylene glycol (PG) market was the fastest growing market in the European region

The Asia-Pacific Bio-based propylene glycol (PG) Market is expected to grow at a CAGR of 4.76% from 2022 to 2030. This is because of the initiatives taken for sustainability and reducing carbon footprint. Moreover, China Bio-based propylene glycol (PG) market held the largest market share, and India Bio-based propylene glycol (PG) market was the fastest growing market in the Asia-Pacific region

For instance, India Bio-based propylene glycol (PG) market is the favored destination for Bio-based propylene glycol (PG) manufacturers due to the infrastructure projects. On the other hand, Japan is famous for the automotive industry. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Bio-based propylene glycol (PG) Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Bio-based propylene glycol (PG) market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Bio-based propylene glycol (PG) industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the  Bio-based propylene glycol (PG) industry to benefit clients and expand the Bio-based propylene glycol (PG) market sector is to manufacture locally to reduce operating costs. In recent years, Bio-based propylene glycol (PG) has provided products with some of the most significant benefits.

BASF SE (Germany) The company serves a wide range of industries including construction, furniture and wood, agriculture, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, and others. BASF carries out R&D in alliance with customers, scientists, and partners. The company operates through a network of manufacturing facilities across the world. Since July 2020, BASF SE is looking to expand production of bio-based propylene glycol to meet consumer’s demand.

Also, Clariant AG  (Switzerland) is a chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining, and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics, and paints.

Dow is pleased to announce the launch of two new sustainable propylene glycol (PG) solutions in North America in 2024, utilizing bio-circular and circular feedstocks. Customers may now offer high-performance products with externally certified sustainability benefits, making them suitable for a wide range of applications, due to a mass balance method. The mass balance approach traces the flow of bio-circular and circular materials required to create PG via complex value chains and attributes it using verifiable bookkeeping; this approach was recently certified by ISCC PLUS in Freeport, Texas.

Key Companies in the Bio-based propylene glycol (PG) market include

• Archer Daniels Midland Company (U.S.)


• BASF SE (Germany)


• The Dow Chemical Company (U.S.)


• DuPont Tate & Lyle Bio Products Company, LLC (UK)


• Huntsman International LLC. (U.S.)


• Cargill (U.S.)


• Oleon (Belgium),


• Ashland. (U.S)., among others

Bio-based propylene glycol (PG) Industry Developments

December 2021: Metadynea LLC, part of Metafrax Group, signed a license agreement and an agreement on the basic design of production of bio-based propylene glycol with Air Liquide Engineering and Construction. A facility to produce bio-based propylene glycol and glycerin will be built at the Metadynea site in the town of Orekhovo-Zuevo in the Moscow Region. It is planned to complete the design development of the complex in 2022, and the start of production of Metadynea is scheduled for 2024.

Bio-based propylene glycol (PG) Market Segmentation

Bio-based propylene glycol (PG) Application Outlook

• Unsaturated Polyester Resin


• Solvent


• Antifreeze & Coolant


• Chemical Intermediates


• Others

Bio-based propylene glycol (PG) End-Use Industry Outlook

• Cosmetics


• Building & Construction


• Automotive


• Pharmaceutical


• Detergent & Household


• Others

Bio-based propylene glycol (PG) Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• MEA
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of MEA