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The propylene glycol market is a dynamic and ever-evolving sector driven by various factors such as demand from end-use industries, regulatory policies, technological advancements, and market competition. Propylene glycol, a versatile chemical compound, finds widespread applications across industries like food and beverages, pharmaceuticals, cosmetics, automotive, and others.
One of the primary drivers of the propylene glycol market is the increasing demand from the food and beverage industry. Propylene glycol serves as a humectant, solvent, and preservative in a wide range of food and beverage products, including baked goods, dairy products, soft drinks, and alcoholic beverages. As consumer preferences for convenience foods and ready-to-drink beverages continue to rise, the demand for propylene glycol is expected to grow steadily.
Furthermore, the pharmaceutical industry is another major contributor to the propylene glycol market dynamics. Propylene glycol is commonly used as a solvent and excipient in pharmaceutical formulations such as oral liquids, injectables, and topical medications. With the growing prevalence of chronic diseases and the increasing emphasis on healthcare worldwide, the demand for pharmaceutical products containing propylene glycol is expected to escalate.
The cosmetics and personal care industry also plays a significant role in driving the demand for propylene glycol. It is utilized in various skincare products, hair care products, and toiletries as a moisturizer, emollient, and solvent. As consumers become more conscious about personal grooming and appearance, the demand for cosmetic products containing propylene glycol is anticipated to witness a steady rise.
Moreover, the automotive industry represents another important segment for the propylene glycol market. Propylene glycol is used as an antifreeze agent in automotive cooling systems, helping to prevent overheating and corrosion. With the increasing production of automobiles globally and the growing demand for more efficient cooling solutions, the demand for propylene glycol in the automotive sector is expected to experience significant growth.
In addition to end-use industries, market dynamics in the propylene glycol sector are also influenced by regulatory policies and environmental considerations. Governments and regulatory bodies across the globe are implementing stringent regulations regarding the use and disposal of chemicals, including propylene glycol, to minimize environmental impact and ensure public safety. Compliance with these regulations often requires manufacturers to invest in research and development to develop eco-friendly production processes and formulations.
Technological advancements also play a crucial role in shaping the market dynamics of propylene glycol. Innovations in manufacturing processes, such as the development of bio-based propylene glycol derived from renewable sources, are gaining traction due to their sustainability and environmental benefits. Additionally, advancements in purification techniques and quality control measures contribute to improving the overall efficiency and reliability of propylene glycol production.
Market competition is another factor driving the dynamics of the propylene glycol market. The market is characterized by a competitive landscape with several multinational corporations and regional players vying for market share. Price competition, product differentiation, and strategic collaborations are common strategies adopted by companies to gain a competitive edge in the market. Additionally, mergers and acquisitions are prevalent in the industry as companies seek to expand their product portfolios and geographical presence.
Propylene Glycol Market Highlights:
Global Propylene Glycol Market Overview
The Propylene Glycol Market Size was valued at USD 4.84 Billion in 2023. The Propylene Glycol industry is projected to grow from USD 5.05 Billion in 2024 to USD 7.07 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.34% during the forecast period (2024 - 2032). Propylene glycol is widely used to improve the texture, taste, appearance, and shelf life of various processed foods. Significant increases in processed food consumption due to busy lifestyles, dietary changes, and an increased labor force are some of the major drivers of market growth. However, the growth of the construction and transportation industry has led to an increase in demand for propylene glycol in a variety of industrial chemicals such as cutting fluids, automotive coolants, hydraulics, and brake fluids. It is used as an active ingredient solubilizer and contributes to the growth of the market. Manufacturers in the industry are focusing on bio-based chemicals for the production of propylene glycol due to growing environmental problems that act as another growth factor. In addition, the prevalence of coronavirus disease (COVID-19) has increased the need for propylene glycol in the production of hand sanitizers and surface disinfectants.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Propylene Glycol Market Trends
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Rising demand for foods and beverages is boosting the propylene glycol market.
The increasing use of the market in processed foods and beverages is estimated to hold the largest market share during the forecast period. Due to the unique properties of propylene glycol, it is widely used in a variety of applications, including personal care products, food products, etc. However, fluctuations in raw material prices and the high investment required for research and development can hamper propylene glycol market over an estimated period. Alternatively, increasing demand for bio-based propylene glycol is expected to provide new opportunities for the propylene glycol market.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Additionally, the propylene glycol ether market is used in a variety of applications in a variety of industries. Because each application requires specific characteristics and characteristics, manufacturers focus on improving the product mix and providing bespoke and bespoke products to meet customer-specific requirements. In the electronics field, we need bespoke products with special properties and improved quality. Therefore, it is presumed that product differences and adaptations create new development opportunities in the propylene glycol market.
Propylene glycol is a petrochemical product and its quality does not vary from manufacturer to manufacturer. Industrial-grade propylene glycol is used as a raw material for the production of other chemicals. Therefore, it acts as a basic feed with little change when applied. This leaves designers with little room for product differences.
March 2024- Dow has disclosed two novel variants of propylene glycol (PG) solutions in North America, with bio-circular and circular feedstocks, proclaiming a substantial stride towards sustainability. Intended to cater an extensive range of applications, customers can now improve their products with high-performance attributes while guaranteeing externally validated sustainability benefits through a mass balance approach. The mass balance methodology, a feature of this initiative, thoroughly tracks the use of bio-circular and circular materials in PG production across intricate value chains. The technique, lately presented with ISCC PLUS certification in Freeport, Texas, implies a significant achievement as it signifies the first-ever ISCC PLUS certification convened upon a Dow PG production plant in North America. The business sustainability leader for the Americas for Dow Polyurethanes, Thales de Oliviera, showcased pride in this achievement, stating that they are proud to establish a level of superior sustainability in material production within North America, representing their persistent commitment to propelling sustainable production practices and offering eco-friendly products to their valued customers. Corresponding to the escalating demand for circular and bio-circular materials in polyurethane end-markets,
Propylene Glycol Market Segment Insights
Propylene Glycol Grade Insights
The Propylene Glycol market segmentation, based on Grade, includes pharmaceutical, and industrial. The pharmaceutical grade propylene glycol is used as a solvent and extractant in medicines, vaccines, antiseptics, local anesthetics, vitamins, and hormones. It is also used in food and beverages such as biscuits, cakes, and beverages as a solvent, stabilizer, clarifier, thickener, and carrier for flavor. The pharmaceutical-grade propylene glycol also finds application in animal feed to keep it moist, fresh, and chewy for pets and livestock.
Propylene Glycol Source Insights
Based on Source, the Propylene Glycol market segmentation includes bio-based and petroleum-based. The petroleum-based propylene glycol segment dominated the propylene glycol market in 2020. Petroleum-based propylene glycol is used in diverse industries such as automotive, construction, and aerospace among others. The increasing investments in the construction sector, the development of public infrastructure, and government initiatives for the development of smart cities are expected to fuel the growth of this segment.
Propylene Glycol End-Use Insights
Based on End-Use, the Propylene Glycol market segmentation includes food and beverage, automotive, personal care and cosmetics, chemical, pharmaceutical, construction, and others. The automotive segment accounted for a significant share of the propylene glycol market in 2020. Factors such as increasing automotive penetration, rising disposable income, and modernization of vehicles drive propylene glycol market growth. Propylene glycol is used in engine coolants, brake fluids, deicing fluids, and antifreeze for the effective operation of vehicles. Governments across the globe are investing significantly in the development of electric vehicles and offering incentives and schemes to promote their adoption, supporting market growth.
Figure 2: Propylene Glycol Market, by Grade, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Propylene Glycol Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific is expected to be the largest and fastest-growing market for propylene glycol in 2017 due to rapid industrialization & urbanization, rising disposable income, changing lifestyles, growing health awareness, and relaxed investment norms. End-use industries such as building & construction, automotive, pharmaceutical, food & beverages, cosmetics & personal care, and chemical are expected to drive the regional propylene glycol demand and are expected to show bolstering demand during the forecast period.
North America was the second largest market for propylene glycol after Asia Pacific in 2017 and is expected to show considerable growth during the forecast period. High demand from building & construction, pharmaceuticals, food & beverages, cosmetics & personal care, chemical, and aerospace is expected to drive the regional propylene glycol market.
Figure 3: PROPYLENE GLYCOL MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe is expected to show steady demand for propylene glycol over the forecast period and the demand is expected to come from the strong automotive industry, food & beverages, cosmetics & personal care, and chemical industry among others.
The Middle East & Africa is expected to show moderate demand for propylene glycol over the forecast period and the demand is expected to come mainly from the construction industry due to ongoing infrastructural projects in Qatar, U.A.E., Kuwait, and Oman.
Latin America is also expected to show moderate growth due to slow overall development and the demand is expected to come mainly from the evolving construction industry in Brazil, Mexico, Chile, and Venezuela.
Propylene Glycol 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 Propylene Glycol market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Propylene Glycol industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Propylene Glycol. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Propylene Glycol industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the Propylene Glycol industry to benefit customers and expand the market sector. The Low-Profile Additives market has recently given medicine some of the most important advantages. Major Propylene Glycol market players, including LyondellBasell Industries Holdings B.V. (Netherlands), BASF SE (Germany), Archer Daniels Midland Company (US), and others, are attempting to increase market demand by funding R&D initiatives.
LyondellBasell is a petrochemical producer with operations in the United States, Europe, and Asia. The company is the world's largest producer of polypropylene and is also a major producer of polyethylene and propylene oxide. Its chemicals are used in various consumer and industrial end products. Over half of LyondellBasell's production comes from its North American operations.
Also, Archer Daniels Midland (ADM) is an agricultural origination and processing company. It offers a range of products, including specialty food and feed ingredients, animal nutrition solutions, ethanol, and biodiesel, as well as industrial chemicals, fertilizers, plastics, and paper. In addition, the company delivers related logistics, financial, and farmer services.
Key Companies in the Propylene Glycol market include
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LyondellBasell Industries Holdings B.V. (Netherlands)
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BASF SE (Germany)
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Archer Daniels Midland Company (US)
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Bio-chem Technology Group Company Limited (China)
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ADEKA CORPORATION (Japan)
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Chaoyang Chemicals, Inc. (US)
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Huntsman International LLC. (US)
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DowDuPont Inc. (US)
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Manali Petrochemicals Limited (India)
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HaiKe Chemical Group (China)
Propylene Glycol Industry Developments
September 2023: In September 2023, Dow Company released in Europe low-carbon, bio-based and circular propylene glycol solutions. Such bio-based propylene glycol solutions are versatile enough for use in a range of applications across various industries such as agriculture, pharmaceuticals, cosmetics, fabrics and food.
May 2023: ORLEN Poludnie Plant has implemented the BASE technology to make its production of propylene glycol more sustainable. The first operational year of BioPG plant at ORLEN Poludnie, which is one of the largest contributors in Poland’s biofuels sector, has been completed. By this means, bio-glycerol left over from the biodiesel processing is used to convert into ‘green’ propylene glycol known as BioPG.
In March 2023, Ethos Asset Management Inc USA announced that it had entered into a long-term financing partnership with GreenGlycols® Green Glycols B.V. to construct a facility for producing BioMPG in Delfzijl, Netherlands. Designed for environmentally friendly drop-in USP grade propylene glycol production based on biomass such as corn and soya with reduced GHG emissions footprint (up to 40,000 tones per annum). The technology being licensed by GreenGlycols comes from BASF while Air Liquide will provide engineering support for this initiative. This new alternative can save up to 280k tonnes of CO2 equivalent compared to conventional MPG annually, and commercial output is scheduled for 2025 in order to meet increasing demand within the domain of PG.
In February 2023, ADM invested just over $30 million in Valencia, Spain, establishing a brand-new production unit aimed at satisfying the global increase in demand coming from the probiotics and postbiotics sectors.
In December 2021, Metadynea LLC concluded an agreement with Air Liquide, under which it got engaged in the production of complex small-scale chemistry items. A pyrolysis unit for bio Propylene Glycol production has been put in at the territory of Metadynea Moscow site.
Propylene Glycol Market Segmentation
Propylene Glycol Grade Outlook
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Pharmaceutical
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Industrial
Propylene Glycol Source Outlook
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Bio-Based
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Petroleum-Based
Propylene Glycol End-Use Outlook
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Food & Beverage
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Automotive
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Personal Care & Cosmetics
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Chemical
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Pharmaceutical
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Construction
Propylene Glycol Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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