Propylene Glycol Market

• RISING DEMAND IN COSMETICS AND PERSONAL CARE APPLICATIONS

The Propylene Glycol Market is witnessing significant growth due to the increasing demand for sustainable products in the cosmetics and personal care industry. Propylene glycol is one of the widely used ingredients in numerous types of cosmetics and personal care products including moisturizers, cleansers, bath soaps, shampoos & conditioners, perfumes and many more. It is used in these products due to its water-absorbing properties and its usage as a humectant. In moisturizers, the compound is used for enhancing the appearance of the skin by helping in reducing flaking and restoring suppleness.

Thus, cosmetics and skin care products that contain propylene glycol have a remarkable impact on moisturizing the skin and preventing it from drying out and tanning. Furthermore, the unique attributes of propylene glycol make it a suitable compound for application as skin conditioner, solvent, viscosity reducer, and product fragrance ingredient, making it a suitable product for applications in this industry.

In addition to the several benefits offered by the compound, propylene glycol in cosmetics also helps in absorbing other active ingredients and also acts as an emollient that helps in creating a protective layer on the skin, thereby preventing the loss of water and helps in making the skin smooth and healthy.

The role of propylene glycol as a solvent and carrier for various other ingredients is very crucial as it can efficiently dissolve as well as stabilize the active ingredients such as extracts, vitamins and fragrances in the product. This further improves the efficacy of cosmetics by enhancing the delivery of the ingredients to skin. The compound is also valued for its ability to impart non-greasy and smooth texture to cosmetic products, which is very important for products including creams and lotions.

One of the crucial factors that is playing an important role in increasing usage of propylene glycol in cosmetics and personal care products is its non-toxic nature. The rapidly accelerating market of cosmetics and personal care, driven by growing consumer awareness and focus on following proper skincare routines is positively influencing the market growth of propylene glycol. The benefits of propylene glycol make it a key ingredient used in cosmetics products and with the growing knowledge of the consumers regarding skincare ingredients, the demand for products containing effective compounds such as propylene glycol is anticipated to witness substantial growth.

RAPIDLY EXPANDING AUTOMOTIVE INDUSTRY

Propylene glycol is a type of compound with a low toxic profile, that has significant applications in the automotive industry. The chemical structure of propylene glycol allows it to mix well with water, thereby making them an effective antifreeze agent and solvent. Propylene glycol plays a vital role in improving the performance of vehicles owing to which it is used substantially in this sector.

It is one of the key components used in antifreeze and coolant solutions and thus helps in regulating the temperature of the engine by transferring the heat away from engine and preventing the coolant from freezing in cold conditions or boiling during the hot conditions. The polypropylene glycol-based coolants are non-corrosive, further helping in protecting the engine from damage. It also has high specific heat capacity that further contributes to enhancing the efficiency of engine. This compound is compatible with a wide range of materials and metals used in making automotive parts, thus it is widely used in this sector.

Also, polypropylene glycol is used in de-icing fluids which are applied to vehicles parts such as windshields for preventing the formation of ice on the vehicle surface and thus helps in reducing the risk of accidents caused due to less visibility. In lubricants, propylene glycol is used due to its effectiveness in reducing wear and friction.

The automotive industry is a rapidly growing sector of most countries’ economies because of the global population growth. Global car sales have increased significantly from 63.8 million units in 2020 to around 75.3 million units in 2023. This is mainly due to increased vehicle production in emerging economies. The growing advancements in the automotive industry to fulfill the current demand and future requirements of consumers is creating a positive impact over the market growth of propylene glycol.

Growing innovations and developments in vehicles is creating the need for advanced thermal management systems and this factor is driving the demand for propylene glycol as its excellent heat transfer attributes is leading to its growing usage in coolants. Moreover, the increasing focus on reducing automobile emissions is further creating the requirement for cooling and lubricating systems as these systems are effective in enhancing the engine performance along with decreasing the emissions. Thus, the demand for propylene glycol is propelling due to its significant applications in lubricants and coolants.

The Global Propylene Glycol Market Industry is poised for growth due to emerging markets and overall economic development. Countries in Asia-Pacific and Latin America are witnessing rapid industrialization, leading to increased consumption of propylene glycol across various sectors. As these economies expand, the demand for propylene glycol in food, pharmaceuticals, and industrial applications is expected to rise significantly. This trend is indicative of a broader global shift towards modernization and consumerism, suggesting a promising future for the propylene glycol market. The industry's adaptability to regional market dynamics will be crucial in harnessing growth opportunities.

The Global Propylene Glycol Market Industry is significantly influenced by its expanding applications in the pharmaceutical sector. Propylene glycol is utilized as a solvent in drug formulations, enhancing the solubility of active ingredients. The growing prevalence of chronic diseases and the subsequent rise in pharmaceutical production contribute to this trend. As the industry evolves, propylene glycol's role in drug delivery systems becomes increasingly vital. This sector's growth is anticipated to propel the market, with projections indicating an increase to 6.27 USD Billion by 2035. The pharmaceutical industry's reliance on propylene glycol underscores its importance in the global market.

The Global Propylene Glycol Market Industry benefits from the burgeoning personal care and cosmetics sector, where propylene glycol is valued for its moisturizing properties and ability to enhance product texture. As consumers increasingly prioritize skincare and cosmetic products, the demand for propylene glycol is expected to rise. This trend is particularly evident in formulations for lotions, creams, and hair care products. The industry's growth is supported by a projected CAGR of 5.91% from 2025 to 2035, indicating a robust future for propylene glycol in personal care applications. This sector's expansion reflects broader consumer trends towards quality and efficacy in personal care products.

The Global Propylene Glycol Market Industry is also driven by its increasing utilization in various industrial applications, including antifreeze, de-icing agents, and hydraulic fluids. Propylene glycol's non-toxic nature makes it a preferred choice in industries where safety is paramount. The demand for eco-friendly and sustainable alternatives in industrial processes further propels the market. As industries seek to comply with stringent environmental regulations, the adoption of propylene glycol is likely to rise. This trend indicates a shift towards sustainable practices, positioning propylene glycol as a key player in the global industrial landscape.

The Global Propylene Glycol Market Industry experiences a notable surge in demand driven by its extensive application in the food and beverage sector. Propylene glycol serves as a food additive, enhancing flavor and preserving moisture in various products. As consumer preferences shift towards processed and packaged foods, the market anticipates growth. In 2024, the market value is projected at 3.33 USD Billion, reflecting the increasing incorporation of propylene glycol in food formulations. This trend is expected to continue, with the industry adapting to evolving regulations and consumer health consciousness, thereby reinforcing its position in the global market.

Based on Region, the Propylene Glycol Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2023, the Asia Pacific region held the largest market revenue share of 33.97%, which is expected to grow at a CAGR of 4.1% in the forecast period 2024-2032. The growth of the propylene glycol market in Asia Pacific is driven by industrialization, urbanization, and expanding end-use industries. Countries like China, India, and Japan are contributing significantly to the market growth.

The region's food and beverage industry are experiencing high growth due to region’s high population and growing need for wide variety of food products. This factor is positively influencing the market of propylene glycol in the region.

The Propylene Glycol Market is characterized by a high level of competition in the market. The players in the market are constantly innovating and expanding their product offerings. Despite the challenges, there are several factors that are driving growth in the propylene glycol market such as rising demand in cosmetics and personal care applications, increasing demand from automotive industry, and high growth outlook for the food processing industry in emerging economies. Thus, the advancing end-use industries are driving the market growth.

The market players' growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding their production capacity to meet the demand and enhance their product portfolio. LyondellBasell Industries Holdings B.V., BASF, Orlen, Shell, The Archer-Daniels-Midland Company, ADEKA Corporation, Chaoyang Chemicals, Inc., Shandong Haike Chemical Group, Manali Petrochemicals Limited, AGC Inc., INEOS Group, Tongling Jintai Chemical Industry Co., Ltd, Acuro Organics Limited, Repsol S.A., and Meru Chem Pvt. Ltd. Among others are the major companies in the market at the present that are competing in terms of quality, price, and availability.

These players are primarily focusing on the development of propylene glycol in the cost effective manner.

LyondellBasell Industries Holdings B.V.: LyondellBasell Industries Holdings B.V. is a global leader in the chemical industry, with a strong focus on the production and sale of plastics, petrochemicals, and basic chemicals. The company deals in five business segments including chemicals, polymers, advanced polymer solutions, fuels, and technology providing solutions for automotive, transportation, agriculture, packaging, infrastructure, and sports & leisure, and other markets. Under the chemicals segment it provides its wide range of chemicals within acetyls, diols, glycols, glycol ethers, polyols, alcohols, epoxides, ethers, olefins, aromatics, amines, amides, esters, carbonates, and peroxides among others.

The company provides its propylene glycol used majorly for the pharmaceutical applications under its diols, glycols range in chemicals segment. LyondellBasell Industries Holdings B.V. is committed to developing circular and low-carbon products and technologies, seeking to redefine the industry by championing chemistry as a sustainable solution for the planet. The company has its presence through 94 manufacturing units in 32 countries in North America, Europe, Australia & New Zealand, Asia Pacific, Middle East & Africa, and South & Central America.

BASF SE: BASF SE is one of the leading chemical manufacturers in the world. It operates through eleven divisions that are grouped into six segments: chemicals, materials, industrial solutions, surface technologies, nutrition & care and agricultural solutions. It further manages 52 global and regional business units and develops strategies for 72 strategic business units. Company’s products find applications in a wide array of industries such as automotive, agriculture, construction, electrical & electronics, packaging, paints & coatings, textile and paper & pulp, among others.

BASF has presence in around 91 countries and facilitates the manufacturing of its products through 239 production sites spread worldwide. The company focuses substantially on research and development and had R&D spending of around USD 2.45 billion in 2022. With a strong customer base, BASF caters to around 82,000 customers from numerous sectors globally.  The company primarily operates in Europe and has an active presence in the Americas, Asia-Pacific, Middle East & Africa.