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Report overview
The Global Propylene Glycol Market Size was estimated at USD 4933.29 million in 2024 and is projected to reach USD 7741.92 million by 2030, exhibiting a CAGR of 7.80% during the forecast period.
Propylene Glycol is a synthetic organic compound with the chemical formula C3H8O2. It is a viscous, colorless liquid that is nearly odorless but possesses a faintly sweet taste. Chemically it is classed as a diol and is miscible with a broad range of solvents, including water, acetone, and chloroform.
Propylene glycol (PG) is a vital component of the global chemical market, mainly due to its numerous uses in the food and beverage, pharmaceutical, cosmetic, and automotive industries. The main ingredient of propylene glycol, a colorless, odorless, and hygroscopic liquid, is propylene oxide. Its solvent, preservative, and humectant qualities make it valuable. To meet the varying needs of the market, the industry is divided into two grades: industrial and USP (United States Pharmacopoeia) grade. Market expansion is fuelled by rising regulatory acceptance for Propylene glycol in food and pharmaceutical applications as well as growing consumer demand for safe, non-toxic chemicals in consumer goods. The transition to bio-based propylene glycol synthesis, which uses renewable resources like glycerine, is indicative of a movement towards environmentally friendly industrial techniques. New growth potential are also presented by the increasing use of ecologically friendly antifreeze solutions and electric vehicles (EVs). However, the business faces difficulties like volatile raw material prices and worries about exposure to synthetic chemicals, which drive up demand for environmentally friendly substitutes. Propylene glycol demand is expected to rise steadily worldwide due to growing end-use industries and changing consumer preferences.
Petroleum Propylene Glycol to hold the highest market share: By Source
In terms of segments, the global propylene Glycol industry has been segmented as Petroleum Propylene Glycol and Bio-Based Propylene Glycol.
Propylene glycol derived from petroleum has the largest market share in the sector for a number of significant factors. The foremost benefits from the production infrastructure that is already in place and the reduced expenses related to the petrochemical refining process. Propylene oxide is one of the many petroleum-based feedstock’s that are widely available. This ensures large-scale, consistent production to fulfil the enormous demand from the manufacturing, construction, and automotive industries. Petroleum-based PG is widely used in industrial applications such as coolants, de-icing fluids, and antifreeze because of its stability, performance, and affordability.
Furthermore, Propylene glycol derived from petroleum is more affordable than bio-based alternatives, which are still in their development and frequently have greater manufacturing costs, due to the petroleum-based product's strong supply networks and economies of scale. Although bio-based propylene glycol is growing due to sustainability concerns and the move towards greener chemicals, petroleum-derived propylene glycol continues to dominate the market because of its availability, historical precedent, and wide range of industrial uses. Because of this, businesses that value economy and productivity keep using petroleum-based PG, which keeps them at the top of the market.
Industrial-grade propylene to hold the highest market share: By Grade
The industrial-grade segment holds the largest market share in the global propylene glycol industry due to its wide-ranging applications across various industries. Propylene glycol is a multipurpose chemical that can be used as a coolant, solvent, and antifreeze agent. Its industrial grade is less refined and less expensive than other grades, which makes it appropriate for usage in large quantities. The main markets for propylene glycol are manufacturing, construction, and automotive. Propylene glycol is used in these sectors to make paints, coatings, adhesives, resins, and engine coolants.
Propylene glycol of industrial grade is in high demand due to its widespread use as a heat transfer fluid in deicing formulations and industrial cooling systems. Propylene glycol is a multipurpose chemical that can be used as a coolant, solvent, and antifreeze agent. Its industrial grade is less refined and less expensive than other grades, which makes it appropriate for usage in large quantities. The main markets for propylene glycol are manufacturing, construction, and automotive. Propylene glycol is used in these sectors to make paints, coatings, adhesives, resins, and engine coolants. The strong demand for industrial-grade propylene glycol is partly due to its widespread use as a heat transfer fluid in deicing formulas and industrial cooling systems.
In terms of region the global propylene glycol industry has been segmented as North America, Europe, Asia Pacific, Middle East and Africa, and South America.
The propylene glycol market is dominated by the Asia-Pacific region, which has the largest market share globally. Fast industrialisation, urbanization, and economic expansion in nations like China, India, and Japan are the main causes of this domination. These countries have seen notable growth in sectors that use a lot of propylene glycol, like electronics, construction, and the automobile industry. Since unsaturated polyester resins (UPR) are widely utilised in the making of fiberglass, resins, and reinforced plastics, China, in particular, is a major participant because of its sizable manufacturing industry and rising demand for unsaturated polyester resins (UPR).
The region also gains from lower production costs, an extensive network of raw material suppliers, and supportive government policies that foster industrial development. Demand is further increased by the growth of the automotive sector in this area, where propylene glycol is utilised in antifreeze and engine coolants. The demand for consumer goods has been fuelled by Asia-Pacific's vast population base and rising disposable income, which has further fuelled the rise of propylene glycol-dependent businesses like food, medicines, and cosmetics. With its extensive industrial environment and growing infrastructural initiatives, Asia-Pacific is now the global leader in propylene glycol.
The global propylene glycol market is highly competitive, with several key players vying for market share through strategic initiatives such as capacity expansions, partnerships, and innovations. Major companies like Dow Chemical, BASF SE, LyondellBasell, and Huntsman Corporation dominate the industry due to their large-scale production capabilities, extensive distribution networks, and diversified product portfolios. These firms benefit from vertical integration, enabling them to secure a consistent supply of raw materials like propylene oxide, a critical input for propylene glycol production. Technological developments also fuel competition as producers look to reduce costs and increase production efficiency. Environmental concerns have also drawn more attention to bio-based propylene glycol, and businesses are investing in sustainable production techniques to meet the growing demand for environmentally friendly substitutes.
India is the fastest-growing construction industry, globally. With an impressive 7-8% growth rate annually, India is expected to become the third-largest construction market in the world, valued at USD 1.4 trillion by 2025. It is the fastest-growing construction industry, globally. With an impressive 7-8% growth rate annually, India is expected to become the third-largest construction market in the world, valued at USD 1.4 trillion by 2025.
The construction sector in Europe, which has proved more resilient than other sectors in previous economic downturns, is expected to contract by 2.3% in 2024.
In 2021 North America accounted for 49.1% of world pharmaceutical sales compared with 23.4% for Europe. 64.4% of sales of new medicines launched during the period 2016-2021 were on the US market, compared with 16.8% on the European market (top 5 markets)
The food processing industry is one of the mainstays of the global economy with a value addition of USD 1.7 trillion (2019E). United States of America (USA), China, Germany, Netherlands and Japan are the top markets for the global processed food industry.
The Indian food processing market is expected to double from USD 263 billion (2019-20) to USD 535 billion (2025). India is the world’s fourteen largest exporter of food products with a 2.6 per cent share in global exports (2010) and growing at a CAGR of 2.6 per cent during 2015-2019.
Growing shift toward Bio-based Propylene Glycol Production
The growing trend in the worldwide propylene glycol business is the manufacture of propylene glycol based on biofuels. Producers are concentrating on creating environmentally friendly substitutes for conventional propylene glycol, which is derived from petrochemicals, as sustainability rises to the top of the global industry priority list. Propylene glycol that is bio-based is made from renewable resources like glycerin, which lessens its impact on the environment and dependency on fossil fuels. With strong environmental laws in places like Europe and North America encouraging businesses to lessen their carbon impact, this trend is picking up steam.
Another significant trend is growing demand in high-growth sectors like automotive, construction, pharmaceuticals, and food & beverages. The increasing use of propylene glycol in products such as coolants, antifreeze, resins, and personal care items is driving demand, especially in rapidly industrializing regions like Asia-Pacific. This trend is fuelled by expanding infrastructure projects and rising consumer spending in these markets.
Increasing Demand from the end use industries
One major factor propelling propylene glycol's global industry growth is the increasing demand for it from a variety of end-use industries. Propylene glycol is an essential component of coolants and antifreeze solutions in the automotive industry. It is essential for automotive maintenance because of its capacity to control engine temperatures and keep vehicles from freezing, particularly in areas with harsh weather. Furthermore, the growing popularity of electric vehicles (EVs) is increasing the demand for propylene glycol in sophisticated coolant applications due to the necessity for efficient thermal management systems
Furthermore, in the Construction industry propylene glycol plays an important role in the production of resins, adhesives, and paints. Because of its versatility as a solvent and its moisture-retaining properties make it a preferred component in construction materials that require durability and flexibility such as coatings, sealants, and insulation products.
Fluctuation in the price of raw materials
There are several significant obstacles facing the propylene glycol business that might hinder its growth. The pricing fluctuations of raw materials, especially propylene oxide (produced from petroleum) are one of the main problems. The cost of producing propylene glycol derived from petroleum is directly impacted by the price volatility of crude oil, which poses a risk to downstream businesses and manufacturers. These swings can lead to higher operating expenses and worse profitability, especially for businesses that depend on propylene glycol manufactured from petroleum.
Another significant restraint is the environmental and health concerns associated with synthetic chemicals. Although propylene glycol is generally considered safe, growing consumer and regulatory pressure for eco-friendly, non-toxic alternatives is driving a shift toward bio-based chemicals. This shift poses a challenge to petroleum-based propylene glycol producers, as the adoption of bio-based alternatives increases, potentially reducing their market share.
The report includes Global & Regional market status and outlook for 2017-2028. Further, the report provides break down details about each region & countries covered in the report. Identifying its sales, sales volume & revenue forecast. With detailed analysis by Source, Grade and Application. The report also covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price, and Gross Margin 2017-2028 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.
