Propylene Glycol Market

Market Overview:

The global propylene glycol market size reached US$ 4.3 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 6.1 Million by 2032, exhibiting a growth rate (CAGR) of 3.3% during 2024-2032. The escalating demand across the food and beverages, pharmaceuticals, and personal care industries, the rise in consumer awareness for health and hygiene, surging demand for eco-friendly solutions, rapid technological innovations, and growing end-use industries are factors shaping the market's trajectory.

Propylene Glycol Market Analysis:

• Major Market Drivers: The increasing demand for propylene glycol in diverse applications such as food and beverages, pharmaceuticals, and personal care products represents one of the major drivers of the market. This is further supported by the expanding automotive and aviation sectors which are driving the demand for antifreeze and de-icing solutions.
• Key Market Trends: The rise in consumer wariness about health and hygiene fuels a demand for personal care and cosmetic products which represents one of the key trends in the market. The growing pharmaceutical industry necessitates the use of propylene glycol in drug formulations, contributing to the market expansion. The strict regulations and environmental concerns promote the use of eco-friendly solutions, thus boosting the market growth.
• Geographical Trends: Asia Pacific accounted for the largest region in the propylene glycol market growth. This is primarily attributed to the rapid urbanization and industrialization which are driving the market in the region. This is further leading to an increase in manufacturing activities, creating a higher demand for propylene glycol in various industrial applications such as chemicals, automotive, and construction.
• Competitive Landscape: Some of the major market players in the propylene glycol industry include Archer-Daniels-Midland Company, BASF SE, DuPont de Nemours Inc., Global Bio-chem Technology Group Company Limited, INEOS Group Limited, LyondellBasell Industries N.V., Shell Plc, SK Picglobal, Dow Inc., among many others.
• Challenges and Opportunities: The market faces previous challenges such as strict environmental regulations due to its petrochemical origin and health concerns associated with its use of consumer products which drive with demand for bio-based alternatives. However, the market also faces several opportunities including the rising demand for profiling glycol in industries such as pharmaceuticals, food, and cosmetics and the development of sustainable, bio-based propylene glycol.
   

Propylene Glycol Market Trends:

Increasing product demand for diverse applications

The global propylene glycol market experiences a significant boost from the rising demand across various applications, including food and beverages, pharmaceuticals, and personal care products. For instance, in September 2023, Dow launched a new range of profiling glycol solutions featuring alternative lower carbon, biobased, and circular feedstocks in Europe. The personal care sector relies on propylene glycol for its moisture-retaining characteristics, making it a staple ingredient in lotions, creams, and cosmetics. For example, in April 2023, Pacifica, the vegan, sustainable, clean beauty brand, launched its newest bodyline, Wake Up Beautiful, a line of retinoid and mushroom body products formulated to renew skin for a fresh appearance.

Expanding automotive and aviation sectors

The propylene glycol market is driven by the burgeoning automotive and aviation sectors, where its role as an antifreeze and de-icing agent is crucial. As temperatures drop during winter months, the need for efficient antifreeze solutions to prevent engine coolant from freezing becomes paramount. For instance, in April 2024, S-CCI India Pvt Ltd, manufacturer of the Golden Cruise range of coolants, brake fluids, windshield washer fluids, and other specialty chemicals introduced EXTREME Long Life antifreeze coolant. In the aviation industry, propylene glycol-based de-icing fluids are applied to aircraft surfaces, ensuring safe takeoffs and landings by removing ice and snow accumulation. This reliability and effectiveness have led to increased adoption, particularly in regions with harsh winter climates. According to IBEF, in 2023, scheduled airline operators added 112 aircraft to their fleet, totaling 771 aircraft by December 31, 2023. New aircraft inductions aim to meet increasing air transport demand. This is further influencing the propylene glycol market revenue.

Rising demand for cosmetics and personal care products

The extensive demand for propylene glycol such as creams, moisturizers, and lotions to attract and retain moisture in the skin is contributing to the growth of the market. Propylene glycol is also found in healthcare products, deodorants, and toiletries for its moisturizing and solvent properties driving its demand. According to the India Brand Equity Foundation (IBEF), the overall cosmetic and personal care market share is expected to grow to US $ 20 billion by 2025 with a compound annual growth rate (CAGR) of 25%. On the other hand, the global cosmetics industry is growing at 4.3% CAGR and will reach US $450 billion by 2025. By 2025, along with this growth, India will constitute 5% of the total cosmetics market and reach the top five global markets in terms of revenue.

Propylene Glycol Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global propylene glycol market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on source, application, and end use industry.

Breakup by Source:

• Petroleum-based
• Bio-based
   

Petroleum-based dominates the market

The report has provided a detailed breakup and analysis of the market based on the source. This includes petroleum-based and bio-based. According to the report, petroleum-based represented the largest segment.

The demand for petroleum-based sources in the propylene glycol market is driven by their cost-effectiveness and established production infrastructure. These sources provide a reliable supply chain and scalability that appeal to large-volume industrial applications. The broad applicability of petroleum-based propylene glycol in industries such as pharmaceuticals, automotive, and food processing, where its chemical stability and solvency are valued further bolsters its demand. In the market, petroleum-based sources primarily involve the use of profiling oxide, which is derived from petroleum products. For instance, in November 2022, LyondellBasell announced the evaluation of the expansion of propylene production capacity at its Channelview Complex near Houston, TX. The potential expansion would involve building a new propylene facility using LyondellBasell’s existing technology to convert ethylene into propylene for use in the production of polypropylene and propylene oxide.

Breakup by Application:

• Unsaturated Polyester Resins
• Antifreeze and Functional Fluids
• Food, Drug, and Cosmetics
• Liquid Detergent
• Paints and Coatings
• Others
   

Unsaturated polyester resins dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes unsaturated polyester resins, antifreeze and functional fluids, food, drug, and cosmetics, liquid detergent, paints and coatings, and others. According to the report, unsaturated polyester resins represented the largest segment.

The use of propylene glycol in unsaturated polyester resins is increasing as propylene glycol improves the mechanical strength and durability of resins, enhancing product performance in applications like fiberglass reinforcement, marine construction, and automotive parts. The ability of propylene glycol to reduce viscosity and improve handling during the manufacturing process makes it integral to production efficiencies. The excellent compatibility of propylene glycol with various additives and fillers also allows for versatility and enhancement of physical properties significantly boosting its demand in the production of unsaturated polyester resins. For instance, in May 2023, Polynt Group announced to expand resin production capacity with the opening of Polynt Coatings Canada Limited in Port Moody.

Breakup by End Use Industry:

• Transportation
• Building and Construction
• Food and Beverage
• Pharmaceuticals
• Cosmetics and Personal Care
• Others
   

Transportation dominates the market

The report has provided a detailed breakup and analysis of the market based on the end use industry. This includes transportation, building and construction, food and beverage, pharmaceuticals, cosmetics and personal care, and others. According to the report, transportation represented the largest segment.

The demand for propylene glycol in the transportation industry is driven by its essential role as an antifreeze and coolant in automotive and aircraft systems. Its low toxicity and excellent thermal stability help ensure safety and efficiency in vehicle operations even under extreme temperatures. It is also employed as a hydraulic and brake fluid offering reliable performance in critical safety applications. The expansion of the electric vehicle market is boosting interest in propylene glycol for battery cooling solutions to maintain optimal battery temperatures and enhance vehicle performance. According to IEA, electric car markets are seeing exponential growth as sales exceeded 10 million in 2022. The share of electric cars in total sales has more than tripled in three years, from around 4% in 2020 to 14% in 2022.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest propylene glycol market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The market in Asia Pacific is driven by rapid industrialization and growth in key sectors including cosmetics, food and beverage, and pharmaceuticals. According to IBEF, Indian food processing market size reached US$ 307.2 billion in 2022 and is expected to reach US$ 547.3 billion by 2028, exhibiting a growth rate (CAGR) of 9.5% during 2023-2028. According to the data from Invest India, the pharmaceutical industry in India is currently valued at dollars 50 billion. India is a major exporter of pharmaceuticals, with over 200+ countries served by India pharma exports. India supplies over 50% of Africa’s requirement for generics, 40% of generic demand in the US, and 25% of all medicine in the UK. The increasing disposable income is boosting consumer demand for products containing propylene glycol which is driving the market demand across the region. The significant automotive and electronic manufacturing base utilizes propylene glycol in antifreeze, coolants, and as a heat transfer fluid.

Competitive Landscape:

The competitive landscape of the global propylene glycol market is characterized by a dynamic interplay of various factors. Market players strive to differentiate themselves through product innovation, strategic partnerships, and expansions to tap into new markets. Robust research and development activities contribute to the introduction of advanced formulations, catering to the diverse needs of end-use industries. Additionally, the emphasis on sustainable practices and eco-friendly solutions has prompted companies to invest in the development of bio-based propylene glycol, aligning with environmental regulations and consumer preferences. Market participants also engage in strategic collaborations with suppliers, distributors, and manufacturers to ensure efficient supply chain management and reach a wider customer base. As the market evolves, maintaining a balance between technological advancements, regulatory compliance, and customer demands becomes pivotal for players aiming to establish a competitive edge and carve out a significant market share. For Instance, in March 2024, Dow announced the launch of two new sustainable varieties of propylene glycol solutions in North America featuring bio-circular and circular feedstocks.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Archer-Daniels-Midland Company
• BASF SE
• DuPont de Nemours Inc.
• Global Bio-chem Technology Group Company Limited
• INEOS Group Limited
• LyondellBasell Industries N.V.
• Shell Plc
• SK Picglobal
• Dow Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Recent Developments:

• In May 2024, Shell Plc announced that it has decided to sell its refinery and petrochemical assets in Singapore among Indonesian chemicals firm Chandra Asri and Swiss miner and commodities trader Glencore.
• In August 2023, DuPont announced the completion of its previously announced acquisition of Spectrum Plastics Group, a recognized leader in specialty medical devices and components markets.
• In September 2022, INEOS completed its first sales of brand-new propylene glycol n-butyl ethers (PnBs) in Antwerp, following significant investment at its Antwerp site.
• In August 2023, BASF SE announced to increase in the production capacity for its medium-molecular weight polyisobutenes, marketed under the tradename OPPANOL B, by 25%.
• In May 2023, ORLEN Poludnie, a leading player in biofuels in Poland, recently concluded the first year of operation of its BioPG plant, converting glycerol, a byproduct of biodiesel production, into renewable propylene glycol (BioPG).

Propylene Glycol Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the propylene glycol market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global propylene glycol market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the propylene glycol industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.