Propylene Glycol Market

Market Overview:

The global propylene glycol market size reached USD 4.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 6.3 Million by 2033, exhibiting a growth rate (CAGR) of 4.02% during 2025-2033. Asia Pacific represents the largest region owing to the increase in manufacturing activities, creating a higher demand for propylene glycol in various industrial applications such as chemicals and construction. Moreover, 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.

Market Size & Forecasts:

• Propylene glycol market was valued at USD 4.5 Million in 2024.
• The market is projected to reach USD 6.3 Million by 2033, at a CAGR of 4.02% from 2025-2033.

Dominant Segments:

• Source: Petroleum-based represents the largest segment driven by their cost-effectiveness and established production infrastructure.
• Application: Unsaturated polyester resins dominate the market as they are improving the mechanical strength and durability of resins and enhancing product performance in applications like fiberglass reinforcement, marine construction, and automotive parts.
• End Use Industry: Transportation accounts for the majority of the market share driven by its essential role as an antifreeze and coolant in automotive and aircraft systems.
• Region: Asia Pacific leads the market driven by the rise in production activities, resulting in an increased demand for propylene glycol across multiple industrial uses including chemicals, automotive, and construction. 

 Key Players:

• The leading companies 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. etc.

Key Drivers of Market Growth:

• Increased Demand in End-Use Markets: Food and beverages (F&B), pharmaceutical, cosmetics, and automotive industries are constantly expanding their usage of propylene glycol because of the multipurpose nature of propylene glycol as a solvent, humectant, and preservative.
• Increasing Pharmaceutical Uses: The pharmaceutical industry is steadily using propylene glycol as an active ingredient carrier, primarily in oral, injectable, and topical forms, thus creating steady demand in the market.
• Growing Application of Bio-Based Alternatives: The growing shift towards greener chemicals is spurring the creation and utilization of bio-based propylene glycol and supporting the international quest for diminishing dependency upon petrochemical derivatives.
• Growing Market from Automotive Applications: The automotive sector is increasingly using propylene glycol in antifreeze and de-icing formulations, especially in areas with extreme weather conditions.
• Regulatory Support and Safety Profile: Regulatory authorities are further supporting the market as a food and pharmaceutical additive, solidifying its status as an approved and safe additive in diverse consumer products.

Future Outlook:

• Strong Growth Outlook: The market for propylene glycol is sustaining its upward growth trend driven by steady demand from major end-use applications and growing adoption of environmentally friendly manufacturing processes.
• Market Evolution: The sector is progressively developing with new applications on the horizon in industrial, personal care, and consumer product markets, making way for broadened market penetration and regional expansion.

The global market for propylene glycol is growing steadily, driven by changing industry requirements, legislation, and intense emphasis on sustainability. Technology advancements in continuous process improvements are streamlining production costs and enhancing the yield and purity of propylene glycol. Advancements in glycerol hydrogenolysis and fermentation-based manufacturing are attracting attention as cost-efficient and environment friendly options compared to conventional petrochemical processes. Digitalization and automation are also maximizing production facility operational efficiency, facilitating real-time quality checking, monitoring, and waste minimization. These technologies are making it more scalable and cost-effective to produce both traditional and bio-based propylene glycol, supporting the market growth.

Propylene Glycol Market Trends:

Growing Demand in Pharmaceuticals and Personal Care Units

The propylene glycol market is witnessing continued growth with rising demand coming from the pharmaceutical and personal care industries. Propylene glycol is serving as an important solvent and carrier in oral, injectable, and topical drug systems in pharmaceuticals. Due to its solubility and stability-improving capabilities, it is becoming a must in contemporary drug delivery systems. At the same time, the industry of personal care is adding propylene glycol to skin care products, cosmetics, and hygiene products because it moisturizes and is skin-friendly. Businesses are continually making creams, lotions, shampoos, and makeup with propylene glycol to add texture and longevity. The demand is moving toward products containing validated safety profiles and performance, further rising dependency on this compound. Regulatory authorities are still allowing its use in cosmetics and pharmaceutical preparations, catalyzing its demand. As personal health and healthcare continue to be the top global concerns, this aspect is significantly improving the propylene glycol market price. IMARC Group predicts that the global pharmaceutical drug delivery market is anticipated to reach USD 2,205.5 Billion by 2033.

Growth of Automotive and Industrial Uses

The propylene glycol market is experiencing rapid growth owing to the increased usage in automotive and industrial uses. In the automobile industry, propylene glycol is being used by manufacturers in antifreeze and coolant formulations, where its low toxicity and high heat capacity are providing better performance. For instance, in 2025, Arteco, a firm typically centered on automotive cooling technologies, revealed its foray into the data centre industry with the introduction of ZITREC EC, a fresh series of direct-to-chip liquid coolants designed for high-performance computing settings. The ZITREC EC collection features mono propylene glycol (MPG), mono ethylene glycol (MEG), and water-based formulations, all utilizing organic additive technology (OAT) to improve corrosion resistance and thermal stability. The liquids are meant for application in cooling systems that utilize cold plates, transferring heat directly from chips to liquid coolants. Moreover, in industrial applications, propylene glycol is used as a major raw material for the manufacture of unsaturated polyester resins, which are used extensively in construction, marine, and electrical applications. These resins are supporting the production of pipes, tanks, and panels and are on the rise in accordance with infrastructure as well as renewable energy projects.

Bio-Based and Sustainable Alternative Shift

As per the propylene glycol market analysis, the revolutionary shift towards bio-based and environment friendly alternatives is bolstering the market growth. Producers are increasingly making propylene glycol from renewable feedstocks like glycerin, sorbitol, and corn starch rather than conventional petrochemical feedstocks. This shift is harmonizing with global sustainability objectives and regulatory guidelines for minimizing carbon emissions and chemical toxicity. End-use industries and consumers alike are increasingly exhibiting preference for green chemicals that provide less environmental strain without sacrificing performance. Bio-based propylene glycol is offering equivalent solubility and viscosity characteristics with the added advantage of a reduced ecological impact. Governments and industries are adopting sustainability standards, and this is forcing suppliers to reinvent their processes accordingly. As tighter environmental regulations take hold and green thinking pervades industries, the trend is gaining rapid traction. Manufacturers are riding the wave by investing in research and increasing bio-based production capacity. In 2024, Dow announced the introduction of two new sustainable types of propylene glycol (PG) solutions in North America that utilize biocircular and circular feedstocks.

Propylene Glycol Market Growth Drivers:

Regulatory Approvals and Product Safety Clearance

The market for propylene glycol is driven by robust regulatory approval and a positive safety profile in diverse uses. Regulators like the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), and other similar international regulatory agencies are keeping propylene glycol as a Generally Recognized As Safe (GRAS) substance. These certifications are facilitating its use on a mass scale in the pharmaceutical industry, food products, and cosmetics, for which safety is a major concern for people. Manufacturers are taking recourse to these approvals for increasing product formulations without having to go through extensive reformulation or re-approval procedures. This regulatory support is also establishing individuals and business confidence, promoting more widespread use of propylene glycol in traditional and new markets. Concurrently, ongoing research and adherence to global safety standards are also establishing the market viability of the compound.

Technological Developments in Manufacturing Techniques

Technological advancements are taking center stage in promoting the propylene glycol industry through enhanced manufacturing efficiency and sustainability. Advancements in chemical engineering are facilitating the manufacturing of propylene glycol through environmentally friendly means like hydrogenolysis of glycerin and fermentation-based routes. Such processes are lowering dependence on petroleum derivatives as raw materials and decreasing greenhouse gas emissions. Digitalization and automation are also improving real-time monitoring of processes, minimizing the use of resources, and maintaining product quality. Manufacturers are increasingly implementing integrated production systems that minimize waste, conserve energy, and simplify supply chains. All these are making traditional as well as bio-based propylene glycol production cheaper and scalable. On top of all this, ongoing R&D activities are aimed at enhancing product purity and broadening application flexibility.

Rising Consumption in the F&B Industry

The market for propylene glycol is witnessing steady growth on account of rising application in the F&B industry. This ingredient is serving as an additive, emulsifier, and moisture retention agent in a vast majority of processed foods and beverages. Food companies are turning to propylene glycol to stabilize the flavor, extend shelf life, and enhance the texture of baked goods, dairy foods, and soft drinks. Its ability to absorb water helps ensure product freshness and quality over a long period of time, which is important for customer satisfaction and product quality. With the shifting food consumption patterns and preferences and expanding demand for ready-to-eat and packaged foods, the category for food-grade additives is expanding rapidly. Regulatory sanctions for its application for consumption by food are driving wider application in global markets. Additionally, as food companies focus on delivering safer, more transparent, and better-quality products that live up to user standards, propylene glycol remains an attractive ingredient because of its functionality, compliance with regulations, and established history in food safety.

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 2025-2033. 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:

• July 2025: Manali Petrochemicals Ltd launched its enlarged Propylene Glycol facility here, emphasizing its dedication to the Centre's 'Make in India' initiative, remarked a senior executive. This expansion will boost production capacity by 50,000 kilotonnes per year (KTPA), on top of the current 22,000 KTPA.
• May 2025: Dow declared the commencement of its propylene glycol (PG) capacity expansion at its integrated production facility located in Map Ta Phut, Rayong, Thailand. The modest capital intensity, enhanced return, and incremental investment boost propylene glycol capacity by 80,000 tons annually, raising the total production to 250,000 tons each year, positioning the Dow Map Ta Phut PG manufacturing facility as the largest in Asia Pacific.
• April 2025: Borouge, a prominent petrochemicals firm offering unique and innovative polyolefins solutions, revealed a set of strategic projects for asset expansion aimed at boosting its growth, generating between $165 million and $200 million in EBITDA each year. The firm has granted two crucial contracts intended to enhance the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5).
• March 2025: LyondellBasell announced an investment to increase propylene production capacity at its Channelview Complex close to Houston. Excavation and building are anticipated to commence in the third quarter of 2025, with an estimated launch in late 2028. The facility is expected to produce around 400 thousand metric tons of propylene each year, hire 750 workers at the height of construction, and create 25 permanent positions.
• November 2024: Clariant is increasing its storage capability in Scandinavia for recycled mono propylene glycol (MPG), utilized in its de-icing fluids for aircraft. At the company’s Uddevalla facility in Sweden, two new storage tanks and a truck unloading station have been added to enhance capacity and improve product handling.
• 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.

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 2019-2033.
• 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.