The Propylene Glycol Market Size was valued at USD 4.20 Billion in 2022. The Propylene Glycol industry is projected to grow from USD 4.84 Billion in 2023 to USD 6.54 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.30% during the forecast period (2023 - 2030). 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
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.
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.
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.
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.
LyondellBasell Industries Holdings B.V. (Netherlands)
BASF SE (Germany)
Archer Daniels Midland Company (US)
Bio-chem Technology Group Company Limited (China)
ADEKA CORPORATION (Japan)
Chaoyang Chemicals, Inc. (US)
Huntsman International LLC. (US)
DowDuPont Inc. (US)
Manali Petrochemicals Limited (India)
HaiKe Chemical Group (China)
Propylene Glycol Industry Developments
LyondellBasell Industries, a multinational chemical company headquartered in the Netherlands, plans to shut down its Houston refinery by the end of 2023. The decision has been made to reduce carbon dioxide emissions and focus the company on petrochemicals and plastics. The century-old refinery can process 268,000 barrels of heavy, high-sulfur crude oil per day into fuels, chemical feedstocks, and aromatics. The company is also launching circularity initiatives in the field of plastic waste.
Two researchers from the University of Illinois at Chicago (UIC) have developed a longer-lasting alternative to conventional de-icers. They've developed a diverse family of over 80 ice-resistant bio-friendly coatings. To protect the metal surface, de-icing fluids are typically ethylene or propylene glycol-based fluids containing water, corrosion inhibitors, wetting agents, and dye. The new anti-freezing coatings, which are available in mixtures, non-aqueous emulsions-creams, and gels, are designed to withstand take-off shear forces and are also bio-friendly if washed into waterways.
Pharmaceutical
Industrial
Bio-Based
Petroleum-Based
Food & Beverage
Automotive
Personal Care & Cosmetics
Chemical
Pharmaceutical
Construction
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 4.20 Billion |
| Market Size 2023 | USD 4.84 Billion |
| Market Size 2030 | USD 6.54 Billion |
| Compound Annual Growth Rate (CAGR) | 4.30% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019-2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Grade, Source, End-use, and Region |
| Geographies Covered | North America, Europe, Asia-Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | LyondellBasell Industries Holdings B.V. (Netherlands), BASF SE (Germany), Archer Daniels Midland Company (US), Bio-chem Technology Group Company Limited (China), ADEKA CORPORATION (Japan), Chaoyang Chemicals, Inc. (US), Huntsman International LLC. (US), DowDuPont Inc. (US), Manali Petrochemicals Limited (India), and HaiKe Chemical Group (China) |
| Key Market Opportunities | Introduction of bio-based propylene glycol. |
| Key Market Dynamics | Changing lifestyles in both developed & developing regions. Strong automotive industry in China & Germany. |
Frequently Asked Questions (FAQ) :
The Propylene Glycol market size was valued at USD 4.20 Billion in 2022.
The propylene glycol market is projected to grow at a CAGR of 4.30% during the forecast period, 2023-2030.
Asia Pacific had the largest share of the Propylene Glycol market.
The key players in the market are LyondellBasell Industries Holdings B.V. (Netherlands), BASF SE (Germany), Archer Daniels Midland Company (US), Bio-chem Technology Group Company Limited (China), ADEKA CORPORATION (Japan), Chaoyang Chemicals, Inc. (US), Huntsman International LLC. (US), DowDuPont Inc. (US), Manali Petrochemicals Limited (India), and HaiKe Chemical Group (China)
The Pharmaceutical categories dominated the market in 2023.
Petroleum-Based had the largest share in the market for Propylene Glycol.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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