Propylene Glycol Market

Propylene Glycol Market Outlook (2024 to 2034)

The global propylene glycol market size has been valued at US$ 4.66 billion in 2024, as revealed in the recently updated research study by Fact.MR. Worldwide sales of propylene glycol are analyzed to rise at a CAGR of 4.2% and reach US$ 7.03 billion by the end of 2034.

High consumption of propylene glycol (PG) as an emulsifier and solvent for dissolving ingredients and stabilizing insoluble fluids in a medium is driving its demand worldwide. Expansion of the food & beverage industry is contributing to increased demand for propylene glycol in packaging foods such as cake mixes, dressings, soft drinks, cakes, and bread & dairy products. It also finds application as an anti-caking agent stabilizer, thickener, and texturizer in food products. Increasing consumption of propylene glycol in the pharmaceutical industry as a drug stabilizer and solvent is supporting its demand around the world.

Growth of the transportation and construction industries has resulted in the increasing consumption of propylene glycol in several industrial chemicals, such as automotive coolants cutting fluids, brake fluids, and hydraulics. In addition, increased production of bio-based propylene glycol owing to environmental concerns is also acting as one of the prominent market growth drivers.

Growing use of propylene glycol ether in several applications is attributed to its specific characteristics, such as stability and viscosity. Manufacturers from end-use industries, such as consumer goods, personal care, and pharmaceuticals are focusing on offering products with improved qualities to match consumer-specific requirements, which is also creating opportunities for propylene glycol suppliers due to its pivotal role in these industries as emulsifiers, solvents, and preservatives.

• Global sales of propylene glycol for use in consumer goods are evaluated to rise at a CAGR of 4.1% and reach US$ 2.62 billion by the end of 2034.
• North America is projected to capture 30.8% of the global market share by 2034-end.
• Demand for propylene glycol in Japan is approximated to increase at a CAGR of 3.9% from 2024 to 2034.

Report Attribute	Detail
Propylene Glycol Market Size (2024E)	US$ 4.66 Billion
Forecasted Market Value (2034F)	US$ 7.03 Billion
Global Market Growth Rate (2024 to 2034)	4.2% CAGR
South Korea Market Growth Rate (2024 to 2034)	6.7% CAGR
East Asia Market Share (2034F)	27.1%
Market Share of Bio-based Propylene Glycol (2034F)	74.7%
Key Companies Profiled	Chevron Phillips Chemical Company; Dow; ADEKA CORPORATION; Oleon NV; BASF SE; Royal Dutch Shell; Chaoyang Chemicals, Inc.; Sumitomo Chemical Co. Ltd.; AGC Chemicals; Exxon Mobil Corporation; Manali Petrochemical; China Petrochemical Corporation INEOS; SABIC; LyondellBasell Industries Holdings B.V.; Asahi Kasei Corporation; Huntsman International LLC.

Which Market Trends are Positively Influencing Sales of Propylene Glycol?

“Surging Demand for Unsaturated Polyester Resins (UPRs)”

There is increased demand for propylene glycol in the manufacturing of unsaturated polyester resins, which are consumed heavily in the transportation, marine, and building sectors. Increased use of propylene glycol in UPRs is because of its features to give strength to it. This leads to the increased use of UPRs in bathroom parts, construction panels, fittings, recreational vehicles, and corrosion-resistant tanks.

Propylene glycol also finds application as one of the key components in deicing liquids, engine coolants, and antifreeze. Furthermore, its growing use in creating base fluids for food industry coolants and aircraft deicing formulations is attributed to its colorless and viscous properties.

How is Propylene Glycol Market Size Expansion Being Curtailed?

“Government-Imposed Regulations Diminishing Market Growth Prospects”

Stringent regulations have been imposed by government bodies on the proper utilization of propylene glycol. These regulations intend to safeguard natural resources against any sort of adverse effects on our environment. Although PG has been considered safe for use in food products and drugs, still certain incidents are also reported of toxicity with the consumption of products containing this chemical. Hyper-osmolality, lactic acidosis, central nervous system problems, hemolysis, and dermatitis are some issues, reported due to the consumption of propylene glycol, which are adversely impacting its demand.

What Initiatives are Startups Taking to Capitalize on Market Opportunities?

“Rising Emphasis on Producing Bio-based PG”

With some recently recorded incidences of adverse health impacts of propylene glycol, it is expected that startups should focus more on producing bio-based products, which will help them generate more trust among end users and thereby secure a position for themselves.

Country-wise Insights

According to the updated analysis by Fact.MR, a market research and competitive intelligence provider, North America is evaluated to capture 30.8% share of the global market by 2034-end. The growth of the regional market is largely supported by the expanding residential housing industry, which is driving demand for propylene glycol for its use in HVAC systems or cooling water systems as an anti-freezing chemical.

Why is the United States a Key Market for Propylene Glycol Suppliers?

“Rising Production of Propylene Glycol with Availability of Ample Resources”

Attribute	United States
Market Value (2024E)	US$ 1.05 Billion
Growth Rate (2024 to 2034)	4.5% CAGR
Projected Value (2034F)	US$ 1.62 Billion

The United States is approximated to occupy 74.9% share of the market in North America by the end of 2034. The manufacturing of specialty chemicals, such as propylene glycol, is growing due to their increased use in oilfield chemicals, fragrances, electronic chemicals, coatings, flavors, cosmetic chemicals, and adhesives. Thereby, an increased demand for propylene glycol is owing to expanding construction and industrial activities in the country.

Presence of a well-established infrastructure in the country is also a widening prospect for market growth. Moreover, the growing interest of more manufacturers in producing bio-based products is also positively impacting propylene glycol market trends.

Why are Manufacturers of Propylene Glycol Lining Up in China?

“Presence of Well-established End-use Industries in the Country”

Attribute	China
Market Value (2024E)	US$ 648.8 Million
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 1.1 Billion

China is calculated to account for a share of 57.9% of the East Asian market revenue by 2034. The country is leading in the regional market with the presence of some of the prominent end-use industries, such as packaging, construction, textile, and automobile. Further, China is one of the key producers of textile electronic plastics, which is further stimulating demand for propylene glycol as a cleaning agent and photoresist solvent. It is also used prominently in liquid crystal displays and semiconductor production.

What is Driving Propylene Glycol Market Growth in Japan?

“Flourishing Transportation Industry Key End User”

Attribute	Japan
Market Value (2024E)	US$ 349.7 Million
Growth Rate (2024 to 2034)	3.9% CAGR
Projected Value (2034F)	US$ 510.4 Million

Japan is analyzed to hold 26.8% share of the market in East Asia by 2034-end. The expanding transportation industry in Japan is contributing to the increased demand for propylene glycol as a deicing chemical for aircraft. In addition, it is also used as an additive to windshield washer fluid for automobiles.

Category-wise Insights

According to the Fact.MR report, industrial-grade propylene glycol is becoming a popular choice in the construction sector for the production of building materials. Detergents, plastics, resins, paints & coatings, and others are manufactured with the use of high-purity material, such as industrial-grade propylene glycol.

Why is Bio-based Propylene Glycol Preferred Globally?

“Increasing Popularity of Bio-based PG as Recent Median”

Attribute	Bio-based
Segment Value (2024E)	US$ 3.53 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 5.25 Billion

Bio-based propylene glycol is projected to possess a share of 74.7% of the global market by the end of 2034. The growing demand for bio-based propylene glycol is owing to its decreased greenhouse gas emissions, reduced dependency on petrochemical feedstock, and eco-friendly production techniques compared to petroleum-based PG. Moreover, increasing preference for renewable products is also creating prospects for global market players.

Which End-use Application is Key for Propylene Glycol Producers?

“Growing Preference for Propylene Glycol in Consumer Goods for its Moisture-Locking Features”

Attribute	Consumer Goods
Segment Value (2024E)	US$ 1.75 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 2.62 Billion

Consumer goods are forecasted to contribute 37.3% of the propylene glycol market share by 2034-end. Propylene glycol works effectively in hair-care products and moisturizers by locking their moisture by attracting water from the air. It is used as a humectant in several consumer products, such as creams, shampoos, and other goods.

Competitive Landscape

Key players in the propylene glycol market are focusing on new product development, partnerships, collaborations, and joint ventures to expand their reach globally while enriching their existing portfolio.

For instance :

• Ethos Asset Management Inc., in March 2023, entered into a partnership with GreenGlycols@ Green Glycols B.V. The aim of this partnership is to support a construction facility in Delfzijl, the Netherlands for producing propylene glycol with the use of plant-based feedstock.
• SINOPEC and BASF, in August 2021, expanded their Verbund site, which is operated by BASF-YPC (BASF-YPC Co.). This venture has an equal contribution of both companies in Nanjing, China. The initiative includes the capacity expansion of more downstream chemical plants, such as a new tert-butyl acrylate plant for supporting the expansion of the company in China.

Fact.MR provides detailed information about the price points of key manufacturers of propylene glycol positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of Propylene Glycol Market Research

• By Type :

  • Industrial Grade
  • Food Grade
  • Pharma Grade

• By Source :

  • Petroleum
  • Bio-based

• By Premium Function :

  • Emollients
  • Solvents
  • Stabilizing Agents
  • Preservative Agents
  • Humectants
  • Excipients

• By End Use :

  • Chemical Intermediaries
  • Cosmetics & Personal Care Products
  • Consumer Goods
  • Food
  • Pharmaceuticals

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA