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Propylene Glycol Market

Propylene Glycol Market

Propylene Glycol Market Analysis by Source (Petroleum, Bio-Based), by Type (Industrial Grade, Food Grade, Pharma Grade), by Primary Function (Emollients, Solvents, Stabilizing Agents, Preservative Agents, Humectants, Excipients), by End-use & by Region- Global Forecast 2022-2032

Propylene Glycol Market
FACT4175MR

Propylene Glycol Industry Outlook (2022-2032)

The global Propylene Glycol market is likely to be valued at US$ 4.3 Billion in FY 2022, up from US$ 4.13 Billion in 2021.

During the past year, the industry registered a Y-o-Y increase worth 4.1%. From 2022 to 2032, propylene glycol sales are poised to flourish at a CAGR of 4.2% to reach a value of US$ 6.5 Billion by the end of 2032.

Report Attributes Details

Anticipated Base Year Value (2021)

US$ 4.13 Billion

Expected Market Value (2022)

US$ 4.3 Billion

Projected Forecast Value (2032)

US$ 6.5 Billion

Global Growth Rate (2022-2032)

4.2% CAGR

Growth Rate of the U.S Market (2022-2032)

4.3% CAGR

Expected Market Value of China (2032)

US$ 2.4 Billion

U.K Market Expansion Rate (2022-2032)

3.8% CAGR

Key Companies Profiled

  • Dow
  • BASF SE
  • Sumitomo Chemical Co. Ltd.
  • Exxon Mobil Corporation
  • INEOS
  • LyondellBasell Industries Holdings B.V.
  • SABIC
  • Asahi Kasei Corporation,
  • China Petrochemical Corporation,
  • Chevron Phillips Chemical Company,
  • Manali Petrochemical
  • AGC Chemicals,
  • Royal Dutch Shell,
  • Oleon NV

Demand for Biobased Propylene Glycol will continue to thrive, with a documented CAGR of 6% during the 2015-2021 historical period of assessment, while demand for propylene glycol in chemical intermediaries proliferated at a rate of 5% during the same period.

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2015 to 2021 Propylene Glycol Market Revenue Analysis vs. Market Outlook 2022-2032

Fact.MR has predicted the propylene glycol market to surge at a 4.2% CAGR between 2022 and 2032 in comparison to the 4.3% CAGR throughout the historic period. The rising trend of electric vehicles and the robust strength of black propylene glycol are considered the prominent Propylene Glycol market drivers across the globe.

Manufacturers are making specific innovations in improving the quality of materials and are adopting propylene glycol in the countless end-use industries, thereby boosting the demand across the world.

Key Drivers Stimulating Propylene Glycol Industry Expansion

Unsaturated Polyester Resins (UPRs) to Stoke the Market for Propylene Glycol

The increasing demand for propylene glycol in food processing and pharmaceutical industries are essential factors expected to foster development in the approaching era of the worldwide market for propylene glycol.

In addition, the use of propylene glycol, abbreviated (PG), in the production of unsaturated polyester resins (UPRs), which are heavily consumed in the building, transportation, and marine sectors will also boost the development of the market for propylene glycol over the forecast period.

Propylene glycol is also used extensively in the manufacture of unsaturated polyester resins strengthened with fiberglass used in construction panels, bathroom parts, fittings, corrosion-resistant tanks, and recreational vehicles. In addition, the use of propylene glycol as the major component in engine coolants, deicing liquids, antifreeze, and creation of base fluids for aircraft deicing formulations and food industry coolants will boost the worldwide market.

Propylene glycol market forecast by Fact.MR

Key Challenges to Propylene Glycol Industry Expansion

Government Imposed Regulations to Dim Growth Prospects

Imposed regulations on the proper use of propylene glycol are expected to slow the market growth. These regulations are intended to safeguard natural resources against future adverse effects on the environment. Propylene glycol is generally regarded as safe for use in drugs and food products, but many cases have been reported of toxicity by the absorption of products containing propylene glycol.

Cases of dermatitis, hyper-osmolality, central nervous system problems, lactic acidosis, and hemolysis have been reported after circulatory administration. Increasing health consciousness among the consumers might hamper the growth of the propylene glycol market. These factors might affect the global market of propylene glycol in the coming years.

Propylene Glycol’s High Toxicity Could Hamper Market Growth

According to the study, the rapid utilization of propylene glycol is known to pose several occupational health hazards. Although Propylene glycol has been approved for use at certain levels in food and cosmetics according to the Food and Drug Administration (FDA), the widespread utilization of propylene glycol in industries is still regarded as harmful. This factor is expected to hinder the market growth during the forecast period.

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Country-wise Analysis

How Opportunistic are Growth Prospects across the U.S Market?

Enhanced Production Capacity of U.S gives it Leverage

The production of specialty chemicals will receive gains from end-use applications such as fragrances, oilfield chemicals, coatings, electronic chemicals, adhesives, flavors and cosmetic chemicals The surge in the demand for specialty chemicals will also remain sustained, on account of the growth in industrial and construction activities in the future.

Therefore, the U.S. remains a key country for the growth of leading manufacturers in the chemical industry, and its further benefits from the increasing production of bio-based propylene glycol in the country. Fact.MR forecasted that the demand for the propylene glycol is expected to flourish at a CAGR of 4.3% throughout the conjecture period, estimated at nearly US$ 2.5 Billion in 2021 and is likely to exceed US$ 4 Billion by 2032 end.

Why are Propylene Glycol Providers Venturing into Asia Pacific Region?

East Asia to be the Epicenter for Lucrative Opportunities in Global Propylene Glycol Market

Asia Pacific region is likely to lead the Propylene market throughout the forecast period, backed by the thriving Construction, Packaging, Automobile as well as Textile sectors in the region. Besides, China, being the leading maker of textile electronics plastics, among others, is expected to stay at the forefront of the propylene market in the upcoming future.

The global propylene glycol market is shifting to China and other Asian nations with continued high risk for consolidation and rationalization, which has affected numerous small and medium-scale competitors. Fact.MR’s latest analytical report summarizes the APAC propylene glycol market is anticipated to expand at a 4.3% CAGR to reach US$ 2.4 Billion by the end of the forecast period. Historically, the market evaluated nearly US$ 1.5 Billion in 2021.

Country-wise Value CAGRs for Propylene Glycol (2022-2032)

U.S

4.3%

U.K

3.8%

China

4.3%

Japan

4%

South Korea

4.1%

Category-wise Insights

Which Source Type is Most Preferred in the Propylene Glycol Market?

Bio-Based Propylene Glycol to Be the Newest Median for Attractive Growth Prospects

Due to its significant implementation in the transport and construction sectors, the petroleum-based segment dominates the worldwide propylene glycol market, with over 80% market share in 2022.

Due to eco-friendly production techniques, decreased reliance on petrochemical feedstock, and decreased greenhouse gas emissions, the bio-based segment will be the fastest-growing segment compared to petroleum based during the forecast period.

In addition, higher demand for bio-based techniques and uses of renewable products in different industries will increase the market for bio-based propylene glycol over the forecast period. Fact.MR forecast report reveals that foresaid segment is estimated to grow at an annual growth rate of nearly 6% during the assessment period.

By Application, which Category is expected to Dominate?

Chemical Intermediaries Account for Around 2/3rd Market Share within the End-Use Distribution

Based on application, the chemical intermediary and cosmetics & personal care segment is anticipated to remain the most lucrative segments in the global propylene glycol market attributed to increased consumer awareness and improved living norms combined with disposable incomes. Chemical intermediaries will likely comprise 66% of global market revenue.

In addition, the millennial consumer’s preference for valuable cosmetic products and enriched demand for propylene glycol-based medicine in the forecast period will increase the demand for propylene glycol in the chemical intermediaries and cosmetic sectors.

The market for liquid detergents will drive the production of dishwashing detergents, household liquid, industrial soaps, and cleaning fluids due to which the expanded production of propylene glycol becomes crucial.

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Competitive Landscape

Prominent Propylene Glycol providers are reliant on partnerships, collaborations, acquisitions, and new software launches to stay afloat in the global market. Constant innovations to ensure a seamless client-customer relationship are the main focus of prominent market players.

  • In October 2020, Dow and Evonik entered into an exclusive technology partnership. Together, they plan to bring a unique method for directly synthesizing propylene glycol (PG) from propylene and hydrogen peroxide to market maturity.
  • In August 2021, BASF and SINOPEC further expanded their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC), a 50-50 joint venture of both companies in Nanjing, China. It includes the capacity expansion of several downstream chemical plants, including a new tert-butyl acrylate plant to support the growing Chinese market.

Key Segments Covered in the Propylene Glycol Industry Survey

  • Propylene Glycol Market by Source :

    • Petroleum Propylene Glycol
    • Bio-Based Propylene Glycol
  • Propylene Glycol Market by Type :

    • Industrial Grade Propylene Glycol
    • Food Grade Propylene Glycol
    • Pharma Grade Propylene Glycol
  • Propylene Glycol Market by End Use :

    • Chemical Intermediary (Unsaturated Polyester Resins, Functional Fluids & Antifreezes)
    • Cosmetic and Personal Care Products
    • Consumer Goods (Liquid Detergents)
    • Food
    • Pharmaceuticals
  • Propylene Glycol Market by Primary Function :

    • Propylene Glycol as Emollients (Softener)
    • Propylene Glycol as Solvents
    • Propylene Glycol as Stabilizing Agents
    • Propylene Glycol as Preservative Agents
    • Propylene Glycol as Humectants (Binding Agent)
    • Propylene Glycol as Excipients (Bulking Agent)
    • Others
  • Propylene Glycol Market by Region :

    • North America 
    • Latin America 
    • Europe
    • Asia Pacific
    • The Middle East & Africa 

- FAQs -

As of 2021, Fact.MR estimated the Propylene Glycol market to have reached US$ 4.13 Billion
By 2022, Fact.MR expected demand for Propylene Glycol to reach US$ 4.3 Billion
From 2015-to 2021, the Propylene Glycol market grew at a 4.3% value CAGR
From 2022 to 2032, propylene glycol demand is likely to surge at a 4.2% CAGR
By 2032, the market for propylene glycol is likely to be valued at US$ 6.5 Billion
By 2032, Fact.MR expects the U.S market for propylene glycol to reach US$ 3.5 Billion
China is expected to register a 4.3% CAGR in the propylene glycol industry
South Korea and Japan are expected to document CAGRs worth 4% and 4.1% respectively in the Propylene Glycol market
Biobased Propylene Glycol will be maximum, expanding at a 6.4% CAGR
Propylene Glycol in chemical intermediary will remain most preferred, accumulating 66% market revenue

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