Propanediol Market

Propanediol Market Outlook (2025 to 2035)

The propanediol market is valued at USD 23.06 million in 2025. As per Fact.MR analysis, it will grow at a CAGR of 3.5% and reach USD 33.02 million by 2035.

In 2024, the industry witnessed expansion, reflecting a continued shift toward bio-based alternatives in the personal care and cleaning product sectors. Notably, the North American industry, holding approximately 31% share, saw increased procurement from mid-sized cosmetics brands aiming to reformulate their product lines with greener solvents like 1,3-propanediol. Raw material availability remained stable, but input cost volatility, particularly from corn-derived feedstocks, led to marginal price adjustments.

On the supply side, DuPont Tate & Lyle Bio Products and DSM & Metabolic Explorer continued to dominate, but smaller regional players in Asia gained traction due to competitive pricing and localized sourcing strategies. Regulatory preferences for safer, non-irritating solvents further encouraged the replacement of petroleum-based glycols with PDO in personal care emulsions and gels.

Looking ahead to 2025 and beyond, the industry is poised to maintain its 3.5% CAGR, driven by sustained demand in formulation-sensitive applications such as skin creams, baby care, and eco-labeled household cleaners. Growth will also be sustained by brand transparency trends and clean-label innovations, especially in Europe and APAC, where consumer demand for plant-derived multifunctional ingredients is accelerating.

Key Metrics

Metrics	Values
Industry Size (2025E)	USD 23.06 million
Industry Value (2035F)	USD 33.02 million
Value-based CAGR (2025 to 2035)	3.5%

Fact.MR Survey Findings: Industry Trends through Stakeholders’ Perspective

A recent Fact.MR survey of 500 industry stakeholders identifies common concerns and varying regional tendencies influencing the industry prospects. Supply chain consistency (79%) and feedstock reliability (71%) are seen to be the most important by stakeholders across all regions, with stakeholders stressing consistent sourcing of bio-based feedstocks.

USA players focus on formulation flexibility and regulatory-friendly profiles, especially in personal care and cosmetics applications (65%). Demand for non-irritating, biodegradable glycols is pushing mid-sized players to reformulate. Sustainability is top-of-mind in Western Europe as well-88% prioritize low-carbon, natural plant-derived PDO, with 72% strong agreement with clean-label certifications and REACH compliance.

Japan and South Korea prefer cost-effective, multi-functional ingredients that simplify formulation. Japanese stakeholders are investing in high-end bio-derived PDO variants in only 27% of cases because cost-benefit results are uncertain. Instead, price sensitivity and space-saving in formulations are prioritized.

Raw material trends mirror worldwide trends: corn-sugar-based PDO prevails (68%), and glycerol-based PDO gains acceptance in Europe. The main issues are volatile input pricing (83%) and batch-to-batch consistency, particularly for high-purity applications.

USA producers name R&D skill shortages, whereas European producers mention green labeling holdups. Distributors and end-users in the Asia region name supply flexibility and narrow import windows as difficulties. Future investments show these trends: American companies' bias toward biotech capabilities, the EU looks towards incorporating circular bio-economy, and Asia invests in efficient yield synthesis routes to reduce prices.

Compliance demands remain highest within Europe, while industries in Asia function with fairly loosened up compliance frameworks.Fact.MR Survey Results: Industry Dynamics Based on Stakeholder Perspectives Industry.

Government Regulations on the Propanediol Industry

Country/Region	Regulatory & Policy Impact
USA	FDA oversight applies to products used in personal care and food-contact applications. EPA Safer Choice Program encourages the use of PDO in green formulations. Must comply with TSCA (Toxic Substances Control Act). No mandatory certification, but NSF and USDA BioPreferred labels enhance marketability. (Source: EPA)
Western Europe	Governed by the REACH regulation, requiring registration and evaluation of chemical substances, including PDO. Ecolabel and Cosmos/Ecocert certifications are critical for cosmetic-grade PDO. CLP Regulation mandates clear labeling of PDO in mixtures. PDO derived from bio-based sources gains regulatory preference.
Japan	Regulated under the Pharmaceutical and Medical Device Act (PMDA) for cosmetic applications. JIS standards are applicable for industrial PDO uses. No mandatory certifications, but adherence to quasi-drug ingredient safety norms is essential. Importers must meet Japanese customs chemical declarations.
South Korea	Regulated by K-REACH, mirroring EU REACH for chemical registration. PDO must meet MFDS standards for use in cosmetics. Low Hazard Substance certification is required for some PDO applications. Environmental labeling is encouraged under the K-Ecolabel program.
China	Governed by MEE’s China REACH (MEP Order No.7) for chemical registration. Cosmetic-grade PDO must comply with NMPA requirements. Increasing pressure on manufacturers to provide safety dossiers and toxicology data. Certification through China Environmental Labeling is optional but favorable.

Market Analysis

The industry is on a steady upward trajectory, driven primarily by rising demand for bio-based, skin-safe ingredients in personal care and cosmetic formulations. Sustainability regulations in Europe and clean-label consumer preferences in the USA are accelerating the shift toward plant-derived PDO variants. Manufacturers focused on high-purity, eco-certified production stand to gain, while those reliant on petrochemical routes or lacking compliance infrastructure may fall behind.

Top Strategic Imperatives, Risk Assessment, and Watchlist for Stakeholders

To navigate evolving industry demands and regulatory landscapes, stakeholders must prioritize three strategic imperatives. Accelerating bio-based integration is critical, investing in scaling plant-derived ingredient production to meet rising demand, especially in personal care and cosmetics, while emphasizing certifications like USDA BioPreferred, COSMOS, and Ecocert to enhance industry positioning.

Additionally, stakeholders must proactively manage changing regulatory environments by strengthening compliance infrastructure aligned with REACH (EU), K-REACH (Korea), and FDA/TSCA (USA) regulations. Aligning R&D and marketing strategies with clean-label trends will help meet evolving customer and regional requirements.

Ongoing, enhancing regional supply and innovation hubs is key. This involves forming strategic partnerships and co-investment opportunities, particularly in Asia and Western Europe, where regulatory and cost barriers exist but demand is strong. However, risks must be carefully monitored. High-impact threats include volatility in bio-based feedstock prices, driven by agricultural disruptions and supply chain fluctuations.

Regulatory shifts or delays in compliance procedures also pose moderate to high risks. Moreover, slower adoption in highly price-sensitive Asian industries like China, India, and Southeast Asia remains a challenge. On the executive front, immediate actions include running feasibility studies for expanding bio-based capacity in North America and Europe, strengthening regulatory readiness audits, and initiating local co-branding pilots across the key Asian landscape.

For the Boardroom

To stay ahead in the evolving industry, leadership must double down on bio-based innovation while proactively managing regional regulatory complexity. This intelligence highlights a clear pivot toward sustainable, certified formulations, particularly in North America and Europe, where premium positioning drives value.

The roadmap should prioritize near-term investments in feedstock security, fast-track REACH/FDA alignment, and a dedicated go-to-industry plan for Asia’s cost-sensitive segments. Strategic partnerships with regional distributors and clean-label formulators can unlock scale without sacrificing margin. Executives must act now to shift PDO from a commodity to a differentiated platform ingredient in cosmetics, personal care, and beyond.

Segment-wise Analysis

By Source

Biobased PDO is widely used due to its alignment with growing consumer and regulatory demands for sustainability and eco-friendly products. Unlike petrochemical-derived PDO, which is made from non-renewable fossil fuels, biobased PDO is derived from renewable sources such as corn, palm oil, or other plant-based feedstocks. This makes it a more sustainable alternative that appeals to consumers and brands increasingly focused on clean-label and green formulations.

Additionally, biobased PDO offers excellent functional properties, such as superior moisturizing and skin penetration enhancement, which are highly valued in personal care and cosmetic applications. With the increasing adoption of environmentally conscious practices and regulations, biobased PDO is becoming the preferred choice in industries like personal care, cosmetics, and pharmaceuticals, where sustainability and product safety are paramount. Biobased PDO is anticipated to be the most lucrative segment under source, growing at 60.0% share in 2025.

By Function

The humectants segment is expected to be most profitable, generating a 30.0% share in 2025. Humectants, including PDO, are widely used in various industries, particularly in personal care and cosmetics, because of their exceptional ability to retain moisture. As a humectant, PDO draws water from the surrounding environment into the skin, helping to maintain skin hydration and prevent dryness. This makes it an essential ingredient in products such as moisturizers, serums, and conditioners, where hydration is a key benefit.

Additionally, PDO is also used in hair care products, where it helps to keep hair moisturized and soft, preventing frizz and promoting shine. The widespread use of humectants like PDO is driven by consumer demand for products that offer long-lasting hydration and improve the overall health and appearance of the skin and hair.

By Application

Personal care is among the largest and fastest-growing uses of propanediol (PDO) due to its superb functional characteristics and versatility across diverse formulations. PDO is an essential ingredient in personal care products owing to its high moisturizing, skin penetration, and emulsifying properties. As a humectant, it attracts water into the skin, providing moisture and improving skin and hair texture and appearance.

As consumers become more demanding of effective yet gentle skincare, PDO's natural origin, particularly when derived from bio-based materials, only adds to its appeal in the personal care industry, which is increasingly inclined toward sustainable and clean-label ingredients. PDO is utilized in a variety of products such as moisturizers, serums, hair care, and antiperspirants, where it enhances product performance and gives a lightweight, non-greasy sensation. The personal care segment is expected to be most lucrative, advancing a 40.0% share in 2025.

Country-wise Analysis

USA

In the United States, the industry is likely to grow at a CAGR of 4.0% during the forecast period of 2025 to 2035. The demand for PDO in the United States industry is fueled by rising demand in home care, personal care, and cosmetics products, where PDO finds extensive use as a humectant and solvent. USA consumers are becoming increasingly aware of personal care ingredients, and thus, the demand for bio-based PDO is growing on account of its sustainable and eco-friendly profile.

The growth in popularity of natural and clean-label formulations is also in accordance with the regulatory themes in the USA, focusing on sustainability and environmental concerns. With the urge from manufacturers to fulfill such needs, production of bio-based PDO will rise at a large rate.

UK

The UK’s sales are expected to register a CAGR of 3.5% in the assessment term. The UK, as with other European countries, is placing great emphasis on sustainability, which increases the use of bio-based PDO. The stringent regulatory requirements for chemicals in the country, especially in cosmetics and personal care, are compelling manufacturers to adopt green and renewable ingredients.

PDO, as a biodegradable and renewable substitute, sits comfortably with these changing industry standards. The industry is also influenced by the rising demand for naturally sourced, non-toxic ingredients in personal care products, of which PDO is commonly found in deodorants, moisturizers, and shampoos.

France

The industry is predicted to grow at a rate of 3.8% CAGR in France in the assessment period. France is one of the key players in the global cosmetics and personal care industry, with a high emphasis on green chemistry and sustainability. The regulatory environment in the country, as well as that of the EU's REACH regulations, is becoming stringent, compelling manufacturers to adopt more sustainable and non-toxic ingredients.

Consequently, biobased PDO is gaining more and more preference over petroleum-based counterparts. The use of PDO in premium cosmetics products, such as moisturizers, serums, and anti-aging creams, is growing owing to its better moisturizing and skin penetration characteristics. French consumers are also very open to natural beauty products, which is propelling the demand for PDO.

Germany

In Germany, the landscape is anticipated to achieve a CAGR of 4.2% from 2025 to 2035. The growth of Germany's industry is driven by its global leadership in the production of chemicals and sustainability practices, especially in the automotive sector, as well as in personal care. As there is a growing focus on green products and sustainable chemicals, Germany's industry for bio-based PDO is expected to experience significant growth.

The nation's tough environmental policies, such as those that curb carbon emissions and enhance the use of renewable sources of resources, highly incline towards bio-based PDO compared to petrochemical derivatives. Besides, Germany boasts numerous international beauty and skincare companies that are investing in PDO for application in products that address the growing consumers' demand for clean-label, non-toxic, and eco-friendly products.

Italy

In Italy, the industry is projected to grow at a 3.2% CAGR during the forecast period. Italy is well-known for producing premium-quality cosmetics and skincare products, with PDO finding its way more and more into mainstream and premium brands' formulas. Increasing consumer affinity for organic and green beauty products in Italy is fueling demand for bio-based PDO, viewed as the go-to ingredient in attaining product differentiation in the competitive Italian beauty landscape.

The capacity of PDO to improve the stability and texture of hair and skincare products, as well as its humectant nature, has made it a popular option among Italian formulators. Moreover, Italy is also determined to adopt the European Union's Green Deal, which promotes the utilization of renewable and sustainable raw materials, increasing the demand for bio-based PDO further.

South Korea

In South Korea, the sector is estimated to expand by a CAGR of 4.5% between 2025 and 2035. South Korea is a major industry in the Asia-Pacific region for PDO, especially in personal care and cosmetics. The Korean beauty industry is world-leading, with the "K-beauty" phenomenon fueling innovation and expansion.

PDO is widely applied in Korean products because of its outstanding moisturizing properties and compatibility with other actives. South Korea's highly regulated industry, together with increasing demand for eco-friendly, clean-label products, presents an attractive industry for bio-based PDO.

Japan

Japan’s sales are expected to develop at a CAGR of 3.0% during the period 2025 to 2035. Although Japan's uptake of bio-based PDO is slower than other parts of the world, the industry is still progressing at a steady pace, boosted by the demand for environmentally friendly and sustainable personal care products.

The Japanese landscape for consumers is product safety and premium ingredient-focused, and this has driven the increasing trend towards bio-based PDO within the cosmetics and beauty sector. Yet, take-up of advanced features in PDO products is not as rapid within Japan, and only a minor segment of the industry is leveraging advanced technologies.

China

The industry in China is predicted to grow at a CAGR of 5.0% from 2025 to 2035. Industrialization in China, which has been accelerating lately, coupled with the expanding middle-class population and rising knowledge about sustainable and green products, is driving the PDO growth.

The industry for cosmetic and personal care products in China is flourishing, with PDO incorporated into moisturizers, shampoos, and other dermatological products for its moisturizing and skin-firming characteristics. In addition, China is increasingly focusing on sustainability and clean-label products, making bio-based PDO more desirable to manufacturers.

Australia and New Zealand

In Australia and New Zealand, the industry is projected to grow at a steady rate with a CAGR of 3.5% from 2025 to 2035. This growth is fueled by the rising demand in various sectors, including personal care, textiles, and the automotive industry. Australia is also embracing sustainable practices, which will likely encourage the adoption of bio-based propanediol as an alternative to traditional synthetic options.

New Zealand's emphasis on environmentally friendly products aligns well with the growth of the industry, especially in terms of its use as a green solvent and alternative to traditional glycol. As the industry continues to evolve, the country is poised to see gradual but steady growth in propanediol consumption.

Competitive Landscape

The industry is concentrated with dominant roles played by several major players including DuPont Tate & Lyle Bio Products, METabolic Explorer, and Zhangjiagang Glory Biomaterial Co., Ltd. The concentration is attributed mostly to patented production processes and heavy capital demands with high barriers to entry for potential new players.

Industry leaders are competing on strategies of innovation, capacity building, and strategic collaborations. DuPont Tate & Lyle Bio Products, for example, has focused on raising manufacturing capacities as well as boosting the distribution network to support increasing demand. METabolic Explorer has entered into strategic partnerships to distribute bio-based cosmetic-grade PDO, strengthening its foothold in the personal care segment. These strategies are for building industry shares and supporting the growing demand for sustainable and bio-based products.

In 2024, the PDO industry has seen substantial growth. The industry size in 2024 was USD 860.43 million and is anticipated to increase at a CAGR of 10.98% to reach USD 1,636.74 million by 2030. This growth is being facilitated by the expanding demand for PDO in the cosmetics industry and the rising demand for sustainable and environmentally friendly materials. Further, the Asia-Pacific region, especially nations such as China and India, is witnessing tremendous development of the PDO industry with growing industrial sectors and heightened consumer awareness towards eco-friendly products.

Additionally, the competitive scenario for the industry is marked by some strong players who rely on innovation, strategic collaborations, and expansions of capacity to extend and solidify their industry stands. Emphasis on bio-based and sustainable products remains a leading force driving growth and competition in the industry.

Industry Market Analysis

Between 2025 and 2035, Bio-Chem Technology Group (3.2%) is expected to maintain a steady position in the bio-based PDO industry, focusing on industrial and cosmetic applications. Leveraging enhanced fermentation technologies and Chinese government incentives for bio-based materials, Bio-Chem will strengthen its presence in domestic and Southeast Asian industries, using existing corn-refining infrastructure to offer low-cost feedstock processing.

Tokyo Chemical Industry Co., Ltd. (2.5%) will continue its niche presence in PDO, catering to pharmaceutical, academic, and laboratory-grade applications. While not a bulk producer, TCI's reputation for high-purity chemicals will sustain its supply to research and biotech applications, with growth driven by precision chemical needs and advancements in biotech R&D.

Zhangjiagang Specom Biochemical Co., Ltd. (2.3%) will likely expand its presence in the bio-based PDO market, particularly targeting the personal care industry. With its strategic location near raw material suppliers and local customers, the company will emphasize cost-effective production and logistics, potentially leading the way in palm oil-free formulations in the coming years.

Zibo Qixiang Tengda Chemical Co., Ltd. (1.8%) will maintain a smaller share but benefit from its vertical integration and local demand, particularly for industrial-grade PDO used in lubricants and resins. Its PDO will continue to be sold through intermediary chemical distributors, supporting polytrimethylene terephthalate (PTT) production, while its innovative approaches may drive growth in alternative feedstocks like algae and food waste.

Key Industry Players

• Bio-Chem Technology Group
• Tokyo Chemical Industry Co., Ltd.
• Zhangjiagang Specom Biochemical Co., Ltd.
• Zibo Qixiang Tengda Chemical Co., Ltd.
• DuPont Tate & Lyle Bio Products
• DSM
• Haihang Industry
• Hunan Rivers Bioengineering Co., Ltd
• Metabolic Explorer
• Sheng Hong Group Holdings Ltd
• Zhangjiagang Glory Chemical Industry Co., Ltd

Segmentation

• By Source:

  • Petrochemical-derived PDO
  • Biobased PDO
  • Palm Oil Based PDO
  • Palm Oil Free PDO

• By Function:

  • Humectant
  • Solvent
  • Emollient
  • Rheology Modifier
  • Others

• By Application:

  • Personal Care
  • Antiperspirants
  • Hair Care Products
  • Cosmetics

• By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)