Propanediol Market

Propanediol Market Outlook (2022-2032)

The global propanediol market is estimated at US$ 20.6 Mn in 2022, and is projected to reach a valuation of US$ 29 Mn by 2032, expanding at a CAGR of 3.5% through the forecast period of 2022-2032.

Attribute	Details
Propanediol Market Size (2021A)	US$ 20.1 Mn
Market Forecast Value (2032F)	US$ 29 Mn
Global Market Growth Rate (2022-2032)	3.5% CAGR
North America Market Share	~31%
Top 2 Propanediol Manufacturers’ Market Share	~55%
Key Companies Profiled	DuPont Tate & Lyle Bio Products DSM & Metabolic Explorer Haihang Industry Zhangjiagang Glory Chemical Industry Co. Ltd.

Propanediol (PDO) accounts for around 4.4% of global chemical for personal care product sales. Additionally, propanediol consumption in personal care is projected to increase at a CAGR of around 3.5% over the decade while being valued at US$ 29.2 Mn by 2032-end.

1, 3 propanediol comes equipped with superior sensory characteristics, and hence, is being extensively used in the personal care industry as a skin penetration enhancer, emollient, and solvent with moisturizing properties.

Attributed to these factors consumption of propanediol in personal care & cleaning products has gained traction and is anticipated to see decent rise in demand.

Propanediol Consumption Analysis (2017-2021) Vs. Market Outlook (2022-2032)

As per latest industry analysis by Fact.MR, a market research and competitive intelligence provider, global propanediol consumption over the past half-decade increased at a CAGR of around 1.3%, while global volume consumption by 2021-end stood at around 10.2 kilo tons.

Consumption of propanediol as a humectant saw major use case in 2021. This can mainly attributed to its application in hair and skin conditioners. Projections are that growing personal care sector is poised to propel the application of propanediol in personal care products over the decade, especially in developed regions such as the U.S. and Europe.

Consumption of petrochemical-based PDO is expected to be concentrated in the discussed regions, owing to high disposable income and rising trend of using bio-based propanediol personal care products. Moreover, consumers in these regions spend relatively more than their Asia Pacific counterparts.

Further, production of propanediol for its function as an emollient is poised to show substantial growth over the projected forecast period. Also, mounting demand for propanediol as a solvent will drive consumption 2.3X by 2032.

What’s Driving the Global Market for Propanediol?

“Consumer Preference for Bio-based Chemicals Driving use of Propanediol in Skin Care Products”

Propanediol is majorly derived from corn sugar or corn glucose. Since the chemical is water miscible, it has the ability to create a consistent and uniform solution. Additionally, propanediol reacts gently with the skin and is non-allergic, thus acting as a replacement for propylene glycol or 1,2 – propanediol.

Propanediol’s gentle skin attributes is mainly due to its naturally occurring sources. Since the chemical is naturally derived, its bio-based propanediol demand has seen a surge owing to change in consumer preference from synthetic-based products to plant-based products.

Attributed to the above-discussed factors, propanediol revenue is projected to be valued at US$ 29 Mn by 2032-end.

Country Wise Analysis

Why is the U.S. a Prominent Market for Propanediol Sales?

“High Demand for Naturally Derived Cosmetic Products Driving PDO Consumption”

The U.S. is already leading the market as one of the largest consumers for paraben-free products. Consequently, there has been consistent rise in the sales of beauty products that contain naturally derived substances.

Additionally, proliferation of e-Commerce and online sales channels has provided a platform to local manufacturers of bio-based propanediol in the business of personal care products to create increased revenue. More local beauty brands can be seen selling their products with clean labels, thus targeting key consumers in the country.

Surge in sales of naturally derived cosmetic products in the U.S. has provided a thrust to the demand for PDO, which is why the U.S. has emerged as a leading market for this chemical.

Overall, the U.S. is poised to provide an absolute dollar opportunity worth US$ 1.8 Mn over the period of 2022-2023.

How is the European Market for Propanediol Shaping Up?

“Bio-based PDO Sales High in Europe”

Europe is a well-established market for beauty and skin care products, valued at around US$ 25 Bn. This is mainly attributed to the presence of some 100+ cosmetic and beauty manufacturing companies in the region.

Additionally, top companies in the propanediol market have shifted their focus from synthetic to organic skin care products, which has boosted demand for bio-based propanediol. Moreover, European consumers spend relatively more on cosmetic products than any other region owing to the high per capita expenditure of consumers.

Above-stated factors coupled with rising trend of bio-based cosmetic grade propanediol products in the region is poised to provide an absolute dollar opportunity worth US$ 2.2 Mn over the decade, in Europe.

Category Wise Analysis

Which Function of Propanediol is Projected to Hold Major Market Share?

“Propanediol Function as Humectant Projected to Account for Major Share”

Propanediol has been identified as the perfect substance that can retain and attract moisture from the atmosphere via absorption. The chemical’s water absorbing capacity is high when compared to others.

With age, the body tends to lose the moisturizing factor from the skin. Hence, application of moisturizers that contain humectants has been a rising trend among the ageing population. Moreover, products containing humectants, such as propanediol, have seen substantial surge in demand, and will drive the market at a CAGR of 3.5% through 2032.

Application of propanediol as a humectant is poised to provide an absolute dollar opportunity worth US$ 3.5 Mn over the next ten years.

Which Source Type of Propanediol is Set to Garner High Share?

“Bio-based PDO to Account for High Share Compared to Petrochemical-based PDO”

Attributed to the properties of bio-based propanediol coupled with consumer preference to buy green label products is driving demand for this bio-based chemical.

Projections are that petrochemical-based PDO demand will see a major dip as the use of synthetic substances will not be a preferred choice for consumers. Increasing at a CAGR of around 3.7%, bio-based propanediol is projected to provide a high absolute dollar opportunity worth US$ 6.5 Mn over the forecast period of 2022-2032.

Competition Landscape

DuPont Tate & Lyle Bio Products, DSM & Metabolic Explorer, Haihang Industry, and Zhangjiagang Glory Chemical Industry Co. Ltd are some of the prominent manufacturers of propanediol.

Market players can be seen investing in innovation and R&D. Additionally, major players in the business, over the past half-decade, have paced up production capacities, thus helping them garner high segmental revenue share in the market.

Fact.MR has provided detailed information about the price points of top manufacturers of PDO positioned across regions, in addition to providing sales growth information, production capacity, and speculative production expansion, in its recently published report.

Key Segments Covered in Propanediol Industry Survey

• By Source:

  • Petrochemical-derived PDO
  • Bio-based PDO
    • Palm Oil Based PDO
    • Palm Oil Free PDO

• By Function:

  • Humectants
  • Solvents
  • Emollients
  • Rheology Modifiers
  • Others

• By Application:

  • Propanediol for Personal Care
    • Facecare Products
      • Moisturizers
      • Serum
      • Masks
    • Antiperspirants
    • Hair Care Products
      • Hair Color
      • Shampoo
      • Conditioners
      • Others
  • Propanediol for Cosmetics
    • Eyeliner
    • Foundation
    • Others

• By Region:

  • North America Propanediol Market
  • Latin America Propanediol Market
  • Europe Propanediol Market
  • East Asia Propanediol Market
  • South Asia & Oceania Propanediol Market
  • Middle East & Africa Propanediol Market