Propylene Glycol Market

Propylene Glycol Market Size-(2023-2028)

The propylene glycol market is predicted to reach $ 6.5 billion in 2028 from $ 3.9 billion in 2022, with a CAGR of 6.9% during the forecast period. Propylene glycol is a chemical obtained by the reaction of propylene oxide with water.

It is chemically neutral and does not react with other substances. The unique characteristics of propylene glycol make it useful in a wide variety of applications. It is employed as a solvent, retains and dissolves the active ingredients equally in the medium, acts as an emulsifier and excipient, lowers the freezing point, and many more. Propylene Glycol (PG) is a synthetic organic compound that is also known as propane-1,2-diol. Propylene Glycol is clear, colorless, odorless, viscous, and has a slightly sweet taste. It is hygroscopic, of low toxicity, and of ample solvency. Propylene glycol can be obtained from both petroleum and biological source.

Propylene Glycol is employed for many industrial and consumer applications including animal feed, food and beverage, pharmaceuticals, and cosmetics, among others. The main consumers of polypropylene glycol are the pharmaceutical and food and beverage industries, which represent a significant part of the market. Propylene glycol is also employed as a humectant, preservative in tobacco and food products, solvents, and as a main component of e-liquids Employed in vegetable glycerin electric cigarettes. As a solvent, in pharmaceutical products that include injectable, oral, and topical formulations, namely lorazepam, diazepam does not dissolve in water. To comply with environmental regulations or standards, the industry is now focusing on the development of bio-based propylene glycol.

Propylene Glycol Market Drivers:

The introduction of bio-based propylene glycol is predicted to boost the global propylene glycol market and is predicted to ensure a stable revenue stream during the foreseen period. Escalating consumer preference for prepared foods around the world due to lifestyle changes is driving the food and beverage industry and is predicted to fuel the call for propylene glycol as a food additive. The cosmetics and personal care industry has seen significant expansion in recent years due to the changing lifestyle in developed and developing regions and therefore is predicted to generate a high call for propylene glycol during the period. Furthermore, the strong auto industry in China and Germany is predicted to drive the worldwide propylene glycol market for automotive applications such as coolants and antifreeze, hydraulic and brake fluids, etc., during the foreseen period. In addition, the rapid industrialization and urbanization in Asia-Pacific due to population expansion, ongoing infrastructure projects in the Middle East to prosper the tourism industry, and escalating construction activity in Latin America it is predicted to boost the worldwide construction industry and therefore should fuel worldwide propylene glycol market during the foreseen period.

Propylene Glycol Market Restraints:

However, due to the escalating consumer preference for bio-based products due to the strict regulations of regulatory bodies such as REACH and E.P.A, the petroleum-based propylene glycol market is likely to struggle mainly in developed regions.

Propylene Glycol Market Opportunities:

The great call for propylene glycol in various applications will also drive the market during the foreseen period. In addition, the expanding construction and transportation industries have further escalated the use of propylene glycol in the manufacture of various chemicals, such as de-icing fluids, automobile coolants, hydraulic and brake fluids etc., which also contributes to the expansion of the market. Additionally, the sudden outbreak of COVID-19, a highly infectious respiratory disease, has escalated the call for propylene glycol for the production of hand and surface sanitizers.

Propylene Glycol Market Challenges:

Propylene glycol health issues are the main challenge for propylene glycol manufacturers. There are several health problems that accompany propylene glycol that can hamper the expansion of the market.

PROPYLENE GLYCOL MARKET REPORT COVERAGE:

Propylene Glycol Market Segmentation:

Propylene Glycol Market - By Source:

• Petroleum-based

• Bio-based

Petroleum-based propylene glycol is predicted to dominate the world market during the foreseen period, due to its escalating use in the transportation and construction industries.

Propylene Glycol Market  - By Grade:

• Industrial

• Pharmaceutical

Propylene Glycol Market - By End-Use:

• Transportation

• Building & construction

• Food & beverage

• Pharmaceuticals

• Cosmetics & personal care

Transportation is the fastest-growing end-use industry due to expansion in car sales. The escalated employment of propylene glycols in applications is also driving the market boom.

Propylene Glycol Market - By Region:

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• The Middle East & Africa 

APAC is predicted to represent the largest share of the worldwide propylene glycol market during the foreseen period, in terms of volume and value. The region's growing population, along with escalated construction spending in the developing markets of China, India, and South Korea, is supposed to make this region an ideal destination for the propylene glycol industry. North America was the second-largest propylene glycol market after the Asia Pacific in 2020 and is predicted to show significant expansion over the outlook period. Strong call from the construction, pharmaceutical, food and beverage, cosmetic and personal care, chemical and aerospace industries is foreseen to drive the regional propylene glycol market. Europe is predicted to show consistent calls for propylene glycol over the estimated period and call is predicted to come from the strong automotive, food and beverage, cosmetics and personal care industries, and the chemical industry among others.

Propylene Glycol Market Recent Developments:

• Manali Petrochemicals Ltd. is building a ₹ 150 crore brownfield project for more than triple its annual propylene glycol production capacity. Claiming that the additional capacity would increase MPL's domestic market share, the expansion was aimed at strengthening local capacity, reducing import content, and saving foreign exchange outflows.

• Dow and Evonik have entered into an exclusive technology partnership. Together, they have a plan to bring a unique technique to directly synthesize propylene glycol from propylene and hydrogen peroxide to commercial maturity.

Propylene Glycol Market Key Players:

1. The Dow Chemical Company (US)

2. LyondellBasell Industries N.V. (Netherlands)

3. BASF SE (Germany)

4. Archer Daniels Midland Company (US)

5. Global Bio-chem Technology Group Co., Ltd. (China)

6. DuPont Tate & Lyle Bio Products, LLC (US)

7. Huntsman Corporation (US)

8. SKC Co., Ltd. (South Korea)

9. Temix International S.R.L. (Italy)

10. Ineos Oxide (Switzerland)