Global Propylene Glycol Market Overview
Propylene Glycol Market Size was valued at USD 3,253.3 million in 2023. The Propylene Glycol Market industry is projected to grow from USD 3,334.0 million in 2024 to USD 5,280.8 million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.9% during the forecast period (2024 - 2032).
Propylene glycol (PG) is a synthetic organic compound, known by the molecular formula C3H8O2. It is also known by the name propane-1,2-diol. Propylene glycol is a clear, colorless, odorless, viscous, and possesses a faint sweet taste. It is hygroscopic, low toxicity, and shows broad solvency. Propylene glycol can be obtained from both petroleum and bio-based sources. Propylene glycol is produced synthetically by the hydration of propylene oxide by either catalytic or non-catalytic process, whereas bio-based propylene glycol is produced by the hydrogenolysis of glycerin. It is used in a variety of industrial sectors including food & beverage, pharmaceutical, transportation, building & construction.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
RISING DEMAND IN COSMETICS AND PERSONAL CARE APPLICATIONS
The Propylene Glycol Market is witnessing significant growth due to the increasing demand for sustainable products in the cosmetics and personal care industry. Propylene glycol is one of the widely used ingredients in numerous types of cosmetics and personal care products including moisturizers, cleansers, bath soaps, shampoos & conditioners, perfumes and many more. It is used in these products due to its water-absorbing properties and its usage as a humectant. In moisturizers, the compound is used for enhancing the appearance of the skin by helping in reducing flaking and restoring suppleness. Thus, cosmetics and skin care products that contain propylene glycol have a remarkable impact on moisturizing the skin and preventing it from drying out and tanning. Furthermore, the unique attributes of propylene glycol make it a suitable compound for application as skin conditioner, solvent, viscosity reducer, and product fragrance ingredient, making it a suitable product for applications in this industry. In addition to the several benefits offered by the compound, propylene glycol in cosmetics also helps in absorbing other active ingredients and also acts as an emollient that helps in creating a protective layer on the skin, thereby preventing the loss of water and helps in making the skin smooth and healthy.
The role of propylene glycol as a solvent and carrier for various other ingredients is very crucial as it can efficiently dissolve as well as stabilize the active ingredients such as extracts, vitamins and fragrances in the product. This further improves the efficacy of cosmetics by enhancing the delivery of the ingredients to skin. The compound is also valued for its ability to impart non-greasy and smooth texture to cosmetic products, which is very important for products including creams and lotions. One of the crucial factors that is playing an important role in increasing usage of propylene glycol in cosmetics and personal care products is its non-toxic nature. The rapidly accelerating market of cosmetics and personal care, driven by growing consumer awareness and focus on following proper skincare routines is positively influencing the market growth of propylene glycol. The benefits of propylene glycol make it a key ingredient used in cosmetics products and with the growing knowledge of the consumers regarding skincare ingredients, the demand for products containing effective compounds such as propylene glycol is anticipated to witness substantial growth.
RAPIDLY EXPANDING AUTOMOTIVE INDUSTRY
Propylene glycol is a type of compound with a low toxic profile, that has significant applications in the automotive industry. The chemical structure of propylene glycol allows it to mix well with water, thereby making them an effective antifreeze agent and solvent. Propylene glycol plays a vital role in improving the performance of vehicles owing to which it is used substantially in this sector. It is one of the key components used in antifreeze and coolant solutions and thus helps in regulating the temperature of the engine by transferring the heat away from engine and preventing the coolant from freezing in cold conditions or boiling during the hot conditions. The polypropylene glycol-based coolants are non-corrosive, further helping in protecting the engine from damage. It also has high specific heat capacity that further contributes to enhancing the efficiency of engine. This compound is compatible with a wide range of materials and metals used in making automotive parts, thus it is widely used in this sector. Also, polypropylene glycol is used in de-icing fluids which are applied to vehicles parts such as windshields for preventing the formation of ice on the vehicle surface and thus helps in reducing the risk of accidents caused due to less visibility. In lubricants, propylene glycol is used due to its effectiveness in reducing wear and friction.
The automotive industry is a rapidly growing sector of most countries’ economies because of the global population growth. Global car sales have increased significantly from 63.8 million units in 2020 to around 75.3 million units in 2023. This is mainly due to increased vehicle production in emerging economies. The growing advancements in the automotive industry to fulfill the current demand and future requirements of consumers is creating a positive impact over the market growth of propylene glycol. Growing innovations and developments in vehicles is creating the need for advanced thermal management systems and this factor is driving the demand for propylene glycol as its excellent heat transfer attributes is leading to its growing usage in coolants. Moreover, the increasing focus on reducing automobile emissions is further creating the requirement for cooling and lubricating systems as these systems are effective in enhancing the engine performance along with decreasing the emissions. Thus, the demand for propylene glycol is propelling due to its significant applications in lubricants and coolants.
Propylene Glycol Market Insights
Propylene Glycol Market by Source Insights
The Propylene Glycol Market segmentation, based on source the market has been segmented as petroleum-based and bio-based. In 2023, the petroleum-based segment generated the market revenue share of 70.79% and is expected to experience a CAGR of 4.4% in the forecast period. Petroleum-based propylene glycol is a product that is derived from propylene oxide, which is a byproduct of fossil fuel processing. It is significantly used due to its cost-effectiveness and availability. Propylene glycol is employed in a wide array of applications, including antifreeze, de-icing solutions, and industrial solvents. The significant benefits offered by propylene glycol is contributing towards its accelerating demand from numerous industries, further positively impacting its market growth.
Propylene Glycol Market by Grade Insights
The Propylene Glycol Market segmentation, based on grade the market has been segmented as industrial grade and pharmaceutical grade. In 2023, the industrial grade segment generated the market revenue share of 58.92% and is expected to experience a CAGR of 6.0% in the forecast period. Industrial grade propylene glycol is used in applications that do not require high purity levels. It is a versatile component used in the production of antifreeze, and de-icing solutions and hydraulic fluids. Furthermore, it serves as a humectant, solvent, and chemical intermediate in various industrial processes. The benefits of industrial grade propylene glycol include its effectiveness in extreme temperatures and its relatively low toxicity as compared to ethylene glycol. The low cost of the product as compared to higher purity grades makes it economically attractive for large-scale industrial applications.
Propylene Glycol Market by End-Use Industry
Based on end-use industry, the Propylene Glycol Market is segmented into Food & Beverage, Cosmetics & Personal Care, Pharmaceutical, Transportation, Building & Construction, and others. In 2023, the cosmetics & personal care segment held the largest market revenue share of 34.77% and is expected to grow at a CAGR of 6.2% in the projected period. In the cosmetics and personal care industry, propylene glycol is a crucial ingredient due to its properties as a skin-conditioning agent. It is used in a wide array of cosmetic products as it is effective in maintaining the moisture balance of the skin. The shift towards using natural and organic products is influencing the industry to consider bio-based propylene glycol as a more sustainable alternative, thereby driving its market demand.
Propylene Glycol Market Regional Insights
Based on Region, the Propylene Glycol Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2023, the Asia Pacific region held the largest market revenue share of 33.97%, which is expected to grow at a CAGR of 4.1% in the forecast period 2024-2032. The growth of the propylene glycol market in Asia Pacific is driven by industrialization, urbanization, and expanding end-use industries. Countries like China, India, and Japan are contributing significantly to the market growth. The region's food and beverage industry are experiencing high growth due to region’s high population and growing need for wide variety of food products. This factor is positively influencing the market of propylene glycol in the region.
Propylene Glycol Market Key Market Players & Competitive Insights
The Propylene Glycol Market is characterized by a high level of competition in the market. The players in the market are constantly innovating and expanding their product offerings. Despite the challenges, there are several factors that are driving growth in the propylene glycol market such as rising demand in cosmetics and personal care applications, increasing demand from automotive industry, and high growth outlook for the food processing industry in emerging economies. Thus, the advancing end-use industries are driving the market growth.
The market players' growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding their production capacity to meet the demand and enhance their product portfolio. LyondellBasell Industries Holdings B.V., BASF, Orlen, Shell, The Archer-Daniels-Midland Company, ADEKA Corporation, Chaoyang Chemicals, Inc., Shandong Haike Chemical Group, Manali Petrochemicals Limited, AGC Inc., INEOS Group, Tongling Jintai Chemical Industry Co., Ltd, Acuro Organics Limited, Repsol S.A., and Meru Chem Pvt. Ltd. Among others are the major companies in the market at the present that are competing in terms of quality, price, and availability. These players are primarily focusing on the development of propylene glycol in the cost effective manner.
LyondellBasell Industries Holdings B.V.: LyondellBasell Industries Holdings B.V. is a global leader in the chemical industry, with a strong focus on the production and sale of plastics, petrochemicals, and basic chemicals. The company deals in five business segments including chemicals, polymers, advanced polymer solutions, fuels, and technology providing solutions for automotive, transportation, agriculture, packaging, infrastructure, and sports & leisure, and other markets. Under the chemicals segment it provides its wide range of chemicals within acetyls, diols, glycols, glycol ethers, polyols, alcohols, epoxides, ethers, olefins, aromatics, amines, amides, esters, carbonates, and peroxides among others. The company provides its propylene glycol used majorly for the pharmaceutical applications under its diols, glycols range in chemicals segment. LyondellBasell Industries Holdings B.V. is committed to developing circular and low-carbon products and technologies, seeking to redefine the industry by championing chemistry as a sustainable solution for the planet. The company has its presence through 94 manufacturing units in 32 countries in North America, Europe, Australia & New Zealand, Asia Pacific, Middle East & Africa, and South & Central America.
BASF SE: BASF SE is one of the leading chemical manufacturers in the world. It operates through eleven divisions that are grouped into six segments: chemicals, materials, industrial solutions, surface technologies, nutrition & care and agricultural solutions. It further manages 52 global and regional business units and develops strategies for 72 strategic business units. Company’s products find applications in a wide array of industries such as automotive, agriculture, construction, electrical & electronics, packaging, paints & coatings, textile and paper & pulp, among others. BASF has presence in around 91 countries and facilitates the manufacturing of its products through 239 production sites spread worldwide. The company focuses substantially on research and development and had R&D spending of around USD 2.45 billion in 2022. With a strong customer base, BASF caters to around 82,000 customers from numerous sectors globally. The company primarily operates in Europe and has an active presence in the Americas, Asia-Pacific, Middle East & Africa.
Propylene Glycol Market Industry Developments
May 2024: Shell has recently finalized an agreement with Chandra Asri, a prominent Indonesian petroleum and petrochemical company. The deal involves the acquisition of the Bukom assets located on Jurong Island. These assets include a refinery and a petrochemical complex that play a crucial role in producing over two million tons of ethylene and propylene, as well as their downstream derivatives. This acquisition marks an important strategic move for Shell as it strengthens its presence and capabilities in the petrochemical sector.
May 2023: ORLEN Poludnie has successfully completed its 1st year of operating a bio propylene glycol plant by converting glycerol into renewable propylene glycol with the help of BASF’s BioPG technology. This process is effective in reducing the CO2 emissions by at least 60% compared to fossil-based propylene glycol, while maintaining product quality.
Nov 2022: LyondellBasell announced the plan for expanding propylene production capacity at its Channelview Complex in Houston, Texas. A new propylene factory would be built utilizing the company’s current technology to convert ethylene into propylene for the manufacturing of polypropylene and propylene oxide which is further utilized for manufacturing propylene glycol.
Key Companies in the Propylene Glycol Market include.
Propylene Glycol Market Segmentation
Propylene Glycol Market Source Outlook
Propylene Glycol Market Grade Outlook
Propylene Glycol Market End-Use Industry Outlook
Propylene Glycol Market Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 3,253.3 million |
| Market Size 2032 | USD 5,280.8 million |
| Compound Annual Growth Rate (CAGR) | 5.9% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Forecast Units | Value (USD Million) and Volume (Kilotons) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Grade, End-Use Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | US, Canada, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, GCC Countries, South Africa |
| Key Companies Profiled | LyondellBasell Industries Holdings B.V., BASF, Orlen, Shell, The Archer-Daniels-Midland Company, ADEKA Corporation, Chaoyang Chemicals, Inc., Shandong Haike Chemical Group, Manali Petrochemicals Limited, AGC Inc., INEOS Group, Tongling Jintai Chemical Industry Co., Ltd, Acuro Organics Limited, Repsol S.A., and Meru Chem Pvt. Ltd |
| Key Market Opportunities | ·        Rising demand in cosmetics and personal care application |
| Key Market Dynamics | ·        growing demand from the food and beverage industry ·        Rapidly expanding automotive industry |
Propylene Glycol Market Highlights:
Frequently Asked Questions (FAQ) :
The Asia Pacific region dominated the Propylene Glycol Market with the largest market revenue share of 33.97% in 2023.
LyondellBasell Industries Holdings B.V., BASF, Orlen, Shell, The Archer-Daniels-Midland Company, ADEKA Corporation, Chaoyang Chemicals, Inc., Shandong Haike Chemical Group, Manali Petrochemicals Limited, AGC Inc., INEOS Group, Tongling Jintai Chemical Industry Co., Ltd, Acuro Organics Limited, Repsol S.A., and Meru Chem Pvt. Ltd.
The petroleum-based source segment dominated the global market with the largest revenue share of 70.79% in 2023.
The industrial grade segment dominated the global market with the largest revenue share of 58.92% in 2023.
The cosmetics & personal care segment dominated the Propylene Glycol Market with the largest market revenue share of 34.77% in 2023.
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