Propylene Glycol Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global propylene market is expected to grow at a CAGR of 5.2% from 2024 to 2032, with a projected market size of $ 3,334,060,000 in 2024, which is projected to reach $ 5,288,800,000 by 2032. The growth rate is projected to be strong, with a CAGR of 5.9% from 2024 to 2032. Propylene is expected to be a key growth driver in the food and beverage, pharmaceuticals and cosmetics industries. As consumers become more health-conscious and industries seek safer alternatives, the versatility of propylene as a solvent, humectant and preservative is increasingly recognized, driving its use. Also driving the market are technological advancements and innovations in the production process. Companies are investing in sustainable production methods and bio-based alternatives to meet the growing demand for eco-friendly products. In addition, companies such as Dow and BASF are actively forming strategic alliances to strengthen their product offerings and market positions. The launch of new propylene formulations, tailored to specific applications, is expected to further strengthen its position as a key component in various industries.

Regional Market Size

Regional Deep Dive

The propylene glycol market is characterized by its diverse applications across various industries, including food, pharmaceuticals, and cosmetics. Each region has its own market characteristics, which are influenced by the local demand, regulatory environment, and economic conditions. Propylene glycol is expected to grow, driven by rising awareness of the safety and versatility of propylene glycol, as well as the rising demand for bio-based alternatives in certain regions. The market is expected to adapt to the changing needs of consumers and industries.

Europe

• Europe is influenced by stricter regulations on the use of chemicals and their effects on the environment, which has increased the demand for bio-propylene. At the forefront of the development of sustainable production processes are companies such as BASF and INEOS.
• The European Union's Green Deal and initiatives aimed at reducing carbon emissions are prompting manufacturers to explore renewable feedstocks for propylene glycol production, which is expected to reshape the market landscape significantly.

Asia Pacific

• In the Asia-Pacific region, especially in China and India, the industrialization is accelerating, and the demand for propylene glycol in various fields is rising, especially in the automobile and the chemical industry. The main companies such as Reliance and LG are also increasing their production capacity to meet the needs.
• The increasing adoption of propylene glycol in pharmaceuticals, driven by rising healthcare expenditures and a growing population, is expected to further boost market growth in this region.

Latin America

• Latin America is seeing a gradual rise in the use of propylene glycol in the cosmetics and personal care industries, driven by the rising demand for safe and natural ingredients. This has led local companies to seek sustainable sourcing to meet this demand.
• Regulatory frameworks in countries like Brazil are evolving to support the use of propylene glycol in food and pharmaceuticals, which is expected to enhance market penetration and encourage investment in local production facilities.

North America

• The demand for propylene in the food and beverage industry is increasing as a result of the growing trend towards clean-label products. Propylene is a major source of ethyl alcohol, and companies such as Archer Daniels Midland and The Dow Chemical Company are investing in new production methods to improve the quality and sustainable production of the substance.
• The octane number is the number of the atoms of a substance. The molecule of propylene is of the same structure. Hence the support of the State is hoped to induce more manufacturers to enter the market.

Middle East And Africa

• The Middle East and Africa are dominated by the petrochemical industry, with countries such as Saudi Arabia and the United Arab Emirates investing heavily in the chemical industry. SABIC is expanding its portfolio to include propylene glycol, a by-product of petrochemicals.
• The region's unique economic factors, including fluctuating oil prices, are influencing the production costs of propylene glycol, which could impact pricing strategies and market competitiveness.

Did You Know?

“Propylene glycol is recognized by the FDA as 'generally recognized as safe' (GRAS) for use in food products, which has significantly contributed to its widespread acceptance in the food and beverage industry.” — U.S. Food and Drug Administration (FDA)

Segmental Market Size

Propylene glycol is a stable growth market, mainly driven by its wide application in the food, pharmaceutical, and cosmetics industries. There are also other factors that drive demand, such as the increasing demand for safe and non-toxic ingredients in food and cosmetics, and the increasingly strict food and drug administration policies that require the use of Generally Recognized as Safe (GRAS) substances. In addition, the e-commerce and food delivery industry has risen sharply, and the demand for propylene glycol as a food additive and preservative is growing rapidly. Among the large chemical companies, Dow and BASF are the leading companies in terms of the scale of their production and the number of products they produce. Propylene glycol is mainly used as a solvent in the pharmaceutical industry, as a preservative in the food industry, and as an antifreeze in the automobile industry. The development of propylene glycol is closely related to the development of the chemical industry, and the emergence of macro-developments such as the trend of "green economy" and the development of "green products" has also promoted the development of propylene glycol. Propylene Glycol is also closely related to the development of green chemistry.

Future Outlook

Propylene Glycol Market is projected to show a growth from $3,334,000 in 2024 to $5,288,000 by 2032, at a Compound Annual Growth Rate (CAGR) of 5.8 %. The growth of the market is driven by the rising demand for propylene glycol in various industries, such as food & beverage, pharmaceuticals, and personal care. The propylene glycol market is expected to grow significantly with the rising demand for natural and sustainable products. Propylene Glycol Market will also be driven by technological advancements and regulatory policies. The development of more efficient catalytic methods and the integration of renewable raw materials are expected to increase the efficiency of production and reduce its impact on the environment. Regulations requiring chemical manufacturers to reduce the carbon footprint of their products are also expected to drive the propylene glycol market. Propylene Glycol Market will also be driven by the increasing use of propylene glycol in the formulation of green products and the expansion of its applications in the automobile and construction industries.