USD 4.43 billion
Propylene Glycol Market Size, Share, and Growth Analysis
Propylene Glycol Market By Source (Petroleum-based, Bio-based), By Grade (Industrial Grade, USP Grade), By Application, By End-use Industry, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15A2492 |
Region:
Global |
Published Date: February, 2025
Pages:
198
|Tables:
89
|Figures:
71
Format -
Propylene Glycol Market Insights
Global Propylene Glycol Market size was valued at USD 4.43 billion in 2023 and is poised to grow from USD 4.66 billion in 2024 to USD 6.93 billion by 2032, growing at a CAGR of 5.1% during the forecast period (2025-2032).
The global propylene glycol market growth is essentially supported by growing demands in many industrial sectors. There are growth contributions from various areas, mainly within the construction, transportation, and pharmaceutical industries. For the construction and transportation sectors, propylene glycol holds significant importance, such as a coolant in car engines. A lot of its material is utilized to de-ice planes when snowing extensively within regions having intense winter. These applications are critical to safety and efficiency, further driving market growth. This monomer is mainly used in the construction and transport industries but is widely used in every industry as a solvent, medium for heat transfer, and as an intermediate of chemicals.
Owing to the excellent solvency and nontoxicity of propylene glycol, this additive is highly appreciated in the composition of resins, plastics, and antifreeze products. Moreover, recent attention to more sustainable and efficient use of energy in industrial procedures has also gained a significant advantage for bio-based propylene glycol, creating further market. The pharmaceutical and food industries are major users of propylene glycol as a humectant, emulsifier, and stabilizer in numerous applications. As demand for high-performance, multi-functional materials continues to increase, the global propylene glycol market is destined for significant growth, supported by technological advancements and an expanding global industrial base.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Industrial Grade
Fastest Growth
USP Grade
Growth Rate
5.1% CAGR
Global Propylene Glycol Market ($ Bn)
Country Share for Asia-Pacific (%)
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Propylene Glycol Market Segments Analysis
Global Propylene Glycol Market is segmented by Source, Grade, Application, End-use Industry and region. Based on Source, the market is segmented into Petroleum-based and Bio-based. Based on Grade, the market is segmented into Industrial Grade and USP Grade. Based on Application, the market is segmented into Polyester Resin, Chemical Intermediate, Antifreeze, Hydraulic & Brake Fluids, Industrial Solvents, Moisturizers and Paints & Coatings. Based on End-use Industry, the market is segmented into Building & Construction, Transportation, Food & Beverages, Cosmetics & Personal Care and Medical & Pharmaceuticals. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Source
As per the 2024 global propylene glycol market analysis, the petroleum-based segment held the highest revenue share of almost 71%. This is mainly because it has a relatively lower production cost compared to its bio-based counterpart, thus preferred for several industrial applications. On the other hand, it is a nonrenewable resource based on petroleum. It has over 1 million tons of petroleum used in meeting the world's demand for petroleum-based propylene glycol yearly. It has recently gained much attention in its sustainability and impact on the environment. As the demand for eco-friendly products increases, this market gradually experiences the shift toward that direction; however, it remains a critical sector because petroleum-based products are the cheapest and most available.
The bio-based segment is expected to grow the fastest, with a CAGR of 6.4% over the forecast period. This is because of the growing preference for greener alternatives since bio-based propylene glycol contributes to a reduction of 61% in greenhouse gas emissions in comparison to petroleum-based propylene glycol. Other than that, innovative processes like the catalytic method from PNNL will continue to be developed. It means that catalytic process allows producing bio-based propylene glycol directly from raw plant materials, which is a huge step in sustainable manufacturing. With stricter regulations on the environment, the need for bio-based alternatives will only increase.
Analysis By Grade
Based on the 2024 global propylene glycol market forecast, the industrial grade dominated the market, garnering more than 63% of the revenue share. It is due to its extensive application in the construction sector for the manufacture of basic building materials. This chemical is mainly used in producing resins, plastics, paints, coatings, industrial coolants, detergents, and other industrial uses. Industrial-grade propylene glycol is known for its high purity, with a purity level of about 99.5%, and is thus guaranteed to perform uniformly across various applications. The increasing rate of infrastructure development and urbanization worldwide is one factor that is on the rise in demand for industrial-grade products, which has made them more important in the market and is therefore constantly growing.
The USP grade segment is expected to grow at a CAGR of 6.2% during the forecast period due to its broad applications across the food and beverage, personal care, and pharmaceutical industries. The purity of USP-grade propylene glycol can reach as high as about 99.9% and therefore fulfills rigorous standards for quality. It is permitted as a food additive by the E1520 regulations with an upper limit of 1 g/kg in human food and therefore safe to be used in all food items. Except for pharmaceutical formulations, its use as a humectant and an emulsifier in personal care products makes the product look versatile and with an ever-increasing use in consumer-driven industries.
Global Propylene Glycol Market By Grade
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Propylene Glycol Market Regional Insights
Asia Pacific remained the largest in the propylene glycol market in 2024, capturing more than 44% of the revenue share. The construction sector has been growing robustly in key countries of the region such as China, India, and Indonesia. China alone contributes to around 26.1% of global growth in the construction industry with its massive infrastructure projects and efforts at urbanization. Infrastructure-related activities accounted for 13% of the total inflows of FDI in India in 2021. This adds to the growth in the construction sector. In such rapidly developing economies, there will be a growing demand for building materials and industrial products, which should increase the consumption of propylene glycol by a considerable amount in the coming years.
The propylene glycol market in North America is projected to experience significant growth; its CAGR is expected to be 5.7% during the forecast period. Growth in this market is mainly spurred by the rampant expansion of the housing residential sector, particularly in the U.S. and Canada. In 2021, the Canadian construction industry hit USD 72.02 billion, with a remarkable increase of 19.7% in residential construction. A large increase in construction activities is predicted to increase the demand for propylene glycol. That includes industrial coolants, resins, and coatings. Besides this, increasing awareness in the region towards sustainability and green alternative options is also going to support the demand of bio-based propylene glycol. With its significant position in the global market, this will boost the growth of North America.
Global Propylene Glycol Market By Geography
- Largest
- Fastest
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Propylene Glycol Market Dynamics
Drivers
Growing Demand from the Construction Sector
- Increasing use due to construction industry growth in countries such as China and India, a lot of investment has been directed to the sector for infrastructure creation and housing and as such growth has been so tremendous. Being extensively used by industries to develop coolants, resins, plastics, coatings etc. of construction requirements in propylene glycol, hence expected that rapid infrastructural developmental activity in both will require propylene glycol significantly to further enhance this market.
Growing Uptake in the Food and Pharmaceutical Sectors
- The food and pharmaceutical industries significantly use propylene glycol as an emulsifier, humectant, and solvent. The high-purity propylene glycol market is driven by the increasing customer demand for non-toxic components and the growing demand for medications, food additives, and personal care products. This trend is expected to continue driving market growth, especially in North America and Europe.
Restraints
Environmental Concerns from a Petroleum-based Manufacturing Process
- The generation of propylene glycol depends greatly on petroleum, which is not renewable. So, it faces sustainability and environmental concerns in terms of its impact. There is also the pollution and emission of greenhouse gases associated with its industrial process. The dependence on petroleum-based propylene glycol is growing as the need for greener alternatives increases, leading to greater consumer and regulatory pressure for the industry.
Variations in Raw Material Pricing
- The main factor that determines production cost for propylene glycol is the cost of raw materials, which is basically petroleum. In addition, manufacturers may suffer from losses brought about by price fluctuations due to shifting crude oil prices. Since bio-based propylene glycol sources depend on limited raw materials, the unavailability of these raw materials constitutes a challenge that could hinder smooth market growth.
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Propylene Glycol Market Competitive Landscape
The global propylene glycol market is highly competitive. Some of the prominent firms in the industry are Dow Chemical Company, BASF SE, LyondellBasell Industries, Archer Daniels Midland Company, and LG Chem Ltd., who are presently diversifying the product portfolios to improve production and environmental initiatives. R&D, acquisitions, and strategic alliances are key strategies for gaining market share. In addition, the growing need for bio-based products is driving the key players in the market to be innovative and different from others.
Top Players in Propylene Glycol Market
- The Dow Chemical Company (USA)
- BASF SE (Germany)
- LyondellBasell Industries Holdings B.V. (Netherlands)
- Archer Daniels Midland Company (USA)
- Royal Dutch Shell Plc (Netherlands)
- Huntsman Corporation (USA)
- Global Bio-Chem Technology Group (China)
- SKC Co., Ltd. (South Korea)
- DuPont Tate & Lyle Bio Products (USA)
- INEOS Oxide (UK)
- AGC Inc. (Japan)
- Indorama Ventures Public Company Limited (Thailand)
- ADEKA Corporation (Japan)
- PCC SE (Germany)
- Manali Petrochemical Ltd. (India)
- Temix Oleo SRL (Italy)
- Repsol S.A. (Spain)
- SABIC (Saudi Arabia)
- Asahi Glass Co., Ltd. (Japan)
- Vizag Chemical (India)
Recent Developments
- The Dow Company launched circular, bio-based, and reduced carbon propylene glycol solutions in Europe in September 2023. These bio-based propylene glycol solutions can be utilized in various industries, such as food, textile, pharmaceutical, cosmetics, and agriculture.
- Orlim Poludnie Plant produces propylene glycol more sustainably with BASE technology in May 2023. The major player in Poland's biofuels industry, ORLEN Poludnie, completed its BioPG plant's first year of operation. The by-product of biodiesel production obtained from the manufacturing process is converted by the facility into a so-called environmentally friendly propylene glycol - BioPG.
- GreenGlycols® Green Glycols B.V. and Ethos Asset Management Inc. USA announced a long-term financing agreement, in March 2023, used to fund construction of a bio manufacturing plant called BioMPG in Delfzijl, the Netherlands. The new facility will use plant-based feedstock and therefore reduce its carbon footprint, producing 40,000 tonnes a year of high-quality USP drop-in grade propylene glycol.
Propylene Glycol Key Market Trends
- Transition to Propylene Glycol Using Biotechnology: Bio-based propylene glycol is increasingly becoming the alternative to petroleum-based goods, driven by the growing need for environmentally friendly and sustainable solutions. Bio-based propylene glycol used is derived from renewable feedstocks, so as such it cuts the emissions 61% compared with petroleum-derived. Consumers show great demand due to company demands for creating the sustainable world society requires.
- Technological Innovations in Manufacturing Techniques: Some of the significant global propylene glycol market trends include the development of new catalytic technologies that would convert plant-based raw materials into bio-based propylene glycol. Bio-based propylene glycol is expected to be produced more economically and efficiently using such technologies as developed by the Pacific Northwest National Laboratory (PNNL). The expected effects are decreased prices, enhanced scalability of production, and help in expanding the global bio-based market sector.
Propylene Glycol Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, rising demand from diversified industries such as construction, food & beverage, pharmaceuticals, and the automobile sector is expected to propel growth in the global propylene glycol market at a steady growth pace. The demand for propylene glycol grows due to more residential and infrastructural development globally, especially North America and Asia Pacific. Although petroleum-based propylene glycol is still dominant, environmental and regulatory pressure is driving the trend toward bio-based alternatives. Advances in production technology are making bio-based propylene glycol more sustainable and efficient. Despite the challenges of shifting raw material prices, long-term growth is underpinned by continuing technological advances and a growing emphasis on sustainability.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 4.43 billion |
| Market size value in 2032 | USD 6.93 billion |
| Growth Rate | 5.1% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Propylene Glycol Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Propylene Glycol Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Propylene Glycol Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Propylene Glycol Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Propylene Glycol Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Propylene Glycol Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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