The global propylene glycol market is valued at US$ 4.66 billion in 2024, according to a recent study by Fact.MR. The market is projected to grow at a CAGR of 4.2%, reaching US$ 7.03 billion by 2034.

The propylene glycol market plays a vital role in several industries, including pharmaceuticals, food and beverages, cosmetics, and chemicals. Propylene glycol, a synthetic organic compound, is primarily used as a solvent, humectant, and preservative due to its ability to retain moisture and dissolve various substances. Its versatility has made it a key ingredient in a wide range of applications, from skincare products and food additives to antifreeze and industrial solutions. The growing demand for non-toxic and environmentally friendly alternatives has further fueled the market's expansion. With increasing industrialization and consumer awareness about product safety, the propylene glycol market is witnessing steady growth across the globe.

Market Insights

The propylene glycol market is characterized by its widespread applications and evolving consumer preferences. As an ingredient in the food and beverage sector, it serves as a preservative and moisture-retaining agent in processed foods, soft drinks, and baked goods. Additionally, in the pharmaceutical industry, propylene glycol is utilized as a solvent in various medications, particularly in injectable formulations. It is also commonly found in cosmetics and personal care products, where it is used in lotions, creams, and shampoos for its hydrating properties.

Another significant insight is the growing demand for bio-based propylene glycol, which is derived from renewable sources rather than petroleum. The increasing consumer shift towards eco-friendly and sustainable products has prompted manufacturers to invest in bio-based propylene glycol production methods. Moreover, the rise of the pharmaceutical and healthcare sectors, along with expanding consumer goods markets, has contributed to the overall demand for propylene glycol. However, the market faces challenges, such as price volatility due to fluctuations in raw material costs and environmental concerns related to synthetic production.

Future Outlook

The future of the propylene glycol market is expected to witness considerable growth driven by several factors. Increasing demand for sustainable products, advancements in bio-based propylene glycol production, and the continued expansion of end-use industries such as food and beverages, pharmaceuticals, and personal care will be key drivers. The ongoing trend toward "green" and natural ingredients in consumer products suggests that bio-based propylene glycol will become increasingly popular, potentially revolutionizing the market.

In addition, the demand for propylene glycol is anticipated to grow in emerging markets due to rapid urbanization, improved living standards, and greater consumer spending on health and wellness products. In particular, Asia-Pacific is expected to dominate the market in the coming years, with countries like China and India driving the growth of industries that utilize propylene glycol, including manufacturing, healthcare, and personal care. The market may also see increased applications in industries such as automotive and textiles as technology advances and new uses are discovered.

List of Key Companies Profiled in The Report

  • Chevron Phillips Chemical Company
  • Dow
  • ADEKA CORPORATION
  • Oleon NV
  • BASF SE
  • Royal Dutch Shell
  • Chaoyang Chemicals, Inc.
  • Others

Recent Industry News

The propylene glycol market has recently seen several noteworthy developments that highlight its growing relevance in various industries. Leading manufacturers in the chemical sector have been making significant investments in bio-based production methods to cater to the increasing consumer demand for sustainable products. Several companies have also announced new partnerships and collaborations aimed at enhancing the supply of renewable propylene glycol.

In the food and beverage industry, there has been a rise in the production of organic and natural food products, which has driven demand for safer, non-toxic preservatives such as propylene glycol. In the pharmaceutical sector, ongoing advancements in drug formulations are increasing the need for propylene glycol, especially in injectable drugs and personal care products.

Additionally, the automotive industry has witnessed increased use of propylene glycol in antifreeze and coolant formulations as part of efforts to develop more eco-friendly automotive fluids. This expansion in industrial and automotive applications is expected to drive the market further.

Notable Developments

Notable developments in the propylene glycol market include continued efforts to improve production processes, reduce costs, and enhance the bio-based supply chain. Several major chemical manufacturers have successfully scaled up their bio-based production methods, making sustainable propylene glycol more commercially viable. This has resulted in the availability of eco-friendly alternatives that can meet the rising consumer demand for greener products.

In the personal care industry, new innovations in propylene glycol-based formulations have led to the introduction of advanced skincare and cosmetic products with enhanced moisturizing properties. The increased focus on health and wellness, along with a growing preference for natural ingredients, has prompted brands to incorporate propylene glycol into new product lines.

Competitive Landscape

Leading players in the propylene glycol market are focusing on new product development, strategic partnerships, collaborations, and joint ventures to enhance their global presence and expand their portfolios.

For example:

In March 2023, Ethos Asset Management Inc. partnered with GreenGlycols B.V. to establish a production facility in Delfzijl, the Netherlands, aimed at producing propylene glycol using plant-based feedstock.

In August 2021, SINOPEC and BASF expanded their Verbund site operated by BASF-YPC in Nanjing, China. This collaboration involved an equal contribution from both companies, with plans to increase the capacity of downstream chemical plants, including a new tert-butyl acrylate plant, to support growth in China.