Propylene Glycol Market Size, Share & Trends Analysis Report By Source (Petroleum Based, Bio Based), By Grade (Industrial Grade, USP Grade), By End-Use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global propylene glycol market size was valued at USD 4.35 billion in 2022 and is anticipated to expand at a compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. This is attributable to the growing utilization of propylene glycol in the construction industry and other applications such as engine coolant and as a raw material for de-icing planes in the transportation industry. The product is widely used as a chemical intermediate, heat transfer medium, and as a solvent in numerous industries.

The product is typically produced in two grades that are industrial or technical grade and USP/EP grade. The industrial grade of propylene glycol is used for manufacturing non-ionic detergents that are used in sugar-refining, papermaking, and petroleum industries. Additionally, it is used as an additive in latex paints & coatings for improving freeze-thaw capability. USP/EP grade is commonly used as an excipient in several drugs and in cosmetics and food products.

The toxicity of propylene glycol is very low and does not cause any health issues. However, some people are allergic to propylene glycol which can lead to dermatitis, skin reactions, and rashes on the body. Also, when the product is injected in higher amounts, it can cause rapid heart rate and heart rhythm problems thereby leading to an increased risk of heart attack. This is likely to act as a restraining factor for market growth.

Propylene glycol is manufactured from propylene oxide. The most commonly used process is the non-catalytic hydrolysis of propylene oxide in a higher temperature and higher pressure environment. The catalytic method is the one that proceeds at 150°C in the presence of ion exchange resin or a small amount of alkali or sulphuric acid. It can also be produced from glycerol which is a by-product of bio-diesel. The Food and Drug Administration considers the product safe for indirect and direct addition to food. European Union has also listed the ingredient as safe for cosmetic use. 

Source Insights

The petroleum-based segment dominated the market with a revenue share of over 71% in 2022. This is attributed to its lower cost as compared to its bio-based counterpart. Its major downside is that it is typically made from petroleum which is a nonrenewable source. It takes more than 1 million tons of petroleum annually to meet the worldwide product demand.

The bio-based segment is predicted to expand at the highest CAGR of 6.4% in the forecast period. The growth is attributed to the increasing adoption of greener alternatives owing to a 61% reduction in greenhouse gas emissions when compared to petroleum-based products. The Pacific Northwest National Laboratory (PNNL) developed the first-ever catalytic process for converting plant-based raw material to produce bio-based propylene glycol. 

Grade Insights

The industrial grade segment dominated the market with a revenue share of over 63% in 2022. This is attributed to its increasing demand from the construction sector in the manufacturing of building materials. It is used to manufacture resins and plastics, paints and coatings, industrial coolants, detergents, and others. It is a high-purity material with a purity specification of around 99.5%.

The USP grade segment is anticipated to expand at a CAGR of 6.2% in the forecast period. The growth is attributed to the several applications of the product in the food & beverages, personal care, and pharmaceutical industries. The purity specification of this grade is around 99.9%. It is approved for use as a food additive under E1520 with a strict maximum limit of 1g/kg in human food.

End-use Insights

The construction segment dominated the market with a revenue share of over 38% in 2022. This is attributed to its increasing demand from the construction sector in the manufacturing of building materials. It is used to manufacture resins and plastics, paints and coatings, industrial coolants, detergents, and others. The construction industry experienced steady growth across all regions post-COVID in 2021.

Transportation was the second-largest segment and is anticipated to expand at the highest CAGR of 6.6% in the coming years. The growth is attributed to the rising demand for the product for the production of fire-resistant brakes and hydraulic fluids. as a deicing chemical for aircraft. The product is used as a coolant in automotive and prevents corrosion in the cooling system.

The others segment include agriculture adjuvants, liquid detergents, and tobacco. Propylene glycol is an acceptable ingredient in spray adjuvants for both agricultural and non-agricultural uses. In liquid detergents, the product is used as a stabilizer ensuring the even distribution of cleaning enzymes. The product is as a humectant in cigarettes to keep the tobacco moist, thereby preventing the cigarette from drying out. 

Regional Insights

Asia Pacific emerged as a dominating market and accounted for a revenue share of over 44% in 2022. The growth is attributed to the strong growth of the construction sector in the countries such as China, India, Indonesia, and others. China alone accounts for around 26.1% of the global growth of the construction industry. In 2021, infrastructure activities accounted for a 13% share of the total FDI inflows in India. This is likely to fuel the construction sector thereby leading to the increased demand for propylene glycol in the coming years.

According to the government of China, as of 2021, the country had 96 airports with an annual passenger throughput of over 1 million. Also, it had 22,000 railway locomotives including 14,000 electric and 8,000 diesel locomotives. In addition, there were 12.32 million road vehicles in operation nationwide. Thus, the growth of the transportation industry in China is anticipated to bolster the demand for propylene glycol in the coming years.

North America accounted for a revenue share of over 19% in 2022 and is predicted to grow at a CAGR of 5.7% over the forecast period. The growth of the North American construction industry is largely supported by the rapid expansion of the residential housing sector. In 2021, the Canadian construction industry grew to USD 72.02 billion, with a rise in residential construction by 19.7%. The growth of construction activities across the region is likely to fuel the demand for propylene glycol in the near future.

Key Companies & Market Share Insights

The market is characterized by the adoption of various strategic initiatives such as increasing production capacity, new product development, and technology partnerships to gain a competitive edge. For instance, Dow and Evonik entered into a technology partnership for a unique method for directly synthesizing propylene glycol from hydrogen peroxide and propylene. Some prominent players in the propylene glycol market include:

• Dow

• BASF SE

• ADM

• INEOS

• Shell Plc

• Adeka Corporation

• Huntsman International LLC.

• LyondellBasell Industries Holdings B.V.

Propylene Glycol Market Report Scope

Global Propylene Glycol Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2018 to 2030. For  this study, Grand View Research has segmented the global propylene glycol market report based on source, grade, end-use, and region:

• Source Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Petroleum Based

  • Bio Based

• Grade Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Industrial Grade

  • USP Grade

• End-use Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • Food & Beverages

  • Pharmaceuticals

  • Cosmetics & Personal Care

  • Construction

  • Transportation

  • Others

• Regional Outlook (Volume, Kilotons, Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • Italy

    • Belgium

    • France

    • U.K.

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • Turkey