• In March 2024, Dow Inc. introduced new bio-circular and circular feedstocks for propylene glycol (PG) solutions in North America, aiming to reduce environmental impact through the use of renewable resources and waste minimization.

• In April 2022, Braskem SA partnered with Sojitz Corporation to produce bio-based ethylene glycol and propylene glycol, combining Sojitz's strong Asian market presence with Braskem's renewable chemical expertise to meet regional sustainable solution demands.

In this report, the Bio-Based Propylene Glycol Market has been segmented by Type, Application, End Use, and Geography.

Bio-Based Propylene Glycol Market, Segmentation by Type

The Bio-Based Propylene Glycol Market has been segmented by Type into Solvent, Antifreeze & Coolant, and Chemical Intermediates.

Solvent

The solvent segment leads the bio-based propylene glycol market, representing a substantial share of the overall market. As industries increasingly prioritize eco-friendly alternatives, bio-based propylene glycol is becoming the solvent of choice for applications in paints, coatings, and cleaning products. Currently, around 40% of the market share in this category is driven by the product's superior biodegradability compared to traditional synthetic solvents, making it a more sustainable solution for various industries.

Antifreeze & Coolant

The antifreeze and coolant sector holds a significant portion of the bio-based propylene glycol market, with bio-based options gaining popularity due to their non-toxic properties and reduced environmental impact. This segment accounts for approximately 35% of the global market. The increasing adoption of bio-based propylene glycol in automotive and industrial applications is a key driver, as consumers and manufacturers alike seek more sustainable alternatives in coolant and antifreeze formulations.

Chemical Intermediates

The chemical intermediates segment makes up about 25% of the bio-based propylene glycol market, driven by its growing use in the production of various chemicals, plastics, and polyurethane products. The demand for bio-based propylene glycol in this sector is primarily fueled by its environmental benefits, as manufacturers move toward greener chemical production processes. The increasing focus on sustainable materials in the chemical industry is expected to further propel growth in this segment.

Bio-Based Propylene Glycol Market, Segmentation by Application

The Bio-Based Propylene Glycol Market has been segmented by Application into Unsaturated Polyester Resins, Functional Fluids & Antifreeze Products, Detergents & Household Products, and Others.

Unsaturated Polyester Resins

The unsaturated polyester resins segment leads the bio-based propylene glycol market, contributing approximately 40% of the market share. This application is widely used in producing fiberglass-reinforced products, which are essential in industries like construction and automotive. As sustainability becomes increasingly important, bio-based propylene glycol is gaining preference for resin production due to its eco-friendly nature, positioning it as a more sustainable alternative to traditional synthetic chemicals.

Functional Fluids & Antifreeze Products

The functional fluids & antifreeze products sector is another significant application in the bio-based propylene glycol market, accounting for around 35% of the total market share. This segment is driven by the growing demand in automotive and industrial applications, where non-toxic, biodegradable coolants are becoming more sought after. The adoption of bio-based propylene glycol in antifreeze formulations is expanding due to its environmental safety and effectiveness in extreme cold temperatures.

Detergents & Household Products

The use of bio-based propylene glycol in detergents and household products is rapidly increasing, representing about 15% of the bio-based propylene glycol market. Consumer preferences are shifting toward more sustainable and non-toxic cleaning products, boosting demand for bio-based ingredients. Bio-based propylene glycol is valued for its low environmental impact, making it an ideal choice in the formulation of cleaning agents and other household products.

Others

The others segment, which includes applications in industries such as pharmaceuticals, cosmetics, and food products, makes up around 10% of the market. This segment is expanding as more industries adopt eco-friendly ingredients. Bio-based propylene glycol’s versatility and sustainable profile make it an increasingly popular option for use in a variety of niche applications across diverse sectors.

Bio-Based Propylene Glycol Market, Segmentation by End Use

The Bio-Based Propylene Glycol Market has been segmented by End Use into Transportation, Food & Beverages, Building & Construction, Pharmaceuticals, Cosmetics & Personal Care, and Others.

Transportation

The transportation industry represents a significant portion of the bio-based propylene glycol market, contributing approximately 30% to the overall market share. This sector utilizes bio-based propylene glycol primarily in the production of antifreeze and coolant fluids, essential for vehicles and industrial machinery. As the transportation sector shifts toward sustainable and non-toxic solutions, the demand for bio-based alternatives in coolant systems continues to rise, driven by the need for eco-friendly and biodegradable products.

Food & Beverages

In the food & beverages sector, bio-based propylene glycol is gaining significant traction, accounting for around 25% of the bio-based propylene glycol market. It is used as a humectant, stabilizer, and emulsifier in a wide range of food products. As consumer preferences increasingly lean towards natural and safe ingredients, bio-based propylene glycol is positioned as a favorable alternative, fueling its demand in food and beverage applications due to its sustainable and non-toxic properties.

Building & Construction

The building & construction industry accounts for approximately 20% of the market. Bio-based propylene glycol is widely utilized in the production of unsaturated polyester resins, which are integral to manufacturing fiberglass-reinforced products. As the construction industry moves toward more sustainable materials, bio-based propylene glycol is becoming an essential component in green building materials, enhancing the industry’s environmental footprint with eco-friendly resins.

Pharmaceuticals

In the pharmaceuticals sector, bio-based propylene glycol contributes about 15% to the total market. It is used as an excipient in a variety of pharmaceutical formulations, ensuring the dissolution and stabilization of active ingredients in medications. The growing demand for natural and safe ingredients in drug production is driving the adoption of bio-based propylene glycol, particularly in both oral and injectable pharmaceutical products.

Cosmetics & Personal Care

The cosmetics & personal care industry accounts for approximately 5% of the market. Bio-based propylene glycol is commonly used in skincare products, hair care formulations, and cosmetics as a humectant and moisturizer. As consumers increasingly seek sustainable and eco-friendly personal care products, the demand for bio-based propylene glycol in this sector is expanding, driven by the shift towards natural and safer ingredients.

Others

The others segment, encompassing applications in industries such as textiles, electronics, and agriculture, represents around 5% of the bio-based propylene glycol market. This segment is growing as more industries look for sustainable and eco-friendly ingredients. Bio-based propylene glycol’s versatility and environmental benefits make it a preferred choice in a wide range of niche applications across various sectors.

Bio-Based Propylene Glycol Market, Segmentation by Geography

In this report, the Bio-Based Propylene Glycol Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Bio-Based Propylene Glycol Market Share (%), by Geographical Region

North America

North America holds a significant share in the bio-based propylene glycol market, contributing around 35% of the total market. The region is a major adopter of sustainable chemical solutions, driven by increasing demand from industries such as automotive, food & beverages, and pharmaceuticals. In the U.S. and Canada, regulatory incentives and consumer preference for eco-friendly products are accelerating the shift toward bio-based propylene glycol, particularly in coolant, antifreeze, and resin applications.

Europe

Europe makes up about 30% of the bio-based propylene glycol market. The region’s focus on sustainability and strict environmental regulations is pushing industries to adopt greener alternatives. Leading countries like Germany, France, and the United Kingdom are key consumers of bio-based propylene glycol, especially in sectors such as automotive, construction, and cosmetics. The European market continues to expand as more industries prioritize eco-friendly production methods, making bio-based propylene glycol an essential ingredient in the shift toward sustainable chemical products.

Asia Pacific

Asia Pacific accounts for approximately 25% of the bio-based propylene glycol market. Countries like China, India, and Japan are driving market growth due to rapid industrialization and increasing awareness of environmental sustainability. In these regions, bio-based propylene glycol is in high demand across multiple sectors, including food & beverages, transportation, and pharmaceuticals. The growing adoption of environmentally friendly products and processes is pushing the popularity of bio-based propylene glycol as industries embrace eco-friendly alternatives.

Middle East & Africa

The Middle East and Africa region represent around 5% of the bio-based propylene glycol market. While still emerging, this market is showing increased interest in adopting sustainable solutions, particularly in industries like construction, agriculture, and automotive. Countries such as Saudi Arabia and the United Arab Emirates are leading the way in integrating bio-based propylene glycol into their manufacturing processes as part of broader sustainability initiatives. This trend is expected to gain momentum as the region continues to embrace greener solutions.

Latin America

Latin America contributes about 5% to the bio-based propylene glycol market. The shift toward sustainable and eco-friendly chemicals is gradually gaining traction in the region, particularly in pharmaceuticals, cosmetics, and food & beverages. Brazil is a key player in promoting the use of bio-based alternatives, and the growing demand for greener products in Latin American industries is expected to support the continued adoption of bio-based propylene glycol.

This report provides an in depth analysis of various factors that impact the dynamics of Bio-Based Propylene Glycol Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rising Consumer Demand for Sustainable Products
• Technological Advances in Production
• Government Incentives and Support

• Increased Awareness of Chemical Safety - Growing awareness of chemical safety is a major factor driving the expansion of the bio-based propylene glycol market. As industries and consumers become more conscious of the potential health and environmental risks associated with petrochemical-based ingredients, the demand for safer, non-toxic, and renewable alternatives is rising. Bio-based propylene glycol, derived from sources like corn and glycerin, is emerging as a preferred substitute for traditional synthetic propylene glycol in applications such as food, cosmetics, pharmaceuticals, and industrial formulations.

  Tightening regulatory standards and chemical safety regulations are encouraging manufacturers to reformulate products using safer and more sustainable ingredients. Bio-based propylene glycol meets these criteria by offering the same functional benefits such as moisture retention, solvent capabilities, and low toxicity while significantly reducing the environmental footprint. Its production avoids petroleum derivatives and aligns with green chemistry principles, making it a strong candidate for use in personal care products, food-grade applications, and pharmaceutical formulations.

  This shift is especially relevant in consumer-facing industries where ingredient transparency and product safety are increasingly important for brand reputation and customer loyalty. Consumers are actively seeking out eco-conscious and health-friendly alternatives, prompting companies to adopt bio-based solutions to meet demand and fulfill sustainability commitments. Bio-based propylene glycol not only supports these values but also enhances the appeal of end-products as safe and environmentally responsible choices.

  Clean-label product development, and sustainable innovation, the adoption of bio-based propylene glycol is set to accelerate. This trend reflects a larger shift toward green chemistry and responsible manufacturing, as businesses aim to reduce their ecological impact and prioritize consumer safety. As chemical safety awareness grows globally, bio-based alternatives will continue to gain traction as essential components in next-generation formulations.

Restraints

• Limited Availability of Raw Materials
• Performance and Quality Issues
• Regulatory Compliance Challenges

• Market Resistance and Awareness - Despite the increasing focus on sustainability, many industries remain dependent on traditional, petroleum-derived propylene glycol due to its cost advantages, familiarity, and well-established supply chains. This reluctance to switch is especially evident in sectors where manufacturing processes are closely aligned with conventional raw materials, making the transition to alternatives seem complex and potentially disruptive.

  A key issue is the lack of awareness regarding the benefits and viability of bio-based propylene glycol. Many stakeholders are either unfamiliar with the product or perceive it as inferior in terms of performance or cost-effectiveness. This misconception limits interest and slows adoption, particularly in regions where green chemistry practices and sustainable sourcing are not yet prioritized. As a result, bio-based alternatives are often overlooked in favor of more familiar petrochemical options.

  Cost perception is another major hurdle. While bio-based propylene glycol offers clear environmental and health advantages, its production costs can be higher due to factors like renewable feedstock sourcing and limited scale. In industries that prioritize budget efficiency, especially small and medium enterprises, the initial investment in sustainable materials is often viewed as non-essential. Without financial incentives or regulatory pressure, companies may resist switching despite the long-term value and market potential.

  Overcoming these challenges requires strategic efforts in market education, outreach, and evidence-based promotion. Emphasizing the long-term returns of using bio-based alternatives such as improved brand perception, regulatory compliance, and reduced environmental impact can shift market sentiment. As awareness grows and production technology advances, the resistance to adopting bio-based propylene glycol is likely to diminish, opening new opportunities across diverse industrial sectors.

Opportunities

• Development of New Applications
• Advancements in Production Technologies
• Collaborations and Strategic Partnerships

• Investment in R&D and Innovation - Growing investment in research and development (R&D) is creating strong momentum in the bio-based propylene glycol market. As industries increasingly prioritize sustainability and the reduction of fossil fuel dependency, companies are focusing on improving the efficiency and scalability of bio-based production processes. These efforts are making it possible to produce high-purity propylene glycol from renewable feedstocks such as glycerol, corn sugars, and sorbitol, enabling a more environmentally friendly alternative to petrochemical-based formulations.

  Advancements in catalytic conversion and fermentation technologies are significantly improving yields and lowering production costs. As a result, bio-based propylene glycol is becoming more competitive with its petroleum-derived counterpart in both price and performance. R&D is also helping enhance the product’s functional compatibility across applications such as pharmaceuticals, personal care, food and beverage, and industrial resins. These developments support manufacturers in meeting evolving regulatory requirements while advancing their green chemistry goals.

  Research is also expanding the range of biomass sources that can be used in production, which increases supply chain flexibility and raw material availability. This adaptability ensures that manufacturers can scale production more sustainably and respond to regional market demands. In addition, technological innovations are enabling the development of drop-in solutions that can be integrated into existing manufacturing processes with minimal disruption, making it easier for companies to adopt bio-based alternatives.

  As investment in bio-based innovation accelerates, it is fostering deeper collaboration between industry leaders, research institutions, and green tech startups. These partnerships are not only accelerating commercialization timelines but also strengthening the global infrastructure for sustainable chemical production. With increasing regulatory pressure and consumer demand for eco-conscious solutions, ongoing R&D is expected to be a driving force behind the long-term growth and success of the bio-based propylene glycol market.

Key players in Bio-Based Propylene Glycol Market include :

• Archer Daniels Midland Company (ADM)
• BASF SE
• The Dow Chemical Company
• DuPont Tate & Lyle Bio Products Company
• Huntsman International LLC
• Oleon NV
• Ashland Global Holdings Inc.
• Shell Chemicals
• Cargill Incorporated
• Braskem SA

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis