• The push toward sustainable chemical substitutes is driving adoption of bio-based propylene glycol (Bio-PG), as industries seek alternatives to fossil-derived glycols to meet regulatory, environmental and brand-responsibility goals.

• Applications across segments such as unsaturated polyester resins (UPRs), antifreeze/coolants, cosmetics and pharmaceuticals are accelerating, with UPRs currently accounting for a sizeable share of Bio-PG use due to its compatibility with fibre-reinforced composites and coatings.

• Feedstock innovation, especially glycerol (a biodiesel by-product) and corn glucose, is emerging as a strategic enabler manufacturers are enhancing conversion technologies (hydrogenolysis, fermentation) to improve yield, cost-efficiency and scale.

• Regional dynamics show North America holding a strong share thanks to mature green-chemicals infrastructure and regulation, while Asia-Pacific is the fastest-growing region driven by industrial expansion, rising biosourcing initiatives and escalating demand for eco-friendly ingredients.

• Despite positive momentum, challenges remain such as cost premiums of Bio-PG versus conventional PG, feedstock supply-chain uncertainty, and the entrenched advantage of petroleum-based manufacturing infrastructure.

• Key enablers include regulation favouring low-carbon ingredients, brand preference forbio-base labelling, and growth in downstream industries (e.g., personal care, clean-mobility, sustainable construction) that prioritise greener inputs.

• Future opportunities lie in further scaling Bio-PG production, deeper penetration into sensitive end-uses (food, pharmaceuticals), development of higher-purity grades tailored for niche applications and leveraging circular-economy feedstocks allowing Bio-PG to transition from niche to mainstream.

• 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 Application, End Use Industry and Geography.

Bio-based Propylene Glycol Market, Segmentation by Application

The Application segmentation captures how bio-derived PG delivers performance and sustainability advantages across multiple use cases. Buying criteria emphasize renewable content, low carbon intensity, and drop-in compatibility with existing formulations to reduce switching costs. Suppliers compete through feedstock diversification (glycerin, sugars), process efficiency, and certifications that substantiate environmental claims while addressing challenges such as cost parity, supply resilience, and global compliance documentation.

Solvent

Solvent applications leverage bio-based PG’s favorable toxicity profile, low volatility, and strong solvency for water-borne and solvent-borne systems. Demand benefits from tighter VOC expectations and brand commitments to bio-preferred inputs in inks, cleaners, and paints. Vendors highlight stable rheology, odor control, and compatibility with surfactants and co-solvents to ensure consistent film formation and end-use performance.

Chemical Intermediates

Chemical intermediates use cases position bio-based PG as a building block for resins, plasticizers, and specialty derivatives that need reliable purity and reactivity. Formulators prioritize spec consistency, narrow moisture limits, and validated polycondensation behavior in downstream synthesis. Growth strategies include long-term offtake with converters, joint development projects, and process analytics that maintain quality across multi-source bio feedstocks.

Unsaturated Polyester Resin

Unsaturated polyester resin (UPR) producers adopt bio-based PG to reduce Scope 3 emissions while maintaining mechanical performance in composites and laminates. Customers seek steady viscosity control, gel time predictability, and laminate clarity across construction and marine profiles. Suppliers differentiate with lifecycle data, tailored inhibitor packages, and technical support that preserves cure kinetics in high-throughput lines.

Antifreeze & Coolant

Antifreeze & coolant formulations value the lower acute toxicity of bio-PG versus alternatives, supporting worker safety and environmental stewardship in automotive and industrial fluids. Performance hinges on freeze/boil protection, corrosion inhibitor synergy, and long service life under thermal cycling. Market expansion is reinforced by fleet sustainability targets and OEM partnerships validating field performance across temperature extremes.

Others

The Others category spans de-icing, heat-transfer fluids, and niche applications where biobased credentials, lubricity, and hygiene profiles matter. Buyers request documentation for food-contact compliance, microbiological stability, and compatibility with elastomers and seals. Producers extend reach via custom grades, preservative systems, and supply programs aligned to seasonal demand peaks.

Bio-based Propylene Glycol Market, Segmentation by End Use Industry

The End Use Industry view connects application performance to sector-specific sustainability roadmaps and regulatory drivers. Decision makers weigh total cost of ownership, ESG disclosures, and the ability to claim renewable content without requalifying entire product lines. Growth depends on supplier collaboration, spec-in wins with OEMs, and credible data packages that streamline procurement across global footprints.

Transportation

Transportation consumes bio-PG in antifreeze/coolant and de-icing fluids where safety, asset protection, and environmental compliance converge. Fleet operators and OEMs prioritize extended drain intervals, inhibitor stability, and recyclability to reduce lifecycle impact. Partnerships with service networks and aftermarket channels accelerate adoption across light-duty, heavy-duty, and off-highway equipment.

Food & Beverages

Food & beverages utilize bio-PG as a humectant, carrier, and solvent where certifications and traceability are critical. Brands value non-GMO options, allergen statements, and clean-label positioning that supports marketing claims. Suppliers invest in high-purity grades, robust QC, and regional warehousing that preserves freshness and reduces lead times for beverage and bakery applications.

Building & Construction

Building & construction integrates bio-PG through UPR composites, adhesives, and coatings that benefit from renewable inputs and low odor. Specifiers seek demonstrable VOC reductions, durability under humidity/UV, and alignment with green building schemes. Producers collaborate with resin makers and formulators to optimize cure profiles and mechanicals for panels, FRP, and architectural finishes.

Pharmaceuticals

Pharmaceuticals require pharmacopeia-conforming grades where excipient purity, biocompatibility, and documentation drive qualification. Use includes oral liquids, topicals, and soft-gel systems that leverage solvency and plasticization. Vendors provide GMP manufacturing, change-control transparency, and audit readiness to facilitate global filings and uninterrupted supply.

Cosmetics & Personal Care

Cosmetics & personal care brands choose bio-PG as a humectant and carrier to support natural positioning without sacrificing sensorials. Formulators demand microbiological stability, clarity, and fragrance compatibility across skincare, haircare, and color cosmetics. Strategic collaborations with contract manufacturers and retailers reinforce shelf claims and accelerate launches in eco-conscious portfolios.

Others

The Others segment spans industrial fluids, electronics cooling, and institutional cleaning where worker safety and environmental profiles matter. Buyers value consistent viscosity, low odor, and compatibility with surfactants and inhibitors. Expansion is supported by distributor partnerships, private-label programs, and tailored packaging that improves handling across diverse end-user groups.

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 and Africa and Latin America.

North America

North America adoption is driven by brand commitments to renewable chemistry, strong food/pharma compliance infrastructure, and OEM specifications in coolants and composites. Producers emphasize glycerin-to-PG routes, dependable logistics, and transparent LCA data to support retailer and enterprise sustainability goals. Partnerships with distributors and formulators accelerate conversion from petro-PG while safeguarding performance.

Europe

Europe benefits from ambitious circular-economy policies, mature bio-economy clusters, and high preference for bio-preferred inputs in personal care and F&B. Buyers demand rigorous documentation, REACH alignment, and third-party validation of renewable content. Suppliers with traceable supply chains, ISCC/Eco-label credentials, and collaborative innovation programs gain share in premium applications.

Asia Pacific

Asia Pacific leads volume growth on the back of expanding chemical manufacturing, rising personal care consumption, and investments in biorefineries near feedstock sources. Local players focus on cost optimization, scalability, and regional certifications to serve export and domestic markets. Long-term agreements with resin producers and coolant blenders support capacity utilization and broader market penetration.

Middle East & Africa

Middle East & Africa see emerging opportunities as industrial parks diversify into specialty chemicals and brands explore low-toxicity solvents for climate-exposed operations. Adoption grows with improved access to certified grades, technical training, and partnerships that localize packaging and distribution. Government initiatives around industrial sustainability and water-safe chemistries further support steady uptake.

Latin America

Latin America demand is supported by food, beverage, and construction markets seeking credible bio-based inputs. Regional producers work on feedstock integration and cost-effective logistics to enhance competitiveness against imports. Collaboration with multinational brands and co-manufacturers helps standardize specifications and scale adoption across priority applications.

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.

Bio-based Propylene Glycol Market is witnessing intense competition as chemical manufacturers, renewable solution providers, and regional producers capture nearly 66% of the share. Leading companies rely on strategies such as merger, partnerships, and collaboration to expand their reach. Ongoing innovation in sustainable production methods and eco-friendly formulations supports growth and enhances industry-wide expansion.

Market Structure and Concentration
Around 62% of the industry is consolidated among top-tier players, while emerging companies address specialized applications. This concentration fosters growth through integrated supply chains and advanced renewable processing. Firms adopt strategies involving vertical integration and partnerships with feedstock suppliers, ensuring innovation in sustainable chemistry and steady industry expansion.

Brand and Channel Strategies
Nearly 57% of revenues are driven by firms with strong brand visibility and robust distribution networks. Companies implement strategies that combine direct supply to industrial users with digital platforms for broader outreach. Collaboration with distributors and channel partnerships ensures reliable product availability, supporting continuous growth across pharmaceuticals, food, and industrial sectors.

Innovation Drivers and Technological Advancements
Over 65% of producers are investing in technological advancements such as fermentation, catalytic conversion, and process optimization. Innovation in cost-efficient renewable pathways enhances market competitiveness. These advancements strengthen growth, while collaboration with research institutions and technology providers accelerates sustainable expansion across bio-based chemical manufacturing and high-value end-use industries.

Regional Momentum and Expansion
North America accounts for nearly 45% of consumption, followed by Europe and Asia-Pacific. Regional expansion is reinforced through strategies such as joint ventures, localized production, and targeted merger activity. Strong partnerships with bio-refineries and industrial users promote innovation, ensuring long-term growth and competitiveness in renewable chemical markets.

Future Outlook
More than 72% of stakeholders anticipate robust growth supported by rising demand for sustainable and bio-based alternatives. The future outlook emphasizes eco-friendly innovation, feedstock security, and global partnerships. Companies are expected to adopt strategies including capacity expansion, advanced production technologies, and strategic merger activity to ensure long-term expansion of the bio-based propylene glycol industry.

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:

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