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Add to CartPropylene Glycol Market
By Grade;
Industrial, Food & Beverage and PharmaceuticalBy Application;
Flavoring Agent, Antifreeze & Deicer Agent, Unsaturated Polyester Resins, Chemical Intermediates and OthersBy End User;
Transportation, Building & Construction, Food & Beverages, Personal Care, Pharmaceuticals and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Propylene Glycol Market Overview
Propylene Glycol Market (USD Million)
Propylene Glycol Market was valued at USD 5,184.16 million in the year 2024. The size of this market is expected to increase to USD 7,007.81 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 4.4%.
Propylene Glycol Market
*Market size in USD million
CAGR 4.4 %
| Study Period | 2025 - 2031 |
|---|---|
| Base Year | 2024 |
| CAGR (%) | 4.4 % |
| Market Size (2024) | USD 5,184.16 Million |
| Market Size (2031) | USD 7,007.81 Million |
| Market Concentration | High |
| Report Pages | 395 |
Major Players
- The Dow Chemical Company
- LyondellBasell Industries N.V.
- BASF SE
- Archer Daniels Midland Company
- Global Bio-chem Technology Group Co., Ltd.
- DuPont Tate & Lyle Bio Products Company, LLC
- Huntsman Corporation
- SKC Co., Ltd.
- Temix International S.R.L.
- Ineos Oxide
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Propylene Glycol Market
Fragmented - Highly competitive market without dominant players
The Propylene Glycol Market is witnessing steady expansion, driven by its multifunctional properties and rising adoption across healthcare, personal care, food, and industrial sectors. Nearly 35% of its demand comes from the cosmetics industry, where it acts as a moisturizer and solvent, boosting the effectiveness of skincare and haircare products. Growing awareness of safe and versatile chemical ingredients continues to elevate its market potential.
Pharmaceutical Demand
The pharmaceutical industry represents close to 25% of the total market consumption. Propylene glycol plays a crucial role in drug formulations, improving solubility and product stability across oral and injectable medicines. Rising global healthcare needs and increasing drug production volumes are strengthening its position as an indispensable pharmaceutical excipient.
Food and Beverage Integration
In the food and beverage sector, around 20% of propylene glycol demand is attributed to its use as a stabilizer, preservative, and flavor enhancer. Its ability to improve texture and extend shelf life makes it a critical ingredient in processed and packaged products. The growth of convenience foods and beverages continues to drive steady uptake in this segment.
Industrial Applications
Nearly 15% of the market stems from industrial uses, including its role in unsaturated polyester resins, de-icing fluids, and antifreeze. Its unique physical properties make it highly adaptable in advanced chemical formulations. Rising demand for industrial efficiency and durable materials is expected to sustain its relevance in this sector.
Propylene Glycol Market Recent Developments
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In January 2024, the global propylene glycol market saw a surge in demand driven by growth in the food and beverage industry, where it is used as a preservative and humectant in various products.
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In July 2022, increased use of bio-based propylene glycol boosted market expansion, as consumers and manufacturers sought more sustainable alternatives to petroleum-based products, especially in personal care and household products.
Segment Analysis
By source, the market is divided into petroleum-based and bio-based propylene glycol. Petroleum-based propylene glycol, derived from propylene oxide, dominates the market due to its established production process and widespread availability. It is commonly used in industrial applications such as antifreeze, deicers, and solvents. Bio-based propylene glycol, derived from renewable feedstocks like glycerol, is gaining popularity due to growing environmental concerns and regulatory support for sustainable practices. Its use is especially prominent in eco-friendly products like green solvents and biodegradable polymers.
By grade, the market includes industrial grade and pharmaceutical grade propylene glycol. Industrial-grade variants are extensively used in automotive, construction, and chemical manufacturing for applications such as heat transfer fluids, hydraulic fluids, and resins. Pharmaceutical-grade propylene glycol, known for its purity and safety, finds applications in food, beverages, personal care, and pharmaceutical products. This grade meets stringent quality standards and is a key ingredient in formulations like cosmetics, oral care products, and liquid medicines.
By end-use industry, propylene glycol serves sectors like automotive, construction, food and beverage, pharmaceuticals, personal care, and chemical manufacturing. In automotive and construction, it is used in antifreeze solutions, deicers, and coatings. The food and beverage industry leverages propylene glycol as a humectant, emulsifier, and stabilizer in processed foods and beverages. The pharmaceutical and personal care industries rely on it for its non-toxic properties, using it in medications, creams, lotions, and cosmetic products. The chemical industry utilizes propylene glycol as a base material for unsaturated polyester resins and other derivatives.
Geographically, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Asia-Pacific leads the market due to rapid industrialization, a booming automotive sector, and increasing demand for processed food and personal care products in countries like China and India. North America and Europe are mature markets, driven by advancements in the pharmaceutical and personal care industries, as well as stringent environmental regulations encouraging the use of bio-based variants. Emerging markets in Latin America and the Middle East and Africa are experiencing growth due to expanding industrial activities and rising consumer awareness of personal care and hygiene.
Global Propylene Glycol Segment Analysis
In this report, the Global Propylene Glycol Market has been segmented by Source, Grade, End-Use Industry and Geography.
Global Propylene Glycol Market, Segmentation by Source
The Global Propylene Glycol Market has been segmented by Source into Petroleum Based and Bio Based.
Petroleum-based propylene carbonate is the more traditional and widely used source, derived from petrochemical feedstocks. This form benefits from established production processes, consistent quality, and cost-efficiency, making it a dominant choice in industries such as automotive, electronics, and industrial cleaning. The widespread availability of petroleum feedstocks and the scalability of production contribute to the high adoption of petroleum-based variants. However, concerns over environmental impact and reliance on non-renewable resources are prompting scrutiny and driving interest in alternatives.
Bio-based propylene carbonate, on the other hand, is produced using renewable resources such as glycerol, a byproduct of biodiesel production. This source aligns with the growing emphasis on sustainability and reducing carbon footprints. Bio-based variants are gaining traction in applications where environmental considerations are critical, such as in personal care products, green solvents, and eco-friendly coatings. While bio-based propylene carbonate is less common due to higher production costs and limited raw material availability, advancements in biotechnology and increased demand for sustainable solutions are expected to drive its adoption.
Global Propylene Glycol Market, Segmentation by Grade
The Global Propylene Glycol Market has been segmented by Grade into Industrial Grade and Pharmaceutical Grade.
Industrial-grade propylene glycol finds extensive use in applications such as unsaturated polyester resins, antifreeze and coolants, functional fluids, and industrial solvents. Known for its chemical stability, low toxicity, and compatibility with various materials, it plays a crucial role in manufacturing and automotive sectors. The demand for industrial-grade propylene glycol is particularly driven by industrial growth, especially in emerging markets where industrialization is accelerating.
Pharmaceutical-grade propylene glycol is distinguished by its high purity and strict adherence to regulatory standards. This grade is indispensable for pharmaceuticals, food and beverages, cosmetics, and personal care products due to its non-toxic and non-irritating properties. It meets stringent quality requirements for products intended for direct human consumption or contact, thus supporting the health and wellness sectors. Moreover, it serves as a solvent in drug formulations and a carrier for flavors and fragrances, further enhancing its importance in these industries.
The propylene glycol market benefits significantly from both industrial and pharmaceutical grades, each catering to distinct but vital sectors. The industrial grade supports heavy-duty applications crucial for manufacturing and automotive industries, while the pharmaceutical grade meets stringent quality standards essential for consumer-oriented products. With advancements in production technologies and increasing regulatory emphasis on quality and safety, the demand for propylene glycol in both grades is poised to expand further, driven by evolving industrial needs and consumer preferences worldwide.
Global Propylene Glycol Market, Segmentation by End-Use Industry
The Global Propylene Glycol Market has been segmented by End-Use Industry into Cosmetics & Personal Care, Food & Beverage, Pharmaceutical, Automotive, Building & Construction and Others.
In the cosmetics and personal care sector, propylene glycol is crucial for its moisturizing properties and efficient solubility of active ingredients in products like skin creams, shampoos, and deodorants. The industry's shift towards natural and organic formulations has prompted innovations in propylene glycol derivatives to meet evolving consumer preferences.
Within the food and beverage industry, propylene glycol serves as a humectant, solvent, and stabilizer in processed foods, soft drinks, and food coloring, enhancing product shelf life and consistency. In pharmaceuticals, it plays a pivotal role as a solvent in various medications, ensuring the efficacy and safety of active pharmaceutical ingredients (APIs) in formulations compliant with stringent quality standards.
In automotive applications, propylene glycol functions as a non-toxic antifreeze and coolant, safeguarding engine performance against freezing and overheating. Its versatility extends to the building and construction sector, where it contributes as a solvent and viscosity modifier in paints, coatings, and adhesives, enhancing product durability and performance. Additionally, propylene glycol finds utilization across textiles, agriculture, and electronics industries, highlighting its broad market demand and essential role in various industrial processes globally.
Global Propylene Glycol Market, Segmentation by Geography
In this report, the Global Propylene Glycol Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Propylene Glycol Market Share (%), by Geographical Region, 2024
The global propylene glycol market shows diverse regional dynamics influenced by industrial growth, regulatory frameworks, and consumer preferences. North America stands out as a major market driven by strong demand across sectors like food and beverage, pharmaceuticals, and cosmetics. Stringent safety and quality regulations in North America encourage innovation and uphold high manufacturing standards. The region also sees increased use in antifreeze and pharmaceutical carrier applications, contributing to steady market growth.
The propylene glycol market is shaped by rigorous environmental standards and a growing focus on sustainability. It finds extensive application in food and beverage industries due to its role in moisture retention and stabilization. The pharmaceutical sector in Europe values propylene glycol for its solubility and inert characteristics, supporting market expansion. Despite a mature industrial base and presence of major manufacturers, adherence to regulatory norms remains pivotal in shaping market trends.
Asia Pacific emerges as a rapidly expanding propylene glycol market, driven by rapid industrialization and urbanization in countries like China and India. Increasing disposable incomes and population growth propel demand for personal care products and pharmaceuticals, where propylene glycol plays a crucial role. The region's food and beverage industry benefits from its use in extending product shelf life and maintaining quality. However, navigating diverse regulatory environments and ensuring stringent quality control pose challenges for market players seeking to capitalize on growth opportunities in Asia Pacific.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Propylene Glycol Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Drivers, Restraints and Opportunity Analysis
Drivers:
- Growing Demand from the Automotive Industry
- Rising Use in Pharmaceuticals and Cosmetics
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Expansion of the Food and Beverage Industry: Propylene glycol is widely utilized as a food additive and preservative, playing a crucial role in maintaining the quality and safety of various food products. Its ability to retain moisture, stabilize flavors, and extend shelf life makes it an essential component in the food and beverage industry. This functionality ensures that products remain fresh and appealing to consumers, contributing to its sustained demand.
The growing global population is a significant factor driving the expansion of the food and beverage industry. As the population increases, the need for food preservation and quality enhancement becomes more critical. Propylene glycol's properties make it an indispensable ingredient in meeting this demand, ensuring that food supplies can keep pace with the rising number of consumers.
Rising disposable incomes further amplify the demand for propylene glycol in the food and beverage sector. As consumers have more spending power, their preference for high-quality, convenient, and ready-to-eat food products grows. This trend propels the industry's expansion, as manufacturers strive to meet the evolving consumer preferences by incorporating propylene glycol into their products to enhance quality and shelf life.
Restraints:
- Health and Environmental Concerns
- Fluctuations in Raw Material Prices
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Competition from Bio-Based Alternatives: Increasing awareness and preference for sustainable and eco-friendly products have significantly influenced market dynamics. Consumers and industries alike are becoming more conscious of the environmental impact of their choices, driving the demand for greener alternatives. This shift in consumer behavior has paved the way for the development of bio-based propylene glycol.
Bio-based propylene glycol, derived from renewable sources such as corn or soybeans, is emerging as a strong contender in the market. Its production process is more sustainable and has a smaller environmental footprint compared to traditional petroleum-based methods. As a result, it appeals to environmentally conscious consumers and industries looking to reduce their carbon footprint.
This growing preference for sustainable products presents stiff competition to traditional petroleum-based propylene glycol. Companies that produce bio-based alternatives are gaining market share as they cater to the increasing demand for eco-friendly solutions. The trend towards sustainability is likely to continue, further challenging the dominance of conventional propylene glycol in the market.
Opportunities:
- Advancements in Production Technologies
- Expansion into Emerging Markets
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Growing Demand for Eco-Friendly Products: The increasing consumer awareness about environmental issues has led to a heightened demand for eco-friendly products across various industries. This trend is particularly evident in the chemical industry, where consumers and manufacturers are seeking alternatives to traditional, petroleum-based products. Propylene glycol, a commonly used chemical, is now being scrutinized for its environmental impact, creating an opportunity for more sustainable alternatives.
Bio-based propylene glycol, produced from renewable resources such as corn and soybeans, is emerging as a viable and attractive alternative. Its production process is more sustainable and less harmful to the environment compared to conventional methods. As consumers become more eco-conscious, they are more likely to support products and brands that prioritize sustainability, driving the demand for bio-based propylene glycol.
Companies that invest in sustainable production methods and develop eco-friendly products can capitalize on this growing trend. By offering bio-based propylene glycol, these companies can meet the increasing consumer demand for green products and gain a competitive edge in the market. This shift towards sustainability not only benefits the environment but also opens up new business opportunities for forward-thinking companies.
Propylene Glycol Market Competitive Landscape Analysis
Propylene Glycol Market is characterized by intense competition, with leading manufacturers capturing over 60% of the total share. The industry is witnessing strong momentum driven by strategies that emphasize sustainability and partnerships with downstream sectors. Rising consumer awareness and industrial adoption highlight the increasing importance of technological advancements in ensuring consistent quality, performance, and diversified application growth.
Market Structure and Concentration
The market shows moderate to high concentration, with a few key companies accounting for nearly 55% of the share. Competitive pressures are shaped by merger activities and collaboration with regional suppliers. This structure enables leading firms to consolidate their positions, while mid-tier players emphasize innovation to strengthen their competitive stance.
Brand and Channel Strategies
Brand differentiation plays a significant role, as companies adopt strategies centered on eco-friendly production and certified supply chains. Around 48% of firms have expanded distribution networks through partnerships with specialized distributors. Strong brand visibility, supported by targeted marketing channels, has become a driver for sustainable growth and long-term customer engagement.
Innovation Drivers and Technological Advancements
Innovation remains central to competitive advantage, with over 52% of players investing heavily in technological advancements. Research efforts are directed at renewable feedstock and high-performance derivatives. Companies are leveraging collaboration with research institutions to accelerate product development, ensuring that expansion aligns with emerging environmental and industrial requirements.
Regional Momentum and Expansion
Regional leaders dominate more than 58% of consumption, supported by robust manufacturing bases and expansion initiatives. Cross-border partnerships have enabled firms to scale distribution across high-demand regions. Strategic investments in infrastructure and localized innovation centers are further solidifying regional momentum, making the market landscape increasingly competitive.
Future Outlook
The future outlook indicates that nearly 62% of companies will prioritize sustainable strategies and digital integration. Strong emphasis on collaboration and merger synergies is expected to accelerate market consolidation. With continued growth in industrial and consumer applications, the Propylene Glycol Market is positioned for long-term expansion supported by innovation-driven transformation.
Key players in Propylene Glycol Market include:
- Dow
- LyondellBasell Industries
- BASF SE
- INEOS Oxide
- Shell Chemicals
- Repsol
- Archer Daniels Midland Company (ADM)
- SK Chemicals (SKC)
- Sumitomo Chemical
- LG Chem
- Indorama Ventures
- Manali Petrochemicals
- Monument Chemical
- Temix Oleo
- Adeka Corporation
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
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Grade
- Market Snapshot, By Application
- Market Snapshot, By End-User
- Market Snapshot, By Region
- Propylene Glycol Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers:
- Growing Demand from the Automotive Industry
- Rising Use in Pharmaceuticals and Cosmetics
- Expansion of the Food and Beverage Industry
- Restraints:
- Health and Environmental Concerns
- Fluctuations in Raw Material Prices
- Competition from Bio-Based Alternatives
- Opportunities:
- Advancements in Production Technologies
- Expansion into Emerging Markets
- Growing Demand for Eco-Friendly Products
- Drivers:
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Propylene Glycol Market, By Grade, 2021 - 2031 (USD Million)
- Industrial
- Food & Beverage
- Pharmaceutical
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Propylene Glycol Market, By Application, 2021 - 2031 (USD Million)
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Flavoring Agent
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Antifreeze & Deicer Agent
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Unsaturated Polyester Resins & Chemical Intermediates
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- Propylene Glycol Market, By End-Use, 2021 - 2031 (USD Million)
- Transportation
- Building & Construction
- Food & Beverages
- Personal Care
- Pharmaceuticals
- Others
- Propylene Glycol Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Propylene Glycol Market, By Grade, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Dow
- LyondellBasell Industries
- BASF SE
- INEOS Oxide
- Shell Chemicals
- Repsol
- Archer Daniels Midland Company (ADM)
- SK Chemicals (SKC)
- Sumitomo Chemical
- LG Chem
- Indorama Ventures
- Manali Petrochemicals
- Monument Chemical
- Temix Oleo
- Adeka Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market