Bio-based Propylene Glycol Market size was USD 4.7 billion in 2024 and is estimated to reach USD 8.7 billion by the end of 2037, expanding at a CAGR of 4.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of bio-based propylene glycols is assessed at USD 4.9 billion.
The strict environmental regulations and sustainability trends are generating lucrative opportunities for bio-based propylene glycol producers. The growing adoption of biochemicals is driving innovations in the production of bio-based propylene glycols (PG). Personal care, cosmetics, pharmaceuticals, automotive, and food industries are majorly fueling the consumption of bio-based propylene glycols. Clean-label marketing and the growing popularity of eco-friendly products are promoting bio-based propylene glycol trade activities. The race towards lowering the carbon footprint is directly pushing the consumption of bio-based propylene glycols in these industries.
The trade of traditional propylene glycol is exhibiting a steady to sluggish growth curve owing to the increasing dominance of bio-based propylene glycol producers. The Observatory of Economic Complexity (OEC) study estimates that in 2022, the propylene glycol trade was evaluated at USD 2.64 billion, and accounted for 0.93 product complexity relatedness. The propylene glycol export registered a negative CAGR of -1.25% between 2021 to 2022. Furthermore, Germany witnessed a negative export value growth of USD 126.0 million, whereas France calculated a negative import value growth of USD 33.4 million in 2022. This directly highlights how sustainability and environmental awareness moves are fueling the bio-based propylene glycol sales.
Growth Drivers
Challenges
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
4.9% |
|
Base Year Market Size (2024) |
USD 4.7 billion |
|
Forecast Year Market Size (2037) |
USD 8.7 billion |
|
Regional Scope |
|
Application (Unsaturated Polyester Resin, Solvent, Antifreeze & Coolant, Chemical Intermediates, Others)
Antifreeze & coolant segment is projected to dominate bio-based propylene glycol market share of over 38.5% by 2037. The bio-based propylene glycols antifreeze and coolant properties are fueling their use in various industries such as industrial processing and automotive. To improve the environmental credentials of vehicles automakers are investing heavily in bio-based propylene glycols as better antifreeze & coolant alternatives. The electric and hybrid vehicles, which heavily rely on eco-friendly components are fueling the demand for bio-based propylene glycols. Furthermore, industrial segments such as cooling systems in manufacturing units, power plants, and HVAC systems majorly employ bio-based propylene glycols due to their superior environmental and safety benefits. The OEC report states that the antifreeze trade expanded at a CAGR of 8.56% and amounted to USD 1.54 billion in 2022. The antifreeze trade activities are more saturated across European countries, wherein Germany (USD 310.0 million) and France (USD 106.0 million) captured the top position as leading exporters and importers of antifreeze.
End use Industry (Cosmetics, Building & Construction, Automotive, Pharmaceuticals, Detergent & Household, Others)
The pharmaceuticals segment is anticipated to hold a dominant bio-based propylene glycol market share during the assessed period. Bio-based propylene glycols are widely used in injectable, oral, and topical formulations as a solvent. Continuous advancements in the biotechnology field are contributing to the bio-based propylene glycol applications in pharma product production. The supportive government policies and investments in organic chemical production and usage in the pharmaceutical sector are also promoting the consumption of bio-based propylene glycols. For instance, the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) report states that the yearly R&D spending on the biopharmaceutical sector is 8.1 times higher than other high-technology industries such as aerospace and defense. Furthermore, it is estimated that the growth of the pharmaceutical sector has a positive influence on the sales of bio-based propylene glycols. According to the Research Nester’s study, the global pharmaceutical market was calculated at USD 1.6 trillion in 2023.
Our in-depth analysis of the global bio-based propylene glycol market includes the following segments:
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Application |
|
|
End use Industry |
|
North America Market Forecast
North America bio-based propylene glycol market is projected to dominate revenue share of over 34.4% by 2037. The increasing demand for sustainable and eco-friendly products, strict regulations on mitigating carbon footprint, and expanding bio-chemical industry are propelling the trade of bio-based propylene glycols. The continuous advancements in the agriculture sector focused on feedstock production are aiding the bio-based propylene glycol manufacturers in a healthy supply of raw materials, both in the U.S. and Canada.
In the U.S., the rising importance of green chemistry and supportive government policies surrounding it are limiting the sales of hazardous chemicals and generating opportunities for bio-based chemical producers. The 12 principles of green chemistry developed by the U.S. Environmental Protection Agency (EPA) are augmenting the consumption of bio-based propylene glycols in the country. The EPA study states that around 30 million pounds of hazardous solvents and chemicals are discarded annually. The stringent regulations are also offering snowfall effects on the consumption of bio-based propylene glycols.
Canada’s robust agriculture sector is maintaining the supply chain of feedstocks required for the production of bio-based propylene glycols. These factors are not only multiplying the production of bio-based propylene glycols but also propelling their sales on the global landscape. The SoyCanada report underscores that soy is the 3rd largest among principal field crops and the farm cash receipts totaled around USD 2.94 billion (CDN$ 4.25 billion) in 2022. The soy production amounted to 6.98 million metric tons (MMT) in 2023. The U.S. Department of Agriculture (USFDA) analysis also highlights a positive growth in soy production in Canada.
|
Market Year |
Area (1000 Ha) |
Production (1000 Tons) |
Yield (T/Ha) |
|
2014/2015 |
2,257 |
6,045 |
2.68 |
|
2015/2016 |
2,233 |
6,456 |
2.89 |
|
2016/2017 |
2,232 |
6,597 |
2.96 |
|
2017/2018 |
2,935 |
7,717 |
2.63 |
|
2018/2019 |
2,540 |
7,417 |
2.92 |
|
2019/2020 |
2,271 |
6,145 |
2.71 |
|
2020/2021 |
2,041 |
6,359 |
3.12 |
|
2021/2022 |
2,080 |
6,224 |
2.99 |
|
2022/2023 |
2,118 |
6,543 |
3.09 |
|
2023/2024 |
2,261 |
6,981 |
3.09 |
|
2024/2025 |
2,290 |
7,568 |
3.30 |
|
5-year Average 2019/20 - 2023/24 |
2,154 |
6,450 |
3.00 |
|
Percent Change From 5-Year Average (%) |
6 |
17 |
10 |
|
Record |
2,935 |
7,717 |
3.12 |
|
Record Year |
2017/2018 |
2017/2018 |
2020/2021 |
Source: USDA
Asia Pacific Market Statistics
The Asia Pacific bio-based propylene glycol market is poised to rise at the fastest CAGR through 2037. The ongoing innovations in the chemical and petrochemical sector and the swiftly expanding automotive industry are increasing the consumption of bio-based propylene glycols. The hike in industrial activities and booming manufacturing trade are fueling the use of bio-based propylene glycols as antifreeze and coolants. China and India are high-earning bio-based propylene glycol markets, whereas Japan and South Korea are more focused on innovations and export.
India is the most lucrative marketplace for bio-based propylene glycol manufacturers owing to supportive government policies for green chemicals and foreign direct investments (FDI). The expanding number of high-performance and specialized chemical producers is subsequently uplifting India’s position in the global landscape. The India Brand Equity Foundation (IBEF) states that the specialty chemical companies’ expanding manufacturing units in the country are highlighting the boasting domestic and international chemical demand. The FDI in the chemical industry surpassed USD 22.7 billion between April 2000 and June 2024. Furthermore, the rise in automotive production capacities is also contributing to the increasing sales of bio-based propylene glycols as cooling and antifreeze agents. For instance, in January 2024, the Society of Indian Automobile Manufacturers (SIAM) disclosed that the total production of passenger vehicles, 3-wheelers, 2-wheelers, and quadricycles totaled 19,21,268 units in December 2024.
In China, the increasing number of manufacturing and industrial facilities are fueling the use of bio-based propylene glycols. The data from Trading Economics highlights that the industrial product increased by 6.2% YoY in December 2024. The same source also revealed that the manufacturing segment exhibited high growth in FY 2024 amid several stimulus measures. Another factor is that the high automobile production cycle is also contributing to the overall bio-based propylene glycol market growth.
The bio-based propylene glycol market is characterized by the presence of dominant players and the increasing emergence of new companies. The green chemistry trends, supportive policies on bio-based chemicals, and high demand from end use sectors are generating profitable opportunities for bio-based propylene glycol manufacturers. To maintain the dominant position in the global landscape the leading companies are employing several organic and inorganic marketing strategies such as new product launches, technological innovations, strategic collaborations and partnerships, mergers & acquisitions, and global expansions. The expanding production activities are underscoring the high global demand for bio-based propylene glycols.
Some of the key players include:
Author Credits: Rajrani Baghel
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