Neopentyl Glycol (NPG) Market Size & Share, by Form (Flakes, Molten, Slurry); Production Method; End use - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Growth Drivers

• Emerging as an alternative solvent: The increase in global plastic production and waste has prompted the search for recyclable methods, with poly (ethylene terephthalate) (PET) being a prominent recyclable polymer due to its lightweight, transparency, and mechanical strength. According to the Organization for Economic Co-operation and Development (OECD), plastics accounted for 3.4% of global greenhouse gas emissions and the world's plastics production rose to 460 million tons between 2000 and 2019. Additionally, the amount of plastic waste generated globally has more than doubled, amounting to 353 million tons.
  
  Most waste PET is typically incinerated or sent to landfills, with a significant amount ending in oceans. While mechanical recycling is common, it can degrade product quality, and more complex waste streams are challenging to recycle. Recent studies by the Royal Society of Chemistry have explored chemical recycling technologies, highlighting NPG as an effective glycolysis agent that can depolymerize various PET waste forms into the BHNT monomer. Optimal conditions for high conversion were found at a 6:1 NPG/PET molar ratio and 200 °C. A purification process using active carbon further increased the purity of BHNT from 60% to 95%, demonstrating the potential for replacing fossil-based NPG in resin or coating synthesis.
• Advanced synthesis and expanding applications: The neopentyl glycol market is expected to increase due to the application of highly industrialized synthesis, such as the green catalytic process, advanced industrial synthesis, and shifting trends in the production of chemicals using organic molecules. Additionally, a growing supply of raw materials, strict federal rules on volatile organic compounds (VOC) emissions, and the use of neopentyl glycol in various industrial and commercial applications will accelerate the neopentyl glycol market.
  
  In recent years the neopentyl glycol demand has been driven by the growing global internet penetration and the growing preference for electronics. According to the International Telecommunication Union (ITU) 5.5 billion people, or 68% of the global population, used the Internet in 2024. With an expected 1.3 billion individuals going online in 2019, this is an increase from 53%. Neopentyl glycol is used in the etching procedures, which are essential for printed circuit boards.

Challenges

• Fluctuation in raw material prices:  NPG is mostly made from petrochemical feedstocks, and the price volatility of crude oil has a significant impact on the cost of production. The cost of producing NPG is directly impacted by abrupt increases or decreases in oil prices, making it difficult for producers to maintain steady profit margins and pricing policies. In addition, supply chain interruptions and geopolitical unpredictability lead to irregular raw material supplies impeding neopentyl glycol market expansion.
• Growing environmental concerns: Although NPG is more environmentally benign than traditional chemicals, some chemicals and energy-intensive processes may still be used in its manufacture, which has an effect on the environment. NPG manufacturers must comply with strict laws governing emissions, waste management, and chemical use, which raises manufacturing costs and complicates operations. Stricter adherence to environmental norms is also required due to rising public awareness and pressure for sustainable practices, which makes NPG manufacturers' attempts to expand their neopentyl glycol market even more difficult.