Global Propylene Glycol Market
Propylene Glycol Market size was valued at USD 6 billion in 2024 and is projected to reach a valuation of USD 15.1 billion by the end of 2037, rising at a CAGR of 7.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of propylene glycol is evaluated at USD 6.3 billion.
The global propylene glycol market is anticipated to expand at a robust rate in the coming years, due to the increasing demand for propylene glycol across various sectors like automotive, pharmaceuticals, personal care, and so on. Rising environmental consciousness and the move towards biopolymers are driving improvements in manufacturing methods. For example, in March 2023, Ethos Asset Management worked with GreenGlycols B.V. to invest in a biomass-based propylene glycol plant in the Netherlands to promote sustainable industrial practices. These trends reveal the industry’s focus on sustainable business practices that are consistent with international objectives for sustainability.
The growth of the propylene glycol market is also boosted by government policies as well as the rising need for renewable chemicals. In September 2022, Dow launched its first circular economy-inspired propylene glycol solutions in Europe. These new products were developed to reduce carbon footprint while increasing efficiency for the automotive, food processing, construction, and many other industries. Also, the increasing need for USP-grade propylene glycol in the food and pharmaceutical industries is opening new propylene glycol market prospects for manufacturers globally.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.3% |
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Base Year Market Size (2024) |
USD 6 billion |
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Forecast Year Market Size (2037) |
USD 15.1 billion |
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Regional Scope |
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Source (Petroleum Based, Bio-Based)
Petroleum-based segment is estimated to account for more than 65% propylene glycol market share by the end of 2037. Petroleum-based propylene glycol is still popular even though there is increasing consciousness about bio-based products as it is cost-effective, has well-established distribution channels, and is easily accessible. In March 2023, LyondellBasell revealed plans for an expansion of its facility in Texas, where it will boost the propylene glycol production capacity by 100,000 metric tons, proving the relevance of the segment in the global market. The use in construction, automotive, and personal care sectors supports the segment’s market standing even further.
Grade (Industrial Grade, USP Grade)
By 2037, industrial grade segment is set to capture over 55.6% propylene glycol market share, owing to its applications in automotive coolants, de-icing solutions, and chemical manufacturing. The industrial grade propylene has proved to be durable in its operations and can be used in almost any field, which has propelled companies to launch innovative derivates in various markets. For example, INEOS introduced propylene glycol derivatives for specialty chemical markets in September 2022, highlighting the role of industrial grade products in high-performance applications. This growth is consistent with the increased need for chemical intermediates with multiple applications in various industries, such as construction and energy storage.
Our in-depth analysis of the global market includes the following segments:
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Source |
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End user |
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Grade |
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Asia Pacific Market Statistics
Asia Pacific in propylene glycol market is expected to account for more than 42.5% revenue share by the end of 2037. Some of the factors include the industrialization and urbanization of the region, especially China and India. This is particularly true in China, which is expected to spend USD 13 trillion on infrastructure by 2030, making it the notable construction market globally and, therefore, the dominant market for propylene glycol in sealants and resins.
In India, the government’s housing schemes are to build 60 million new houses with USD 1.3 trillion investment in the next seven years. This significant housing construction drive is thereby creating a demand for propylene glycol in paints, adhesives, and construction materials. In addition, the India pharmaceutical industry, which was worth USD 42 billion in 2022, has been gradually integrating propylene glycol into its formulations as the material’s application in this rapidly expanding market.
The growth of the propylene glycol market is attributed to the expansion in the electronics and automotive industries in China. Due to the focus of the government on the sustainable development plan known as Made in China 2025, bio-based production of propylene glycol is becoming more popular. Furthermore, the government’s policies towards increasing the use of renewable energy storage systems, which use propylene glycol, have helped the country become the market leader.
North America Market Analysis
North America propylene glycol market is estimated to exhibit around 6.5% CAGR till 2037. As a result of the abundance of manufacturing industries, especially the automotive industry, the region has been growing at a high rate. In March 2024, Dow unveiled two innovative propylene glycol (PG) solutions in North America, derived from bio-circular and circular feedstocks, marking a significant advancement in sustainable chemical production. This focus on renewable production is in line with the country’s environmental agenda and promotes sustainable development of the sector.
New investment in renewable chemicals and bio-based manufacturing technologies is driving the future of the propylene glycol market in the U.S. As per OICA, automotive production in the U.S. was 10.06 million units in 2022, which is 9% higher as compared to the previous year, increasing the usage of propylene glycol as a coolant and lubricant. In the same way, the pharmaceutical and personal care industries in the region have greatly depended on propylene glycol due to its wide application in drug formulation and skin care products, which in turn contributes to the growth of the market.
The propylene glycol market in Canada is also expanding due to the increasing need for green construction products. As one of the most common solvents in paints, coatings, and adhesives, propylene glycol has benefited from the Canadian government’s green building policies. Moreover, the production of pharmaceuticals in Canada is increasing, with a large number of new investments in drug production facilities, which will create new prospects for propylene glycol suppliers.
The global propylene glycol market is highly competitive, with major players including Dow, BASF SE, INEOS Oxide, and Huntsman International dominating the market. These companies aim at innovation, capacity, and sustainability to sustain their competitiveness in the market. For instance, BASF’s bio-based projects and INEOS’s increase in production capacity demonstrate their focus on changing market requirements.
In January 2023, Braskem made a USD 40 million investment into a bio-based propylene glycol facility in Brazil, which is a major step in sustainable production. This plant started operations in 2024, marking a shift by the industry towards developing renewable chemical products. Such investments show how market leaders are looking to achieve corporate performance while at the same time taking into consideration their environmental footprint in order to support future growth.
Here are some leading companies in the propylene glycol market:
Author Credits: Rajrani Baghel
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