Propylene Glycol Market Trends

Growth Drivers

• Rising demand for sustainable products: The increasing focus on the use of bio-based and renewable chemicals is the key factor fueling the growth of the propylene glycol market. In May 2023, the first operational year of the BioPG plant of ORLEN Poludnie, which was designed in partnership with BASF and Air Liquide, was completed. The plant turns bio-glycerol into renewable propylene glycol, underlining the trend towards more environmentally friendly production to satisfy the growing consumer demand for environmentally friendly products. Moreover, the enhancement of the regulatory pressure on cutting down carbon footprint enhances the shift to bio-based propylene glycol solutions.
• Expanding pharmaceutical and personal care applications: The rising application of propylene glycol in pharmaceuticals and personal care is the key driver of the market. In April 2023, Dow introduced a new line of propylene glycol products for personal care use, responding to the market’s need for innovative and sustainable products. These innovations show how propylene glycol is useful in formulations, which is why it is used in these fast-growing markets. Additionally, the enhanced demand for skincare and hygiene products after the pandemic has further emphasized the significance of propylene glycol in such sectors.
• Growth in aviation and automotive sectors: The application of propylene glycol in de-icing solutions and coolant systems is an essential factor for aviation and automobile sectors. Boeing’s 2023 Commercial Outlook estimates that the need for fuel-efficient commercial jets will increase, and this will spur demand for propylene glycol as a de-icing agent. Likewise, the improvement in automotive technologies is also accelerating the application of propylene glycol in antifreeze and lubricants, which in turn helps fuel the growth of the propylene glycol market. Global trends towards the use of electric vehicles also influence the development of new propylene glycol-based formulations for thermal management systems.

Challenges

• Regulatory compliance and environmental concerns: The increased stringent environmental laws force manufacturers to seek efficient and environmentally friendly ways of production. The effort to minimize carbon emissions and get rid of the dangerous by-products raises operational costs and calls for substantial capital expenditures in green technologies. Compliance is a real concern that companies need to consider when seeking to make a profit, particularly those that are relatively small in the industry. 

• Supply Chain Disruptions: Geopolitical and natural calamities have affected the supply chain of raw materials and products, causing problems in the global supply chain. Glycerin and petroleum-based feedstock variability influences the prices and time of production. This makes manufacturers respond to transport cost changes and logistics challenges that affect their delivery prowess to clients. As a result, these factors are anticipated to limit propylene glycol market expansion during the forecast.