Propylene Carbonate Market Trends

Growth Drivers

• Industrial growth in coatings & adhesives: The adhesives and coatings industry is creating a profitable environment for propylene carbonate manufacturers. Propylene carbonate is increasingly used in paints and coatings because it helps control thickness, improves flow, and makes products last longer, boosting its sales. The U.S. Bureau of Labor Statistics reports that the producer price index for paint, coating & adhesive manufacturing was 241.214 (P) in July 2025. Furthermore, in the plastics sector, the application of propylene carbonate as a solvent is set to boom.

• Increasing electronics demand: The expanding electronics sector is among the fast-growing application areas for propylene carbonate. The primary factor boosting the consumption of propylene carbonate in electronics is its high-performance cleaning and processing solvent properties. The Observatory of Economic Complexity (OEC) reveals that the world trade of electrical machinery and electronics stood at USD 3.35 trillion in 2023. The propelling global trade of consumer electronics and machinery is set to amplify the demand for propylene carbonate.

• Expansion in personal care & cosmetics: The personal care and cosmetics industry is the most profitable niche market for propylene carbonate manufacturers. The demand for propylene carbonate is mainly driven by its primary role as a solvent and viscosity regulator in skincare formulations. According to the Food and Drug Administration (FDA), most Americans use between 6 and 12 cosmetic products daily. The rising trade of moisturizers, serums, sunscreens, and anti-aging creams is likely to accelerate the production and commercialization of high-grade propylene carbonate in the years ahead.

Challenges

• Raw material price volatility: The production of propylene carbonate is heavily dependent on propylene oxide, a petrochemical derivative. The changes in prices of crude oil create significant propylene oxide supply chain disruptions, directly hampering the cost of propylene carbonate. Due to this factor, many small-scale players and new companies refrain from earning high revenues from trending opportunities.

• Competition from substitutes: The propylene carbonate companies are witnessing major challenges from the strong presence of alternatives. The ethylene carbonate competes with propylene carbonate in battery manufacturing. This is expected to limit the broader penetration of propylene. However, ongoing technological developments are likely to fuel the demand for propylene carbonate in the years ahead.