Propylene Glycol Market Analysis by Source (Petroleum Based, Bio-Based), Grade (Industrial Grade, USP Grade), End User (Transportation, Building & Construction, Food & Beverage, Pharmaceuticals, Cosmetics & Personal Care) – Global Supply & Demand Analysis & Opportunity Outlook 2023 – 2035
Buy Now Report ID: 4907 | Published Date: May 02, 2023
Propylene Glycol Market size is estimated to reach ~ USD 12.51 billion by the end of 2035 by growing at a CAGR of ~ 7.40% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of propylene glycol was ~ USD 5.21 billion. The growth of this market can be attributed owing to the rising automobile industry as propylene glycol sustain various application in the automotive industry for brake fluids, antifreeze, polyester compound, hydraulic fluid, and others. The automotive sector is growing owing to increasing transportation activities, along with growing industrialization and an established production base. According to the data, there were 101,233 new vehicle registrations in Australia in March 2022 compared to March 2021, which was an increase of 1.2%. With higher prospects for the automotive sector, the propylene glycol application is growing which is anticipated to drive the propylene glycol market in the forecast period.
Propylene glycol comes from the family of alcohol, and it is widely used in the construction industry in various applications such as solvents, polyester resins, paints & coating, and others. The construction industry worldwide is growing owing to infrastructural development, increasing urbanization trends, and growth in residential projects. As per the European Construction Industry Federation, construction activity increased by 11% in France in 2021 as compared to 2020. With growing construction activities worldwide, the application of propylene glycol in the construction sector seems to increase which in turn is expected to drive the global market in the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023 - 2035 |
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CAGR |
7.40% |
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Base Year Market Size (2022) |
USD 5.21 billion |
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Forecast Year Market Size (2035) |
USD 12.51 billion |
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Regional Scope |
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Growth Drivers
Challenges
The global propylene glycol market is segmented and analyzed for demand and supply by end-user into transportation, building & construction, food & beverage, pharmaceuticals, and cosmetics & personal care. Out of these, the transportation segment is anticipated to hold the largest market share by the end of 2035. Propylene glycol is used in fire-resistant brakes and hydraulic fluids, as a coolant in the transportation industry such as engine cooling, as a raw material for aircraft deicing, and as a heat transfer fluid in high-temperature applications. Unsaturated polyester resins can also be reinforced with glass fibers to make products such as corrosion-resistant tanks and pipe transits that are widely used in vehicle and marine construction. Progress in vehicle development and recovery in consumer demand, especially in terms of safety and comfort, are expected to support the demand for materials such as propylene glycol in the coming years. Therefore, all these factors are predicted to provide opportunities for the growth of the segment in the market over the forecast period. As per the report of ACEA, in 2021, hybrid electric vehicles held 19.6% of all the latest passenger cars in the EU compared to 12% in 2020.
The global propylene glycol market is segmented and analyzed for demand and supply by source into petroleum-based and bio-based. Out of these, the bio-based segment is anticipated to hold the largest market share by the end of 2035. This can be attributed owing to the demand for renewable sources and eco-friendly production methods. This growth is attributed to the increased adoption of greener alternatives as they produce 61% less greenhouse gas emissions compared to petroleum-based products. Growing demand for sustainable and eco-friendly products and growing awareness of the harmful effects of fossil fuels on the environment are the major growth drivers in the bio-based segment of the market by the end of the year 2035.
Our in-depth analysis of the global propylene glycol market includes the following segments:
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By Source |
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By End User |
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By Grade |
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The market in the Asia Pacific region is anticipated to account for the largest market share by the end of 2035. The growing population in the Asia Pacific region is giving rise to more and more construction activities, which further is driving the growth of the market in the region. Propylene glycol is used to make unsaturated polymer resins with a wide range of uses. These resins are used to make construction products such as sewer pipes and floor tiles. In the paint industry, propylene glycol is used as a solvent for paints. Therefore, it is expected to expand the growth of the market in the region. China is expected to spend about USD 13 trillion on buildings construction by 2030. China's construction output has increased from USD 9.6 trillion in 2010 to USD 26.59 trillion in 2020, according to China's National Bureau of Statistics. Furthermore, the increase in the number of working women in the countries such as India, and China is further predicted to drive the market’s growth in the region.
The market in the North American region is anticipated to grow significantly in the forecast period. The growth of this market can be attributed to the growing construction industry promoted by rapid expansion in the residential sector in the North American region. In 2021, Canada's construction industry is expected to grow to USD 72.02 billion, with residential construction up 19.7%. Increased construction activity across the region may increase the demand for propylene glycol shortly.
The market in the Europe region is estimated to account for a significant market share by the end of 2035. The European propylene glycol market is driven by various factors such as increasing demand from the end-use industry, growing awareness of sustainable products, and the introduction of stringent regulations on the use of propylene glycol. Major end-use industries for propylene glycol in Europe include food and beverages, pharmaceuticals, cosmetics and personal care products, and industrial chemicals. Demand for propylene glycol from these industries is driven by factors such as changing consumer preferences, technological advancements, and government regulations. Propylene glycol is regulated in Europe for use in food, pharmaceuticals, and personal care products. Hence, it is anticipated to rise the growth of the market in the region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel
Ans: Rising demand for propylene glycol in the food & beverage industry and automotive industry are some of the major factors anticipated to drive the growth of the acetone market.
Ans: The market is anticipated to attain a CAGR of ~ 7.40% over the forecast period, i.e., 2023 – 2035.
Ans: Health hazards associated with propylene glycol and fluctuation in prices are some of the factors estimated to hamper the market growth.
Ans: The market in Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are INEOS Oxide, Huntsman International, Haike Chemical Group Co., Ltd, Repsol, Shell Plc, ADEKA Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by the end user, source, grade, and by region.
Ans: The bio-based segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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