Propylene Glycol Market Regional Analysis:
Asia Pacific Market Insights
Asia Pacific in propylene glycol market is expected to account for more than 42.5% revenue share by the end of 2035. 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 Insights
North America region is anticipated to observe substantial growth through 2035. 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.
