H1 2023: During H1 2023, the leading producers of Propylene Glycol were LyondellBasell, Dow Chemical, and SK Chemicals. In May 2023, ORLEN Poudnie, a major player in the Polish biofuels market, finished the first year of operation of its BioPG plant, which transforms glycerol, a waste product of the production of biodiesel, into renewable propylene glycol (BioPG). The ORLEN Group's goal to achieve CO2 neutrality is supported by the BioPG plant. The first Polish producer of propylene glycol, ORLEN Poudnie, has an annual capacity of 30 thousand tonnes and uses BASF’s technology for operation of this plant. In North America, Propylene Glycol exhibited fluctuating market sentiment during H1 2023. Propylene Glycol prices were low in January 2023 as a result of declining feedstock prices of propylene oxide. Moderate demand from the end-user pharmaceutical, food, and cosmetic industries and ample of inventory kept Propylene Glycol prices flat in the US. Propylene Glycol prices started to dramatically increase in the US market in February 2023. The price of the feedstock, propylene oxide, increased as a result of a hike in upstream Crude oil prices, which had a favorable impact on the cost of producing Propylene Glycol in the US market. However, in March 2023, the propylene glycol prices fell sharply as the demand by the downstream sectors followed the downward trend.
H1 2022: During H1 2022, the total production had reached 940 thousand tonnes with Dow Chemical, LyondellBasell, and SK Chemicals being the leading producers of Propylene Glycol. However, Dow Chemical held the position of the biggest producer of Propylene Glycol across the globe in H1 2022. In April 2022, MOL Petrochemicals Private Company Ltd. signed an agreement with HELM AG for a co-operation for propylene glycol plant which will be produced by MOL in its backwards-integrated, newly constructed polyol chemical plant located at Tiszaújváros, Hungary. The project was worth EUR 1.3 billion and has an annual production capacity of 200 thousand tonnes of Propylene Glycol along with other products (polyols). The plant had the motive to supply propylene to the polyol complex under construction. The mission was to aid Tiszaújváros become the chemical capital of Hungary. In H1 2022, North America achieved the position of being the largest consumer of Propylene Glycol and held a market share of approximately 35% in terms of volume. In North America, propylene glycol price trend is on an upward trajectory driven by upbeat market demand by the end-user segments in H1 2022. Cost of raw materials such as propylene and propylene oxide were on the higher sides which led to underpinned investors, low domestic production and hence increase the price of propylene glycol across North America. On the supply side, inventory was limited in the market, and suppliers were unable to meet the growing demand from the downstream sectors such as personal care industries in the regional market. This had a positive impact on the propylene glycol market and resulting in robust trading activity across the region.
H2 2022: During H2 2022, the total production had reached 960 thousand tonnes across the globe. Regionally, North America was still in the leading position among all the other regions. Puzzled Propylene Glycol price trends were observed in North America during H2 2022. Propylene glycol prices declined gradually during July and August due to lower raw material propylene oxide (propylene oxide) prices due to weak upstream prices across North America. This led to the increased inventory levels due to reduced product volume in North American market which had a negative impact on propylene glycol prices. However, during September, price trend witnessed a change and the price of propylene glycol increased due to the increase in input material prices causing a sudden increase in production cost. This trend was observed till November 2022. Meanwhile, steady demand from end-users in the pharmaceutical, food and cosmetic industries consumed most of the local inventory across North America. Although in December 2022, the market witnessed a bearish price trend and the price of propylene glycol fell sharply in the US market. This was backed up by the lower propylene glycol market dynamics across the downstream, industries in the last month of 2022.
The global Propylene Glycol market has expanded remarkably in the historic period of 2015-2022 and reached 1900 thousand tonnes in 2022 and is expected to grow at a CAGR of 5.26% during the forecast period until 2035.
Propylene Glycol is a colourless and odourless liquid chemical with the IUPAC name Propane -1,2 diol. Commercially, Propylene Glycol is manufactured by the hydration of Propylene Oxide. Di and tri-propylene glycol as well as small quantities of higher glycols are also produced in the reaction. Propylene glycol is a synthetic material which readily absorbs water. Propylene glycol is used to synthesize polyester composites and is employed as a base for de-icing solutions. Propylene glycol finds applications in the chemical, pharmaceutical, and food industries as an antifreeze when leakage might lead to contact with the food product. The Food and Drug Administration (FDA) has classified it as an additive generally recognized as safe” for applications in the food industry. It is used to absorb excess water and preserve moisture in some food, medication, and cosmetic goods. Moreover, artificial fog or smoke made from propylene glycol is employed in theatre shows and firefighter training.
The majority of the total Propylene Glycol produced globally, is used as a food additive in the food & beverage sector. It is utilized to retain moisture and absorb excess water in specific pharmaceutical, cosmetic, or food items. It is a solvent used in the paint and plastics industries, as well as for food colours and flavors. In Cosmetic Industry, it is used for skincare products, hair care products, soaps as well as color cosmetics due to its super freezing point, humectant, and mould inhibiting properties. Rising disposable income coupled with changing lifestyles and increasing adoption of beauty trends is anticipated to fuel the market growth in the forecast period. In the coming years, the automotive sector is expected to be the fastest-growing sector owing to the increasing application of Propylene Glycol as engine coolant, deicing fluid in aircraft, hydraulic fluids, etc. The total demand for Propylene Glycol is anticipated to reach approximately 3800 thousand tonnes in 2035.
Regionally, the North America region is dominating the Propylene Glycol market, followed by Europe and Asia Pacific region. North America consumed approximately 36% of the total Propylene Glycol demand across the globe. Due to the enormous demand for this organic compound in the food & beverage industry and as well as applications in pharmaceuticals and cosmetics, the demand for Propylene Glycol is expected to rise significantly over the course of the projection period. Factors such as blooming construction, packaging, and food & beverage sectors along with other industries, coupled with growing population and urbanization in the Asia Pacific region are expected to boost the Propylene Glycol market through 2035.
Based on grade, the Propylene Glycol market is segregated into USP, Industrial, and Technical Grade. Among these, the USP grade is the most widely used in the globe. This grade captured more than 40% of the market in the year 2022.
Based on the end-user industry, the global Propylene Glycol market is segmented into Food & Beverage, Pharmaceuticals, Cosmetics, Automotive, and Others. Among these, the Food & Beverage industry is the key consumer of the Propylene Glycol market. In 2022, this industry held about 28% of the market share and is anticipated to dominate the market even in the forecast period. Surging demand for ready-to-eat food items demands higher amounts of Propylene Glycol, likely to augment market expansion.
Major players in the production of Global Propylene Glycol are LyondellBasell, Dow Chemical, SK Chemicals, ADM, Indorama Ventures, Monument Chemical, INEOS, BASF, Shell Eastern Petroleum, CNOOC & Shell Petrochemicals (CSPC), Dongying Hi Tech Spring Chemical Ltd, Manali Petrochemicals, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2035
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Objective of the Study:
• To assess the demand-supply scenario of Propylene Glycol which covers production, demand and supply of Propylene Glycol market in the globe.
• To analyse and forecast the market size of Propylene Glycol
• To classify and forecast Global Propylene Glycol market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Propylene Glycol market in the globe.
To extract data for Global Propylene Glycol market, primary research surveys were conducted with Propylene Glycol manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Propylene Glycol market over the coming years.
ChemAnalyst calculated Propylene Glycol demand in the globe by analyzing the historical data and demand forecast which was carried out considering the raw materials to produce Propylene Glycol . ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Propylene Glycol manufacturers and other stakeholders
• Organizations, forums and alliances related to Propylene Glycol s distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Propylene Glycol s manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Propylene Glycol s market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
1900 thousand tonnes
Market size Volume by 2035
3800 thousand tonnes
Growth Rate
CAGR of 5.26% from 2023 to 2035
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2035
Quantitative units
Demand in thousand tonnes and CAGR from 2023 to 2035
Report coverage
Industry Market Size, Capacity By Company, Capacity by Location, Capacity by Process, Operating Efficiency, Production by Company, Demand by Grade, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process, Policy and Regulatory Landscape.
Segments covered
By grade: USP, Industrial, and Technical Grade
By End-Use: (Food & Beverage, Pharmaceuticals, Cosmetics, Automotive, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Which region is leading as a consumer of the global Propylene Glycol market?
Ans:
North America is the largest consumer of the global Propylene Glycol market.
Q2.
Which end-use industry is dominating the Global Propylene Glycol market?
Ans:
The Food & Beverage industry is dominating the Propylene Glycol market with a market share of nearly 28% in 2022.
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