New York, Aug. 15, 2023 (GLOBE NEWSWIRE) -- The global propylene glycol market size is predicted to expand at ~7.4% CAGR between 2023 and 2035. The market is projected to garner a revenue of USD 12.5 billion by the end of 2035, up from a revenue of ~USD 5.2 billion in the year 2022. The growth of this market is attributed to the rise of the automotive industry as propylene glycol finds diverse applications in the automotive industry for brake fluids, antifreeze, polyester compounds, hydraulic fluids and others. The automotive sector is growing due to increasing transportation activities coupled with increasing industrialization and an established manufacturing base. According to the data, there were 101,233 new vehicle registrations in Australia in March 2022 compared to in March 2021, an increase of 1.2%. With the improving outlook for the automotive sector, the application of propylene glycol is increasing which is expected to boost the propylene glycol market during the forecast period.
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Propylene glycol belongs to the alcohol family and is widely used in the construction industry in various applications including solvents, polyester resins, paints and coatings. The construction industry around the world is growing due to the development of infrastructure, increasing urbanization tendencies and the increase of residential projects. According to the European Confederation of the Construction Industry, construction activity in France increased by 11% in 2021 compared to 2020.
Propylene Glycol Market: Key Takeaways
- Market in Asia Pacific to propel highest growth
- The transportation segment to garner the highest growth
- Market in North America to grow at a highest rate
Increasing Need for Propylene Glycol in Pharmaceutical Industry across the Globe to Boost Market Growth
Propylene glycol is used in the pharmaceutical industry as a solvent and excipient and is used in the formulation of various drugs. Basically, it is a very commonly used drug solubilizer in injectable, topical, and oral drugs. Therefore, increasing global demand for pharmaceuticals is expected to fuel the growth of the global market. According to reports, people around the world will spend USD 2 trillion on medicines by 2022. Propylene Glycol is used as a humectant, solvent and preservative in the food and beverage industry.
Increasing demand for packaged and processed foods and beverages is expected to fuel global market growth. Propylene glycol is commonly used in packaged foods as a humectant that helps maintain food moisture levels and prevent drying. It is also used as a solvent and carrier for flavors and colors, and for food storage. It is also used as a preservative to extend life. Hence, all these factors are expected to propel the growth of the market in the coming years. According to a recent report, global processed food sales were approximately USD 2.47 trillion in 2019. Propylene Glycol is used as a humectant and solvent in the cosmetics industry and is used in a variety of products such as skin, hair and body care products.
Propylene Glycol Market: Regional Overview
The global market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.
Expanding construction activities to Drive the Market Growth in Asia Pacific Region
The propylene glycol market in Asia Pacific region is estimated to garner the largest revenue by the end of 2035. The growing population in Asia-Pacific leads to more and more construction activities and further drives the growth of the market in the region. Propylene glycol is used to produce unsaturated polymer resins with a wide range of uses. Building products such as sewage pipes and tiles are made from these resins.
In the paint industry, propylene glycol is used as a paint solvent. Hence, the growth of the market is expected to expand in the region. China is expected to spend about USD 13 trillion on building construction by the year 2030. According to the National Bureau of Chinese Statistics, China's construction output has increased from USD 9.6 trillion in 2010 to USD 26.59 trillion in the year 2020. Additionally, the increase in the number of female workers in countries like India and China is expected to boost market growth in the region.
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Growing Demand from the Food and Beverage Industry to Propel the Growth in the North America Region
The North America propylene glycol market is estimated to garner the highest CAGR by the end of 2035. Propylene glycol is commonly used as an excipient in pharmaceutical formulations. It is utilized in medicines, creams, ointments, and oral solutions due to its solubility and stability properties. The pharmaceutical industry's growth, driven by factors like an aging population and increasing healthcare expenditures, has positively impacted the demand for propylene glycol. Propylene glycol is widely used as a food additive and ingredient in the food and beverage industry. The growing demand for processed foods and beverages has contributed to the expansion of the market in the region.
The North American automotive industry experienced a steady recovery following the COVID-19 pandemic, with total light vehicle sales in the United States reaching approximately 15.5 million units in 2020, indicating a positive outlook for the propylene glycol market in the automotive sector. Propylene glycol is used in the automotive industry as an antifreeze and coolant in engine cooling systems. The growth of the automotive sector, driven by factors such as increasing vehicle production, technological advancements, and stricter environmental regulations, has resulted in a higher demand for propylene glycol.
Propylene Glycol, Segmentation by End User
- Transportation
- Building & Construction
- Food & Beverage
- Pharmaceuticals
- Cosmetics & Personal Care
Amongst these segments, the transportation segment is anticipated to hold the largest share over the forecast period. Propylene glycol is used in fire-resistant brake and hydraulic fluids, as a coolant in the transportation industry such as engine cooling, as a raw material for aircraft de-icing, 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 gaskets, which are widely used in automotive and marine applications.
Advances in vehicle development and the recovery in consumer demand for, particularly around safety and comfort, should fuel demand for materials like propylene glycol in the years to come. Hence, all these factors are forecast to present opportunities for segment growth in the market during the forecast period. According to the ACEA report, 19 hybrid electric vehicles were on the road in the year 2021. Six per cent of all newer passenger cars in the EU compared to 12% in the year 2020.
Propylene Glycol, Segmentation by Source
- Petroleum Based
- Bio-Based
Amongst these segments, the bio-based segment is anticipated to hold a significant share over the forecast period. Governments worldwide are implementing stringent regulations and policies to reduce greenhouse gas emissions and promote sustainable practices. Many countries have introduced bio-based product mandates, renewable energy targets, and carbon reduction initiatives, which have stimulated the demand for bio-based propylene glycol. The European Union's Renewable Energy Directive sets a target of sourcing at least 32% of energy from renewable sources by 2030. This policy framework promotes the use of bio-based materials and supports the growth of the bio-based propylene glycol market in the region.
The bio-based segment of propylene glycol has gained traction due to the growing demand for sustainable and environmentally friendly products. Consumers and industries are increasingly seeking alternatives to petroleum-based chemicals, driving the adoption of bio-based propylene glycol. Consumers are becoming more conscious of the environmental impact of their purchasing decisions.
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Propylene Glycol, Segmentation by Grade
- Industrial Grade
- USP Grade
Few of the well-known market leaders in the global propylene glycol market that are profiled by Research Nester are INEOS Oxide, Huntsman International, Haike Chemical Group Co., Ltd, Repsol, Shell Plc, ADEKA Corporation, and other key market players.
Recent Development in the Market
- Metadynea LLC has signed an agreement with Air Liquide to produce complex chemicals on a small scale. A plant for the production of biopropylene glycol was delivered to the Metadynea site in Moscow.
- Evonik and Dow have developed a process for the direct synthesis of propylene glycol from hydrogen peroxide and propylene oxide on an industrial scale with low energy consumption.
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