Global Bio Based Propylene Glycol Market Size Likely to Grow at a CAGR of 4.5% By 2034

Market Size and Growth

As per the Bio Based Propylene Glycol Market size conducted by the CMI Team, the global Bio Based Propylene Glycol Market is expected to record a CAGR of 4.5% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 4.73 Billion. By 2034, the valuation is anticipated to reach USD 7.03 Billion.

Overview

According to market analysts at CMI, increased environmental awareness and regulatory enforcement in favor of sustainable and toxin-free competitors of petrochemical glycols are driving the bio-based propylene glycol market. The rising demand from the industries of pharmaceuticals, cosmetics, and food, where safety concerns are of utmost importance and clean-label formulations are a trend, supports the growth of this market.

Advances in fermentation and catalytic conversion technologies help increase the efficiency of the process while bringing down costs. Also, the presence of renewable feedstocks like corn, soy, and glycerin provides greater flexibility in supply. On a global basis, government incentives and corporate sustainability policies further push the acceptance of the product across industrial and consumer applications.

Key Trends & Drivers

• Regulatory Push Toward Sustainable Chemicals: Governments across the world are crafting regulations that will help restrain the use of petroleum-based chemicals and promote bio-based alternatives. The EPA, ECHA, and national authorities for food and drugs have already legislated the limitation of synthetic propylene glycol in applications of highest sensitivity. Policies that promote renewable sourcing, products with a low-carbon footprint, and safer chemical alternatives have accelerated the growth of bio-PG. On the other hand, commercialization gets further advocated by certifications like ISCC PLUS, REACH compliance, and USDA BioPreferred labeling. An alignment across consumer health, climate goals, and standards of industrial safety has created an enabling environment that guarantees the long-term growth of bio-based glycols.

• Increasing Applications in Pharmaceuticals and Personal Care: Bio-based propylene glycol is witnessing increasing acceptance in the pharmaceutical and personal care sectors due to its non-toxicity and biocompatibility, as well as its conformity to pharmacopeial standards. It acts as a solvent, excipient, and stabilizer in drug delivery systems and cosmetic formulations. The increasing consumer preference for clean-label and skin-friendly ingredients for product reformulation motivates the use of bio-PG. Regulatory attention on excipients and demand for plant-based cosmetic actives are gaining momentum, and therefore provide a fair market growth opportunity. Leading brands increasingly adopt bio-PG in developed and emerging economies as a sustainability strategy to capture consumer groups that appreciate environmentally friendly products.

• Growing Demand Worldwide from Construction and Automotive Industries: Bio-PG finds key applications in unsaturated polyester resins (UPR), antifreeze, and coolants in the construction and automotive industries. With rising demand for green building materials and non-toxic thermal management fluids, bio-PG serves as a credible, environmentally friendly alternative to petroleum-based inputs. Infrastructural development is on the rise in Asia-Pacific, while electric vehicle adoption is increasing on a global level, thereby creating demand for bio-based alternatives. OEMs and tier suppliers are responding to environmental legislative demands by integrating green inputs into their systems as well. These industries represent large-volume end uses that meaningfully impact overall market shares.

• Advancements in Technology of Bio-Based Production: Constant technological innovations in fermentation, enzymatic conversion, and catalytic processing of renewable feedstocks are improving the scalability and cost efficiency in manufacturing bio-PG. These new-generation bio-refineries now employ corn glucose, glycerin, and even waste biomass for regional production with a lower environmental footprint. Higher process yields and greater energy efficiencies that have been realized in recent years have reduced operating costs and equipped bio-based PG with a comparative advantage against synthetic alternatives. Aggressive R&D undertakings by key players and collaborative efforts with biotech companies have actively expedited commercialization. Furthering technological maturity will greatly contribute to improving supply consistency, enhancing product purity, and ensuring conformity with pharmaceutical and food-grade requirements, which remain pressing concerns for market penetration.

• Growing Corporate Sustainability Initiatives: The larger consumer goods and industrial companies incorporate sustainability into procurement and product-development strategies. Bio-based PG supports corporate aspirations of carbon neutrality, minimization of waste, and responsible procurement. The cosmetic, food, and health multinationals call for traceable, renewable ingredients as part of their ESG (Environmental, Social, Governance) criteria to comply with investor demands, thus creating structured demand for certified bio-based inputs such as PG. They are also turning to bio-PG as a marketing tool to help eco-label their products and create brand equity among environmentally conscious consumers. These shifts on the corporate front have thus led to reinforced market stabilization and sustained long-term growth.

• Geographical Expansion and Strategic Alliances: Accorded huge attention is accorded to regional capacity extension and transnational partnerships in the markets. Chemical companies entering into joint ventures with bio-refining companies have led to local production in the high-growth zones of Asia Pacific and Latin America. Such alliances help in the sharing of technology, procurement of feedstock, and market access. For instance, projects in Thailand, Brazil, and India aim to reduce import dependency and ensure supply chain resilience. Regional availability lowers logistics costs and aids companies in meeting local regulatory requirements. These developments reflect the expansion of the geo-locational footprint of bio-based PG while at the same time enhancing its competitive positioning and response to regional demand trends.

Report Scope

SWOT Analysis

• Strengths: The bio-based propylene glycol market experiences increasing regulatory support and environmental awareness within various industries. Low toxicity, biodegradability, and meeting pharmaceutical, food, and cosmetic standards make it ideal for high-end applications. Technological improvements from fermentation to catalytic conversion have made product yield and quality sufficiently high to enable bio-PG to compete with petrol-based counterparts. Large players such as ADM, Dow, and BASF have integrated value chains that guarantee uninterrupted supply and quality. Bio-PG also fits well with consumer pulses concerning sustainable and clean-label products, which adds branding value for the end-user companies. Certifications like USDA BioPreferred and ISCC PLUS also push the acceptance of the product into environmentally governed industries.

• Weaknesses: Despite the sustainability advantages, the production of bio-based propylene glycol suffers from increased production costs, not aided by a lack of economies of scale, compared to its petrochemical counterpart. Price sensitivity in some end-use industries-including those of industry and construction, renders the penetration of the market unacceptable. Dependency on agricultural feedstocks such as corn and soy instills vulnerability concerning raw material price variability and regional supply disruptions. Global production capacity remains limited, and bio-refining facilities charge big bucks in capital expenditures for further expansion in developing regions. Together with the geographic standards inconsistency, which makes multinational producers’ compliance difficult, these factors restrict competitiveness and limit immediate scale-up in some high-volume applications.

• Opportunities: The present market opens windows for growth in regulated sectors that are high-margin, like pharmaceuticals, cosmetics, and food, where criteria-based purchase decisions are safety and sustainability. And the demand for green building materials, electric vehicles, and plant-based personal care products supports uptake for the long term. Technological improvements in bio-refining would result in process efficiencies, bringing down production costs and allowing greater commercialization. Strategic alliances can provide avenues for capacity growth and localized production, especially in emerging markets. Government incentives, eco-labeling programs, and increased investment in vector chemical platforms enhance the market further. As industries begin internationally to decarbonize and gain ESG traction, bio-PG is the alternative of choice to petroleum-based glycols.

• Threats: Bio-based PG is facing stiff competition from synthetic PG, which is favored in mature infrastructure, with cheap production costs and availability. Price thus becomes the main decision-making factor, limiting bio-PG penetration in markets with little or no regulatory enforcement or consumer awareness. Variations in the prices of agricultural feedstocks occasioned by climate, biofuel demand, and geopolitical disruptions have always been a sponsored threat to production security. Discrepancies in regulatory regimes across countries and potential changes in trade or tariff policies can, likewise, disrupt supply chain economics. Furthermore, an incumbent large petrochemicals guy would surely come in with a hybrid range being sold at a price less than that of fully bio-based ones. These threats, therefore, address the time and capacity of market growth.

List of the prominent players in the Bio Based Propylene Glycol Market:

• Archer Daniels Midland (ADM)
• BASF SE
• Dow Inc.
• DuPont Tate & Lyle Bio Products
• Huntsman International
• Cargill Incorporated
• Oleon NV
• Ashland Global
• LyondellBasell Industries
• Repsol S.A.
• SK Global Chemical
• P&G Chemicals
• Global Bio-Chem Technology Group
• ExxonMobil Corporation
• Stepan Company
• Corbion N.V.
• Sinopec (China Petroleum & Chemical Corp.)
• Mitsubishi Chemical Corporation
• Shell Chemicals
• Braskem SA
• Others

The Bio Based Propylene Glycol Market is segmented as follows:

By Type

• 1,2-Propylene Glycol
• 1,3-Propylene Glycol

By Application

• Unsaturated Polyester Resins (UPR)
• Antifreeze & Coolants
• Pharmaceuticals
• Cosmetics & Personal Care
• Food & Beverages
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America