Global Propylene Glycol Market Size Likely to Surpass at a CAGR of 4.23% By 2034

Market Size and Growth

As per the Propylene Glycol Market size conducted by the CMI Team, the global Propylene Glycol Market is expected to record a CAGR of 4.23% from 2025 to 2034. In 2025, the market size is projected to reach a valuation of USD 5.01 Billion. By 2034, the valuation is anticipated to reach USD 7.03 Billion.

Overview

According to the CMI, industry experts believe that the global propylene glycol (PG) market can expect steady and sustained growth in the years to come. This movement has been sustained by a wide range of applications, which have started instilling interest in bio-alternatives. The chemical’s versatility and safety make it an important component for a large number of end-use industries that include pharmaceuticals, food and beverage, personal care, automotive, and construction.

Growing environmental considerations and strict regulatory policies have pushed manufacturers to opt for bio-based production technologies to fulfill demand going into the future while also achieving sustainability targets. Nevertheless, the global PG market stands tall as a resilient and flexible segment within the specialty chemicals market.

Key Trends & Drivers

• Versatile industrial applications: As a synthetic organic compound, propylene glycol finds many uses as an industrial solvent and humectant, preservative, and antifreeze. The versatility of application, being the strongest factor for the demand for this market, enhances the packaging industry, among many others. It is commonly used in the food industry to carry flavors and colors. In the pharmaceutical industry, it is used as a solvent in oral, injectable, and topical formulations. In personal care products, it acts as a humectant in lotions, creams, and shampoos. It is used industrially in antifreeze solutions, de-icing fluid, and HVAC coolants. This variety in applications keeps demand sustained, even in times of economic downturn.

• Increasing Popularity of Bio-Based Propylene Glycol: Environmental sustainability and safe alternatives are driving the rise of interest in bio-based PG. Being made from renewable feedstock resources such as glycerin, corn, or soy, bio-based PG has a smaller carbon footprint than does petroleum-based PG. Much money is being invested by companies in R&D to scale up production and create more cost-effective production methods. Evidently, with growing consumer awareness regarding eco-labels and transparency in products, food, pharmaceutical, and cosmetic producers are starting to prefer renewable and biodegradable ingredients. This trend is expected to give a faster push to the bio-based PG segment rather than the conventional one.

• Growth Prospects in Personal Care and Cosmetics: Given the roaring present-day personal care market, a surge in disposable incomes, urbanization, and changing lifestyles has been the motive behind the rapid growth of such industry. Propylene glycol is extensively used in skin and hair care formulations as texture enhancers or stabilizers, and humectants. With consumer demand for clean beauty products on the increase, companies are now renovating products that had harsh chemicals with bio-based PG. This trend of personal care brands in favour of PG will grow further while demand for cruelty-free and plant-based products hits an all-time high simply because of their non-toxic and non-irritating characteristics.

• The growing demand from pharmaceutical and food industries: Looking out for alternative solvents and carriers that are non-toxic and GRAS (Generally Recognized as Safe) makes PG one of the key ingredients in drug production; it is incorporated in oral and injectable drugs and topical medicines because it dissolves active ingredients well and maintains stability in the final product. Moving equivalently, PG finds a large area of use in food processing as a humectant and flavor carrier for processed foods, dairy products, and beverages. On account of an increase in pharmaceutical production and consumption of processed food all over the globe-mainly led by emerging markets such as India, China, and Brazil-demand for PG in these sectors shall continue to grow.

• The construction and automotive industries: Propylene glycol (PG) has found quite a few important uses within the construction and automotive industries, being favored for its properties-from a chemical standpoint that include low toxicity, thermal stability, moisture retention, and so on. PG is preponderantly utilized in the construction sphere as a heat transfer fluid for HVAC systems and antifreeze solutions, for instance, in closed-loop heating and cooling applications. Owing to low corrosion and toxicity, PG is an excellent alternative to ethylene glycol for use in residential and commercial building systems where environmental and safety considerations are paramount. PG also finds use in construction materials for concrete curing, moisture control, etc., particularly in cold regions, where freezing prevents cracking and aids in maintaining the structural integrity of dry materials. Therefore, PG is commonly used in the automotive industry as an engine coolant and a de-icing solution.

Report Scope

SWOT Analysis

• Strengths: Propylene glycol enjoys the benefits of diversified uses across stable and regulated industries such as pharmaceuticals, food and beverage, and personal care. It being an approved chemical by such regulatory bodies as the FDA and EFSA aids its use in sensitive consumer products. Its manufacturing plants spread all over the world make distribution and supply reliable in the required areas. The increased acceptance of bio-based PG is, therefore, opening new market segments in line with worldwide sustainability targets.

• Weaknesses: Although versatile, the market suffers from structural weaknesses. Conventional PG, synthesized from petroleum-based feedstock, is subject to crude oil cartelism in prices. Also, the environmental concerns associated with petrochemical production are posing an extra layer of scrutiny by regulators. Small- and medium-scale enterprises (SMEs) may be at a disadvantage in competing because of expensive capital investments required for technology upgrades and meeting compliance requirements. Also, the demand for low-price competitors such as ethylene glycol in certain industrial applications adds to the price pressure.

• Opportunities: The bio-based PG subsegment shines as a golden window of growth. As industries move towards cleaner and sustainable production methods, companies investing in the manufacture of renewable PG can certainly gain an important chunk of market share. Emerging markets also present a rising opportunity as enhanced consumption of processed foods, pharmaceuticals, and personal care products creates new demand. There is also a scope for innovation in applications of PG-along with 3D printing materials or biodegradable plastics-that may provide brand-new opportunities for growth. Pooling resources with packaging and materials companies pursuant to circular economy principles could result in more PG applications.

• Threats: Various outside factors threaten the PG market. Prices of raw materials ebb and flow, and plants operating under the shadow of geopolitical instability will interrupt supply chains and raise production costs. Stricter environmental regulations toward petrochemical derivatives can prevent consumer applications of petroleum PG from using petroleum-based PG. Increased competition from alternative solvents in the longer run, including the newer bio-based chemicals, also poses a threat. Public perception and consumer skepticism regarding chemical ingredients, more so in foods and cosmetics, might hit demand unless these are addressed through transparency and education.

List of the prominent players in the Propylene Glycol Market:

• Dow Inc.
• BASF SE
• LyondellBasell Industries Holdings B.V.
• Huntsman Corporation
• INEOS Oxide
• Shell plc
• ADM (Archer Daniels Midland Company)
• Global Bio-Chem Technology Group Co. Ltd.
• Repsol S.A.
• SK picglobal
• Manali Petrochemicals Limited
• Royal Dutch Shell
• Adeka Corporation
• Sumitomo Chemical Co. Ltd.
• Dairen Chemical Corporation
• Zibo Haijie Chemical Co. Ltd.
• HaiKe Chemical Group Ltd.
• Lihong Fine Chemicals Co. Ltd.
• Qingdao Shida Chemical Co. Ltd.
• Sasol Limited
• Others

The Propylene Glycol Market is segmented as follows:

By Source

• Petroleum-based
• Bio-based

By Grade

• Industrial Grade
• Pharmaceutical Grade
• Others

By End-Use Industry

• Transportation
• Building & construction
• Food & Beverage
• Pharmaceuticals
• Cosmetics & Personal Care
• 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