Global Bio Based Propylene Glycol Market 2025 – 2034

Reports Description

As per the Bio Based Propylene Glycol Market 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

The bio-based propylene glycol market is on steady growth. That is on account of the growing demand for sustainable chemical alternatives in the automotive, construction, pharmaceutical, and personal care sectors. North America presently dictates the market mainly because of a favorable regulatory atmosphere, excellent production capacity, and an increased acceptance for bio-based products. However, Asia-Pacific is expected to grow at a faster rate on the back of burgeoning industrial activity, heightened awareness amongst consumers, and higher investments in bio-refining, especially in China and India.

It is mainly dominated by the 1,2-propylene glycol segment, which retains a substantial share, being used mostly as antifreeze, resins, food additives, and Cosmetics. Besides UPR as a main application area, antifreeze & coolants and pharmaceuticals are also generating high sales revenue and witnessing increasing demand from transportation and healthcare sectors.

Key drivers of further market growth include increasing environmental regulations, technological advancements in catalytic and fermentation processes, and the further facilitation of strategic alliances for localized production. Continuous development in the use of low-carbon feedstocks, coupled with regional capacity expansion, is set to be highly instrumental in improving supply chains and concurrently driving down production costs, making the global competitiveness of bio-based propylene glycol much more attainable.

Key Trends & Drivers

The significant growth opportunities in the Bio Based Propylene Glycol Market present trends contributing to it, such as:

• Increasing Environmental Regulations: Coming down on carbon emissions and petroleum-derived chemicals at every regulatory level in the world sets the pace for the movement toward bio-based alternatives. Governments of North America and Europe have imposed restrictions and labeling requirements favoring environmentally friendly inputs in food, cosmetics, and industrial products. The bio-based propylene glycol, which is considered for its lower lifecycle emissions and renewable feedstock origin, aligns with these regulations. Incentives reflecting green chemistry, such as tax credits and procurement policies in the public sector, put pressure on manufacturers and end-users to shift away from the fossil-based glycols, in turn providing a steady source of demand for the bio-based solutions.

• Growing Personal Care and Pharmaceutical Applications: With an increasing demand for bio-PG in personal care and pharmaceutical formulations, facilitating low toxicity and biocompatibility criteria with a favorable regulatory environment, consumer preference for natural and sustainable ingredients forces manufacturers to replace synthetic excipients and solvents with renewable substitutes. Within the pharmaceutical realm, it works as a solvent and a carrier, whereas it plays its role as a humectant and stabilizer in personal care. High demand on a global scale for clean label, skin-safe, and bio-derived products-sharply concentrated within developed geographies driving bio-PG adoption in these high-margin areas.

• Growth of the Automotive and Construction Industries: Foremost growth drivers include increasing demand for antifreeze, coolants, and unsaturated polyester resins in the automotive and construction sectors. In the production of environmentally safer formulations for these applications, bio-based propylene glycol is being used, particularly in regions where chemical safety and sustainability standards are being enforced. With vehicle production and infrastructure development at an all-time high in Asia-Pacific, especially, the jargon for getting bio-PG goes up as a green alternative with matched performance to conventional glycols. Government initiatives for green buildings and cleaner automotive technologies should theoretically support further growth of this segment.

• Feedstock Innovations and Process Developments: With biotechnological processes becoming increasingly more advanced and with sources becoming more flexible, production costs are falling, and efficiency is on the rise. Hence, companies are considering a broader pool of renewable inputs that include corn, glycerin, sugarcane, and waste biomass, making bio-PG production more adaptable to scaling and to regional needs. Fermentation and catalytic conversion technologies have improved yields and reduced energy inputs, enhancing economic viability. These developments are ramping up supply capacity and drawing in investments in bio-refineries. So, companies end up presenting a solution to their global customers that is more appropriately priced and sustainable.

• Strategic Alliances and Expansion of Capacity at Regions: Cooperation among chemical companies, bio-refiners, and raw material suppliers is supporting capacity expansions and localized production. Strategic joint ventures—such as those in the U.S., Brazil, and Southeast Asia—help firms reduce reliance on imported petrochemical feedstocks while satisfying local demand. They also allow for vertical integration along the value chain, secure supply of feedstock, and reduction of logistics costs. Some regional players have entered into long-term supply contracts and technology licensing agreements as well, further consolidating their market power. These initiatives are contributing to more resilient supply chains and enhanced competitiveness in the global bio-PG market.

Significant Threats

• Volatile Feedstock Pricing: Agricultural feedstocks such as corn, soy, and glycerin largely govern the potential for bio-produced propylene glycol. Price variations due to the normal seasonal trends, prevailing climate conditions, or competing demands from food and biofuel industrial sectors interrupt supply and consequently increase the input cost. This price-volatility factor is important with regard to production scheduling capacities and pricing consistency, especially for the smaller and mid-sized producers. Moreover, regional disparities in feedstock availability hinder capacity expansion in countries where agri-processing infrastructure is not set up. Margins, on the other hand, are under pressure to a great extent and result in an availability of reduced alternatives to petrochemical-based competitors in price-sensitive end-user markets.

• Competition from Petrochemical PG: In spite of environmental concerns, convenience does make petroleum-based propylene glycol a choice of preference the world over. Bio-based alternatives find very little acceptance in those countries where policies of green procurement and a framework for carbon pricing are absent on account of cost dynamics. Large-scale manufacturers of petrochemicals with backward integration point fingers at pricing policies, thereby barring bioPG from acquisition for industrial usage. Moreover, in cases of emerging economies, due to lower awareness levels, brand owners are least incentivized to favor the switching to bio-based formulations unless under formal compulsion from regulations or market pressure.

Opportunities

• Regulatory Enforcement for Sustainable Chemicals: Increasing regulatory support for green chemicals is a greater opportunity for bio-based propylene glycol. Various governments from Europe, North America, and some other Asian countries have begun to enforce stringent regulations concerning the environment and chemical safety-relevant to REACH, EPA guidelines, and sustainable procurement. These regulations thus promote using a renewable, low-emission alternative in the cosmetics, pharmaceutical, and food processing areas. Those companies that are certified with the ISCC PLUS and USDA BioPreferred eco-certifications stand to benefit in terms of contract wins and market share. This instance is expected to hugely parody demand for bio-PG, particularly in regulated end-use industries.

• Increasing Demand for High-Value Uses: Given the low toxicity of bio-PG and the fact that it is a renewable resource, it does well in high-margin sectors, such as personal care, pharmaceuticals, and food ingredients, as a substitute. With consumers turning their favor towards clean-label, natural, and sustainable products, manufacturers are developing their products using bio-based solvents and carriers. So, there is room for premium-priced specialty-grade bio-PG. Increasing R&D investments on bio-based formulations, as well as strategies for brand differentiation adopted by multinational companies, depending upon high-value applications, offer better profit margins with relative stability, which, in turn, lessens dependency on industrial uses that are more price sensitive.

Category Wise Insights

By Type

• 1,2-Propylene Glycol: The 1,2-propylene glycol type consumes the bulk of market activity due to its competition and diversified applicability. It is predominantly used in unsaturated polyester resins and is also found in the formulation of antifreeze, additives for food, and various products for personal care. Because of the smaller carbon footprint it leaves, the bio variant is often pitched more by labels of clean and sustainably sourced materials. Regulations that encouraged safer ingredients for cosmetics and pharmaceuticals also gave predominance to this segment. Due to its versatility, it attracts the more rewarding sectors, both industrial and consumer-oriented. Manufacturers using renewable feedstock bases like glycerin and corn sugar in an attempt at cost reduction also allow such products to be eco-certified right across the globe, therefore, aiding the segment’s market longevity.

• 1,3-Propylene Glycol: The bio-based PG market for 1,3-propylene glycol remains niche and, at times, acts as a limited but growing niche player for cosmetics, medicinal formulations, and specialized industrial fluids. Stereochemistry affords it different physical properties compared to the 1,2-PG, such that 1,3-PG is utilized in formulations that require increased reactivity or solubility specific to the compound. Bio-based 1,3-PG gets produced by fermentative or catalytic conversion procedures, often from glucose or glycerol. Although present costs of production discourage widespread adoption, continued R&D and industrialization activities lower the barriers. Demand to formulate non-toxic, skin-friendly substances for upscale cosmetic formulations will probably trigger modest growth in some markets where product differentiation is highly considered.

By Application

• Unsaturated Polyester Resins (UPR): UPR is the major one and is growing with demand for automotive, marine, and construction materials. Bio-based propylene glycol acts as a reactive diluent during resin formulation, helping improve mechanical properties somewhat while lowering adverse effects on the environment. Increasing regulations to cut down on VOC emissions and sustainable construction practices are creating higher demand for bio-based alternatives. This segment thus benefits from numerous infrastructure projects unfolding in the developing regions. Resin manufacturers continue to promote renewable PG as a way to serve green building standards and sustainability certifications. Due to the inherent diversity of that segment and its close alignment with ongoing decarbonization initiatives, UPR is expected to keep growing steadily.

• Antifreeze & Coolants: Being environmentally safer, the anti-icing compound and coolants segment is gaining traction. Bio-PG is viewed favorably because of its low toxicity, biodegradability, and performance comparable to traditional glycols. Regulatory bodies in North America and Europe undertake interventions requiring safer alternatives for all fleet operations, in heavy-duty vehicles, and common-use HVAC systems. The adoption of thermal management solutions using bio-PG directly correlates with electric vehicle maturity. Demand for the segment is fortified by the cold-storage and refrigeration industries. Both OEMs and aftermarket suppliers that collaborate for the marketing of bio-based coolants do so to comply with regulations and respond to customers’ desires for green products.

• Pharmaceuticals: Pharmaceutical-grade bio-PG is widely used as a solvent, excipient, and stabilizer for drug formulation. It is nontoxic to biology and is accepted by all biological systems as a carrier for oral, topical, and injectable preparations. Upgradation of regulatory perspective toward excipient safety, coupled with increasing demand for clean-label pharmaceutical ingredients, encourages the use of bio-PG. This segment also benefits from the increase in pediatric and geriatric formulations, where mild and non-irritating carriers are preferred. Being pharmacopeia compliant, bio-PG is taken up by some of the forefront pharmaceutical companies in the domains of sustainability and supply chain optimization.

• Cosmetics & Personal Care: Bio-based PG is broadly used in cosmetics and personal care formulations as a humectant, emulsifier, and preservative carrier. The segment’s growth is fostered by consumers demanding plant-derived, cruelty-free, and biodegradable ingredients. Further, due to rising awareness of ingredient safety and environmental impact, brands have started to replace petroleum-based glycols with bio-based alternatives. Bio-PG fits best with skin care, hair care, and hygiene products due to moisture retention and product stability. It supports clean-label claims and allows companies to obtain eco-certifications such as COSMOS and Ecocert. This segment offers attractive premiumization potential as top beauty brands align with sustainability goals and transparency initiatives.

• Food & Beverages: In food and beverage applications, bio-PG acts as a humectant, flavor carrier, solvent, and stabilizer. Its uses are widely found in baking products, beverages, flavor concentrates, and processed foods. The transition toward clean-label and natural ingredients maintains the displacement of synthetic PG with bio-based variants. Such regulatory approvals let it ascend in food-grade applications, such as those carried out by the U.S. (FDA) and EU (EFSA). Exposure offenders are subjecting additive sources to heightened scrutiny, which has strengthened the voice of greener food manufacturers seeking renewable and non-toxic alternatives. The swayed demand for organic and sustainable food will, therefore, again act in favor of bio-PG in this essentially high-volume segment.

• Others: The “Others” segment covers niche applications of plasticizers, de-icing fluids, household cleaning products, and tobacco humectants. The bio-based PG is preferred where it is required to avoid toxicity and environmental hazard concerns. De-icing fluids used at airports and in aviation would benefit from materials that are considerably safer for ground contamination. The option for home care products is to give a safer solvent that fits with consumers’ interests in non-toxic cleaning agents. Other things that fall in the segment are industrial lubricants and textile auxiliaries. Although they are small industries individually, they provide good diversification options for the market. Innovation in formulation development and product positioning will ultimately help augment uses of bio-PG in the list of these non-core sectors.

Impact of the Recent Tariff Policies

The bio-based propylene glycol market dynamics have been influenced to a considerable degree by recent tariff policies. Tariffs on petrochemical imports and certain feedstocks have led to a surge in production costs and supply chain disruptions. Due to this, manufacturers from regions like the U.S. have come toward domestic sourcing solutions and the enhancement of local bio-refining capacities to offset import duty hikes. Alongside this, alternative sourcing strategies are also being explored by companies, and regional collaborations are equally considered to circumvent tariffed routes, especially across Asia and Europe.

All of these are measures intended to maintain competitiveness and ensure uninterrupted supply. Of course, price pressures arising from tariffs may also hamper the use of bio-based alternatives in applications sensitive to costs, especially sectors such as construction and packaging. However, at the same time, exemptions on specific feedstocks and beneficial regulatory developments coming from governments have provided partial relief. Hence, in summation, there exists a short period of turmoil brought about by the tariff winds; yet there have also occurred strategic realignments that surely further long-term invulnerability and regional growth of the bio-based propylene glycol market.

Report Scope

Regional Analysis

The Bio Based Propylene Glycol Market is divided into various regions, such as North America, Europe, Asia-Pacific, and LAMEA. Each region is described briefly below:

• North America: North America is the most mature and highly technically forward in respect of Bio-Based Propylene Glycol production and consumption. The region enjoys well-established petrochemical infrastructure and strong demand from key downstream sectors such as automotive, construction, packaging, and personal care. In particular, the largest facility for PO and TBA ever constructed opened in Texas in 2023 by LyondellBasell. This expansion showcases the region’s intent on sustaining modern, energy-efficient technologies such as HPPO. Due to shale gas development, North America enjoys an abundance of feedstock availability within its premises, thus creating cost-competitive conditions for PO manufacture. Demand is inherently supported by robust growth in polyurethane foam, propylene glycol, and specialty surfactants. The regulatory push from the region for sustainable and high-performance materials is also acting as an enabler for the shift toward greener production technologies and R&D investments into PO derivatives. So, growth is expected to remain steady in the future on the grounds of continued downstream demand coupled with supply chain localization strategies.

• Europe: Europe boasts the most regulated and sustainability-oriented chemical industry. There is a great emphasis on reducing emissions within the region, increasing energy efficiency, and green chemistry principles that have steered the methods adopted for the production of Based Propylene Glycol. Several prominent countries have advanced petrochemical hubs integrated with PO and polyether polyol production, among which Germany, Belgium, and the Netherlands stand prominent. Big companies such as Dow Chemical and Shell have begun greener production of PO using Cumene and HPPO technologies. Uses in Europe are dictated by rigid foam insulation and construction (energy efficiency regulations), automotive lightweighting materials, and consumer care industries. EU-sponsored sustainability programs and green transition initiatives have also induced the modernization of aging chlorohydrin-based plants. High environmental regulations and energy costs restrain competitiveness. Europe is expected to continue to be the technologically advanced and innovation-driven PO market, especially with the increased application of bio-based feedstocks and recycled materials in downstream production.

• Asia-Pacific: The Asia-Pacific region is the fastest-growing PO market by virtue of rapid industrialization, an ever-increasing middle class, and rising demand for consumer goods. Countries including China, India, South Korea, and Japan have pushed PO and its derivatives to become big producers and consumers in the region. China is leading in capacity additions, technological partnerships, and application development at the downstream level, specifically for polyurethanes, automotive packaging, and construction. With higher demand for insulation materials, flexible foams, and glycol ethers, PO consumption in the region is poised for significant growth. Furthermore, China’s higher emphasis on petrochemical self-reliance has given way to a number of large-scale PO plants of state-of-the-art HPPO technology, with CSPC, Shell, and Sumitomo Chemical making recent investments. A rising demand in India, tied to the automotive and housing sectors, funded by government initiatives and urbanization, is also witnessed. Thailand, Indonesia, and Malaysia are emerging as downstream hubs due to the cost advantage and growing regional demand. Feedstock volatility and environmental regulations are stumbling blocks. Still, efficient manufacturing and huge local demand make this region a knockout growth center for the PO market.

• LAMEA (Latin America, Middle East, and Africa): LAMEA (Latin America, Middle East, and Africa): The LAMEA region is emerging and gaining increased importance in Bio-Based Propylene Glycol market development. Latin America shows promise for demand growth for polyurethane foams used for bedding, furniture, and refrigeration, especially in countries such as Brazil and Mexico, where industrialization continues to gather pace. However, minimal local PO production has always made the region a net importer for various needs, leading to supply disruptions and a lot of price volatility. This scenario is slowly changing, given the increased investments undertaken in refinery and petrochemical infrastructures and numerous joint ventures in the region. In the Middle East, Iran, Saudi Arabia, and the UAE are investing strategically in PO derivatives as part of their economic diversification away from crude oil and toward value-added downstream petrochemicals. New plants like the Saudi Petrochemical complex, which uses EO/PO feedstocks for producing industrial additives and oilfield chemicals, fortify the local capability. Cheap feedstocks and government incentives also position this region to become a competitive exporter in the future. The African PO market is still very young, with limited production capacities and meager per capita consumption. There exist, however, long-term opportunities in the increasing demand for healthcare, consumer goods, and urban infrastructure, given that regional supply chains and the manufacturing ecosystem can be enhanced.

Key Developments

In recent times, the Bio Based Propylene Glycol Market has been witnessing several important changes as the players engaged in the market work towards growing their geographical footprint and improving the product portfolio and bottom lines by applying synergies.

• March 2025, Dow Inc. expanded its circular and bio-circular propylene glycol offerings at its Map Ta Phut facility in Thailand, securing ISCC PLUS certification for sustainable production under the “Renuva™” and “Ecolibrium™” brands.

• March 2024, Dow Inc. introduced two new sustainable PG product lines in North America, incorporating bio-circular and circular feedstocks using mass-balance certification across multiple sectors, including food, pharma, and industrial applications.

• In May 2023, BASF completed one year of commercial-scale operations at its ORLEN Południe plant in Poland, producing bio-based propylene glycol from glycerol with improved energy efficiency and reduced CO₂ emissions.

These important changes facilitated the companies widening their portfolios, bolstering their competitiveness, and exploiting the possibilities for growth available in the Bio Based Propylene Glycol Market. The said phenomenon is more likely to persist since most companies are trying to outperform one another in the market.

Leading Players

The Bio Based Propylene Glycol Market is moderately consolidated, with a large number of product and service providers globally. Some of the key players in the market include:

• 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

Certain companies implement different techniques to reach the market, such as innovation, M&A, and collaboration.

The bio-based propylene glycol market is moderately consolidated, with a mix of multinational chemical giants and specialized bio-refining companies competing based on product purity, feedstock flexibility, pricing, and sustainability credentials. Leading players such as Dow Inc., BASF SE, Archer Daniels Midland (ADM), DuPont Tate & Lyle, and Cargill dominate due to their integrated value chains, strong R&D capabilities, and access to diverse bio-based feedstocks. Regional players like Oleon, Braskem, and Global Bio-Chem Technology also play a significant role, particularly in Europe, Asia, and Latin America. Strategic alliances, joint ventures, and technology licensing are commonly employed to expand production capacity and regional presence.

The market is characterized by high entry barriers due to capital-intensive processing technologies and stringent regulatory requirements for food, pharmaceutical, and cosmetic applications. Innovation in fermentation and catalytic conversion processes, along with ISCC PLUS and USDA certifications, serve as key competitive differentiators. While price competition exists, quality assurance, carbon footprint reduction, and sustainable sourcing are gaining prominence. The growing demand for renewable chemicals across industrial sectors supports long-term market expansion, but competition from petrochemical PG and raw material price volatility remain key challenges influencing competitive dynamics.

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