Global Propylene Glycol Market 2025 – 2034

Reports Description

As per the Propylene Glycol Market 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

The propylene glycol market is modestly growing at present and is expected to continue to do so with rising consumption from purported end-use industries such as food & beverage, pharmaceuticals, personal care, and automotive. The formation of the market is well-positioned for considerations on expected growth because petroleum-based and bio-based propylene glycol products exist, and production processes are in place. The demand for bio-based propylene glycol products has been on the rise due to environmental and sustainability considerations. North America continues to be a prime market for propylene glycol, largely due to the robust, well-established chemical production capacity in place, besides demand from the food, cosmetic, and pharmaceutical industries.

The APAC market, as a result of increasing manufacturing capacity, the growing middle-class segment, and growing application opportunities across multiple end-use applications in personal care, transportation, and construction markets in India and China, would be a major growth market, meeting the country of North America in terms of share. Europe’s market has also secured enough share, primarily due to the presence of stringent regulations requiring chemicals that are low-toxic and biodegradable.

Core application markets are food and pharmaceuticals. The uses of propylene glycol in foodstuffs are quite a few, mostly as solvents, humectants, or stabilizers. It is widely used in medical formulations such as syrups, ointments, and topical solutions. Most of the propylene glycol produced is used by the North American personal care and cosmetics industry to manufacture moisturizers, shampoos, deodorants, and lotions. In industries, propylene glycol is applied as an active ingredient in various applications, including antifreeze, de-icing fluids, and unsaturated polyester resins, mainly for vehicular and construction applications. The growing demand in all these segments for safe and non-toxic formulations will favor the market penetration of USP and food-grade propylene glycol.

Investments within green chemistry are steadily increasing, with production technologies seeing some innovation, including increases in capacity in several regions. More stringent regulatory controls relating to environmental and health safety concerns are pushing organizations away from petroleum-based propylene glycol and toward feedstocks from renewable sources, that is, bio-based propylene glycol, such as glycerin derived from biodiesel manufacturing. More companies are actively getting into strategic partnerships, mergers, acquisitions, or the like for their marketing.

This is mostly to diversify the supply chain in reaction to price volatility on the part of suppliers as a result of crude oil prices going up. While the market goes under a transition depression toward cost-tied models in operations and distribution, there will remain the attractive potential of propylene glycol supply and demand with its sustainability and cost-efficient innovation, numerous usages of different final products, and international competitiveness.

Significant Growth Factors                                                                                         

The Propylene Glycol Market Trends present significant growth opportunities due to several factors:

• Increasing Demand From Food and Beverage Sector: Propylene glycol in the food industry is utilized as a humectant, solvent, emulsifier, and preservative; it retains moisture in processed foods, assists in texture development, and maintains flavor and color stability. With increases in demand for packaged foods, convenience meals, and bakery goods, particularly in emerging economies, there has been a notable increase in demand for food-grade propylene glycol. Moreover, due to the rapid expansion of the beverage sector (especially non-alcoholic beverages and flavored waters), the demand for propylene glycol as a flavor carrier has been witnessed to soar.

• Increasing Pharmaceutical and Personal Care Applications: Acting like an excipient across pharmaceutical formulations, it finds use in syrups and topical creams as well as oral and injectable solutions. The role of propylene glycol as an excipient is important because, in drug delivery, it acts both as a solvent and a stabilizer for active ingredients. Likewise, in personal care and cosmetic industries, it is added to skin moisturizers, lotions, shampoos, and deodorants as a skin conditioner and moisture retainer. This has fueled the growth of the propylene glycol market.

• Trend Towards Bio-Based and Sustainable Options: Environmental concerns and mounting regulatory restrictions for petroleum-derived chemicals have generated a push towards bio-based propylene glycol. Bio-based propylene glycol is manufactured from renewable feedstocks such as the by-product of biodiesel, and it provides a lesser environmental impact than petroleum catechol, thus enhancing the sustainability endeavours of companies. As the market invests in green chemistry and consumers favor eco-friendly products, this trend will play a major role in propelling the propylene glycol market.

• Industrial Applications and Automotive Applications: Industrial-grade propylene glycol is used in many industrial applications, including antifreeze, deicing, braking fluids, and hydraulic applications. Increased requirements for transport in regions of colder climates and recovery of construction and automotive markets post-pandemic are increasing demand for propylene glycol-based products. Usage of the product in unsaturated polyester resins (such as for building panels and automotive parts) has provided more impetus for it for industrial applications.

• Regulatory Approvals and Safety Record: In the U.S. and some other countries, and in some international regulations, propylene glycol is considered a safe chemical for use as a food additive and in pharmaceutical applications, instilling confidence among consumers and providing market access. Used as a low-toxic agent in many places as a substitute for other ingredients, propylene glycol can continue to be quite common in both consumer and industrial chemical applications.

Significant Threats

The Propylene Glycol Market encounters several major threats that might threaten its growth and profitability in the future. These threats are:

• Volatile Raw Material Prices and Supply Chain Disruption: The major issue in the propylene glycol market is that it depends on petrochemical raw materials such as propylene oxide. Price fluctuations in crude oil and geopolitical tensions can cause huge fluctuations in the cost and supply of feedstock materials, which means instability in manufacturing costs and market prices. Along with such a scenario, a global supply chain disruption could be other possibilities-from shipping delays to trade restrictions or other region-based shutdowns-which will cause further delays in product delivery and undercut margins for producers and distributors.

• Health and Environmental Concerns Related to Synthetic Ingredients: Although the therapy program involves drugs, foods, and cosmetics that use propylene glycol, concerns are raised with its synthetic nature, especially within stricter regulatory areas. Consumer demand has shifted more toward natural and organic alternatives, which may pose a threat to synthetic or petrochemical-based types over the long term. Also, environmental agencies are pushing further for biodegradable and less toxic chemicals if they’re in fragile applications and hence could be subjected to restrictions whereby non-compliant producers will suffer greatly in reputation.

Opportunities

• Increasing Demands in Food, Pharmaceuticals, and Personal Care Sectors: Propylene glycol is witnessing growing demand in the food and beverages, pharmaceuticals, and personal care industries for its excellent usage as a humectant, solvent, and preservative. The increasing population, awareness of health, and demand for powdered food, as well as cosmetic products within emerging economies, lead to the growing demand for the use of propylene glycol. Regulatory approvals for the use of PG for food and pharmaceutical grade are giving stronger support for its use in the production of other essential consumer goods, thereby cementing a need for a constant supply.

• Growing Trend toward Bio-Based Propylene Glycol: Concerning this, bio-based propylene glycol from renewable sources like glycerin or corn glucose is an opportunity that is opening the door for the market. With tightened environmental laws and greener alternative requirements from consumers, the attention of many industries is turned towards deciding on sustainable processes. Bio-based PG not only cuts down on dependence on fossil fuels but also offers the profit of a low carbon footprint, which makes it attractive for entities with ESG commitments. It further sustains the development of bio products for pharmaceuticals, food processing, and industrial usage, hence creating possibilities for new growth.

Category Wise insights

By Source:

• Petroleum-Based Propylene Glycol: Petroleum-based propylene glycol is derived from propylene oxide, a byproduct of fossil fuel refining. It remains the most widely used variant across industrial applications due to its cost-effectiveness and consistent supply. This form of PG is extensively used in sectors such as automotive, construction, and industrial manufacturing, where price sensitivity and performance consistency are key. However, increasing concerns around environmental sustainability and rising crude oil prices are gradually pushing consumers and manufacturers toward greener alternatives.

• Bio-Based Propylene Glycol: Bio-based PG is produced from renewable feedstocks like glycerin or glucose. With growing emphasis on sustainability, carbon footprint reduction, and adherence to environmental regulations, bio-based variants are gaining momentum. Though currently more expensive than petroleum-based PG, its market share is expected to grow, especially in cosmetics, pharmaceuticals, and food applications where consumers demand eco-friendly and non-toxic ingredients. Several companies are investing in bio-based PG technology to cater to green product portfolios and meet regulatory standards.

By Grade

Industrial Grade: Industrial grade propylene glycol is used primarily in the processes that make antifreeze, de-icing solutions, lubricants, and hydraulic fluids. Applications include unsaturated polyester resins used in the construction, automotive, and marine industries. As this grade commands the largest market share, PG is widely used due to its versatility, low toxicity, and high solubility. Demand is additionally supported by increasing infrastructure development and development activities in emerging economies.

Pharmaceutical Grade: Pharmaceutical-grade PG is highly refined and used in drug formulations, topical solutions, and oral medications. It acts as a solvent and stabilizer in both prescription and over-the-counter (OTC) drugs. Its safety profile makes it suitable for use in injectable medications and personal care products. With rising healthcare spending and demand for high-quality excipients, this segment is expected to witness stable growth across both developed and developing markets.

Others (e.g., Food Grade): It includes food-grade propylene glycol that is used as a humectant, preservative, and carrier in processed foods, beverages, and flavorings. It helps maintain moisture and texture in a variety of products, including baked goods and dairy. This segment is also supported by stringent food safety standards and increasing demand for processed and packaged food products globally.

By End-Use Industry

Transportation: Propylene glycol plays a critical role in the production of antifreeze and engine coolants due to its excellent thermal stability and low freezing point. Increasing global vehicle production and the expansion of cold-climate transportation infrastructure are driving demand in this industry. Moreover, aviation de-icing fluids utilize PG, bringing further opportunities for growth.

Building & Construction: PG is of importance to the construction industry in the manufacture of UPRs used for fabricating panels, pipes, tanks, and coatings. Its use in adhesives, paints, and sealants also aids in the building of residential and commercial structures. Fast urbanization, investments in infrastructure, and green build initiatives in full force should continue to drive growth in this segment.

Food & Beverage: Propylene glycol acts as a solvent for food colors and food flavors, in addition to being an emulsifier and stabilizer used in many processed food products. The regulatory approval of food-grade PG by agencies such as the FDA and EFSA has encouraged its use in packaged foods and soft drinks. Increasing demand for convenience foods and shelf-stable products is expected to maintain this segment’s expansion.

Pharmaceuticals: PGs are solvents used in oral, injectable, and topical pharmaceutical products. Nontoxic and compatible with many active pharmaceutical ingredients (APIs), it is widely used in the formulation of syrups, capsules, and creams. The growing aging population and expanding access to healthcare in emerging markets are likely to drive higher demand.

Cosmetics & Personal Care: PG acts as a humectant and skin conditioning agent in many personal care products, including lotions, shampoos, deodorants, and makeup. Growing awareness of skincare, hygiene, and personal grooming, particularly among younger consumers, is driving higher consumption of PG in this segment. Clean-label and bio-based formulations are further supporting the growth.

Others: Other uses of PG include industrial coatings, plasticizers, and tobacco products. PG’s applicational flexibility ensures a market presence in niche areas, which also contributes to growth.

The Influence of Recent Tariff Policies

The recent tariff policies, especially in the U.S., China, and Southeast Asian countries, have added a lot of cost and complications to the global propylene glycol market. Tariffs on chemical intermediates and raw materials such as propylene oxide and glycerine-typically imported from China, among others, compounded production costs for producers who import these products. Adding more difficulties for midrange producers who do not have integrated supply chains or capital flexibility like large multinational corporations. Beyond that, delays in clearing imports coupled with increased freight costs and the inability to source most of the supply chain from any other source have disrupted many players with either lower margins or price squeezes to the final product.

Given these trade risks, manufacturers are engaged in looking at localization and regional sourcing as an option to reduce dependence on volatile international trade. Several corporations have backwardly integrated by acquiring or partnering with upstream feedstock suppliers. In parallel, a crossroads portion of the industry is exploring the opportunity of using bio-based feedstocks, such as glycerine from biodiesel, to diversify their feedstock options and to capitalize on more favourable treatment in regard to trade and possibly taxes in some jurisdictions. Transitioning to bio-based feedstocks is one way to establish long-term resilience against imported feedstock risks, but requires huge capital investment and time in development. “So, now being faced with cost pressures and strategic repositioning, the market is now in a period of balancing risk mitigation and operational needs.”

Report Scope

Regional Analysis

The Propylene Glycol Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: North America holds a prominent share in the global propylene glycol market, driven by high demand across diverse industries such as food & beverage, pharmaceuticals, automotive, and cosmetics. The U.S. is the largest contributor, owing to the presence of major manufacturers, a mature industrial infrastructure, and advanced regulatory frameworks that support both petroleum-based and bio-based glycol production. Recent developments include capacity expansions, especially in sustainable or bio-based PG, due to increasing consumer preference for eco-friendly ingredients. The pharmaceutical and personal care sectors, in particular, are driving demand for high-purity pharmaceutical-grade PG in the region. Additionally, stringent quality and safety regulations in the food and drug sectors contribute to the consistent growth trajectory in North America.

• Europe: Europe, as a mature market during the acquisition of PG, considers the environmental aspect, having increased queries for bio-based alternatives. Germany, France, and the Netherlands are spearheading the sustainability initiatives, urging the conversion of petroleum-based PG to renewable ones. Also, the significant presence of direct manufacturers of cosmetics and personal care products fuels the demand for PG of extremely high purity. The regional regulations under REACH and other chemical safety programs also affect the formulation and sourcing of products. Europe is an essential exporter of specialty-grade PG for the pharmaceutical and food processing industries; hence, the market is well integrated from both demand and supply perspectives.

• Asia-Pacific: Asia-Pacific is the fastest developing region in the global PG market, with China and India being the largest contributors. Rapid industrialization, urbanization, and population growth increase demand in leading end-user sectors such as construction, automobiles, and the food and beverage industry. The regional market in China is held with a large industrial base, and the surging domestic demand and selling some PG derivatives as exports. India is increasingly turning to its demand in pharmaceuticals, personal care, and FMCG. Furthermore, the regional production capacity plus cost competitiveness is expected to be on a good pace due to higher investments into bio-PG and support from the government to the chemical industry. With further tightening of environmental regulations, Asia-Pacific is thus expected to witness propelled green production processes.

• LAMEA (Latin America, Middle East, and Africa): The LAMEA region is an emerging market for PG, with food, pharmaceutical, and construction industries proving to have untapped potential. In Latin America, Brazil and Mexico are slowly increasing their domestic consumption of PG, primarily in food processing and industrial manufacturing. The Middle East, meanwhile, sees a slow but steady demand for PG in personal care, construction, and de-icing segments-all closely linked to the rapid infrastructure growth projects in the Gulf countries. In Africa, the market is still developing, but its growth will uncontrollably build on increasing investments in pharmaceuticals, FMCG products, and agrochemicals. The region already heavily depends on imports but is slowly waking up to the idea of local manufacturing and bio-based production, with sustainability tipping the scales.

Key Developments

• In April 2025, the sale of Shell’s refinery assets in Singapore, including operations on Bukom and Jurong Islands, is finalized by a joint venture led by Indonesia’s Chandra Asri and Glencore. The purchase consolidates Chandra Asri’s position as one of the foremost petrochemical players in Southeast Asia. Such feedstock enhancement of the propylene glycol market and other key products will bolster the regional supply of feedstocks and production capacities for its commercial activity.

• In August 2023, Covestro started polyurethane elastomer systems manufacturing at its newly established plant in Shanghai. The number is in tens of millions of Euros. It is among the most recent investments in elastomer raw materials in Spain and Thailand.

• In September 2023, Dow Company Introduced Bio-Based, Lower Carbon, Circular Propylene Glycol Solutions in Europe. These renewable propylene glycol fluids are suitable for applications in a variety of industries, from agriculture, pharmaceuticals, and cosmetics to textiles and food.

Such pivotal developments enabled the companies to expand their portfolios and hence improve competitiveness while also profiting from the growth opportunities presented in the Propylene Glycol Market. This phenomenon is destined to continue as innumerable companies weigh in to outstrip each other in the market.

Leading Players

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

• 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

Various techniques are seen with companies trying to penetrate the market: innovations, mergers and acquisitions, and collaboration.

The propylene glycol market is characterized by a moderately competitive environment where a set of large multinational chemical manufacturers, regional suppliers, and specialty chemical firms actively participate. Market leaders like Dow, BASF, LyondellBasell, Huntsman Corporation, and INEOS Oxide dominate the markets with their strong global distribution networks and large-scale production capabilities. These firms often remain competitors on a price basis and hardly on a quality basis but rather engage in strategic supply agreements with end-user industries. Following alongside are regional producers and bio-based chemical companies mounting in regions such as Asia-Pacific and Latin America, providing bio-based propylene glycol alternatives in response to the mounting entry of demand for sustainable and low-toxicity materials.

Other key players in the bio-based PG segment include ADM (Archer Daniels Midland) and Global Bio-Chem, who, in turn, focus on renewable feedstocks and environment-friendly production routes. The competitive landscape is altered by technological improvements in production processes, changes in raw-material sourcing, and regulatory compliance related to health, safety, and environmental concerns. Players also try to distinguish themselves on product grades-pharmaceutical, industrial, food-and formulated products for specific applications, including cosmetics, food additives, de-icing fluids, and antifreeze. The market, up until now, has exhibited all indicators of moderate consolidation at the top with prospects of innovation and growth for regional and specialty producers.

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