Bio-Based Propylene Glycol Market is segmented by Application (Unsaturated Polyester Resin, Solvent, Antifreeze & Coolant, Chemical Intermediates, Others); by End Use Industry (Cosmetics, Building & Construction, Pharmaceutical, Detergent & Household, Others); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2023-2032
Bio-Based Propylene Glycol Market Overview
The global bio-based propylene glycol market was valued at USD 4.45 billion in 2023. The market is expected to expand at a CAGR of 4.6% from 2023-2032, and is expected to cross value of USD 6.9 billion by the end of 2032.
Propylene glycol is a viscous colorless liquid which has a low melting point of -59°C and high boiling point of 188°C. The chemical compound with IUPAC name propane-1,2-diol, possesses a faintly sweet taste. Bio-based propylene glycol is an ecological and renewable product that is obtained by the catalytic reaction of 99.7% distilled glycerine with hydrogen. Several manufacturers use plant-based glycerol, which is a co-product in the production of biodiesel, for the production of bio-based propylene glycol. Growing demand for different types of fragrances as well as the expanding fragrance industry is one of the major factors expected to drive the growth of the bio-based propylene glycol market. BASF SE, Archer Daniels Midland Company, and The Dow Chemical Company are some of the significant parties in the market for bio-based propylene glycol.
Bio-Based Propylene Glycol Market Drivers
Some key drivers for the bio-based propylene glycol market are:
- Rise in Demand for Perfumes: Due to the hygroscopic nature of bio-based propylene glycol, it is miscible with acetone, water and chloroform. As a result, the bio-based chemical finds massive application as a solvent in the perfume industry. With the increasing demand for perfumes and the expanding fragrance industry, the demand for bio-based propylene glycol is also expected to increase, thereby contributing to the market growth.
- Expanding Use of the Chemical in Personal Care and Cosmetic Products: Bio-based propylene glycol, due to its chemical properties, finds massive application in the manufacturing of personal care and cosmetic products. As the demand for different types of personal care and cosmetic product grows, the need for the chemical compound is also expected to increase.
- Increasing Demand for Leather: The leather industry has been witnessing a transformative demand in the recent years. With the increasing demand for faux leather or synthetic leather, the need for chemicals that play a major role in the production process of synthetic leather is also on the rise. Bio-based propylene glycol finds wide application as a wetting agent, surfactant, and a dispersant for leather finishing in the leather industry.
- Soaring Demand for Unsaturated Polyester Adhesives: With the increasing demand for reinforced plastic and fiber glass composite in the marine, automobile, construction and transportation industries, the need for unsaturated polyester adhesives have also grown. As bio-based propylene glycol is used for surface coating and glass fiber reinforced unsaturated polyester resin (UPR), the demand for the chemical from its application industries is also expected to increase, thereby contributing to the market growth.
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Bio-Based Propylene Glycol Market Challenges
Some challenges facing the bio-based propylene glycol market are:
- Concern for the Availability of Biobased Feedstock: Bio-based propylene glycol is obtained from corn starch and other similar biobased feedstock sources. With the growing use of these feedstock for different purposes, the concern for supply shortages of these feedstock would also increase. Also, the supply of these raw materials depends on the yield of the crops.
- Fluctuating Price of Feedstock: The availability of feedstock totally depends on the yield of the crops. Any fluctuations in the availability of the feedstock would also raise the price of these raw materials, thereby raising the cost of production of bio-based propylene glycol.
- High Setup Cost: The production setup of bio-based propylene glycol requires huge initial investment. As a result, several small players, who may have the interest for this business, may not display their will to proceed with the business due to the high investment associated with it.
Bio-Based Propylene Glycol Market Segmentation
Segmentation of bio-based propylene glycol market are:
- By Application
- Unsaturated Polyester Resin
- Solvent
- Antifreeze & Coolant
- Chemical Intermediates
- Others
- By End Use Industry
- Cosmetics, Building & Construction
- Pharmaceutical
- Detergent & Household
- Others
- By Region
- North America (U.S., and Canada)
- Europe (U.K., Germany, France, Italy, Spain, Russia, Rest of Europe)
- Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
- Latin America (Mexico, Argentina, Rest of Latin America)
- Middle East and Africa
Bio-Based Propylene Glycol Market: Report Scope |
|
Base Year |
2023 |
Base Year Market Size |
USD 4.45 Billion |
Forecast Year |
2023-2032 |
Forecast Year Market Size |
USD 6.9 Billion |
CAGR Value |
4.6% |
Segmentation |
|
Challenges |
|
Growth Drivers |
|
Timeline considered for all these studies will be:
2023 – Base Year
2023 – Estimated Year
2023-2032 – Forecast Period
Bio-Based Propylene Glycol Market Regional Synopsis
The North America bio-based propylene glycol market is projected to hold the largest market share by the end of 2032, owing to the supportive regulations that are focused upon lowering carbon footprint, GHGs, and for promoting sustainability. The United States is also one of the largest producers of corn and soy, as a result of which, the sourcing of the bio-based feedstock is comparatively very easy.
Alternatively, the Europe bio-based propylene glycol market is expected to grab the second-largest market share during the forecast period. The stringent government regulations set by the regulatory bodies that focus on promoting sustainability, as well as the incentives provided for the use of bio-based raw materials in the manufacturing industries for the production of goods, are some of the major factors predicted to drive the growth of the market in the region.
Bio-Based Propylene Glycol Market Key Players
Some key players in the bio-based propylene glycol market are:
- BASF SE
- Archer Daniels Midland Company
- The Dow Chemical Company
- DuPont Tate & Lyle Bio Products, LLC
- Huntsman International LLC
- Cargill
- Oleon
- Ashland Incorporation
- INEOS
- Shell Plc
- Adeka Corporation
- LyondellBasell Industries Holdings B.V.
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Request for Customized Report- Publication date: 24th February 2024
- Base year: 2022
- Forecast year: 2023-2033
- Format: PDF, PPT,Word,Excel