Propylene Glycol Market By Product Type (Propylene Glycol USP, Propylene Glycol Industrial (PGI), Bio-Based Propylene Glycol), By Production Process (Non-Catalytic Hydrolysis of Propylene Oxide, Catalytic Hydration of Propylene Oxide, Fermentation of Glycerol), By Grade (Industrial Grade, Pharmaceutical Grade, Food Grade), By Source (Petroleum-Based, Bio-Based), By Function (Humectant, Solvent, Emulsifier, Preservative, Antifreeze Agent, Stabilizer, Carrier Fluid, Plasticizer), and By End-User (Food & Beverage, Pharmaceutical, Personal Care & Cosmetics, Automotive, Aerospace, Chemical, Building & Construction, Others), Global Market Size, Segmental Analysis, Regional Overview, Company Share Analysis, Leading Company Profiles, and Market Forecast, 2025 – 2035.

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What trends will shape the Propylene Glycol Market in the coming years?

The Propylene Glycol Market accounted for USD 4.87 Billion in 2024 and USD 5.19 Billion in 2025 is expected to reach USD 9.74 Billion by 2035, growing at a CAGR of around 6.5% between 2025 and 2035. The propylene glycol market is set to undergo a revolution, as the increasing need for bio-based and green alternatives is the key that is going to encourage green chemistry by various industries. The pharmaceuticals, personal care, and food and beverage businesses are growing, which is raising demand for USP and food-grade PG.

The market is also being driven by rising consumption of propylene glycol for both antifreeze and deicing purposes, particularly in northern countries. The development in fermentation-based production, coupled with technological advances in bio-based PG production, is also causing bio-based PG to become cost-competitive. Moreover, tighter regulatory standards on petrochemicals are urging producers to resort to environmentally friendly procedures and ingredients.

What do industry experts say about the Propylene Glycol Market trends?

“We recognize demand has increased for the use of renewable materials to reduce carbon and enable circularity. By applying our low carbon, bio‑based, and advanced recycling technologies, we are making this a reality for PG. Our customers will benefit from the same high‑quality performance with a more sustainable material.”

• Andrew Jones, Global Business Director at Dow Polyurethanes.

Which segments and geographies does the report analyze?

What are the key drivers and challenges shaping the Propylene Glycol Market?

How is the rising demand for processed foods influencing food-grade propylene glycol consumption globally?

The processed and ready-made foods are gaining popularity worldwide, and thus, the use of this food-grade application of the Global Propylene Glycol Market is on the rise. This is because propylene glycol is commonly used as a solvent, humectant, and stabilizer in food materials, e.g., breads, drinks, and dairy, as well as sweet confections. With changing urban lifestyles whereby people are tending towards packaged food, the functional attributes of P.G., like moisture content retention and flavor, can be enhanced; hence, this is another great ingredient.

Propylene glycol is listed by the U.S. Food and Drug Administration (FDA) as Generally Recognized As Safe (GRAS) as a food ingredient. As per the FAO, propylene glycol as a food-grade material can be present in fillings and frosting up to 200,000 mg/kg. As the percentage of consumed food in the developed countries that was originally dependent on ultra-processed products now tops 50%, the number of cases involving the application of PG is rising. It is also suitable for large-scale processing since it goes well with other food ingredients. Market demand is further accelerated by the expansion of ready-to-eat foods and fast-food chains. There is also the economic impact of emerging economies participating in this trend, whereby there is increased adoption of packaged food. In general, food-grade is a significant contributor to the propylene glycol market on a global scale.

Can expanding the personal care industry needs increase the usage of PG as a humectant agent?

Growing demand for moisturizers, creams, lotions, shampoos, and conditioners is making the Global Propylene Glycol Market experience growth in the application of PG as a humectant in personal care. Both the Cosmetic Ingredient Review panel and the U.S. FDA consider propylene glycol to be a safe and non-irritating cosmetic ingredient, and this makes it a favorite among some formulators. It has been used in more than 14,000 existing cosmetic products registered by the FDA or the FDA Voluntary Cosmetic Registration Program, which manifests its popularity. PG attracts and retains moisture, which makes the skin hydrated, reduces flakiness, and makes personal care products feel and look better. The use of PG is further advocated by the increasing consumer demand for clean-label and functional skincare products due to their rising preoccupation with skin health and hydration.

As the total market value of personal care products all over the world reaches a level of more than USD 1.21 trillion in 2023, the market of multifunctional low-cost ingredients, such as PG, also expands. The change of direction in the industry regarding its sustainable and bio-based formulations correlates with the changing production processes of PG as well. It is incompatible with several actives and formulations and thus forms a crucial ingredient in the formulation of contemporary personal care products. With the trend of the ever-increasing expansion of this industry, the importance of propylene glycol as a humectant is destined to increase even more.

Are fluctuating petrochemical prices creating instability in raw material sourcing for PG production?

The prices of the petrochemicals are fluctuating, and this is causing significant instability in the sourcing of raw materials in propylene glycol (PG) manufacturing. Propylene glycol is mainly a byproduct of propylene oxide, which is a petrochemical substance obtained from crude oil and natural gas. The price and supply of propylene oxide are directly influenced by global volatility in the oil market, which has been caused by geopolitical tensions, OPEC+ decisions, and supply chains.

An increase in the price of crude oil also forces up the cost of production of PG at the same time, shrinking the margin of the manufacturers and raising the final cost to the end users. This makes long-term procurement strategies difficult and affects production planning. Also, refining and transportation processes, which are energy-intensive, contribute to an even greater extent to cost variability. These fluctuations have prompted manufacturers to consider other alternative feedstocks, especially bio-based PG that is produced using glycerol or agricultural residue. Nonetheless, these options are accompanied by scaling and cost issues as well. On the whole, the price instability of feedstocks has created a risk factor in the PG supply chain, compelling companies to spread the sourcing activities and invest in a sustainable production process.

Could rising electric vehicle production accelerate PG usage in thermal management and cooling systems?

The increased output of electric vehicles (EVs) is estimated to raise the propylene glycol (PG) consumption in the thermal management/cooling applications to a considerable extent. PG is an important ingredient in coolant formulations because it possesses high thermal conductivity, a low freezing point, and is non-corrosive. In contrast to conventional cars, EVs additionally need to have an efficient thermal control that would preserve the battery performance, increase the service life, and guarantee safety. Since the demand for EVs in the world market is again expected to soar as high as 20-plus million units by 2025, the necessity of qualified cooling fluids is soaring proportionately.

The stability of coolants based on PG and compatibility with the EV battery systems have made them popular. To provide high standards of performance and safety, manufacturers are coming up with specialized PG blends for EV applications. There is also the trend of using sustainable and low-toxicity coolants that favor the adoption of PG in formulations based on bio-based materials. As the infrastructure and usage of EVs spread across the world, the importance of the thermal management role of PG will be even more significant. That is why PG becomes a part of the moving electric mobility ecosystem.

How might emerging economies' industrialization drive greater demand for multi-functional PG-based chemical inputs?

The multi-functional properties of propylene glycol (PG) chemical inputs are likely to be propped up by the fast rate of industrialization in the emerging economies. The same as countries such as India, China, Brazil, etc. increase their production in manufacturing, automotive, pharmaceutical, and food production industries, the demand for universal intermediates, such as PG, is increasing. PG is a multiple-purpose molecule with solvent, humectant, antifreeze, and stabilizer functions; thus, it is of great commercial importance on an industrial scale.

Demand for processed foods, cosmetic products, and personal care products is on the rise due to the ever-increasing urban population and consumer spending on these products, which also use PG. Further, the growth of infrastructure and building activities boosts the demand for the PG-based resins, paints, and coatings. Thermal stability also gains from the cooling systems of the industrial sector with the use of PG. The PG consumption is also being fueled by the government incentives in the developing industry and foreign investments. All these markets are also experiencing a move to safer FDA- and EU-compliant ingredients, as is the case with PG's safety profile. All in all, the issue of industrialization of the high-growth economies brings a sizeable growth potential to the Global Propylene Glycol Market.

What are the key market segments in the Propylene Glycol industry?

Based on the product type, the Propylene Glycol Market is classified into propylene glycol usp, propylene glycol industrial (PGI), and bio-based propylene glycol, which serve different end-use industries. PG used as antifreeze and heat transfer fluid is predominant in such industries as automobile, paints, coatings, and construction as industrial-grade PG. There is a booming market in pharmaceuticals, food, and personal care goods, as a USP/EP-grade PG complies with stringent purity regulations, and the demand for safe excipients and moisture retainers continues to increase.

Bio-based propylene glycol at present represents only a smaller market share but is also growing rapidly due to the sustainability targets and regulatory pressure against petroleum-based chemicals. The growing demand for environmentally friendly and high-purity grades is likely to tilt the market in the direction of bio-based and USP grades. This segmentation also brings out a strong trend in value-added, environmentally sensitive products.

Based on the function, the Propylene Glycol Market is classified into humectant, solvent, emulsifier, preservative, antifreeze agent, stabilizer, carrier fluid, and plasticizer. It is a humectant that finds a variety of applications in personal care, food, and any other industry that dominates consumer markets. It plays an important part as a solvent in pharmaceuticals, cosmetics, and paints, which are sensitive to many active ingredients.

A major degree of demand posed by the antifreeze role is in the auto, airplane, and HVAC industries. Being a carrier fluid, it helps increase the transit of flavors, fragrances, and drugs. Moreover, it can be used as a stabilizer and an emulsifier that favors standard formulation in the chemical, polymer, and food industries. This functional weariness makes propylene glycol a significant input in both the industrial and the consumer goods industries.

Which regions are leading the Propylene Glycol Market, and why?

The North American Propylene Glycol Market is leading due to the high demand for propylene glycol in the pharmaceutical industry and the automotive, food and beverage, and personal care industries. The U.S. prevails in the local market because it has a defined chemical manufacturing base, good research and development activities, and major companies such as Dow Chemical and ADM. The usage of the USP-grade and bio-based PG is highly adopted due to the regulation of agencies such as the FDA and EPA, which focus on health and safety.

Improvements in bio-based technologies of PGs also take place in the region, and more funds are being invested in sustainable and circular production processes. There are also the expanding requirements of the automotive and aerospace industries that drive the demand for antifreeze and deicing applied to industrial-grade PG. The priority of green chemistry and clean-label formulations in North America remains part of the process in defining its leadership in the region.

The Asia Pacific Propylene Glycol Market is leading due to the dynamic industrialization, intense automobile production, and growth in demand for pharmaceuticals and personal care. These include other countries such as China, India, and South Korea, which are experiencing high levels of consumption as there are high activities of construction and chemical, and consumer goods products. The area has abundant manufacturing capacity, affordable production, and increasing investments in technologies of bio-based chemicals.

The sustained growth of urban and middle-income populations is further leading to escalated usage of PG in processed food products, cosmetics, and healthcare products. Besides, favorable government policies that support green chemistry and an expansion of the industry are enticing the main stakeholders in the world market to establish local bases. The Asia-Pacific market will continue to be dynamic, considering its wide base of applications and economic dynamism.

What does the competitive landscape of the Propylene Glycol Market look like?

Key players in the Propylene Glycol Market, particularly Dow, BASF SE, ADM, INEOS, Shell, and Huntsman, are dominating the competitive environment and are spending heavily on increasing production capacities and initiating innovations to present sustainable alternatives. Businesses are keen on distinguishing their products with bio-based and pharmaceutical-grade propylene glycol to satisfy the demand that is emanating from the eco-sensitive and health-oriented industries. Recently, Dow further cemented its presence in Asia, enlarging the production plant in Thailand, which now becomes one of the largest in the region, allowing it to produce ISCC PLUS-certified circular and bio-circular PG. BASF and Evonik invest in the development of low-emission PG production processes with the use of superior catalytic technologies.

ADM and Cargill are marketing their bio-based PG using agriculture-based feed supplies to attract the food and pharmaceutical industries. These players, too, are participating in strategic alliances and joint ventures and in R&D collaborations in order to augment market penetration. The pressure of going green is transforming the competition, leading to small regional players in the Asia-Pacific region. Competitive pricing, quality assurance, and being regulated are core to market leadership. In sum, there is innovation, sustainability, and geographic expansion across fast-growing and mature markets.

Propylene Glycol Market, Company Shares Analysis, 2024

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Which recent mergers, acquisitions, or product launches are shaping the Propylene Glycol industry?

• In January 2025, ORLEN Południe’s BioPG plant, a glycerol-to-PG facility in Poland, completed its first full year of operations, converting biodiesel byproduct into renewable propylene glycol with significantly reduced energy use and CO₂ emissions (approximately 60% lower).

Report Coverage:

By Product Type

• Propylene Glycol USP
• Propylene Glycol Industrial (PGI)
• Bio-Based Propylene Glycol

By Production Process

• Non-Catalytic Hydrolysis of Propylene Oxide
• Catalytic Hydration of Propylene Oxide
• Fermentation of Glycerol

By Grade

• Industrial Grade
• Pharmaceutical Grade
• Food Grade

By Source

• Petroleum-Based
• Bio-Based

By Function

• Humectant
• Solvent
• Emulsifier
• Preservative
• Antifreeze Agent
• Stabilizer
• Carrier Fluid
• Plasticizer

By End-user

• Food & Beverage
• Pharmaceutical
• Personal Care & Cosmetics
• Automotive
• Aerospace
• Chemical
• Building & Construction
• Others

By Region

North America

• U.S.
• Canada

Europe

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

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• The Dow Chemical Company
• BASF SE
• Archer Daniels Midland Company (ADM)
• LyondellBasell Industries N.V.
• Huntsman International LLC
• INEOS Oxide
• Shell Chemicals LP
• DuPont de Nemours, Inc.
• Global Bio-Chem Technology Group Company Limited
• SKC Co., Ltd.
• Manali Petrochemicals Limited
• Repsol S.A.
• Ottima Chemicals
• Royal Dutch Shell plc
• Tokyo Chemical Industry Co., Ltd. (TCI)

Frequently Asked Questions (FAQs)