Propylene Glycol Market

Propylene Glycol Market Overview

The global Propylene Glycol Market size was valued at USD 4.66 billion in 2024 and is predicted to reach USD 6.22 billion by 2030 with a CAGR of 4.9% from 2025-2030.

The propylene glycol market is driven by boosting pharmaceutical sector, growing personal care and beauty industry and growing electric vehicle industry. The industry is hindered by the complex regulatory compliance whereas, the introduction of bio-based glycol solution is anticipated to create ample number of opportunities in future. 

Key players such as Dow Inc. along with Evonik Industries AG and Ineos Group Limited embrace numerous business approaches such as expansion and collaboration to maintain their position in the market.

Rising Pharmaceutical Industry Spurs the Market Growth

Boosting pharmaceutical industries spurs the propylene glycol market growth. This is because glycol solutions are used in many pharmaceutical applications such as solvents for oral drug formulation along with injectables and excipient. 

As per the European Federation of Pharmaceutical Industries and Associations report 2024, the pharmaceutical sector globally summed USD 1.39 trillion in 2023. As pharmaceutical companies diversify their product lines and shift towards advanced formulations in an effort to make drugs stronger, the demand for such a compounds increases with greater production.

Boosting Personal Care & Beauty Industry Drives the Market Growth

The increase in the propylene glycol market demand is also being driven by the fast-expanding personal care and beauty sector that raises glycol solution need for application in wide variety of cosmetic, hair, and skin care products such as serums, creams, lotions, and shampoos. 

The Global Wellness Institute research report states that the value of the global personal care and beauty industry summed USD 1.21 trillion in 2023 and is expected to expand much higher in the near future. 

The compound acts as humectant, a solvent, an emollient, and preservative in such personal care and beauty products that results in enhanced properties and this growing use creates surge in the overall market growth.

Growing Electric Vehicle Industry Spurs the Market Growth

The rapidly growing electric vehicle (EV) segment propels the market with an increasing need for advanced cooling and lubricating systems needed by battery systems and electrical components. Worldwide electric light vehicle sales are expected to reach 18.7 million in 2025 from 17.4 million units in 2024, an increase of 7.4%, as per the Forbes 2025 report. This growing EV industry increases the demand for coolant fluid ultimately resulting in growth in the propylene glycol market expansion.

Intricate Regulatory Compliance Hinders the Market Growth

There exist regulatory bodies such as United States Environmental Protection Agency (EPA) in the U.S. and European Chemicals Agency (ECHA) in the Europe region that possess stringent testing, production, compliance and documentation regulation on the manufacturers for safety reason hindering the market growth.

Bio-Based Propylene Glycol Creates Future Opportunities

The rise of bio-based propylene glycol is anticipated to provide massive growth opportunities in the coming times. As consumer behaviour and government policies are facing environmental concerns that are influencing, the shift to green products is anticipated to accelerate and the trend is anticipated to drive investment and innovation towards production of bio-based glycol solution. 

For instance, Dow Inc. launched two sustainable grades of polyethylene oxide in North America using bio-circular and circular feedstocks in March 2024. This growth indicates the company's vision towards going towards sustainable choices and goals.

Market Segmentations and Scope of the Study 

The propylene glycol market report is segmented on the basis of source, grade, application, end-user industry, and by region. On the basis of source, the market is divided into petroleum-based and bio-based. On the basis of grade, the market is grouped into industrial grade, pharmaceutical grade, and other applications. Based on industrial grade, the market is further segregated into unsaturated polyester resin, antifreeze and functional fluids, liquid detergents, plasticizers, paints and coatings. Based on pharmaceutical grade, the market is further segmented into food and beverage, pharmaceuticals, and cosmetics. On the basis of application, the market is divided into emollients, solvents, stabilising agents, preservative agents, humectants, and excipients. On the basis of end-user industry, the market is segmented into transportation, building and construction, cosmetics and personal care, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Asia-Pacific holds the dominant position in the propylene glycol market share and is expected to maintain its dominance in the forecast period. This is because of growing electric vehicle industry in the region that requires the usage of glycol solutions for cooling. 

The report by the International Energy Agency in 2024 is published with a 24.7% rise in electric car sales in 2023 at 8.1 million and then a peak of 10.1 million in 2024. The growing sales necessitates glycol solutions for cooling battery systems and electrical components that promotes market growth. 

Additionally, the market growth is driven by the growing pharma industry in the region that prompts the usage of glycol solutions. As per Indian Ministry of Commerce and Industry, the pharma market in 2024 summed USD 65 billion, and it is projected to touch USD 130 billion by 2030 reflecting a 100% growth rate. The boosting pharma industry demands the usage of propylene glycol for quality pharmaceutical formulation leading to better efficacy of the medicines that boost the market growth. 

On the other hand, North America shows steady rise in the propylene glycol industry due to the expansion of cosmetic and personal care industry that requires glycol solution for various purposes such as preserving, stabilising and to act as carrier. 

According to the report published by the Personal Care Council in 2024, the U.S. cosmetics and personal care industry fueled USD 308.70 billion to the GDP generating USD 82.30 billion in tax payments. The growing personal care industry goes hand in hand with glycol solution that prompts a market growth. 

Moreover, the growing food and service industry in the region propels the propylene glycol industry by increasing the demand of frozen drinks and food that necessitates the use of glycol solution as anti-freeze and stabiliser for the frozen products. 

According to the report published by the United States Department of Agriculture 2024, Mexico’s food service industry summed USD 83.13 billion in 2023 with quick service restaurant being the largest segmented and more anticipated rise. As the industry grow, there is a surge in the production of food-grade coolants driving the market growth.

Competitive Landscape

Various market players operating in the propylene glycol industry are Dow Inc., BASF SE, LyondellBasell Industries Holdings B. V., Archer Daniels Midland Company, Huntsman International LLC, ADEKA Corporation, Manali Petrochemicals Limited, Repsol S. A., Shell plc, Ineos Group Limited, Acuro Organics Limited, Harcros Chemicals Inc., Novamen Inc., Evonik Industries AG, Solventis Ltd., and others. These companies are adopting various strategies such as expansion, acquisition, and collaboration to maintain their dominance in the industry. 

For instance, Dow Inc. in May 2024 expanded its Thailand propylene glycol production capacity to 250,000 tons per year from 80,000 tons. This expansion enhances regional and global leadership position of the company. 

Additionally, in May 2024, Ineos Group Limited acquired LyondellBasell Industry's ethylene oxide and derivatives business to expand its product portfolio in the market andd maintain its dominance in the market. Also, in November 2023, Evonik Industries AG collaborated with Dow Inc. to build its propylene glycol pilot plant in Germany by using distinct HYPROSYN method. 

Key Benefits

• The report provides quantitative analysis and estimations of the propylene glycol industry from 2025 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future propylene glycol market trends to depict prevalent investment pockets in the sector.

• Information related to key drivers, restraints, and opportunities and their impact on the propylene glycol market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Propylene Glycol Market Key Segments

By Source

• Petroleum-Based

• Bio-Based

By Grade

• Industrial Grade

  • Unsaturated Polyester Resin

  • Antifreeze and Functional Fluids

  • Liquid Detergents

  • Plasticizers

  • Paints and Coatings

• Pharmaceutical Grade

  • Food & Beverage

  • Pharmaceuticals

  • Cosmetics

• Other Applications

By Application 

• Emollients

• Solvents

• Stabilizing Agents

• Preservative Agents

• Humectants

• Excipients

By End-User Industry

• Transportation

• Building & Construction

• Cosmetics & Personal Care

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific 

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Dow Inc.

• BASF SE

• LyondellBasell Industries Holdings B. V.

• Archer Daniels Midland Company

• Huntsman International LLC

• ADEKA Corporation

• Manali Petrochemicals Limited

• Repsol S. A.

• Shell plc

• Ineos Group Limited

• Acuro Organics Limited

• Harcros Chemicals Inc.

• Novamen Inc.

• Evonik Industries AG

• Solventis Ltd.

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 4.66 billion
Revenue Forecast in 2030	USD 6.22 billion
Growth Rate	CAGR of 4.9% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Expansion of pharmaceutical industry fuels the growth in the market. Boosting personal care and beauty industry drives market growth. The growing EV industry spurs market growth.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent to up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.