Propylene Glycol Market Size, Share & Trends Analysis Report By Source (Petroleum Based, Bio Based), By Grade (Industrial Grade, USP Grade), By End Use, By Region, And Segment Forecasts, 2025 - 2030

Propylene Glycol Market Size & Trends

The global propylene glycol market size was estimated at USD 4,850.4 million in 2024 and is anticipated to expand at a CAGR of 6.3% from 2025 to 2030. This is attributable to the growing utilization of propylene glycol in the construction industry and other applications such as engine coolant and as a raw material for de-icing planes in the transportation industry. 

The product is widely used as a chemical intermediate, heat transfer medium, and as a solvent in numerous industries. The product is typically produced in two grades that are industrial or technical grade and USP/EP grade. Industrial grade propylene glycol is used for manufacturing non-ionic detergents used in sugar refining, papermaking, and petroleum industries. It is also used as an additive in latex paints and coatings to improve freeze-thaw capability. USP/EP grade is commonly used as an excipient in several drugs, cosmetics, and food products.

Propylene glycol is very low-toxic and does not cause any health issues. However, some people are allergic to propylene glycol, which can lead to dermatitis, skin reactions, and skin rashes. Also, when the product is injected in higher amounts, it can cause rapid heart rate and heart rhythm problems, thereby leading to an increased risk of heart attack. This is likely to act as a restraining factor for market growth.

Propylene glycol is manufactured from propylene oxide. The most commonly used process is the non-catalytic hydrolysis of propylene oxide in a higher temperature and higher pressure environment. The catalytic method is the one that proceeds at 150°C in the presence of ion exchange resin or a small amount of alkali or sulphuric acid. It can also be produced from glycerol, a biodiesel by-product. The Food and Drug Administration considers the product safe for indirect and direct addition to food. The European Union has also listed the ingredient as safe for cosmetic use. 

Drivers, Opportunities & Restraints

The market is witnessing steady growth, primarily driven by its wide-ranging applications across food & beverage, pharmaceuticals, personal care, and industrial manufacturing sectors. Propylene glycol is valued for its hygroscopic properties, low toxicity, and chemical stability, making it a preferred solvent, humectant, and carrier fluid in cosmetics, food additives, and drug formulations. In the industrial domain, it plays a critical role in antifreeze formulations, de-icing solutions, and as a base fluid in heat transfer applications. The rising demand for sustainable and low-VOC ingredients in consumer goods and the push toward safer alternatives to ethylene glycol in automotive and HVAC systems further propel market growth.

The market is expanding with the growing adoption of bio-based propylene glycol derived from renewable feedstocks such as glycerin and corn starch. These green alternatives are gaining traction as industries shift toward circular economy models and environmentally compliant supply chains. In addition, the increasing demand for propylene glycol in emerging economies, driven by rapid urbanization, expanding pharmaceutical manufacturing, and growth in packaged food production, presents lucrative avenues for manufacturers. Innovation in downstream applications, particularly personal care and specialty chemicals, is also expected to drive market diversification and premiumization.

The market faces notable restraints. Volatility in crude oil prices and supply chain disruptions impact the cost and availability of petroleum-derived propylene glycol, which still accounts for a significant share of global production. Environmental regulations regarding VOC content and occupational exposure limits are tightening, particularly in North America and Europe, requiring reformulation efforts and higher compliance costs. Furthermore, competition from ethylene glycol and other multifunctional solvents and margin pressures due to commoditization in bulk applications challenge profitability. Key players are investing in process optimization, regional capacity expansion, and strategic sourcing of bio-based feedstocks to remain competitive.

Source Insights

The petroleum-based segment dominated the market with a revenue share of over 71.2% in 2024. This is attributed to its lower cost compared to its bio-based counterpart. Its major downside is that it is typically made from petroleum, which is a nonrenewable source. It takes more than 1 million tons of petroleum annually to meet the worldwide product demand.

The bio-based segment is predicted to expand at the highest CAGR of 6.6% in the forecast period. The growth is attributed to the increasing adoption of greener alternatives, which have reduced greenhouse gas emissions by 61% compared to petroleum-based products. The Pacific Northwest National Laboratory (PNNL) developed the first-ever catalytic process for converting plant-based raw materials to produce bio-based propylene glycol. 

Grade Insights

The industrial grade segment dominated the market with a revenue share of over 63.3% in 2024. This is attributed to its increasing demand from the construction sector for building materials. It is used to manufacture resins and plastics, paints and coatings, industrial coolants, detergents, and others. It is a high-purity material with a purity specification of around 99.5%.

The USP grade segment is anticipated to expand at a CAGR of 6.4% in the forecast period. The growth is attributed to the product's several applications in the food & beverage, personal care, and pharmaceutical industries. This grade's purity specification is around 99.9%. It is approved for use as a food additive under E1520 with a strict maximum limit of 1g/kg in human food.

End Use Insights

The construction segment dominated the market with a revenue share of over 38.6% in 2024. This is attributed to its increasing demand from the construction sector in the manufacturing of building materials. It is used to manufacture resins and plastics, paints and coatings, industrial coolants, detergents, and others. The construction industry experienced steady growth across all regions post-COVID in 2021.

Transportation was the second-largest segment and is anticipated to expand at the highest CAGR of 6.9% in the coming years. The growth is attributed to the rising demand for the product to produce fire-resistant brakes and hydraulic fluids, and as a deicing chemical for aircraft. The product is also used as a coolant in automotive applications and prevents corrosion in the cooling system.

Others include agriculture adjuvants, liquid detergents, and tobacco. Propylene glycol is an acceptable ingredient in spray adjuvants for both agricultural and non-agricultural uses. It is also used as a stabilizer in liquid detergents, ensuring the even distribution of cleaning enzymes. Finally, it is used as a humectant in cigarettes to keep the tobacco moist, thereby preventing the cigarette from drying out. 

Regional Insights

Asia Pacific emerged as a dominating market, accounting for a revenue share of over 45% in 2024. This growth is attributed to the strong construction sector growth in countries such as China, India, Indonesia, and others. China alone accounts for around 26.1% of the global growth of the construction industry. In 2021, infrastructure activities accounted for a 13% share of the total FDI inflows in India. This is likely to fuel the construction sector, leading to increased demand for propylene glycol in the coming years.

China Propylene Glycol Market Trends

According to the government of China, as of 2021, the country had 96 airports with an annual passenger throughput of over 1 million. It also had 22,000 railway locomotives, including 14,000 electric and 8,000 diesel locomotives. In addition, 12.32 million road vehicles were in operation nationwide. Thus, the growth of the transportation industry in China is anticipated to bolster the demand for propylene glycol in the coming years.

North America Propylene Glycol Market Trends

The propylene glycol market in North America accounted for a significant share of the global market in 2024, driven by strong demand from the automotive, pharmaceutical, and food industries. The U.S., in particular, is a major consumer due to wide spread use of propylene glycol in de-icing fluids, antifreeze formulations, and industrial applications. Electric vehicle manufacturing and cold-chain logistics infrastructure growth are further boosting consumption. In addition, the increasing focus on bio-based alternatives aligned with sustainability goals supports the transition from petroleum-based glycols, with several regional manufacturers investing in renewable feedstock technologies.

Europe Propylene Glycol Market Trends

The propylene glycol market in Europe held a substantial revenue share in 2024, owing to the region’s robust automotive and construction sectors. Countries like Germany, the UK, and France have well-established demand across antifreeze systems, unsaturated polyester resins (UPRs), and personal care formulations. The EU’s strong environmental regulations have also accelerated the adoption of low-VOC and bio-based propylene glycol solutions. Growing investments in green chemistry and demand from the pharmaceuticals and cosmetics industries are expected to drive steady market expansion across the region.

Latin America Propylene Glycol Market Trends

The propylene glycol market in Latin America represents an emerging market, with Brazil and Mexico leading in consumption due to the growing construction, automotive, and personal care industries. In 2024, the region witnessed increased use of propylene glycol in construction materials, paints and coatings, and hygiene-related products. Expanding healthcare infrastructure and the growing demand for processed food and beverages also contribute to consumption growth. However, the market remains import-reliant and sensitive to price fluctuations, creating opportunities for regional production and sustainable alternatives.

Middle East & Africa Propylene Glycol Market Trends

The propylene glycol market in the Middle East & Africa grew steadily in 2024, driven by rising construction activities and infrastructure development, particularly in the GCC countries. Saudi Arabia and the UAE are witnessing increasing demand for UPRs and thermoset resins in large-scale infrastructure and real estate projects. Propylene glycol is also used in HVAC systems, antifreeze applications, and personal care products, which are gaining popularity in urbanizing economies. The region's gradual shift toward sustainable and bio-based chemicals, backed by national visions for industrial diversification, is expected to support future growth.

Key Propylene Glycol Company Insights

The market is characterized by companies adopting various strategic initiatives, such as increasing production capacity, new product development, and technology partnerships, to gain a competitive edge. For instance, Dow and Evonik entered into a technology partnership to develop a unique method for directly synthesizing propylene glycol from hydrogen peroxide and propylene.

Recent Developments

• In May 2024, Dow announced the completion of an 80,000-ton annual propylene glycol capacity expansion at its Map Ta Phut, Thailand facility, making it the largest PG plant in Asia Pacific at 250,000 tons/year. This strategic move enhances Dow’s regional supply security. It supports growth in high-value sectors like personal care, pharma, food, and fragrances, while advancing its global leadership in sustainable, ISCC PLUS-certified PG production.

• In August 2023, Covestro started production of polyurethane elastomer systems at its new plant in Shanghai. The investment amounts to tens of millions of Euros and is part of recent investments in elastomer raw materials, including facilities in Spain and Thailand.

Propylene Glycol Market Report Scope

Global Propylene Glycol Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global propylene glycol market report based on source, grade, end use, and region:

• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Petroleum Based

  • Bio Based

• Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Industrial Grade

  • USP Grade

• End Use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Food & Beverages

  • Pharmaceuticals

  • Cosmetics & Personal Care

  • Construction

  • Transportation

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa