This study intends to unfurl the multiple facets of global propylene glycol market. The insights offered in the report aid in market growth examination during the forecast period.
Widening Application Based Boosts Propylene Glycol Market Revenue
Rising use of propylene glycol in the building sector and other uses like engine coolant and as a primary ingredient in deicing agents for aircraft in the transportation sector. The substance is widely utilized in many sectors as a solvent, heat transfer medium, and chemical intermediary. Numerous processed food products are enhanced with propylene glycol to increase their texture, flavor, appearance, and shelf-life. Another primary element promoting the propylene glycol market growth is a considerable increase in the consumption of processed foods, which may be attributed to busy lifestyles, altered dietary habits, and an increase in the number of people working. OICA reports that during the first nine months of 2021, global automotive production increased from 52,146,292 to 57,262,777.
Additionally, expanding the building and transportation sectors is driving demand for propylene glycol in various industrial chemicals like deicing fluids, automotive coolants, and hydraulic and brake fluids. The pharmaceutical business, which uses propylene glycol to solubilize drugs, is expanding, helping the propylene glycol market expand. Growing environmental concerns are causing producers in the sector to concentrate on bio-based chemicals for generating propylene glycol, acting as another growth-inducing element. Additionally, there is an increase in the demand for propylene glycol in the production of surface disinfectant and hand sanitizers due to the development of the coronavirus disease (COVID-19).
Propylene Glycol Market: COVID-19 Impact
The spread of COVID-19 has had a negative impact on several economies. But during the epidemic, the demand for propylene glycol considerably increased. In addition to being a common by-product in the production of hand sanitizers, propylene glycol is also employed in numerous intravenous, topical, and oral medications. Because of this, product demand in this sector has surged during the COVID-19 epidemic. Additionally, many institutions are commencing their study and creating goods that could aid in the fight against coronavirus.
Increasing Usage in Transportation Sector to Stimulate Propylene Glycol Market Expansion
Propylene glycol is used as a heat transfer fluid for high-temperature applications and in fire-resistant brake and hydraulic fluids. It is also a coolant in the transportation sector for applications like engine cooling. Manufacturing items like corrosion-resistant tanks, pipe ducts, and other components commonly utilized in vehicles and ships can also be accomplished using unsaturated polyester resins and fiberglass reinforcement. The need for materials like propylene glycol is anticipated to increase over the next several years due to increasing vehicle improvements, particularly safety and comfort, and a rebound in consumer demand. According to ACEA, hybrid electric vehicles made up 19.6% of all new passenger cars registered across the EU in 2021, up from 11.9% in 2020. Sales of electrically rechargeable cars also increased significantly; they now account for 18.0% of new automobile registrations, up from a 10.5% proportion in 2020. The propylene glycol market is anticipated to expand globally throughout the projected period due to all these factors.
Growing Building and Construction Industry Will Accelerate Propylene Glycol Market Growth
Due to its numerous applications in paints and coatings, polyester resins, solvents, and other products, propylene glycol—in the same chemical family as alcohol—is in high demand in the building and construction industry. Due to an increase in residential projects, the expansion of infrastructure, and tendencies toward urbanization, the construction industry is expanding quickly. Construction activity in France increased in volume for 2021 compared to 2020 by 10.3%, according to the European Construction Industry Federation (FIEC). Propylene glycol is being more widely used in construction materials, paints, solvents, and other products due to the construction industry's explosive rise. In turn, this is pushing the propylene glycol market.
Potential Health Risks Continue to Restrict Propylene Glycol Market Expansion
The potential health risks of propylene glycol hamper growth. Toxic effects of this substance, including toxicity to the central nervous system (CNS), agitation, convulsions, and cardiac arrhythmia, can occur at high dosages. Propylene glycol should not be consumed more than 25 mg per kilogram of body weight per day, according to the World Health Organization (WHO). The propylene glycol market expects a slowdown due to the negative effects on human health from continuous contact to the chemical.
Petroleum-based Category Dominates Global Propylene Glycol Market Based on Economic Cost
The petroleum-based propylene glycol category held the largest propylene glycol market share, and it is anticipated that it will continue to rule the market during the forecast period. This is explained by the fact that it is less expensive than the bio-based alternative. Its primary drawback is that it is frequently derived from petroleum, an unrenewable resource. To supply the demand for products worldwide, more than 1 million tonnes of petroleum are needed each year. Additionally, it is anticipated that the bio-based segment will grow significantly during the projected period. Due to a 61% reduction in greenhouse gas emissions compared to petroleum-based products, the growth is ascribed to the rising use of greener alternatives. The first catalytic method to manufacture bio-based propylene glycol from plant-based raw materials was invented by the Pacific Northwest National Laboratory (PNNL).
Building and Construction Industry Represents Leading Segment in Propylene Glycol Market
The building and construction category dominated the propylene glycol market in 2021. This is explained by the growing demand for its building and construction materials products. It is employed in producing paints, coatings, industrial coolants, detergents, and other products as well as resins and polymers. After COVID in 2021, the construction sector saw consistent development in all regions. Additionally, transportation was the second-largest segment and is predicted to grow significantly in the years to come. The increase is linked to the product's increased demand for use in manufacturing hydraulic fluids and fire-resistant brakes. as a substance for deicing aircraft. The substance serves as a coolant for automobiles and guards against cooling system rust.
Asia Pacific to Dominate Propylene Glycol Market due to Rising Construction Activities
Over the forecast period, it is anticipated that the Asia Pacific propylene glycol market will account for the largest revenue share. Construction activity is developing in nations like China, and India due to the growing population in the area. The demand in this area is anticipated to rise as a result. Unsaturated polymer resins with a variety of uses are prepared using it. These resins create various building materials, including floor sheets and duct pipes. Propylene glycol is a solvent used in paints in the paint business. By 2030, China will spend nearly US$13 Tn on construction. The value of China's building output climbed from CNY 9.6 trillion in 2010 to CNY 26.59 trillion in 2020, according to the National Bureau of Statistics of China. According to the Ministry of Statistics and Program Implementation, India's construction industry is anticipated to grow by double digits in 2022 after contracting by 8.6% in 2020. In addition, the Indian Finance Ministry declared in 2021 an expenditure of US$26.5 Bn that will be used over five years for the pharmaceutical PLI scheme, according to the India Brand Equity Foundation (IBEF). Additionally, propylene glycol is employed in various food products that are very popular in this area, including coffee-based beverages, liquid sweeteners, ice cream, whipped dairy products, and sodas.
North America propylene glycol market is anticipated to experience stable revenue growth throughout the forecast period. The rapidly growing residential housing sector is a major factor in the rise of the North American construction industry. The Canadian construction market increased to US$72.02 Bn in 2021, with a 19.7% increase in residential buildings. The demand for propylene glycol is projected to increase shortly due to the expansion of construction activity in the area. Additionally, the end-use industries of perfumes, oilfield chemicals, coatings, electronic chemicals, adhesives, tastes, and cosmetic chemicals will benefit from manufacturing specialized chemicals. Due to the future expansion of industrial and construction activities, the spike in demand for specialized chemicals will also continue. As a result, the United States continues to be a vital market for the expansion of top chemical producers. It also stands to gain from the country's rising output of bio-based propylene glycol.
Global Propylene Glycol Market: Competitive Landscape
In August 2021, BASF-YPC Co., Ltd. (BASF-YPC), a 50/50 joint company between both businesses in Nanjing, China, manages the Verbund facility that BASF and SINOPEC have further extended. A new tert-butyl acrylate facility is being built to support the expanding Chinese market, along with the capacity increase of other downstream chemical plants. Similarly, in October 2020, a technological collaboration between Dow and Evonik is now exclusive. They intend to work together to bring to propylene glycol market maturity a novel technique for producing propylene glycol (PG) directly from propylene and hydrogen peroxide.
Few of the players in the propylene glycol market Dow (US), LyondellBasell Industries N.V. (Netherlands), BASF SE (Germany), ADM (US), Global Bio-chem Technology Group Company Limited (China), DuPont Tate & Lyle Bio Products (US), SKC (South Korea), Temix Oleo (Italy), INEOS Oxide (Switzerland), Huntsman International L.l..C (U.S.), ADEKA CORPORATION (Japan), Chaoyang Chemicals, Inc. (U.S.), Manali Petrochemicals Limited (India), Haike Chemical Group Co., Ltd. (China), Arch Chemicals Inc, (US), Repsol (Spain), Midland Company (US), Helm AG (Germany), and Shell Plc (UK).
Global Propylene Glycol Market is Segmented as Below:
By End User
Key Elements Included In The Study: Global Propylene Glycol Market
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