1,2-Propylene Glycol Market Forecast, Trend Analysis and Competition Tracking - Global Industry Insights 2015 to 2031

Demand for 1,2-Propylene Glycol from 2015 to 2020 Vs. Future Market Projections for 2021-2031

From 2015 to 2020, sales of 1,2-propylene glycol have increased at a stable rate, expanding over 4.8% CAGR.

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Glycol is a class of organic compounds belonging to the alcohol family; two hydroxyl groups are attached to different carbon atoms in the glycol molecule. The two main types of glycol are 1,2-propylene glycol and ethylene glycol. 1,2-propylene glycol is a small, hydroxy-substituted hydrocarbon with the chemical formula C₃H₈O₂. A large amount of propylene glycol produced is used as a chemical feedstock to produce Unsaturated Polyester Resins (UPR). Propylene glycol is present in industrial-grade content in antifreeze, polyurethane cushions, paints, and other products. In food, these levels are considered pharmaceutical grade. Propylene glycol is also used as a preservative, solvent, humectant, or emollient in various formulations, such as creams, lotions, serums, shampoos, and many other types of personal care products.

The increasing use of 1,2-propylene glycol in cosmetics as a base ingredient for various makeup types is expected to be critical in expanding the target market's revenue growth. Additional uses of 1,2-propylene glycol in several end-use industries such as food and beverages, pharmaceuticals, etc., are likely to support the market revenue growth in the coming years.

However, the recent COVID-19 pandemic has severely disrupted the entire chemicals industry. The second quarter of 2020 saw a significant gap in demand and supply. The supply of 1,2-propylene glycol and its raw materials, mainly from China, were considerably impeded due to stringent trade regulations imposed by several economies across the globe.

Global 1,2-Propylene Glycol Market Revenue Outlook:

Global 1,2-Propylene Glycol market was valued at over US$ 3.6 Bn in 2020 and is projected to register а САGR of over 4.8% by 2031.

Despite the negative impact on the market due to the COVID-19 pandemic, the market is expected to witness several developments. In the first quarter of 2021, the demand for 1,2-propylene glycol started to register an improved growth, owing to strong demand from the pharmaceuticals sector. The European region noted a tight supply due to temporary halts in the production; nonetheless, the demand from the region for 1,2-propylene glycol rebounded, owing to the recovery of the construction and automotive sector.

Market Dynamics:

1,2-propylene glycol is extensively used to prepare Unsaturated Polyester Resins (UPRs). Increasing demand for Unsaturated Polyester Resins (UPRs) to manufacture Fiberglass Reinforced Plastics (FRP) and growth in building and construction activities in developed and developing countries results in high demand for 1,2-propylene glycol. These factors are expected to augment the revenue growth of this target market over the forecast period. Moreover, the compound is also used in a wide range of applications sectors such as food & beverages, pharmaceuticals,  paints & coatings, cosmetics, and others are expected to provide a steady growth to the market revenues. However, 1,2-propylene glycol may cause skin irritation and allergic reactions. It may be toxic to kidney and liver, neurological symptoms. This factor is expected to hamper the revenue growth for this target market to a certain extent.

Global 1,2 Propylene Glycol Pricing (US$/ MT) Analysis by Grade, 2018-2020

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Opportunities for the Global 1,2-Propylene Glycol Market

Propylene glycol has been approved and used as a carrier for oral topical and certain intravenous pharmaceutical preparations in the United States and Europe. Most of the hospitals present in the Asia-Pacific region have started adopting the above-mentioned medical technique. So the propylene glycol producers can target customers present in this region. In addition, the application of propylene glycol in therapeutic drugs such as vaccines, cough syrups, local anesthetics, antiseptics, vitamins, and hormones. This factor is also expected to create crucial opportunities for market growth.

Market Dynamics

The global 1,2-propylene glycol market is segmented based on Grade, end-use and region. Among the grade segment, the industrial-grade sub-segment is estimated to account for a 67.1% revenue share in 2020, and it is expected to register a CAGR of XX% during the forecast period.  Among all the end-uses, the polymers segment is estimated to be the most lucrative segment in the global 1,2-propylene glycol market with an attractiveness index of 5.7 and a projected CAGR of XX%.

Regional Analysis:

Asia-Pacific region is expected to account for the significant share of the global 1,2-propylene glycol market. The region is also anticipated to register the highest growth rates over the forecast period. APAC is estimated to be the most lucrative region in the global 1,2-propylene glycol market with an attractiveness index of XX and is expected to register a CAGR of 5.4%. Rampant growth of end-use industries, including paints & coatings, chemicals, pharmaceuticals, food & beverages, and others, particularly in China and India, are expected to be the key contributing factors. The stable growth of these countries and increasing investments in chemicals projects are estimated to provide a balanced growth in the coming years.

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Competitive Landscape:

The 1,2-Propylene Glycol market landscape appears highly consolidated, with a significant chunk of it being dominated by players with their base in Asia-Pacific.

• Dow, Inc.
• LyondellBasell Industries B.V.
• Solvay SA
• Global Bio-chem Technology Group Company Limited
• Archer-Daniels-Midland Company
• BASF SE
• Repsol SA
• INEOS Group AG
• Huntsman Corporation
• SKC Co., Ltd.
• Temix Oleo
• Other Key Players

Some notable developments in the market include:

• The Food & Drug Administration (FDA) has recognized propylene glycol as safe and acceptable for use in food as flavorings, cosmetics, drugs, and direct food additives.
• According to the World Health Organization, the dietary intake of propylene glycol that is acceptable is 25 mg per kg of body weight.

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Segments Covered

1,2-Propylene Glycol Market, By Grade

• Industrial Grade
• Food Grade
• Pharma Grade

1,2-Propylene Glycol Market, By End-Use

• Polymers
• Food & Beverages
• Pharmaceuticals
• Paints & Coatings
• Antifreeze & Functional Fluids
• Cosmetics & Personal Care
• Other End-Uses

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