Global Propylene Glycol Industry Report: by Application; Country Overview; Recent Events; Value Chain Analysis; Production Process; Trade Analysis; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model; Key Supplier Analysis, 2022-2027

Propylene Glycol Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Propylene Glycol market reached a value of about 2.83 MMT in 2021. The industry is projected to grow at a CAGR of around 4.4% in the forecast period of 2022-2027 to reach a value of about 3.65 MMT by 2027.

The global Propylene Glycol industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is driven by the growing use of substances in the food sector, and it is used as a solvent, humectant, and preservative. The rising automotive industry in the Asia Pacific region is paired with bio-based propylene glycol's environmentally favourable production process. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Propylene glycol is a thick, colourless water-absorbing synthetic liquid material with a mildly pleasant, practically odourless flavour. It is categorised as a diol as it holds two alcohol groups. It's an organic solvent with a clear hue that's corrosive to most metals. It is miscible with acetone, water, and chloroform along with the other solvents. It is also a basis for deicing solutions and creating polyester compounds. When there is a risk of food contact, propylene glycol is utilised as an antifreeze in the chemical, food, and pharmaceutical sectors. The Propylene Glycol industry report comprises segments by application (Unsaturated Polyester Resins (UPR), Functional Fluids, Food, Drug & Cosmetics, Liquid Detergent, Paints & Coatings), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific holds the most significant market share in volume and value in the worldwide propylene glycol market. The region's growing population and rising construction investment in developing countries like China, India, and South Korea are expected to drive the industry. The increased disposable income of the region's customers is furthering the market growth.

The industry is being propelled by the rising building and construction sector and increased expenditures in emerging nations for infrastructure development. The product's market is also being driven by a growth in the usage of propylene glycols in applications such as aviation de-icing fluid, automotive coolants, and hydraulic and brake fluids. Furthermore, the growing demand for processed foods and the environmentally friendly production technique of the substance is expected to drive the propylene glycol market forward. It's also widely utilised in numerous sectors as a de-icing and anti-freezing chemical. The Asia Pacific region's flourishing car, construction, and pharmaceutical industries and increased disposable income of the region's customers further industry expansion.

However, the health issues related to the substance act as a market restraint.

Best Procurement Practices

The global Propylene Glycol industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Propylene Glycol regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

Propylene glycol is made primarily from propylene oxide in the industrial world (for food-grade use). Manufacturers utilise either a non-catalytic high-temperature procedure at 200 °C (392 °F) to 220 °C (428 °F) or a catalytic approach at 150 °C (302 °F) to 180 °C (356 °F) using ion-exchange resin or a tiny quantity of sulfuric acid or alkali. It accounts for 20% of the final product, with dipropylene glycol accounting for 1.5 percent and other polypropylene glycols accounting for tiny percentages. Purification results in a final industrial grade or USP/JP/EP/BP propylene glycol with 99.5 percent or higher purity. Glycerol, a byproduct of biodiesel synthesis, may also be used to make propylene glycol. In other processes, fermentation is used to produce S-propanediol. Lactic acid and lactaldehyde are frequent intermediates in lactic acid and lactaldehyde production. One of the two fructose 1,6-bisphosphate breakdown (glycolysis) products is dihydroxyacetone phosphate, a precursor to methylglyoxal. This reaction is based on a possible biotechnological approach to the commercial chemical 1,2-propanediol. Deoxysugars with three carbons are also precursors of 1,2-diol.

Other Uses of the Substance, Further Driving the Procurement of Propylene Glycol

Rising domestic income, population growth in developing nations, and increasing demand for bio-based propylene glycol in pharmaceutical (USP/EP) grade applications propel the market forward. The need for unsaturated polyester resins, which are utilised as reinforced plastic or fibreglass composite in the transportation, construction, car, and marine sectors, drives the propylene glycol market. The substance is a common ingredient in household cleaning products. Hence, the product's market expansion is fueled by demand from the liquid detergent, coatings, and paints industries. There is a significant increase in demand for it as an anti-freezing agent during the winter, and the airline sector is the primary source of this demand. Pharmaceutical and consumer packaged goods firms are significantly increasing their demand for glycerine-based or bio-based propylene glycol, which is less toxic and has fewer adverse effects. As a result, it is expected to expand significantly quicker than average propylene glycol. In the projected period, demand for Propylene Glycol will be driven by rising demand for Unsaturated Polyester Resins (UPR) to produce surface coatings and fibreglass reinforced plastics (FRP) in the chemical tank and construction industries due to their superior corrosion resistance.

The regional markets for the industry can be divided into Europe, Asia Pacific, North America, South America, and the Middle East and Africa.

Key Industry Players Mentioned in the Propylene Glycol Industry Report

  • Dow Inc.
  • Shell Chemicals
  • LyondellBasell Industries Holdings B.V.
  • INEOS Group Ltd.

Market Landscape

Several market contributors in the region are increasing capacity enhancement methods, developing market growth prospective. To solidify their position in the sector, these businesses focus on strategic activities such as mergers, acquisitions, partnerships, collaborations, and product development.

Key Initiatives by Companies

  • Dow Chemical Company announced intentions to expand its P.G. capacity at the company's current facility in Thailand in July 2021. The deal supports rising propylene glycol demand in the food, pharmaceutical, personal care, and appealing flavour and fragrance businesses and Dow's leadership position in these areas.
  • Oleon received RSB Certification in August 2021 as the first processor and collector of vegetable oil into refined mono propylene glycol and glycerin products for food, tastes and perfumes, and home and personal care.

1.    Executive Summary
2.    Global Propylene Glycol Market Snapshot

    2.1.    Propylene Glycol Market Outlook
    2.2.    Propylene Glycol Industry Analysis by Application
        2.2.1.    Unsaturated Polyester Resins (UPR)
        2.2.2.    Functional Fluids
        2.2.3.    Food, Drug & Cosmetics
        2.2.4.    Liquid Detergent
        2.2.5.    Paints & coatings
    2.3.    Regional Overview
        2.3.1.    North America
        2.3.2.    Europe
        2.3.3.    Asia Pacific
        2.3.4.    Latin America
        2.3.5.    MEA
3.    Impact of Recent Events 
4.    Propylene Glycol Value Chain Analysis 
5.    Propylene Glycol Production Process
6.    Trade Analysis 
7.    Major Risk Factors in Sourcing
8.    Propylene Glycol Cost Structure
9.    Propylene Glycol Price Analysis 
10.    Key Demand Indicator Analysis
11.    Key Price Indicator Analysis
12.    Propylene Glycol Market Dynamics

    12.1.    Drivers & Constraints
    12.2.    Industry Events 
    12.3.    Innovations & Trends
    12.4.    SWOT Analysis
    12.5.    Porter’s Five Forces
        12.5.1.    Buyer Power
        12.5.2.    Supplier Power
        12.5.3.    Threat of New entrants
        12.5.4.    Threat of Substitutes
        12.5.5.    Industry Rivalry
13.    Industry Best Practices
    13.1.    Sourcing Strategy
    13.2.    Procurement Model
    13.3.    Contract Structure
    13.4.    Negotiation Levers
    13.5.    Pricing Model
    13.6.    Key Factors Influencing the Quotation 
14.    Key Supplier Analysis
    14.1.    Dow Inc.
    14.2.    BASF SE
    14.3.    Shell Chemicals
    14.4.    LyondellBasell Industries Holdings B.V.
    14.5.    INEOS Group Ltd.

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Key Questions Answered in the Report

The global Propylene Glycol market size was valued at 2.83 MMT in 2021.

As per the application provided, the Unsaturated Polyester Resins segment is anticipated to lead the market between the period 2022 – 2027.

The major demand for the substance in a wide range of applications is one of the essential drivers of the Propylene Glycol market growth.

Dow Inc., BASF SE, Shell Chemicals, Repsol S.A., Archer Daniels Midland Company, and LyondellBasell Industries Holdings B.V. are some of the leading companies in the market.

The Asia Pacific region of the Propylene Glycol industry holds a significant share in the market.

Analyst Review

The global Propylene Glycol market attained a value of 2.83 MMT in 2021, driven by the rising building and construction sector. Furthermore, its applications such as aviation de-icing fluid, automotive coolants, and hydraulic and brake fluids further market growth. Rising domestic income, population growth in developing nations, and increasing demand for bio-based propylene glycol in pharmaceutical (USP/EP) grade applications would propel the market forward. Aided by the growing demand for the product in various other industries such as transportation, household cleaning, etc., the market is expected to witness further growth in the forecast period of 2022-2027, expanding at a CAGR of 4.4%. The market is projected to reach 3.65 MMT by 2027.

Procurement Resources’ detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise thus, delivering its customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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