The Propylene Glycol Market is estimated to be valued at USD 5.2 billion in 2025 and is projected to reach USD 9.5 billion by 2035, registering a compound annual growth rate (CAGR) of 6.3% over the forecast period.
| Metric | Value |
|---|---|
| Propylene Glycol Market Estimated Value in (2025 E) | USD 5.2 billion |
| Propylene Glycol Market Forecast Value in (2035 F) | USD 9.5 billion |
| Forecast CAGR (2025 to 2035) | 6.3% |
The propylene glycol market is witnessing steady expansion, driven by its versatile applications across industrial, pharmaceutical, and food and beverage sectors. Increasing demand for safe and effective solvents, humectants, and stabilizers is fueling growth in both developed and emerging markets. The market is benefiting from the dominance of petroleum-based production, which provides cost-effective and scalable output to meet rising global consumption.
Industrial growth, particularly in chemical processing, personal care, and food manufacturing, is creating sustained demand for high-quality propylene glycol. Regulatory frameworks emphasizing food safety and pharmaceutical-grade materials are also shaping production and quality standards. Technological advancements in purification and processing are improving product consistency and enabling broader applicability in sensitive formulations.
As consumer awareness grows and industries increasingly seek reliable, multi-purpose ingredients, the market is expected to expand further Continuous innovation, coupled with the rising need for performance and safety in manufacturing processes, positions propylene glycol as a critical component in multiple sectors with strong long-term growth potential.
The propylene glycol market is segmented by source, grade, end use, and geographic regions. By source, propylene glycol market is divided into Petroleum Based and Bio Based. In terms of grade, propylene glycol market is classified into Industrial Grade and USP Grade. Based on end use, propylene glycol market is segmented into Food & Beverages, Pharmaceuticals, Cosmetics & Personal Care, Construction, Transportation, and Others. Regionally, the propylene glycol industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The petroleum-based propylene glycol segment is projected to hold 61.8% of the market revenue share in 2025, making it the leading source type. This dominance is being supported by its availability at competitive prices and scalability in production, which ensures consistent supply for industrial and commercial applications. The material’s performance characteristics, including high purity and low impurity levels, enable its use in sensitive formulations in food, pharmaceutical, and cosmetic applications.
Petroleum-based propylene glycol benefits from well-established manufacturing infrastructure and global distribution networks, facilitating efficient supply chains and timely delivery to diverse end users. Its compatibility with existing processing technologies and widespread adoption across industries further reinforce its market leadership.
The ability to meet strict quality and regulatory standards without extensive modification is contributing to sustained demand As global industrial activity grows, the petroleum-based segment is expected to remain the primary choice for large-scale applications, ensuring its continued dominance in the propylene glycol market.
The industrial grade propylene glycol segment is expected to account for 58.6% of the market revenue share in 2025, making it the leading grade category. Its adoption is being driven by extensive use in chemical processing, antifreeze formulations, and industrial coolants, where performance consistency and cost-effectiveness are critical. Industrial grade material offers reliable chemical stability and compatibility with a wide range of formulations, making it suitable for high-volume manufacturing environments.
The segment is also being supported by large-scale industrial consumption patterns, particularly in regions with growing automotive, chemical, and energy sectors. Its ease of integration into existing production systems and minimal processing requirements further enhance its attractiveness to manufacturers.
Growing industrial infrastructure and expansion in emerging markets are reinforcing demand for this grade Continuous investment in manufacturing efficiency and process optimization is enabling supply to keep pace with rising industrial consumption, ensuring that industrial grade propylene glycol maintains a leading share of the market.
The food and beverages end use segment is projected to hold 27.3% of the propylene glycol market revenue share in 2025, establishing itself as a key application area. This segment is being driven by the material’s role as a safe humectant, preservative, and stabilizer, which helps extend shelf life and maintain product quality in beverages, baked goods, and processed foods. Increasing consumer awareness regarding food safety and demand for high-quality ingredients are driving the adoption of propylene glycol in this sector.
Regulatory compliance with food safety standards is further supporting its integration into formulations. The segment benefits from the versatility of propylene glycol, which can be incorporated without altering taste, texture, or stability of food products.
Rising urbanization and changing dietary habits in emerging markets are contributing to higher consumption Continuous development of applications in functional foods and beverages, coupled with growth in the global food processing industry, is expected to sustain and expand the segment’s contribution to the overall propylene glycol market.
Propylene glycol is a chemical that is produced by reaction of propylene oxide with water. It is a colorless, clear, almost odorless, viscous liquid which has a faint sweet taste. Propylene glycol is miscible with water, chloroform, and acetone and is hygroscopic in nature. It is chemically neutral that does not react with other substances.
This property of propylene glycol makes it useful in mixing contrasting elements such as perfumes. Unique features of propylene glycol makes it useful in a wide variety of applications. It is used as solvent, holds and dissolves active ingredients equally in the medium, acts as an emulsifier and excipient, reduced freezing point and many more. Propylene glycol is manufactured in two grades namely, industrial or technical grade and USD/EP grade.
It designates the requirements for the USA and European Pharmacopeia, but it has use in the personal care, food and feed applications. Dipropylene glycol is used in unsaturated polyester resins and personal care products and tripropylene glycol has application in acrylates and polyurethanes.
Propylene glycol is used for many industrial and consumer applications such as feed, food and beverages, pharmaceutical and cosmetic among others. The major consumers of polypropylene glycol include the pharmaceutical and food and beverage industry, which account for major share in the market.
Propylene glycol is also used as a humectant, preservative in tobacco and food products, solvents and as a major constituent of e-liquid that is used in electric cigarettes with vegetable glycerin. In case of food and consumables, propylene glycol is considered to be safe by the USA Food and Drug Administration.
As a solvent, in pharmaceutical which includes injectible, oral and topical formulations namely lorazepam, diazepam donot dissolve in water. In order to meet environment regulations or standards the industry is now focusing on developing bio-based propylene glycol. The major companies such as Cargill, ADM and The Dow Chemical company are manufacturing propylene glycol from glycerin.
About half of the propylene glycol produced is been used as a chemical feedstock to manufacture unsaturated polyester resins. The industrial applications of propylene glycol are to manufacture paints and coatings, resins and plastics, used as an intermediate to manufacture other chemical substances such as unsaturated polyester resins that are used in pipes or windmill blades and bath and kitchenware.
Moreover, it has a significant role as ingredient of formulations for heat transfer fluids, air-craft de-icing and liquid detergents.
The key segments for propylene glycol market are North America, Asia Pacific, Europe and Rest of the World (RoW). The United States, Japan, China and Western Europe are the major markets for unsaturated polyester resins which is influenced by overall health of local economies and construction industry trends. Hence growing demand for unsaturated polyester resins to boost demand for propylene glycol in the near future.
The key players for propylene glycol market include: Arch Chemicals, Lyondell Chemical Co, SKC Chemicals Group, The Dow Chemical Company, BASF AG, Huntsman, Repsol YPF and more.
The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data.
It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to categories such as market segments, geographies, types and applications.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts, and industry participants across the value chain.
The report provides an in-depth analysis of parent market trends, macroeconomic indicators and governing factors, along with market attractiveness within the segments. The report also maps the qualitative impact of various market factors on market segments and various geographies.
| Country | CAGR |
|---|---|
| China | 8.5% |
| India | 7.9% |
| Germany | 7.2% |
| France | 6.6% |
| UK | 6.0% |
| USA | 5.4% |
| Brazil | 4.7% |
The Propylene Glycol Market is expected to register a CAGR of 6.3% during the forecast period, exhibiting varied country level momentum. China leads with the highest CAGR of 8.5%, followed by India at 7.9%. Developed markets such as Germany, France, and the UK continue to expand steadily, while the USA is likely to grow at consistent rates. Brazil posts the lowest CAGR at 4.7%, yet still underscores a broadly positive trajectory for the global Propylene Glycol Market. In 2024, Germany held a dominant revenue in the Western Europe market and is expected to grow with a CAGR of 7.2%. The USA Propylene Glycol Market is estimated to be valued at USD 1.9 billion in 2025 and is anticipated to reach a valuation of USD 3.2 billion by 2035. Sales are projected to rise at a CAGR of 5.4% over the forecast period between 2025 and 2035. While Japan and South Korea markets are estimated to be valued at USD 239.5 million and USD 154.9 million respectively in 2025.
| Item | Value |
|---|---|
| Quantitative Units | USD 5.2 Billion |
| Source | Petroleum Based and Bio Based |
| Grade | Industrial Grade and USP Grade |
| End Use | Food & Beverages, Pharmaceuticals, Cosmetics & Personal Care, Construction, Transportation, and Others |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | Dow, BASF SE, ADM, INEOS, Shell Plc, Adeka Corporation, Huntsman International LLC., and LyondellBasell Industries Holdings B.V. |
The global propylene glycol market is estimated to be valued at USD 5.2 billion in 2025.
The market size for the propylene glycol market is projected to reach USD 9.5 billion by 2035.
The propylene glycol market is expected to grow at a 6.3% CAGR between 2025 and 2035.
The key product types in propylene glycol market are petroleum based and bio based.
In terms of grade, industrial grade segment to command 58.6% share in the propylene glycol market in 2025.
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Propylene Glycol Market
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