Propylene Glycol Market (2026 - 2033)

Propylene Glycol Market Summary

The global propylene glycol market size was valued at USD 5.1 billion in 2025 and is projected to grow from USD 5.4 billion in 2026 to USD 8.5 billion by 2033, at a CAGR of 6.7% from 2026 to 2033. The market in Asia Pacific dominated with a revenue share of 44.7% in 2025. 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.

Source: Grand View Research, IR Documents, Primary Interviews, Paid Databases

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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.

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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.

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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. 

Market Dynamics

The propylene glycol market is experiencing steady growth driven by its widespread utilization across unsaturated polyester resins (UPR), food & beverage, pharmaceuticals, personal care, de-icing fluids, and industrial applications. Increasing demand from the construction, automotive, packaging, and consumer goods industries continues to support market expansion, particularly through the growing consumption of UPR-based composites and engineered materials. Additionally, rising demand for food-grade and pharmaceutical-grade propylene glycol, supported by expanding processed food consumption, healthcare expenditure, and personal care product usage, is strengthening market growth. The industry is also witnessing a gradual shift toward bio-based propylene glycol production as manufacturers seek to reduce carbon emissions and meet sustainability objectives. However, fluctuations in propylene oxide feedstock prices and evolving environmental regulations remain key factors influencing market dynamics. Overall, increasing industrialization, infrastructure development, and growing demand for specialty chemical applications are expected to support the long-term growth of the propylene glycol market

Analyst Perspective

The propylene glycol market is positioned for steady growth, supported by expanding demand from pharmaceutical, food & beverage, and personal care industries where the product serves as a critical solvent, humectant, and stabilizing agent. While petroleum-based propylene glycol continues to dominate due to established production infrastructure and cost advantages, bio-based alternatives are gaining traction amid increasing sustainability commitments and regulatory support. Growth in healthcare spending, processed food consumption, and cosmetic product innovation is expected to sustain long-term demand. However, feedstock price volatility and environmental compliance requirements may create margin pressures for manufacturers. Companies that invest in renewable production technologies, supply chain optimization, and high-purity specialty grades are likely to strengthen their competitive positioning and capture emerging growth opportunities.

Source Insights

The petroleum-based segment accounted for the largest share of the propylene glycol market, representing 71.1% of total revenue in 2025. 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

By grade, industrial grade segment dominated the market with a revenue share of 63.3% in 2025. 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

In terms of end-use, construction held the largest revenue share of 38.3% in the propylene glycol market in 2025. 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.

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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 for 44.7% of the propylene glycol market revenue in 2025. 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.

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China Propylene Glycol Market Trends

China held a largest revenue share in 2025 of the Asia Pacific propylene glycol market. 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 2025, 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 2025, 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 2025, 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 2025, 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.

Key Propylene Glycol Companies:

The following key companies have been profiled for this study on the propylene glycol market. 

• Dow

• BASF SE

• ADM

• INEOS

• Shell Plc

• Adeka Corporation

• Huntsman International LLC.

• LyondellBasell Industries Holdings B.V.

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.

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 2021 to 2033. For this study, Grand View Research has segmented the global propylene glycol market report based on source, grade, end use, and region:

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• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

  • Petroleum Based

  • Bio Based

• Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

  • Industrial Grade

  • USP Grade

• End Use Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

  • Food & Beverages

  • Pharmaceuticals

  • Cosmetics & Personal Care

  • Construction

  • Transportation

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Netherlands

    • Belgium

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Argentina

    • Rest of Latin America

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • Turkey

    • Rest of Middle East & Africa

Research Methodology

The propylene glycol market figures in this report are based on a proven research process that combines executive interviews with secondary research from proprietary databases, company filings, and recognized regulatory and institutional sources. Market size is built through value-chain sizing - reconciling supply-side and demand-side estimates - and triangulated with bottom-up and top-down approaches. Every estimate passes multiple levels of expert validation before publication, with each propylene glycol segment quantified using the revenue-capture definitions in the table below.

Delivered Customizations

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