Australia Propylene Glycol Market Overview, 2030

The propylene glycol (PG) market in Australia has developed steadily over the past several decades, driven by the country’s petrochemical sector, industrial growth, and regulatory frameworks. In the 1980s and 1990s, demand was primarily for industrial-grade PG used in unsaturated polyester resins (UPR) for construction composites, coatings, and adhesives, supporting infrastructure expansion, residential development, and manufacturing projects. By the 2000s, transportation applications including automotive coolants, antifreeze, and airport/aviation de-icing gained prominence, particularly in southern regions and alpine areas with cold winters; PG was preferred over ethylene glycol due to its lower toxicity and superior environmental compliance. FCC-grade PG found applications in the food and beverage industry as a humectant, carrier, and stabilizer in bakery, confectionery, and beverage products, regulated under Food Standards Australia New Zealand (FSANZ) guidelines. During the 2010s, demand in pharmaceuticals and personal care increased, with USP-grade PG used as a solvent, excipient, and stabilizer in oral, topical, and injectable formulations, adhering to the Australian Pharmacopoeia and international standards. Bio-based PG, derived from glycerin byproducts of biodiesel and renewable feedstocks, has begun to gain traction, particularly in high-value applications aligned with sustainability initiatives. Domestic production is concentrated in chemical hubs such as Melbourne, Sydney, and Brisbane, while imports from China, South Korea, and Europe supplement supply, especially for specialty and high-purity grades. Overall, the Australian PG market has evolved from a volume-driven industrial base to a diversified structure emphasizing high-value, certified, and environmentally conscious applications across multiple end-use sectors.

According to the research report, ""Australia propylene glycol Market Overview, 2030,"" published by Bonafide Research, the Australia propylene glycol market is anticipated to add to more than USD 40 Million by 2025–30. The Australian PG market is influenced by domestic production capacity, feedstock pricing, regulatory oversight, seasonal demand, and sustainability trends. Domestic production is concentrated in petrochemical and industrial hubs such as Melbourne, Sydney, and Brisbane, while imports from China, South Korea, and Europe supplement specialty-grade requirements. Petroleum-based PG dominates due to cost-effectiveness, high-volume availability, and reliable logistics, serving industrial applications such as UPR for construction, automotive coolants, de-icing fluids, paints, and coatings. Feedstock costs, particularly propylene and propylene oxide (PO), are linked to global crude oil and natural gas markets, impacting local producer margins and contract pricing. Bio-based PG, derived from glycerin or renewable feedstocks, is a smaller but growing segment, primarily used in pharmaceuticals, food, and personal care applications, driven by sustainability initiatives and regulatory compliance. Oversight by Food Standards Australia New Zealand (FSANZ), the Therapeutic Goods Administration (TGA), and environmental authorities ensures product safety, labeling, and industrial compliance. Seasonal demand peaks in winter for transportation and aviation applications, requiring effective logistics and inventory management. Distributors, formulators, and integrators play key roles in ensuring grade certification, technical support, and continuity of supply. Overall, the Australian PG market exhibits stable industrial demand, growth in high-value certified applications, sensitivity to feedstock pricing, and increasing focus on sustainability and regulatory compliance, making it a dynamic and competitive market.

In Australia, propylene glycol consumption spans construction, transportation, food and beverages, cosmetics and personal care, pharmaceuticals, and other specialty applications. Construction applications account for substantial volume, with PG used in UPR resins for composites, coatings, adhesives, and laminates supporting infrastructure development, industrial facilities, and renewable energy projects. Transportation demand includes automotive coolant, antifreeze, and airport/aviation de-icing fluids, particularly in southern and alpine regions; PG is favored for its low toxicity and environmental compliance. Food and beverages utilize FCC-grade PG as a humectant, solvent, and carrier for bakery products, confectionery, beverages, and flavorings, regulated by FSANZ. Cosmetics and personal care applications employ PG as a humectant and solvent in lotions, creams, haircare, and personal hygiene products, with a growing shift toward bio-based alternatives. Pharmaceutical-grade PG is used as a solvent, stabilizer, and excipient in oral, topical, and injectable medications, adhering to Australian Pharmacopoeia and international standards. Others include industrial lubricants, heat-transfer fluids, and chemical intermediates, providing incremental volume and higher-margin niche applications. The diversified end-use profile ensures market resilience, balancing high-volume industrial applications with fast-growing, high-value, certified, and sustainability-focused sectors.

The Australian PG market is primarily supplied by petroleum-based PG, produced domestically in Melbourne, Sydney, and Brisbane and supplemented by imports from China, South Korea, and Europe. Petroleum-derived PG provides cost-effective, high-volume supply for industrial applications including UPR, automotive coolants, de-icing fluids, paints, and coatings, benefiting from established logistics and petrochemical infrastructure. Bio-based PG, derived from glycerin byproducts of biodiesel and other renewable feedstocks, is a smaller but growing segment, primarily serving pharmaceuticals, food, and personal care applications where sustainability, regulatory compliance, and green credentials are important. Bio-PG adoption is supported by Australian government incentives for renewable chemicals, environmental initiatives, and increasing consumer preference for sustainable ingredients. Despite higher production costs and limited domestic capacity, bio-based PG is gaining traction in high-value, certified applications. Circular economy practices, including glycol recycling in industrial processes and airport de-icing, further enhance adoption. Petroleum-based PG is expected to maintain the majority of volume, while bio-based PG grows steadily in specialty and sustainability-driven segments.

In Australia, propylene glycol is segmented into industrial-grade, pharmaceutical-grade, and other specialty grades, each serving distinct applications. Industrial-grade PG accounts for the largest volume, used in UPR for construction, coatings, adhesives, automotive coolants, and de-icing fluids; buyers prioritize cost efficiency, supply reliability, and bulk logistics, sourcing domestically or via imports. Pharmaceutical-grade PG, produced to Australian Pharmacopoeia, USP, and international standards, represents a smaller but higher-value segment, serving as a solvent, excipient, and stabilizer in oral, topical, and injectable formulations; regulatory compliance, batch traceability, and certification requirements restrict new entrants. The “others” category includes dipropylene and tripropylene glycols, industrial heat-transfer fluids, lubricants, and chemical intermediates, often commanding higher margins due to technical specifications. Grade segmentation impacts logistics, packaging, and supply chain planning industrial PG is shipped in bulk, whereas pharmaceutical and specialty grades are delivered in drums or IBCs. While industrial-grade PG dominates by volume, pharmaceutical and specialty grades grow faster in revenue, reflecting Australia’s demand for high-purity, certified, and sustainability-aligned products, balancing large-volume industrial demand with high-value specialty applications.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Propylene Glycol Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By End Use
• Construction
• Transportation
• Food & Beverages
• Cosmetics & Personal Care
• Pharmaceuticals
• Others

By Source
• Petroleum-based
• Bio-based

By Grade
• Industrial Grade
• Pharmaceutical Grade
• Others Show more