Canada Propylene Glycol Market Overview, 2030

The Canadian propylene glycol (PG) market has evolved steadily over the past several decades, shaped by industrial development, regulatory standards, and regional consumption patterns across diverse applications. Initially, demand for PG in Canada grew in the 1960s–1980s as industrial-grade PG became widely used in unsaturated polyester resins (UPR) for construction composites, paints, and coatings, aligning with urbanization and housing expansion. By the 1990s, the transportation sector became a key driver, with PG-based antifreeze and de-icing fluids gaining traction, particularly due to Canada’s harsh winters and extensive aviation operations, as airlines and airports increasingly adopted PG-based de-icers because of their lower toxicity compared to ethylene glycol. Around the same time, growth in packaged foods and beverages boosted consumption of FCC-grade PG, approved as a humectant and solvent by Health Canada under food safety guidelines. The 2000s–2010s marked a period of diversification, with PG demand expanding into personal care, cosmetics, and pharmaceuticals, where Canadian regulations aligned with U.S. FDA and international standards, ensuring safety and high-purity supply. A parallel trend was the emergence of bio-based PG, supported by Canada’s biodiesel and glycerin byproduct streams, though penetration remains modest compared to petroleum-based production. More recently, Canada’s emphasis on sustainability and environmental policies has reinforced demand for bio-based and low-toxicity PG, particularly in de-icing and industrial fluids, with provincial regulations pushing for greener procurement. Today, the Canadian PG market reflects a mature but evolving landscape: industrial-grade PG dominates in volume, but growth is strongest in pharmaceuticals, personal care, and food applications, underpinned by regulatory compliance and sustainability-driven innovation.

According to the research report ""Canada propylene glycol Market Overview, 2030,"" published by Bonafide Research, the Canada propylene glycol market is anticipated to grow at more than 5.67% CAGR from 2025 to 2030. The Canadian propylene glycol (PG) market is characterized by a mix of worldwide petrochemical majors, specialized formulators, bio-based entrants, and strong distributor networks, creating a layered competitive environment. Local majors such as Dow, BASF, LyondellBasell, INEOS, Shell, OQ, Sadara, and SK picglobal supply Canada largely through imports and integrated North American production hubs in the U.S. Midwest and Gulf Coast, giving them economies of scale and access to abundant propylene oxide feedstock. Regional producers like Repsol (Spain), Manali Petrochemicals (India), and Shandong-based Chinese suppliers also compete indirectly via imports, although logistical costs and compliance with North American regulatory standards limit their presence. The bio-PG segment, historically led by ADM’s Decatur facility, has seen activity from Oleon and biodiesel-linked projects, but bio-based penetration in Canada remains niche, gaining traction in food, personal care, and de-icing markets as sustainability pressures grow. On the downstream side, formulators and brand owners such as Prestone, Old World Industries (PEAK), Recochem, and Kilfrost dominate PG-based antifreeze, coolant, and de-icing fluids, with Recochem holding particular influence as a Canadian-based leader. Distributors including Brenntag, Univar, IMCD, and Azelis are crucial in bridging global producers with Canadian end users, especially in pharmaceuticals, cosmetics, and food applications where smaller customers require certified, high-purity PG grades. Competition in Canada is shaped less by price alone and more by grade certification, reliability of winter allocations for de-icing, and green credentials, as regulatory and consumer preferences increasingly prioritize sustainability. This dynamic ensures that while global majors retain dominance, niche players with bio-based offerings and strong distribution partnerships can secure competitive footholds.

In Canada, propylene glycol (PG) consumption is spread across multiple end-use sectors, reflecting the country’s industrial base, climate, and regulatory environment. Construction represents a consistent demand driver, where PG is used in unsaturated polyester resins (UPR) for composites, laminates, coatings, and adhesives, tied to ongoing housing activity, infrastructure spending, and wind energy installations that rely on UPR-based composites. The transportation sector is particularly critical, as PG-based antifreeze and coolants dominate due to their lower toxicity compared to ethylene glycol, a factor emphasized by Canadian environmental regulations; additionally, PG’s role in aircraft de-icing fluids is vital given the country’s long, severe winters and heavy aviation traffic through hubs such as Toronto, Montreal, and Vancouver, making this segment seasonally significant. In food and beverages, FCC-grade PG is approved as a humectant, carrier, and solvent, with demand linked to packaged foods, bakery items, flavorings, and beverages, supported by Canada’s growing processed food sector and compliance with Health Canada’s food safety standards. Cosmetics and personal care form another rising demand outlet, where PG is valued as a humectant, emollient, and solvent in skincare, haircare, and hygiene products, increasingly supported by consumer preference for bio-based and low-toxicity ingredients. The pharmaceutical industry consumes USP-grade PG as an excipient and solvent in oral, topical, and injectable formulations, benefiting from Canada’s strong healthcare system, generic drug manufacturing, and alignment with U.S. FDA and global pharmacopeia standards. The others category includes specialty applications such as functional fluids for electronics cooling, lubricants, and paints, reflecting PG’s versatility.

The Canadian propylene glycol (PG) market is still dominated by petroleum-based production, which accounts for the vast majority of supply due to established petrochemical imports from the U.S. Gulf Coast and integrated North American supply chains. Petroleum-derived PG remains cost-competitive, widely available, and essential for high-volume applications such as construction composites, antifreeze, coolants, paints, coatings, and de-icing fluids, which are particularly important given Canada’s cold climate and strong transportation infrastructure needs. Its market dominance is reinforced by the reliability of large-scale producers such as Dow, BASF, and LyondellBasell, who supply certified industrial- and pharmaceutical-grade PG to Canadian distributors and end users. However, bio-based PG has emerged as a niche but growing segment, supported by sustainability initiatives, green procurement policies, and consumer preference for renewable, low-carbon ingredients. Sourced mainly from glycerinca byproduct of biodiesel production bio-based PG has gained traction in pharmaceuticals, cosmetics, food, and personal care sectors, where clean-label requirements and eco-friendly formulations are increasingly prioritized by brand owners and regulators. Canada’s expanding biofuels sector provides a domestic source of glycerin feedstock, which creates opportunities for localized bio-PG projects, though large-scale adoption remains limited due to higher production costs and relatively small output capacity compared to petrochemical alternatives. Nevertheless, bio-based PG is expected to gradually increase its share as multinational consumer goods companies and Canadian formulators commit to ESG-driven sourcing, creating demand pull in premium-grade applications. In the medium term, petroleum-based PG will remain dominant in volume, but bio-based PG is positioned as a strategic growth area aligned with Canada’s sustainability and decarbonization agenda.

In Canada, the propylene glycol (PG) market is primarily dominated by industrial-grade PG, which represents the bulk of consumption and is used extensively in unsaturated polyester resins (UPR) for construction materials, paints, adhesives, and coatings, as well as in automotive coolants, antifreeze, and aircraft de-icing fluids applications particularly critical in Canada’s cold climate where reliable, low-toxicity fluids are essential for transportation safety. This segment benefits from strong demand across infrastructure, housing, and transportation sectors, making it the largest contributor in terms of volume. Pharmaceutical-grade PG, certified under USP and aligned with Health Canada’s stringent regulatory standards, accounts for a smaller but high-value share of the market, with applications as an excipient, stabilizer, and solvent in oral, injectable, and topical drug formulations. Growth in this segment is supported by Canada’s robust healthcare system, expanding generic drug manufacturing, and rising consumer demand for safe, high-purity excipients. Beyond pharma, USP-grade PG is also increasingly utilized in cosmetics and personal care products, including skincare, haircare, and hygiene formulations, reflecting consumer preferences for low-toxicity, bio-based ingredients. The others category includes food-grade PG (FCC-certified), which is employed as a humectant and carrier in packaged foods, beverages, and bakery products, along with specialty industrial uses such as lubricants, electronics cooling fluids, and data center applications. While industrial-grade PG dominates by volume, pharmaceutical- and food-grade applications are steadily gaining share in value terms, driven by regulatory compliance, premium pricing, and sustainability-linked innovation. This segmentation highlights Canada’s dual reliance on high-volume industrial demand and the rising importance of specialized, high-purity PG 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