China Propylene Glycol Market Overview, 2030

The Chinese propylene glycol (PG) market has expanded rapidly over the past few decades, reflecting China’s massive industrial growth, petrochemical capacity, and increasing domestic consumption. In the 1980s and 1990s, demand was primarily driven by industrial-grade PG used in unsaturated polyester resins (UPR) for construction composites, coatings, and adhesives, supporting China’s urbanization, infrastructure expansion, and manufacturing boom. By the early 2000s, transportation applications including automotive coolants, antifreeze, and airport de-icing became increasingly important as vehicle ownership surged and winter maintenance programs expanded in northern regions. PG was preferred over ethylene glycol due to lower toxicity and environmental compliance, consistent with emerging Chinese environmental regulations. In the food and beverage sector, FCC-grade PG was adopted as a humectant and carrier in bakery, confectionery, and beverages, regulated by the National Health Commission (NHC) and China’s GB food standards. The 2010s saw rapid growth in pharmaceutical and personal care applications, with USP-grade PG used as a solvent, stabilizer, and excipient in oral, topical, and injectable formulations, supported by stringent Chinese pharmacopeia standards and international quality certifications. More recently, bio-based PG has emerged, derived from glycerin byproducts of biodiesel, reflecting China’s increasing focus on renewable chemicals and sustainability. Domestic capacity has expanded dramatically, particularly in Shandong, Jiangsu, and Zhejiang provinces, while exports from Chinese producers also support regional and global supply. Overall, China’s PG market has evolved from industrial volume-driven demand to a diversified structure encompassing high-value, regulatory-compliant, and sustainability-focused applications across multiple end-use sectors.

According to the research report ""China Spain propylene Market Overview, 2030,"" published by Bonafide Research, the China Spain propylene market is anticipated to grow at more than 6.03% CAGR from 2025 to 2030. The Chinese propylene glycol market is shaped by domestic production capacity, feedstock pricing, regulatory oversight, seasonal demand, and sustainability initiatives. China is one of the largest PG producers globally, with major production hubs in Shandong, Jiangsu, and Zhejiang, complemented by imports from Southeast Asia, the Middle East, and Europe for specialty and high-purity grades. Petroleum-based PG dominates due to cost advantages, high-volume output, and logistics efficiency, serving industrial applications such as UPR, automotive coolants, de-icing fluids, paints, and coatings. Feedstock costs, particularly propylene and propylene oxide (PO), are closely linked to crude oil, natural gas, and domestic petrochemical pricing. Bio-based PG, derived from glycerin from biodiesel and renewable feedstocks, is a smaller but strategically growing segment, particularly for pharmaceuticals, food, and personal care applications, driven by government incentives, sustainability targets, and consumer demand for environmentally friendly products. Regulatory oversight by the National Health Commission (NHC), Ministry of Ecology and Environment (MEE), and REACH-equivalent standards ensures safety, compliance, and labeling accuracy. Seasonal fluctuations in transportation and aviation sectors, particularly during winter in northern China, require robust logistics and inventory management. Distributors and formulators act as intermediaries for smaller customers, providing certification, continuity, and technical support. Overall, the Chinese PG market exhibits stable industrial demand, rapid growth in high-value and certified applications, sensitivity to feedstock pricing, and increasing emphasis on sustainability and environmental compliance, creating a highly competitive and dynamic market environment.

In China, propylene glycol consumption spans construction, transportation, food and beverages, cosmetics and personal care, pharmaceuticals, and other specialty applications. Construction applications account for large volumes, with PG used in UPR resins for composites, coatings, adhesives, and laminates, supporting urban development, industrial expansion, and renewable energy installations such as wind turbines. Transportation demand includes automotive coolants, antifreeze formulations, and airport/aviation de-icing fluids, particularly in northern provinces with severe winter conditions; PG is favored due to low toxicity and environmental compliance. Food and beverages utilize FCC-grade PG as a humectant, solvent, and carrier in bakery, confectionery, beverages, and flavorings, regulated by NHC and GB food standards. Cosmetics and personal care applications employ PG as a humectant and solvent in lotions, creams, and haircare products, with growing interest in bio-based and low-toxicity alternatives. Pharmaceutical-grade PG serves as a solvent, stabilizer, and excipient in oral, topical, and injectable formulations, meeting Chinese pharmacopeia and international standards. Others include industrial lubricants, heat-transfer fluids, and chemical intermediates, contributing incremental volumes and higher-margin opportunities. The diverse end-use profile ensures market resilience, balancing high-volume industrial demand with faster-growing, high-value, regulated, and sustainability-driven segments.

The Chinese PG market is dominated by petroleum-based PG, produced from propylene and propylene oxide derived from naphtha and natural gas in Shandong, Jiangsu, and Zhejiang provinces, supplying cost-effective, high-volume PG for industrial applications such as UPR, automotive coolants, de-icing fluids, paints, and coatings. Petroleum-derived PG benefits from integrated petrochemical feedstock supply, large-scale production capacity, and reliable domestic logistics. Bio-based PG is a smaller but growing segment, produced from glycerin byproducts of biodiesel and other renewable feedstocks, primarily serving pharmaceuticals, food, and personal care applications where sustainability, regulatory compliance, and green credentials are critical. Chinese government incentives for renewable chemicals, environmental regulations, and growing consumer demand support bio-PG adoption. Although higher in cost and limited in volume relative to petroleum-based PG, bio-PG is gaining traction in high-value and certified applications. Circular economy initiatives, such as glycol recycling in industrial processes and airport de-icing, further enhance the adoption of bio-based PG. Petroleum-based PG is expected to maintain the majority of volume, while bio-based PG grows steadily in high-value, sustainability-driven segments.

In China, propylene glycol is segmented into industrial-grade, pharmaceutical-grade, and other specialty grades, each serving distinct market needs. Industrial-grade PG dominates by volume, used extensively in UPR for construction, coatings, adhesives, automotive coolants, and de-icing fluids; buyers prioritize cost efficiency, supply reliability, and logistical convenience, sourcing from domestic producers or regional distributors. Pharmaceutical-grade PG, produced to Chinese pharmacopeia, 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 and batch traceability create significant barriers to entry. The others category includes dipropylene and tripropylene glycols, industrial heat-transfer fluids, lubricants, and chemical intermediates, which often command higher margins due to technical specifications. Grade segmentation impacts logistics, packaging, and supply chain planning, with industrial PG shipped in bulk and pharmaceutical/specialty grades delivered in drums or IBCs. While industrial-grade PG dominates volume, pharmaceutical and specialty grades are growing faster in revenue, reflecting China’s demand for high-purity, certified, and sustainability-aligned products. The market balances large-volume industrial demand with high-value specialty applications influenced by regulatory, sustainability, and end-user requirements.

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