Global Propylene Glycol Market Outlook, 2030

The global propylene glycol (PG) market is experiencing steady growth as it establishes itself as a versatile, low-toxicity chemical used widely across industries such as food and beverages, pharmaceuticals, cosmetics, automotive, and construction. Its demand is being propelled by its multifunctional properties as a humectant, solvent, stabilizer, and carrier for active ingredients, making it essential in everything from processed foods and skincare formulations to antifreeze solutions and de-icing fluids. Innovation in the industry is heavily centered on developing bio-based PG to meet sustainability goals, enhancing high-purity grades for pharmaceuticals, and producing specialty derivatives for advanced heat-transfer and antifreeze applications. In April 2025: Borouge, a prominent petrochemicals firm offering unique and innovative polyolefins solutions, revealed a set of strategic projects for asset expansion aimed at boosting its growth, generating between $165 million and $200 million in EBITDA each year. The firm has granted two crucial contracts intended to enhance the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). Additionally, personal care and e-liquid markets are driving suppliers to offer tailored, stable, and performance-tested grades to match consumer and regulatory demands. Manufacturers from end-use industries, such as consumer goods, personal care, and pharmaceuticals are focusing on offering products with improved qualities to match consumer-specific requirements, which is also creating opportunities for propylene glycol suppliers due to its pivotal role in these industries as emulsifiers, solvents, and preservatives. On the regulatory front, PG enjoys broad acceptance but is strictly governed by authorities such as the U.S. FDA, EU REACH, and national chemical regulators in Asia, which enforce quality, safety, and environmental standards, ensuring compliance in both industrial and consumer uses. These regulations, coupled with the rising emphasis on sustainability certifications and transparent sourcing, are shaping market strategies.

According to the research report “Global Propylene Glycol Market Outlook, 2030” published by Bonafide Research, the Global Propylene Glycol market is projected to reach market size of USD 6.48 Billion by 2030 increasing from USD 4.61 Billion in 2024, growing with 5.94% CAGR by 2025-30. The propylene glycol market is experiencing rapid growth owing to the increased usage in automotive and industrial uses. In the automobile industry, propylene glycol is being used by manufacturers in antifreeze and coolant formulations, where its low toxicity and high heat capacity are providing better performance. For instance, in 2025, Arteco, a firm typically centered on automotive cooling technologies, revealed its foray into the data centre industry with the introduction of ZITREC EC, a fresh series of direct-to-chip liquid coolants designed for high-performance computing settings. The rapid expansion of the pharmaceutical and healthcare industries, where PG serves as a safe carrier for active ingredients in oral, topical, and injectable formulations. The growth in over-the-counter medications, rising chronic health issues, and increased pharmaceutical production in regions such as North America, Europe, and Asia-Pacific are fueling steady demand. Additionally, the cosmetics and personal care sector has emerged as a key growth area, with PG being used in moisturizers, shampoos, lotions, and makeup products due to its moisturizing and stabilizing properties. The rising global preference for skincare and beauty products, particularly in Asia-Pacific, is boosting the consumption of cosmetic-grade PG. Another major growth factor is its role in the automotive and construction industries, where industrial-grade PG is utilized in antifreeze, coolants, paints, and coatings. A notable global development is the shift toward bio-based propylene glycol, derived from renewable sources like glycerol and corn sugar, as industries respond to sustainability goals and stricter environmental regulations. Moreover, increasing awareness of clean-label and non-toxic ingredients among consumers is driving formulators across industries to prefer PG as a safer alternative to other chemicals, enhancing its adoption.

Market Drivers

• Rising Demand in Food, Pharma & Personal Care: Propylene glycol’s low toxicity and regulatory acceptance for food-, pharma- and cosmetic-grade applications (e.g., as a humectant, solvent, carrier, and preservative) keeps expanding its use beyond traditional industrial roles. Growth in processed foods, oral and topical pharmaceuticals, cosmetics and e-liquids for vaping has steadily increased demand for USP/food-grade PG. As consumers in emerging markets increase spending on personal care and packaged foods, formulators favor PG for its compatibility, stability and regulatory track record versus alternatives.
• Industrial Use & Shift from Ethylene Glycol: Propylene glycol’s role in heat-transfer fluids (HVAC, refrigeration, engine coolants), de-icing and certain industrial solvents grows as industries seek safer alternatives. Ethylene glycol remains common for some uses, but stricter workplace safety and environmental rules in many jurisdictions, along with growing customer preference for lower-toxicity chemicals, have accelerated substitution where performance allows. Simultaneously, infrastructure investments (data centers, cold chain for pharma/food, and expanded HVAC in commercial/residential construction) increase demand for reliable antifreeze/heat-transfer fluids.

Market Challenges

• Feedstock Price Volatility & Margin Pressure: Propylene glycol economics are tightly linked to upstream propylene/crude oil/naphtha prices and to steam-cracking/refining economics. Sudden swings in crude or propane/propylene feedstock raise production costs and compress margins, especially for producers without integrated propylene feedstock or backward integration. In addition, overcapacity episodes (from new plants coming online in the Middle East, China, and elsewhere) can trigger price wars, forcing smaller or higher-cost producers to cut utilization or accept lower margins. These price dynamics complicate forecasting, capital allocation and contractual pricing for long-term buyers, and push the industry to pursue cost reductions, efficiency upgrades, or vertical integration.
• Environmental & Sustainability Pressures: While PG is less toxic than some alternatives, environmental and sustainability expectations are rising: buyers increasingly ask for lower-carbon footprints, bio-based content, and supply-chain transparency. Producing conventional PG from fossil feedstocks faces scrutiny over greenhouse gas emissions and lifecycle impacts. Regulatory shifts (e.g., tighter wastewater standards, carbon pricing in some regions) and customer procurement policies can raise compliance costs or require process changes. At the same time, switching to bio-PG or greener production routes requires capital and stable feedstock supply (e.g., glycerin, bio-propylene), so producers must balance investment timing and market demand, or risk losing customers to first movers.3

Market Trends

• Shift to Bio-Based & Greener PG: Responding to sustainability demands, manufacturers are scaling bio-based PG production routes (from glycerin, bio-propylene or renewable feedstocks) and promoting lifecycle carbon reductions. Buyers in food, cosmetics and pharma place premium value on renewable credentials, and industrial buyers are starting to request lower-carbon options. Certification, cradle-to-gate LCA disclosure, and partnership models (e.g., offtake agreements with renewable feedstock suppliers) are emerging. This trend encourages R&D into more efficient bio routes and hybrid business models but market penetration will depend on cost parity, feedstock availability, and regulatory incentives/subsidies in different regions.
• Regional Capacity Shifts & Product Innovation: Over the past decade the industry has seen rapid capacity additions in Asia–Pacific and the Middle East, reshaping global trade flows and creating stronger regional supply hubs. This has led to price pressure, spurred merger & acquisition activity to capture scale, and encouraged producers to move up the value chain (supplying formulated antifreeze, specialty grades, or packaged solutions rather than neat PG). Parallel to consolidation, formulators are innovating developing low-VOC, longer-life heat-transfer fluids, biodegradable blends, and PG-based specialty solvents shifting competition from commodity pricing toward product performance and regulatory compliance.

Excipients application is leading in the global polyethylene industry because polyethylene’s versatile properties such as chemical stability, non-reactivity, biocompatibility, and cost-effectiveness make it the most preferred material for formulating excipients in pharmaceutical, food, and cosmetic products.

The excipients application segment is at the forefront of the global polyethylene industry due to the unique role polyethylene plays in enhancing the safety, stability, and functionality of pharmaceutical, food, and personal care formulations. Excipients are inactive substances that serve as carriers, stabilizers, binders, or protective agents in drug delivery systems, and polyethylene has emerged as a critical choice owing to its favorable chemical and physical characteristics. Unlike many other polymers, polyethylene is highly inert and non-toxic, ensuring that it does not interact or chemically react with the active pharmaceutical ingredients (APIs), thus preserving the efficacy of drugs and preventing degradation. Its biocompatibility and safety approval by global regulatory authorities like the US FDA and EMA further strengthen its adoption across excipient manufacturing. Additionally, polyethylene’s adaptability in producing a wide range of grades, from low-density polyethylene (LDPE) to high-density polyethylene (HDPE), allows manufacturers to create coatings, film-forming agents, binders, lubricants, and stabilizers that address different formulation needs. For example, polyethylene glycol (PEG), derived from polyethylene, is widely used as a solvent, emulsifier, and delivery enhancer in oral and topical drugs, making it indispensable in modern pharmaceutical development. Beyond pharmaceuticals, the role of polyethylene in excipients extends to the food industry, where it is used as a glazing, coating, and packaging aid, ensuring extended shelf life and protection against moisture or contamination.

The construction end-user segment is leading in the global polyethylene industry because polyethylene’s durability, flexibility, chemical resistance, and cost-efficiency make it the preferred material for pipes, films, insulation, and geomembranes, which are essential in modern infrastructure development.

The construction sector dominates the global polyethylene industry primarily due to the material’s unmatched combination of physical, chemical, and economic advantages that align perfectly with the growing demand for durable, sustainable, and cost-effective building solutions. Polyethylene is extensively used in construction applications such as water supply and drainage pipes, gas distribution lines, insulation materials, protective films, vapor barriers, and geomembranes for landfills and reservoirs. One of the key reasons for its leadership is its superior durability and resistance to environmental stress, chemicals, and corrosion, which ensures longer service life compared to traditional materials like metal or concrete. For example, polyethylene pipes, particularly high-density polyethylene (HDPE) pipes, have become the industry standard in water distribution and sewage systems because of their leak-proof performance, flexibility in installation, and resistance to scaling or rusting, which significantly reduces maintenance costs. In insulation and protective layering, polyethylene films are widely used as vapor barriers and moisture-resistant membranes in flooring, roofing, and wall systems, helping to improve building energy efficiency and protect structural integrity. Additionally, the adaptability of polyethylene in producing lightweight yet strong products makes it a practical choice for construction companies that aim to reduce logistics and installation costs without compromising safety and reliability. With urbanization and infrastructure development accelerating across emerging economies in Asia-Pacific, the Middle East, and Africa, the demand for affordable and long-lasting construction materials is surging, further boosting the use of polyethylene in the sector. Sustainability also plays a critical role, as polyethylene is recyclable and increasingly being manufactured with eco-friendly processes, aligning with global green building regulations and environmental goals.

Petroleum-based source type is leading in the global polyethylene industry because crude oil and natural gas provide abundant, cost-efficient, and technically reliable raw materials that enable large-scale polyethylene production with consistent quality and performance.

The dominance of petroleum-based sources in the global polyethylene industry is primarily driven by the availability, economic efficiency, and well-established supply chain of crude oil and natural gas derivatives. Polyethylene, one of the most widely used thermoplastics, is traditionally produced from ethylene, which is predominantly derived from petroleum-based feedstocks through processes such as steam cracking of naphtha or ethane. These petroleum-based routes are favored because they offer scalability, high conversion efficiency, and consistent output quality, ensuring that polyethylene meets the stringent performance requirements across diverse end-use industries like packaging, construction, automotive, healthcare, and consumer goods. Additionally, petroleum-based polyethylene has a long history of development, with decades of research and process optimization that have made it the industry standard for producing various grades of polyethylene, including low-density polyethylene (LDPE), high-density polyethylene (HDPE), and linear low-density polyethylene (LLDPE). These grades are indispensable due to their superior mechanical strength, flexibility, chemical resistance, and durability, qualities that are not yet fully replicated by bio-based substitutes. The global energy sector’s integration with petrochemicals further reinforces this leadership, as major oil and gas companies invest heavily in expanding their petrochemical capacities to balance declining fuel demand and tap into growing plastic consumption. For example, large-scale polyethylene plants in the Middle East, North America, and Asia-Pacific utilize abundant petroleum resources to produce competitively priced polyethylene that dominates international trade.

Asia-Pacific is leading in the global polyethylene industry because rapid industrialization, booming population, rising consumer demand, and large-scale infrastructure and packaging needs drive the region’s massive consumption and production capacity of polyethylene.

Asia-Pacific holds the leading position in the global polyethylene industry due to its unique blend of demographic strength, industrial expansion, and robust end-user demand across multiple sectors. The region is home to more than half of the world’s population, with China and India at the forefront, creating an immense consumer base that fuels polyethylene consumption in packaging, construction, automotive, and consumer goods. Packaging remains the largest driver, supported by the explosive growth of e-commerce, retail, and fast-moving consumer goods (FMCG), where polyethylene films, bags, and containers dominate due to their affordability, flexibility, and durability. At the same time, the construction boom across emerging economies, marked by rapid urbanization, smart city initiatives, and heavy infrastructure spending, has spurred demand for polyethylene pipes, insulation, geomembranes, and films. Additionally, the automotive and electronics sectors in Asia-Pacific especially in China, Japan, and South Korea rely heavily on polyethylene for lightweight components, wires, cables, and protective packaging. From a supply perspective, Asia-Pacific also benefits from its status as a global manufacturing hub, with countries like China, South Korea, and Singapore hosting some of the largest petrochemical complexes and integrated refineries. The availability of cost-competitive feedstocks, government support for petrochemical expansion, and investments by global players have made the region a production powerhouse, allowing it not only to meet domestic demand but also to export significant volumes worldwide. The growth of middle-class populations with increasing disposable incomes further accelerates demand for packaged food, personal care, and household goods, all of which are heavily dependent on polyethylene packaging.

• In July 2025: Manali Petrochemicals Ltd launched its enlarged Propylene Glycol facility here, emphasizing its dedication to the Centre's 'Make in India' initiative, remarked a senior executive. This expansion will boost production capacity by 50,000 kilotonnes per year (KTPA), on top of the current 22,000 KTPA.
• In May 2025: Dow declared the commencement of its propylene glycol (PG) capacity expansion at its integrated production facility located in Map Ta Phut, Rayong, Thailand. The modest capital intensity, enhanced return, and incremental investment boost propylene glycol capacity by 80,000 tons annually, raising the total production to 250,000 tons each year, positioning the Dow Map Ta Phut PG manufacturing facility as the largest in Asia Pacific.
• In March 2025: LyondellBasell announced an investment to increase propylene production capacity at its Channelview Complex close to Houston. Excavation and building are anticipated to commence in the third quarter of 2025, with an estimated launch in late 2028. The facility is expected to produce around 400 thousand metric tons of propylene each year, hire 750 workers at the height of construction, and create 25 permanent positions.
• In November 2024: Clariant is increasing its storage capability in Scandinavia for recycled mono propylene glycol (MPG), utilized in its de-icing fluids for aircraft. At the company’s Uddevalla facility in Sweden, two new storage tanks and a truck unloading station have been added to enhance capacity and improve product handling.
• 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 May 2024: Shell has recently finalized an agreement with Chandra Asri, a prominent Indonesian petroleum and petrochemical company. The deal involves the acquisition of the Bukom assets located on Jurong Island. These assets include a refinery and a petrochemical complex that play a crucial role in producing over two million tons of ethylene and propylene, as well as their downstream derivatives. This acquisition marks an important strategic move for Shell as it strengthens its presence and capabilities in the petrochemical sector. Show more