India Propylene Glycol Market Overview, 2030

The Indian propylene glycol (PG) market has witnessed steady growth over the past few decades, driven by industrial expansion, petrochemical development, 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 the country’s infrastructure development, urbanization, and manufacturing sector growth. By the early 2000s, transportation applications such as automotive coolants, antifreeze, and aviation de-icing fluids gained significance, particularly in northern and hilly regions with colder winter conditions; PG was favored over ethylene glycol due to lower toxicity and environmental safety. In the food and beverage sector, FCC-grade PG found use as a humectant, carrier, and stabilizer in bakery, confectionery, and beverages, regulated by the Food Safety and Standards Authority of India (FSSAI). During the 2010s, the demand for PG in pharmaceuticals and personal care surged, with USP-grade PG employed as a solvent, excipient, and stabilizer in oral, topical, and injectable formulations, adhering to Indian Pharmacopeia and international standards. Bio-based PG, derived from glycerin byproducts of biodiesel or other renewable sources, is gradually gaining traction, particularly for high-value applications in personal care, pharmaceuticals, and food products. Domestic production is concentrated in major petrochemical hubs such as Gujarat, Maharashtra, and Tamil Nadu, supplemented by imports from China, Europe, and Southeast Asia. Overall, India’s PG market has evolved from industrial-volume applications to a diversified structure encompassing high-value, certified, and sustainability-driven sectors.

According to the research report ""India propylene glycol Market Overview, 2030,"" published by Bonafide Research, the India propylene glycol market is anticipated to grow at more than 8.43% CAGR from 2025 to 2030. The Indian PG market is influenced by domestic production capacity, feedstock pricing, regulatory oversight, seasonal demand, and sustainability initiatives. Domestic production is centered in petrochemical hubs such as Gujarat, Maharashtra, and Tamil Nadu, while imports from China, Europe, and Southeast Asia supplement high-purity and specialty-grade requirements. Petroleum-based PG dominates, providing cost-effective, high-volume supply for industrial applications including UPR for construction, automotive coolants, de-icing fluids, paints, and coatings. Feedstock prices, particularly propylene and propylene oxide (PO), are closely linked to crude oil and natural gas markets, influencing margins and contract pricing. Bio-based PG, derived from glycerin byproducts of biodiesel or renewable sources, is a smaller but growing niche, primarily for pharmaceuticals, personal care, and food applications, driven by sustainability demand and regulatory compliance. Oversight by FSSAI, Central Drugs Standard Control Organization (CDSCO), and REACH-equivalent standards ensures compliance with safety, labeling, and handling requirements. Seasonal demand peaks in winter, especially for automotive and aviation applications, requiring efficient logistics and inventory management. Distributors, formulators, and integrators play an important role in ensuring supply continuity, grade certification, and technical support. Overall, the Indian PG market is characterized by steady industrial demand, growth in high-value applications, sensitivity to feedstock pricing, and increasing emphasis on sustainability and regulatory compliance, creating a dynamic and competitive environment.

In India, propylene glycol consumption spans construction, transportation, food and beverages, cosmetics and personal care, pharmaceuticals, and other specialty applications. Construction drives demand through UPR resins used in composites, coatings, adhesives, and laminates, supporting infrastructure development, renewable energy projects, and industrial facilities. Transportation demand includes automotive coolant and antifreeze formulations as well as airport and aviation de-icing fluids, particularly relevant in northern and hilly regions; PG is preferred for low toxicity and environmental safety. Food and beverages utilize FCC-grade PG as a humectant, solvent, and carrier for bakery products, confectionery, flavorings, and beverages, regulated by FSSAI standards. Cosmetics and personal care applications leverage PG for humectant and solvent properties in lotions, creams, and haircare products, with a growing shift towards bio-based alternatives. Pharmaceutical-grade PG serves as a solvent, stabilizer, and excipient in oral, topical, and injectable formulations, adhering to Indian Pharmacopeia and international standards. Others include industrial lubricants, heat-transfer fluids, and chemical intermediates, providing incremental volume and higher-margin niche applications. This diverse end-use profile ensures market resilience, balancing large-volume industrial applications with high-value, certified, and sustainability-focused segments in India.

The Indian PG market is dominated by petroleum-based PG, produced domestically and supplemented by imports from China, Europe, and Southeast Asia. Petroleum-derived PG provides cost-effective, high-volume supply for industrial applications including UPR, automotive coolants, de-icing fluids, paints, and coatings, benefiting from integrated feedstock availability and established logistics. Bio-based PG, derived from glycerin byproducts of biodiesel or other renewable feedstocks, is a smaller but growing segment, primarily serving pharmaceuticals, personal care, and food sectors where sustainability, regulatory compliance, and green credentials are critical. Bio-PG adoption is supported by India’s renewable energy policies, incentives for sustainable chemicals, and consumer preference for environmentally friendly ingredients. Though bio-PG has higher production costs and limited capacity relative to petroleum-based PG, its share is expanding in high-value, certified applications. Circular economy initiatives, including glycol recycling in industrial and aviation applications, further promote bio-based PG adoption. Petroleum-based PG is expected to continue dominating volume, while bio-based PG grows steadily in specialty and sustainability-driven applications.

In India, propylene glycol is segmented into industrial-grade, pharmaceutical-grade, and other specialty grades, each serving distinct market needs. Industrial-grade PG accounts for the largest volume, serving UPR for construction, coatings, adhesives, automotive coolants, and de-icing fluids; buyers prioritize cost efficiency, supply reliability, and bulk logistics, sourcing domestically or through imports. Pharmaceutical-grade PG, produced to Indian 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, batch traceability, and certification requirements limit 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 influences 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 volume, pharmaceutical and specialty grades grow faster in revenue, reflecting India’s increasing demand for high-purity, certified, and sustainability-aligned products.

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