United States Propylene Oxide Market Overview, 2030

The U.S. propylene oxide (PO) market has evolved into a strategically significant segment within the nation’s petrochemicals industry, shaped by its strong linkages to polyurethane and propylene glycol production. Historically, the U.S. relied on chlorohydrin and PO/styrene monomer (PO/SM) technologies, but over the past two decades, the landscape has shifted toward more sustainable and cost-efficient routes, particularly PO/tertiary butyl alcohol (PO/TBA) and, increasingly, hydrogen peroxide to propylene oxide (HPPO). This transition has been facilitated by abundant and cost-advantaged shale-based propane, enabling large-scale propane dehydrogenation (PDH) units that secure feedstock supply and enhance integration for PO producers. Major players such as Dow, LyondellBasell, and Huntsman have optimized production by coupling PO with polyether polyols, polyurethane systems, and propylene glycols, reducing exposure to commodity price volatility. Demand has steadily grown, anchored by rigid and flexible polyurethane foams used in construction, automotive, furniture, and appliances, with energy-efficiency regulations and insulation mandates further boosting consumption. While growth in mature U.S. markets is moderate compared to Asia, innovation in polyurethane systems, CASE applications (coatings, adhesives, sealants, elastomers), and bio-based propylene derivatives is driving incremental value. The U.S. also plays a key role as a stable supplier to regional and global markets, benefiting from lower-cost propane feedstock and integration across the PU value chain. Looking ahead, the evolution of the U.S. PO market will hinge on balancing capacity additions with downstream demand, managing environmental compliance, and maintaining competitiveness against Asian HPPO-led expansions, while leveraging sustainability and energy-efficiency trends to secure long-term growth.

According to the research report ""US Propylene Oxide Market Overview, 2030,"" published by Bonafide Research, the US Propylene Oxide market is anticipated to grow at more than 4.48% CAGR from 2025 to 2030. The U.S. propylene oxide (PO) market is underpinned by a highly integrated value chain, beginning with competitively priced propylene derived from shale-based propane through propane dehydrogenation (PDH), which has strengthened supply security and reduced reliance on naphtha-based steam crackers or FCC units. Historically, U.S. producers employed chlorohydrin and PO/styrene monomer (PO/SM) technologies, but environmental concerns and styrene margin volatility have limited their long-term competitiveness. Today, PO production in the U.S. primarily relies on PO/TBA and, increasingly, hydrogen peroxide to propylene oxide (HPPO). The PO/TBA route generates t-butanol as a co-product, converted to MTBE or TAME, though domestic MTBE restrictions cap market flexibility. HPPO adoption, while slower than in Asia, reflects U.S. industry efforts to reduce wastewater and chlorine use and meet stricter ESG requirements, contingent on co-located hydrogen peroxide supply. Downstream, around 65–70% of PO is converted into polyether polyols for polyurethanes, where rigid foams support U.S. building insulation and appliances in line with federal energy-efficiency mandates, while flexible foams feed into bedding, furniture, and automotive seating. The CASE segment (coatings, adhesives, sealants, elastomers) adds resilience through diversified industrial applications. Propylene glycols account for 20–25% of PO demand, with monopropylene glycol (MPG) used in unsaturated polyester resins, food-grade solvents, and aviation de-icing, while dipropylene glycol (DPG) and tripropylene glycol (TPG) serve specialty niches. Glycol ethers capture the remaining 5–10%, mainly in paints, coatings, and cleaners. Large players such as Dow, LyondellBasell, Huntsman, and Covestro maintain deep integration from PDH to PU systems, stabilizing margins, enhancing export competitiveness, and anchoring the U.S. as a global PO hub.

In the United States, production of propylene oxide (PO) encompasses several established and emerging processes, each with distinct economics, environmental footprints, and commercial roles. The chlorohydrin process, once widespread, has been largely phased out in the U.S. because of high wastewater, chlorine handling and remediation costs and strict environmental regulation. The styrene monomer (PO/SM) route which uses ethylbenzene-derived hydroperoxides to epoxidize propylene and co-produces styrene remains in integrated complexes where styrene markets are favorable, but profitability fluctuates with styrene spreads. The TBA (t-butyl alcohol) co-product route, based on tert-butyl hydroperoxide, has historically been important in the U.S.; it yields t-butanol that can be converted into MTBE/TAME or isobutylene derivatives, though domestic MTBE restrictions limit outlet flexibility. Cumene-based routes are niche in the U.S.; they employ cumene hydroperoxide chemistry analogous to other hydroperoxide routes but have seen limited adoption due to feedstock and co-product economics. The hydrogen peroxide to propylene oxide (HPPO) process has gained traction as the cleaner, lower-effluent choice producing PO and water without large co-products and is attractive where reliable, integrated H₂O₂ supply and tighter ESG/wastewater standards justify capital investment. Overall, U.S. PO technology mix favors routes that align with downstream integration, co-product markets, and regulatory drivers, with HPPO and PDH-integrated chains shaping future competitiveness. Major U.S. producers such as Dow, LyondellBasell and Huntsman operate integrated PDH to propylene to PO to polyol chains, which dampens margin volatility by capturing downstream value; roughly two-thirds of PO feeds polyether polyols for polyurethane foams, linking PO economics to construction and appliance demand and energy-efficiency policy incentives and export flexibility abroad.

In the United States, the propylene oxide (PO) market is dominated by its use in polyether polyols, which account for roughly 65–70% of consumption. These polyols are the essential building blocks of polyurethane (PU), with rigid foams used in insulation panels, spray foams, and appliances, directly benefiting from federal and state energy-efficiency standards and green building codes. Flexible foams, another major outlet, serve the U.S. furniture, bedding, and automotive industries, while CASE applications coatings, adhesives, sealants, and elastomers provide higher-margin outlets with more stable demand. Propylene glycols represent 20–25% of PO demand, with monopropylene glycol (MPG) used in unsaturated polyester resins (UPR) for composites, as a food-grade solvent, and in pharmaceuticals. Importantly, the U.S. aviation sector consumes large volumes of MPG for aircraft de-icing, making it a seasonal but critical driver of demand. Dipropylene glycol (DPG) and tripropylene glycol (TPG) are smaller but valuable streams used in specialty resins, fragrances, and plasticizers. Glycol ethers account for about 5–7% of PO usage, supporting the paints, coatings, and cleaning chemicals industries, with steady demand tied to the U.S. construction and consumer products sectors. Other applications 3–5% include surfactants, flame retardants, and niche chemical intermediates. This diverse application profile underscores PO’s role as a critical intermediate across both consumer and industrial markets. Integration by leading U.S. producers such as Dow, LyondellBasell, Huntsman, and Covestro into polyols and PU systems allows them to capture downstream value, stabilize margins, and align PO application growth with long-term megatrends such as urbanization, energy efficiency, and sustainability.

In the United States, propylene oxide (PO) demand is distributed across a wide range of end-use industries, with building and construction representing the largest share, driven by its role in rigid polyurethane foams used in insulation, roofing, and appliances. Federal and state-level energy efficiency mandates, alongside the shift toward sustainable building materials, continue to strengthen this sector’s consumption of PO-derived polyether polyols. The automotive industry is another key end-use, relying on flexible polyurethane foams for seating, dashboards, and interior components, while CASE applications coatings, adhesives, sealants, elastomers support lightweighting and durability. Although cyclical, automotive demand for PO remains significant given U.S. vehicle production volumes and the ongoing transition toward EVs, which require advanced thermal management materials. Textile and furnishing applications leverage PO-based flexible foams for bedding, furniture, and carpets, aligning closely with consumer spending patterns. The chemical and pharmaceutical sector consumes PO primarily via propylene glycols, with monopropylene glycol (MPG) used in resins, solvents, and pharmaceuticals, as well as large-scale use in aircraft de-icing fluids at major U.S. airports. Packaging utilizes PU foams and PO derivatives in protective materials and coatings, supporting logistics and e-commerce growth. In electronics, PO-based polyurethanes contribute to insulation, adhesives, and encapsulants, albeit as a smaller niche segment. other applications Notably food, paints, and coatings draw on PO-derived glycol ethers and propylene glycols as solvents, stabilizers, and additives. Overall, the U.S. PO end-use landscape is both diversified and integrated, ensuring resilience across consumer, industrial, and infrastructure-linked sectors.

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

Aspects covered in this report
• Propylene Oxide 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 Production Process
• Chlorohydrin Process
• Styrene Monomer Process
• TBA Co-product Process
• Cumene-based Process
• Hydrogen Peroxide Process

By Application
• Polyether Polyols
• Propylene Glycol
• Glycol Ethers
• Others

By End-use industry
• Automotive
• Building & Construction
• Textile & Furnishing
• Chemical & Pharmaceutical
• Packaging
• Electronics
• Others (Food, and Paints & Coatings) Show more