Report Details:
15 Companies Covered
203 Pages
Rising Demand in the Cosmetics and Personal Care Sector to Fuel the Worldwide Propylene Glycol Market Growth at a CAGR of 4.34% through 2035
Market Overview
The global propylene glycol market was valued at USD 5.05 million in 2024 and is projected to reach USD 8.06 million by 2035, growing at a CAGR of 4.34% from 2025 to 2035.
Propylene glycol is a synthetic organic compound with high versatility and low toxicity, enabling its adoption across multiple industries, including cosmetics and personal care, pharmaceuticals, food and beverage, transportation, and industrial applications.
The rising focus on ingredients that enhance product stability, moisture retention, and solubility is boosting demand for propylene glycol across consumer-centric industries. Cosmetics and personal care remain the most dominant end-use category, followed by their increasing role in automotive antifreeze and coolant applications.
Industry growth is further supported by economic expansion in emerging countries, where rising disposable incomes and urbanization fuel demand across food processing, pharmaceuticals, and construction segments.
Segment Insights
By source, the market is divided into petroleum-based and bio-based propylene glycol. The petroleum-based segment accounted for 70.79% of market revenue in 2023 and is expected to grow at a CAGR of 4.4% during the forecast period.
Petroleum-derived propylene glycol is primarily produced through propylene oxide and is used extensively due to its cost-effectiveness, wide availability, and suitability in industrial applications such as antifreeze, de-icing solutions, and industrial solvents.
By grade, the industrial grade segment generated the largest market share at 58.92% in 2023 and is expected to grow at a CAGR of 6.0%. Industrial-grade propylene glycol is used where high purity is not essential, particularly in hydraulic fluids, de-icing agents, antifreeze, and as a solvent or intermediate chemical.
Its ability to perform efficiently in extreme temperature conditions, coupled with its relatively low toxicity compared to ethylene glycol, continues to drive its widespread industrial adoption.
By end-use industry, the cosmetics and personal care segment held the largest market share at 34.77% in 2023 and is projected to record a CAGR of 6.2% during the forecast period.
Propylene glycol is valued in personal care formulations due to its role as a humectant, solvent, and skin-conditioning agent that helps maintain moisture balance and enhance product texture.
Its non-toxic properties, coupled with increasing global awareness toward structured skincare routines, continue to elevate its usage in lotions, hair care products, cleansers, and moisturizers.
Regional Insights
The Asia Pacific region accounted for the largest share of the global propylene glycol market at 33.97% in 2023 and is expected to grow at a CAGR of 4.1% between 2024 and 2032.
Rapid industrialization, large-scale urbanization, population growth, and strong expansion of end-use industries such as food and beverage, cosmetics, personal care, and pharmaceuticals are driving market growth in countries including China, India, and Japan.
Rising consumer expenditure on packaged foods and premium skincare products contributes to increased consumption of propylene glycol as a moisture-retaining ingredient and food additive. Additionally, growing automotive production in the region supports demand for propylene glycol in coolants, lubricants, and de-icing agents.
Key Players
The propylene glycol market is highly competitive, with companies expanding production capacities and enhancing product portfolios to address rising global demand.
Key companies in the market include LyondellBasell Industries Holdings B.V., BASF, Orlen, Shell, The Archer-Daniels-Midland Company, ADEKA Corporation, Chaoyang Chemicals, Inc., Shandong Haike Chemical Group, Manali Petrochemicals Limited, AGC Inc., INEOS Group, Tongling Jintai Chemical Industry Co., Ltd, Acuro Organics Limited, Repsol S.A., and Meru Chem Pvt. Ltd.
These players compete on production efficiency, pricing, product quality, and strategic footprint.
Industry Developments
- In May 2024, Shell acquired the Bukom assets on Jurong Island from Chandra Asri, strengthening its petrochemical capabilities, including the production of ethylene, propylene, and downstream derivatives.
- In May 2023, ORLEN Poludnie completed the first operational year of its bio-propylene glycol unit using BASF’s BioPG technology, reducing CO2 emissions by at least 60% compared to fossil-based propylene glycol.
- In November 2022, LyondellBasell announced the expansion of propylene production capacity at its Channelview Complex in Houston, Texas, including the development of a new propylene factory based on its proprietary conversion technology.
Key Findings
- The global propylene glycol market is projected to reach USD 8.06 million by 2035, growing at a CAGR of 4.34%.
- Petroleum-based propylene glycol accounted for 70.79% of market revenue in 2023.
- Industrial grade propylene glycol held a 58.92% share in 2023.
- The cosmetics and personal care category was the largest end-use industry in 2023, with a share of 34.77%.
- Asia Pacific led regional demand, contributing 33.97% of global revenue in 2023.