Bio-Based Propylene Glycol Market Size was valued at USD 939.4 million in 2023. The Bio-Based Propylene Glycol Market industry is projected to grow from USD 993.8 million in 2024 to USD 1,970.7 million by 2032, exhibiting a compound annual growth rate (CAGR) of 8.9% during the forecast period (2024 - 2032).
Bio-based propylene glycol is a sustainable and eco-friendly alternative to traditional propylene glycol, which is commonly derived from petroleum. This vegetable-based propylene glycol is produced through a catalytic reaction involving distilled glycerin with hydrogen. The process begins with the production of biodiesel, where vegetable oils are used in a transesterification reaction to yield glycerin. This glycerin is then distilled to achieve a purity level of 99.7%, which is subsequently used to produce the bio-based propylene glycol.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The global Bio-Based Propylene Glycol (BioPG) market is primarily driven by the growing demand from the food and beverage industry. According MRFR analysis, the global food additives market, (includes BioPG), was valued at USD 38.2 billion in 2022 and is projected to grow at a CAGR of 5.60% from 2023 to 2032, reaching USD 62.37 billion by 2032. This growth is driven by the increasing demand for natural and organic products, as consumers become more conscious about the ingredients in their food and opt for products that are free from synthetic chemicals and preservatives. BioPG is used as a food additive, emulsifier, and humectant in various food products, including baked goods, beverages, and confectionery items. Consumers are increasingly opting for natural and organic products, which has led to a surge in demand for BioPG. BioPG is a natural and biodegradable alternative to traditional propylene glycol, making it an attractive option for food manufacturers looking to cater to the growing demand for natural and organic products.
BioPG plays a crucial role in food processing and preservation, helping to improve the texture, flavor, appearance, and shelf life of various food products. One of its primary functions is to prevent the growth of microorganisms, such as bacteria, mold, and yeast, which can cause spoilage and foodborne illnesses. BioPG is particularly effective in inhibiting the growth of mold and yeast, which can lead to food becoming rancid or developing off-flavors. By controlling the growth of these microorganisms, BioPG helps to ensure the safety and quality of food products, reducing the risk of contamination and extending their shelf life. In the food industry, BioPG is widely used as an emulsifier to combine oil and water-based ingredients, creating stable and homogeneous mixtures. This application is particularly important in products such as salad dressings, sauces, and mayonnaise, where the oil and water components need to be evenly distributed and prevented from separating. BioPG helps to stabilize these mixtures, ensuring that the final product has a consistent texture and appearance.
Controlling moisture levels is crucial in maintaining the quality and shelf life of various food products. BioPG is used to regulate moisture content in foods like dried soups or grated cheese. By preventing the growth of mold and bacteria, which can thrive in high-moisture environments, BioPG helps to inhibit spoilage and foodborne illnesses. Additionally, BioPG contributes to maintaining the desired texture and appearance of these products, ensuring they remain fresh and appealing to consumers throughout their shelf life. BioPG possesses antioxidant properties that help to prevent the deterioration of food products caused by oxidation. This is particularly important in foods that are high in fat or oil, such as nuts, seeds, and baked goods. Oxidation can lead to the development of rancid flavors and off-odors, reducing the quality and shelf life of these products. Thus, the high demand for BioPG in the food industry is driving the market growth, as it is used as a food additive, emulsifier, and humectant in various food products.
Propylene glycol, a widely used chemical in various industries, has significant environmental impacts. The petrochemical-based production process contributes to greenhouse gas emissions, air pollution, and water pollution. Additionally, the use of propylene glycol in various industries can lead to the release of toxic chemicals into the environment, posing health risks to humans and wildlife. The growing awareness of these environmental concerns has led to a shift towards sustainable and eco-friendly alternatives, such as BioPG. The traditional production process of propylene glycol involves the use of propylene oxide, a petrochemical product. This process contributes to greenhouse gas emissions, air pollution, and water pollution, making it an unsustainable and environmentally harmful practice. The use of fossil fuels in this process also exacerbates the problem of climate change.
The use of propylene glycol in various industries can lead to the release of toxic chemicals into the environment, posing health risks to humans and wildlife. The environmental impacts of propylene glycol are far-reaching, affecting not only the environment but also human health and well-being. The growing awareness of the environmental concerns related to propylene glycol has led to a shift towards sustainable and eco-friendly alternatives, such as BioPG. BioPG offers several benefits over traditional propylene glycol, including its renewable production process, reduced greenhouse gas emissions, and minimized environmental impacts.
BioPG is produced from biomass, a renewable resource, reducing the dependence on fossil fuels and minimizing greenhouse gas emissions. According to the Department of Energy, substitution of renewable propylene glycol made from biomass can reduce greenhouse gases by 61%, as compared to using petroleum-based propylene glycol. This significant reduction in greenhouse gas emissions makes BioPG an attractive alternative for industries looking to reduce their environmental footprint. Currently, approximately 900,000 metric tons of petroleum is used to produce both food-grade and industrial propylene glycol each year. By substituting renewable propylene glycol made from biomass, the environmental impacts of propylene glycol can be significantly reduced. This shift towards sustainable alternatives can help mitigate the environmental concerns associated with propylene glycol and contribute to a more environmentally friendly future.
Also, Companies are increasingly investing in the production of BioPG, driven by the growing demand for sustainable and eco-friendly alternatives to traditional propylene glycol. For instance, Dow has launched a range of lower carbon, bio-based, and circular propylene glycol solutions in Europe, including Decarbia™, Ecolibrium™, and Renuva™ technologies. These technologies support more sustainable offerings for propylene glycol applications, using lower carbon, bio-based, and circular feedstocks in Europe. Customers can now deliver end-products to a broad range of industries, such as pharmaceutical, agricultural, and food, with third-party validated sustainability benefits. The mass balance approach used by Dow to manufacture PG is a key factor in the sustainability of their BioPG solutions. This approach traces the flow of sustainable raw materials used to manufacture PG through a complex value chain and attributes it based on verifiable bookkeeping. This approach has received ISCC PLUS certification, ensuring the accuracy and transparency of the sustainability claims.
The Bio-Based Propylene Glycol Market segmentation, based on application the market has been segmented as solvent, chemical intermediates, unsaturated polyester resin, and antifreeze & coolant, others. In 2023, the unsaturated polyester resin segment generated the market revenue share of 44.73% in the and is expected to experience a CAGR of 8.9% in the forecast period. Bio-based propylene glycol is used in the production of unsaturated polyester resins, which are widely used in the construction, transportation, and marine industries. Unsaturated polyester resins are used in the production of fiberglass-reinforced plastics, which are used in the manufacture of boat hulls, car parts, and building materials. Bio-based propylene glycol is used as a glycol component in producing these resins, providing them with desirable properties such as strength, durability, and resistance to chemicals and weathering. The growing demand for lightweight and corrosion-resistant materials in various industries is driving the adoption of unsaturated polyester resins, which in turn is driving the demand for bio-based propylene glycol in this application segment. Also, the increasing focus on sustainability and the use of renewable resources in materials production is further contributing to the growth of this segment in the overall market.
Based on end-use industry, the Bio-Based Propylene Glycol Market is segmented into transportation, food & beverages, building & construction, pharmaceuticals, cosmetics & personal care, and others. In 2023, the cosmetics & personal care segment held the largest market revenue share of 33.90% and is expected to grow at a CAGR of 9.01% in the projected period. Bio-based propylene glycol is used in the cosmetics and personal care industry as a humectant, emollient, and solvent. It is used to improve the texture and appearance of skincare products, hair care products, and personal care items. Bio-based propylene glycol is also used in sunscreen production, which help protect the skin from harmful UV rays. The growing demand for natural and organic personal care products, as well as the increasing focus on sustainability and eco-friendliness, are driving the demand for bio-based propylene glycol in the cosmetics and personal care industry.
Based on Region, the Bio-Based Propylene Glycol Market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2023, the Asia Pacific region held the largest market revenue share of 42.98%, which is expected to grow at a CAGR of 8.98% in the forecast period 2024-2032. The growth of the bio-based propylene glycol market in Asia Pacific is driven by the increasing demand for eco-friendly and sustainable products. Propylene glycol is a versatile chemical used in various applications, including personal care products, pharmaceuticals, and industrial processes. The Asia Pacific region has emerged as a key hub for the production and consumption of bio-based propylene glycol, driven by the presence of major manufacturers and the growing demand for sustainable products. The steady supply of soybean oil, a key raw material for bio-based propylene glycol production, has contributed to the growth of the market. As the demand for eco-friendly and sustainable products continues to rise, the bio-based propylene glycol market in Asia Pacific is expected to maintain its growth trajectory.
The consistent production of soybean oil in China and India ensures a stable supply chain to produce bio-based propylene glycol, supporting the market's growth and development. China, the largest producer of soybean oil in Asia, has seen a steady increase in its production over the years. In the year ending September 2022, China produced around 15.75 million metric tons of soybean oil, and this figure increased to nearly 16.31 million metric tons in the marketing year ending September 2023. This growth in soybean oil production is significant, as it is a key raw material used in bio-based propylene glycol production. India, another major soybean oil producer in Asia, has also seen consistent yields and total supply of oilseeds used for "crush-to-oil" over the last two years. Although its soybean oil production for the marketing year 2023/24 is slightly lower than the previous year, it remains at a relatively high level of 1.7 million metric tons (MMT). This steady supply of soybean oil ensures consistent feedstock for bio-based propylene glycol production.
The global bio propylene glycol market is characterized by competition from well established players. The players in the market strive to differentiate themselves through innovation, sustainability, and cost efficiency. Despite the challenges, there are several factors that are driving growth in the bio propylene glycol market such as growing demand from food and beverage industry and growing demand for sustainable products owing to increased awareness regarding environment protection and strict government regulations.
Leading players in the bio propylene market include companies such as Ayas Renewables Inc., Pacific Fluids LLC, Orlen, BASF SE, DOW, The Archer-Daniels-Midland Company, Oleon NV, Global Bio-chem Technology Group Company Limited, CORECHEM Inc, and UPM Biochemicals among others. These players are utilizing innovative bio-based production technologies to minimize environmental impact and cater to the growing consumer preference for sustainable products. They are actively investing in research and development efforts to enhance the quality of their bio propylene glycol, optimize production methods, and broaden its applications in industries like cosmetics, pharmaceuticals, and food and beverages. Moreover, strategic partnerships and collaborations are prevalent, allowing companies to fortify their market presence and expedite the widespread adoption of bio propylene glycol.
Ayas Renewables Inc.: Ayas Renewables Inc is a company that specializes in converting byproducts from vegetable and tallow processing, including biorenewable fuel production into affordable biorenewable chemicals. The company has its research & development team that uses proprietary processes for developing its products and applies its R&D to real world solutions where sustainability is required. It has gained success in scaling novel processes from bench to pilot to commercial. The company’s team includes research & development scientists as well as experienced operators and managers. The company manufactures propylene glycol for applications in a wide array of industries including pharmaceutical, construction, food & beverage, consumer products, and transportation. Furthermore, it is emphasizing reducing production cost by focusing on low-temperature and low-pressure ranges without the use of hazardous acids and exotic catalysts.
Pacific Fluids LLC: Pacific Fluids LLC specializes in offering petroleum and chemical products to its customers. The propylene glycol produced by the company is biobased and is of concentration >=99%. The company also provides services such as product distribution, quality control, on-site laboratory analysis, import & export, and many more. Ethylene glycol, biobased propylene glycol, hydraulic oil, and solvents are some of the types of products offered by the company. With the help of its services and products, the company is serving sectors such as marine and petroleum.
March 2024: Dow has recently introduced two new sustainable varieties of propylene glycol (PG) solutions in North America. These solutions utilize bio-circular and circular feedstocks, offering customers the opportunity to provide high-performance products with externally verified sustainability benefits. Dow's commitment to sustainability is evident in its efforts to provide environmentally friendly alternatives and reduce the carbon footprint associated with propylene glycol production.
September 2023: Dow launches lower carbon, bio-based, and circular propylene glycol solutions in Europe for applications in sectors including pharmaceutical, agricultural, and food. This approach that uses sustainable raw materials for manufacturing propylene glycol has received ISCC PLUS certification.
| Attribute/Metric | Details |
| Market Size 2023 | USD 939.4 million |
| Market Size 2032 | USD 1,970.7 million |
| Compound Annual Growth Rate (CAGR) | 8.9% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Forecast Units | Value (USD Million) and Volume (Kilotons) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, End-Use Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | US, Canada, Germany, UK, France, Russia, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, GCC Countries, South Africa |
| Key Companies Profiled | Ayas Renewables Inc., Pacific Fluids LLC, Orlen, BASF SE, DOW, The Archer-Daniels-Midland Company, Oleon NV, Global Bio-chem Technology Group Company Limited, CORECHEM Inc, and UPM, and Others. |
| Key Market Opportunities | · Increasing use in pharmaceuticals |
| Key Market Dynamics | · growing demand from the food and beverage industry · growing demand for sustainable products |
Bio-Based Propylene Glycol Market Highlights:
Frequently Asked Questions (FAQ) :
Bio-based propylene glycol is a sustainable and eco-friendly alternative to traditional propylene glycol, which is commonly derived from petroleum. This vegetable-based propylene glycol is produced through a catalytic reaction involving distilled glycerin with hydrogen.
The Asia Pacific region dominated the Bio-Based Propylene Glycol Market with the largest market revenue share of 42.98% in 2023.
Ayas Renewables Inc., Pacific Fluids LLC, Orlen, BASF SE, DOW, The Archer-Daniels-Midland Company, Oleon NV, Global Bio-chem Technology Group Company Limited, CORECHEM Inc, and UPM, and Others.
The unsaturated polyester resin segment dominated the global market with the largest revenue share of 44.73% in 2023.
The cosmetics & personal care segment dominated the Bio-Based Propylene Glycol Market with the largest market revenue share of 33.90% in 2023.
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