Propylene Glycol Category Intelligence
Report Coverage
- Global Capacity–Demand Analysis
- Global Trade Dynamics
- Regional Market Snapshot-North America, Europe, Asia
- Cost Structure Analysis
Production Size
Production Size North America
0.9 MMT
Production Size Europe
0.8 MMT
Production Size Asia Pacific (APAC)
1.2 MMT
Propylene Glycol Market Trends
Category Intelligence on Propylene Glycol covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
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Industry Outlook
Propylene Glycol Global Outlook
- The global market is estimated to grow at a CAGR of 4.4 percent during 2017–2022, with the demand likely to reach 3 MMT by the end of 2022
- Demand for UPR (which goes into construction, transportation, marine industries as a reinforced plastic and fiberglass composites) is expected to grow at a CAGR of 5–6 percent from 2016 to 2021
- North America holds 28 percent of the supply market share, EU 27 percent, and at APAC 40 percent.
- USA is the largest market propylene glycol supplier in the market with a net export surplus of 51 KMT/year as of 2016.
- Raw material is the largest driver of propylene glycol cost.
- The propylene glycol price index depends on its primary feedstock, propylene and glycerine prices.
Demand Market Outlook
- Globally, high demand for bio-based PG is noticed from the pharma and CPG industries
- The capacity share of bio-based PG will increase from approx. 6 percent (currently) to 15 percent
- PG growth rates in Europe will be lower (CAGR a of 3 – 4 percent) compared to other regions during 2017 – 2022, due to mature downstream markets
Industry Best Practices
- Large-volume buyers usually prefer buying via contract across all the three major regions
- Among small-volume buyers, CPG players opt for contracts, due to the need for high-quality pharma grade MPG, while non-CPG small-volume buyers can buy in the spot market
- Regional sourcing is preferred in Europe, owing to REACH regulation on PG, while both global and regional sourcing are followed in North America and Europe
Global Market Size
- The global PG market is expected to exceed $4.5 billion by 2022
- Bio-based PG is expected to grow faster than conventional PO-based PG, as a result of its high usage in pharma industries in the North American and European markets to ensure lower level of toxicity to the environment
- Key applications driving the PG growth are heat transfer fluids, fragrance, cosmetics and personal care sectors
Global Capacity–Demand Analysis
- Capacity–demand gap is expected to narrow down by 2020, if no further new plants or capacity expansions take place, resulting in supply issues
- Increase in buying interest for bio-based PG, globally, will help in mitigating volatility in PG prices, which is greatly influenced by upstream energy prices
Propylene Glycol Market Outlook
- Currently, the US is the largest market for PG, followed by China and Germany
- Asia represents almost 43 percent of the global PG consumption, with China being the major consumer
- Global capacity–demand gap is expected to narrow down by 2020, if no further new plants or capacity expansions take place, resulting in supply issues
- Globally, about 6 percent of PG is produced through biofuel route, made of glycerine (soybean or canola seeds in the US) or sorbitol (corn, based in China)
- Bio-based PG production would result in capacity expansions across China, France, and the US
Propylene Glycol Market Overview
- Europe and the US are considered to be relatively mature in the bio-based propylene glycol market
- Key regions that will drive the future market of propylene glycol would be China, followed by the US and Germany
- The Asian region with high downstream demand from the construction, automotive, and homecare industries is expected to be the major driver of PG up to 2022
- European downstream markets are more mature as compared to the Asian region and will not witness high-demand growth rates.
- The strict environmental regulations in Europe are a constraint for the propylene glycol market.
- Global Bio-Chem (China) had commercialized this process, using corn as a feedstock to produce corn-based biochemical products. However; they had temporarily stopped their production in 2016 & 2017 due to lesser profitability amidst lower crude oil prices.
Why You Should Buy This Report
- This report offers an in-depth coverage of trade dynamics, supply-demand trends and major industry events in global and regional markets.
- The report gives details on the recent innovations in the propylene glycol industry like advancement in bio-based PG that is likely to result in capacity addition in the coming years, due to its high growth rate.
- It gives a breakdown of the cost structure analysis and factors affecting the propylene glycol market price.
- The report gives an exhaustive supplier profile and a SWOT analysis on key suppliers like BASF, Shell and Ineos Oxide.
