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Global Propylene Glycol Demand to Grow at a CAGR of 5.36% by 2030

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ChemAnalyst
Global Propylene Glycol Demand to Grow at a CAGR of 5.36% by 2030

According to ChemAnalyst report, “Global Propylene Glycol Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, global Propylene Glycol market is anticipated  to achieve a healthy CAGR of 5.36% during the forecast period. Increasing demand for Propylene Glycol in food and pharmaceutical industries backed by increasing production of unsaturated polyester resins (UPRs), whose demand is greatly driven by growth in construction, transportation, and marine industries will boost the Propylene glycol demand over the forecast period.

Browse Complete Report : Propylene Glycol (PG) Prices

Propylene Glycol is commercially produced by the hydration of Propylene Oxide (PO) under high pressure and high temperature conditions. The synthesis leads a mixture of mono, di/tri-propylene glycol as well as small quantities of higher glycols which are further separated through high vacuum distillation. Based on grade, Propylene Glycol market has been segmented into food grade and industrial grade. Food grade majorly finds applications where human ingestion is required such as in preserving moisture and flavor in food items. It is also used as a solvent in several pharma products and cosmetics such as sunscreen lotion, shampoos, shaving etc. Industrial grade Propylene Glycol is utilized for manufacturing alkyd resins for paints and coatings, possess excellent antifreeze properties and a popular intermediate in manufacturing unsaturated polyester resins (UPR).

Unsaturated Polyester Resins lead the global Propylene glycol market strengthened by rising demand for fiberglass reinforced plastics (FRP) used in construction panels, bathroom parts and fittings and corrosion-resistant storage tanks. Global construction market is forecasted to grow by USD 8 trillion by 2030 driven by China, US and India. This is directly indicative towards the phenomenal growth of the global Propylene Glycol market in the near future. Food, Pharmaceuticals and cosmetics follow the UPR demand further driven by rising middle class population and expansion of the global pharmaceutical sector. Moreover, increase in the use of propylene glycols in applications such as aircraft deicing fluid, automotive coolants, and hydraulic & brake fluids, is also driving this end-use industry.

However, sudden outbreak of novel coronavirus rendered a sharp fall in the Propylene Glycol market dynamics as several economies announced indefinite shutdowns to contain the spread of the virus. Hammered by evaporating demand and disrupted supply chains, several major refineries remained shut throughout Q1FY20 with delayed capacity expansion plans. Several Chinese PG production plants lowered their production run rates by 25% to 30% to manage their balance sheets. Reduced buying sentiments drove prices of several petrochemicals to record breaking lows, as a result feedstock Propylene and Propylene Oxide remained under pressure for most of first quarter. However, demand for Propylene glycol remained firm to stable for some sectors as it is an important component in manufacturing hand sanitizers, moisturizers, shaving creams, and baby products whose demand has increased exponentially these days with people becoming more hygiene conscious since the onset of the pandemic.

Geographically, North America is likely to dominate the global market followed by Asia Pacific and Western Europe. Rapid industrialization and improving standards of living in emerging economies such as India and China backed by rapidly expanding automotive industry are the key factors driving the APAC Propylene Glycol market in the forecast period. Moreover, huge investments in the construction and unsaturated polyester resin segment in Europe will propel the Propylene Glycol market in the country. According to ChemAnalyst report, “Global Propylene Glycol Market: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Grade, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, some of the major players operating globally in Propylene Glycol market are The Dow Chemical Company, LyondellBasell Industries, Ineos Oxide, Repsol, BASF, Huntsman Corporation, Shell Chemicals, Arch Chemicals, SKC Chemicals Group, Global Bio-chem Technology Group Co. Ltd.etc Increasing technological advancements and capacity expansion plans would further escalate the PG demand. In FY19, Dow and Evonik entered into an exclusive technology partnership towards directly synthesizing Propylene Glycol for Propylene and Hydrogen Peroxide. The technology has been named as the HYPROSYN process and is likely to contribute significantly to the global Propylene Glycol consumption.

“Propylene Glycol being an effective solvent for several water-soluble ingredients, serves diverse group of industries which drive the global economy. Its demand from the food and other consumables is likely to soar as it is considered safe by the U.S. Food and Drug Administration. The pharmaceutical sector has recorded a sharp spike in Propylene Glycol consumption in recent years as a drug solubilizer in topical, oral, and injectable medicines. However, it is crucial for the major players to know the seasonal demand variations of the Propylene Glycol for anti-freeze and de-icing sectors, which are majorly consumed in winters. Moreover, looking at the marker trend, there has been continuous efforts by players like Cargill, ADM and The Dow Chemical Company for producing Propylene Glycol from renewable bio-driven resources, such as corn and soybeans and glycerin, a by-product in biodiesel manufacture. etc. Global PG players are keenly focussing on the captive demand growth and hence eyeing on macroeconomic conditions for PG market developments over the next few years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst.

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