Propylene Glycol Market

Driven by increasing demand worldwide, the market for propylene glycol is expected to grow with a CAGR of +4.0% in volume and +6.6% in value from 2022 to 2030. Key findings include consumption increasing to 5.2M tons in 2022, with notable fluctuations in global trends. Top consuming countries include China, the United States, and India, while notable production increases were seen in Saudi Arabia. Import and export data reveal shifts in market dynamics, with prices varying by country.

Market Forecast

Driven by increasing demand for propylene glycol (propane-1,2-diol) worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +4.0% for the period from 2022 to 2030, which is projected to bring the market volume to 7.1M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +6.6% for the period from 2022 to 2030, which is projected to bring the market value to $16.7B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Propylene Glycol (Propane-1,2-Diol)

After two years of decline, consumption of propylene glycol (propane-1,2-diol) increased by 0.3% to 5.2M tons in 2022. Overall, the total consumption indicated a remarkable increase from 2012 to 2022: its volume increased at an average annual rate of +5.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -10.0% against 2019 indices. Over the period under review, global consumption attained the peak volume at 5.8M tons in 2019; however, from 2020 to 2022, consumption stood at a somewhat lower figure.

The global propylene glycol market size shrank to $10B in 2022, reducing by -8.9% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption enjoyed a buoyant increase. Over the period under review, the global market reached the maximum level at $11B in 2021, and then dropped in the following year.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (1.2M tons), the United States (835K tons) and India (499K tons), together comprising 48% of global consumption. Germany, Japan, Brazil, Mexico, Turkey, France, the UK, Saudi Arabia, Italy and South Korea lagged somewhat behind, together accounting for a further 32%.

From 2012 to 2022, the biggest increases were recorded for Saudi Arabia (with a CAGR of +12.5%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($1.8B), Japan ($1.4B) and the United States ($1.3B) appeared to be the countries with the highest levels of market value in 2022, with a combined 45% share of the global market. India, Mexico, Turkey, Brazil, the UK, Italy, France, Saudi Arabia, South Korea and Germany lagged somewhat behind, together accounting for a further 33%.

Saudi Arabia, with a CAGR of +10.0%, saw the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of propylene glycol per capita consumption in 2022 were Germany (3.3 kg per person), Saudi Arabia (3.2 kg per person) and the United States (2.5 kg per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by Saudi Arabia (with a CAGR of +10.2%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Propylene Glycol (Propane-1,2-Diol)

In 2022, production of propylene glycol (propane-1,2-diol) was finally on the rise to reach 5.2M tons for the first time since 2019, thus ending a two-year declining trend. Overall, the total production indicated a buoyant increase from 2012 to 2022: its volume increased at an average annual rate of +5.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -9.1% against 2019 indices. The most prominent rate of growth was recorded in 2017 with an increase of 19% against the previous year. Over the period under review, global production hit record highs at 5.8M tons in 2019; however, from 2020 to 2022, production failed to regain momentum.

In value terms, propylene glycol production dropped to $9.6B in 2022 estimated in export price. In general, production enjoyed a strong expansion. The most prominent rate of growth was recorded in 2021 with an increase of 36%. As a result, production reached the peak level of $11B, and then dropped in the following year.

Production By Country

The countries with the highest volumes of production in 2022 were China (1.3M tons), the United States (907K tons) and Germany (444K tons), with a combined 51% share of global production. India, Brazil, Japan, Thailand, South Korea, Saudi Arabia, Mexico, Turkey, France and the UK lagged somewhat behind, together accounting for a further 37%.

From 2012 to 2022, the most notable rate of growth in terms of production, amongst the main producing countries, was attained by Saudi Arabia (with a CAGR of +28.1%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Propylene Glycol (Propane-1,2-Diol)

After six years of growth, overseas purchases of propylene glycol (propane-1,2-diol) decreased by -5.2% to 1.1M tons in 2022. The total import volume increased at an average annual rate of +1.1% over the period from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2018 with an increase of 8.6%. Over the period under review, global imports attained the maximum at 1.2M tons in 2021, and then shrank in the following year.

In value terms, propylene glycol imports amounted to $2.7B in 2022. Overall, imports, however, recorded a prominent increase. The growth pace was the most rapid in 2021 when imports increased by 99% against the previous year. Over the period under review, global imports reached the peak figure in 2022 and are expected to retain growth in years to come.

Imports By Country

Belgium (75K tons), France (71K tons), China (67K tons), India (62K tons), Italy (58K tons), Turkey (42K tons), Singapore (41K tons), Indonesia (40K tons), Mexico (37K tons), the UK (34K tons), the Netherlands (33K tons) and Spain (33K tons) represented roughly 54% of total imports in 2022. Germany (33K tons) held a minor share of total imports.

From 2012 to 2022, the biggest increases were recorded for Germany (with a CAGR of +7.5%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, Belgium ($186M), France ($175M) and Italy ($152M) constituted the countries with the highest levels of imports in 2022, with a combined 19% share of global imports. China, India, Turkey, Spain, the Netherlands, the UK, Indonesia, Germany, Singapore and Mexico lagged somewhat behind, together accounting for a further 37%.

In terms of the main importing countries, Germany, with a CAGR of +13.4%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

In 2022, the average propylene glycol import price amounted to $2,476 per ton, picking up by 7.9% against the previous year. Over the period under review, import price indicated a perceptible expansion from 2012 to 2022: its price increased at an average annual rate of +4.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, propylene glycol import price increased by +106.6% against 2020 indices. The growth pace was the most rapid in 2021 an increase of 91% against the previous year. Over the period under review, average import prices attained the maximum in 2022 and is likely to see gradual growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Spain ($2,858 per ton), while Mexico ($1,870 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Netherlands (+6.3%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Propylene Glycol (Propane-1,2-Diol)

In 2022, the amount of propylene glycol (propane-1,2-diol) exported worldwide dropped to 1.2M tons, with a decrease of -5.8% compared with the year before. The total export volume increased at an average annual rate of +1.5% from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being observed in certain years. The pace of growth appeared the most rapid in 2021 when exports increased by 11% against the previous year. As a result, the exports attained the peak of 1.2M tons, and then reduced in the following year.

In value terms, propylene glycol exports contracted slightly to $2.7B in 2022. In general, exports, however, posted a resilient expansion. The pace of growth appeared the most rapid in 2021 when exports increased by 113%. As a result, the exports reached the peak of $2.7B, and then contracted slightly in the following year.

Exports By Country

China (201K tons) and Germany (200K tons) represented roughly 35% of total exports in 2022. Thailand (113K tons) ranks next in terms of the total exports with a 9.8% share, followed by South Korea (9.1%), the United States (8.9%), Singapore (6.1%), Saudi Arabia (5.8%), the Netherlands (5.6%) and France (4.8%). Belgium (52K tons) took a little share of total exports.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the key exporting countries, was attained by Saudi Arabia (with a CAGR of +60.6%), while the other global leaders experienced more modest paces of growth.

In value terms, Germany ($562M), China ($365M) and South Korea ($239M) constituted the countries with the highest levels of exports in 2022, together accounting for 43% of global exports. The United States, Thailand, the Netherlands, Singapore, Belgium, Saudi Arabia and France lagged somewhat behind, together accounting for a further 44%.

Saudi Arabia, with a CAGR of +56.8%, saw the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average propylene glycol export price stood at $2,332 per ton in 2022, increasing by 4.8% against the previous year. Overall, export price indicated a noticeable increase from 2012 to 2022: its price increased at an average annual rate of +3.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, propylene glycol export price increased by +100.3% against 2020 indices. The most prominent rate of growth was recorded in 2021 when the average export price increased by 91% against the previous year. Over the period under review, the average export prices reached the peak figure in 2022 and is likely to continue growth in the immediate term.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($2,814 per ton), while China ($1,814 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+5.8%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform