Market Overview

The projected trajectory of the Biobased Propylene Glycol Market indicates an expected valuation of USD 5.1 Billion by 2024, characterized by a Consistent and gradual growth trend. Looking forward, the market is forecasted to attain a value of USD 6.87 Billion by 2033, maintaining a consistent Compound Annual Growth Rate (CAGR) of 4.65% throughout the forecast period from 2024 to 2033. This projection underscores the market's enduring and predictable growth, positioning it as a key player in the realm of sustainable and environmentally friendly chemical solutions. Brace for a market that promises sustained positive momentum in the biobased propylene glycol sector.

SOURCE: We Market Research

Biobased propylene glycol is an environmentally friendly substitute for its petroleum-based equivalent because it is derived from renewable resources like plants. This versatile solvent, humectant, and stabilizer is produced by procedures like fermentation and used in a variety of industries' goods, including food, cosmetics, pharmaceuticals, and automotive fluids. Sustainability objectives are aligned with its environmentally responsible procurement, which lessens environmental effect and decreases dependency on fossil fuels. This biobased substitute encourages a more environmentally friendly method of production and use while preserving the functionality of conventional propylene glycol.

The biobased propylene glycol business is driven by several essential components. Growing environmental concerns and a shift towards sustainable practises are driving up demand for renewable, eco-friendly alternatives across a number of industries. Industry growth is fueled by laws that favor bio-based products and rising public awareness of them. Businesses that spend in R&D to advance bioproduction technologies and broaden applications contribute to the growth of this sector. The versatility of biobased propylene glycol, which functions similarly to petroleum-based competitors while leaving a less carbon footprint, is another significant consideration. When taken as a whole, these components support a bright future for the market that is driven by sustainability, innovation, and support from the government for greener solutions.

Market Scope

Biobased Propylene Glycol Industry: Dynamics & Restrains

Market Drivers

Rising awareness of the environmental impact of petroleum-based propylene glycol - The Biobased Propylene Glycol Market is being driven by growing environmental awareness regarding petroleum-based propylene glycol. The desire for sustainable alternatives is fueled by growing awareness of the negative environmental effects of propylene glycol derived from petroleum, including its carbon footprint and contribution to pollution. Greener, renewable propylene glycol that minimizes environmental harm and depends less on fossil fuels is provided by biobased propylene glycol. Increased consumer preference and industry moves towards environmentally friendly products are being driven by this increased awareness, which is driving the market traction for biobased propylene glycol as a more sustainable and ecologically conscientious option.

Growing consumer preference for green products - The Biobased Propylene Glycol Market is driven primarily by consumers' growing inclination for environmentally friendly products. Growing consumer consciousness regarding environmental effects has led to a growing need for eco-friendly and sustainable products. These preferences are met by biobased propylene glycol, which provides a renewable and eco-friendly substitute for its petroleum-based counterpart. Because of its lower carbon footprint and environmentally benign production methods, biobased propylene glycol is becoming more and more popular among customers who are concerned about the environment. Growing customer preference for sustainable options drives market expansion and encourages innovation and the adoption of greener solutions in a variety of industries.

Market Restrains

logistical challenges and potentially higher transportation costs - Potential increases in transportation costs and logistical difficulties are significant obstacles to the Biobased Propylene Glycol Market. Because the locations of feedstock suppliers are often different from those of manufacturing facilities, complex supply chain logistics arise. Transporting agricultural goods or biomass across longer distances for production may lead to increased costs and carbon emissions. Moreover, logistical difficulties and delayed delivery may arise from the insufficient infrastructure for the production and distribution of biobased commodities. Notwithstanding the environmental advantages of biobased propylene glycol, lengthier supply routes or the requirement for specialist handling may result in greater transportation costs, which could limit the product's ability to compete on price.

Biobased Propylene Glycol Segmentation

Market- By Application Analysis

By Application, the Biobased Propylene Glycol Market is Categories into Functional Fluids and Antifreeze Products, Unsaturated Polyester Resins, Pharmaceuticals, Cosmetics, Detergents and Household Products, Other Applications. The Cosmetics segment accounts for the largest share of around 40% in 2022.

Biobased Propylene Glycol is essential to many cosmetic formulae due to its humectancy, emollient action, and fragrance-dissolving potential. It's frequently found in skincare products like lotions and creams, makeup like foundations and mascaras, and hair care products like shampoos and conditioners. An additional factor supporting BPG use in this industry is the growing popularity of natural and organic cosmetics fuel the market growth.

The following segments are part of an in-depth analysis of the global Biobased Propylene Glycol Market:

Biobased Propylene Glycol Industry: Regional Analysis

North America Market Forecast

North America dominate the Biobased Propylene Glycol Market with the highest revenue generating market with share of more than 46%. North America leads the region because of its strict environmental laws that encourage sustainable alternatives, growing customer demand for environmentally friendly goods, growing knowledge of the health advantages of BPG over propylene glycol derived from petroleum and the dominance of large BPG producers like Dow and Cargill.

Europe Market Statistics

Europe is the second-largest market for Biobased Propylene Glycol due to Higher disposable incomes driving consumer preference for sustainable products, Technological advancements in BPG production, Government initiatives supporting bio-based industries and Growing demand in personal care and pharmaceuticals further fuel the market growth.

Asia Pacific Market Forecasts

Asia Pacific is expected to be the fastest-growing market for Biobased Propylene Glycol during the forecast period. In the Asia-Pacific region, several drivers fuel the rapid growth of the Biobased Propylene Glycol market like the rapid industrialization and economic growth of nations like China and India and government measures to promote sustainability and increased environmental consciousness also contribute to the growth of this market.

Key Market Players

The Biobased Propylene Glycol Market is dominated by a few large companies, such as

·         Archer Daniels Midland Company

·         Ashland Inc.

·         Cargill Incorporated

·         BASF SE

·         The Dow Chemical Company

·         Evolon GmbH

·         Myriant Corporation

·         Roquette Frères

·         Susterra, Inc.

·         World Wide Chemicals, Inc.

·         Others

Recent Developments:

·         September 2023, Dow partners with biotech company Genomatica to develop and commercialize a new, more sustainable technology for producing Bio-PDO from renewable feedstocks.

·         September 2023, ADM signs a multi-year supply agreement with a leading personal care and cosmetics company to provide Bio-PDO for its products.

·         August 2022, ADM invests in a joint venture with a European biotechnology company to develop next-generation technologies for bio-based chemicals, including Bio-PDO.