The global biobased propylene glycol sales are on a steady upward trajectory, with a forecasted CAGR of 4.8% from 2024 to 2035. The value reached USD 4,533.0 million in 2023 and is projected to grow to USD 7,956.5 million by 2035. Historically, the industry saw a CAGR of 3.6%, and a 4.5% YOY growth is anticipated in 2025, with a value of USD 4,978.6 million.
The global biobased propylene glycol (PPG) market is on an impressive upward trajectory, backed by accelerating green chemistry initiatives, sustainability mandates, and technological advancements from both established giants and new entrants. Valued at USD 4,533.0 million in 2023, the market is expected to reach USD 4,978.6 million by 2025, growing at a year-over-year rate of 4.5%, and is projected to hit USD 7,956.5 million by 2035 with a compound annual growth rate (CAGR) of 4.8%.
The rise in eco-conscious industries such as food, cosmetics, pharmaceuticals, and construction is fueling the widespread adoption of biobased propylene glycol — a renewable, non-toxic, and biodegradable alternative to petroleum-derived glycols. Made from feedstocks like corn, soy, and sugarcane, this sustainable compound is fast becoming a vital component in the transition to circular economies and low-carbon manufacturing.
Rising Green Building and Construction Demand
The growing focus on green building programs worldwide is opening new avenues for biobased PPG. Its superior bonding properties, durability, and compatibility with other eco-friendly materials make it an ideal choice for adhesives, sealants, and coatings used in sustainable construction. As governments strengthen building certification frameworks — such as China’s Green Building Evaluation Label and LEED standards globally — the demand for biobased PPG is expected to rise sharply.
According to recent market analysis, corn-based propylene glycol will dominate the market with a 41.7% value share in 2025, while unsaturated polyester resins (UPR) — essential in construction, automotive, and marine applications — will account for 30.6% of total demand.
Global Semi-Annual Growth Momentum
The industry has maintained strong half-yearly momentum, with the CAGR for H1 2024 recorded at 4.2%, increasing to 4.9% in H2 2024. This upward trend continues in 2025, with H1 showing 4.4% growth and H2 rising to 5.2%, marking a healthy and sustained acceleration across global markets.
This performance reflects growing corporate and governmental commitment to sustainable material adoption and ongoing investments in R&D for renewable chemical manufacturing.
Innovation from Established Leaders and Emerging Players
Leading multinational corporations such as Cargill, Dow Inc., BASF SE, ADM, and LyondellBasell Industries (Tier 1 players) are at the forefront of developing high-purity, renewable PPG using bio-circular feedstocks. Their vast global networks and advanced R&D capabilities are enabling industries to transition away from petroleum-based inputs while maintaining product performance.
For example, Dow’s March 2024 launch of two sustainable propylene glycol solutions in North America highlights the shift toward mass balance-certified, bio-circular feedstocks, providing customers with verifiable sustainability credentials.
Tier 2 players, including Huntsman Corporation, Repsol S.A., and SK Global Chemical, are making strategic moves to strengthen regional positions by offering tailored, cost-effective bio-based solutions for industries such as automotive, pharmaceuticals, and personal care.
Meanwhile, Tier 3 companies — like P&G Chemicals and GLOBAL BioChem Technology Group — are driving innovation at the regional level, developing localized production hubs and specialized product lines. Their agility allows them to respond quickly to niche demands and collaborate with smaller industrial and agricultural businesses.
Emerging manufacturers across Asia-Pacific and Latin America are entering the market with AI-driven production technologies, advanced fermentation processes, and 3D material design innovations, making the biobased PPG sector more dynamic than ever.
Regional Highlights: Global Growth Hotspots
United States: Sustainability in Personal Care
In the United States, biobased PPG sales are projected to reach USD 952.0 million by 2035, growing at a CAGR of 6.0%. Consumer preference for non-toxic and eco-friendly personal care formulations is reshaping product development across cosmetics and hygiene brands.
Government programs such as the USDA Certified Biobased Product Label are helping consumers identify genuine bio-based goods, encouraging manufacturers to invest in renewable feedstocks.
China: Green Construction Transformation
China’s booming construction industry — worth nearly USD 4.8 trillion in 2023 — is embracing biobased PPG for paints, sealants, and adhesives. The Chinese government’s Green Building Materials Development Plan aims for the sector’s annual revenue to exceed USD 42 billion by 2026, directly promoting biobased chemical integration. The China Green Building Evaluation Label Program further incentivizes developers to use materials like biobased PPG to qualify for green certifications.
Brazil: Smart Coatings and Sustainable Packaging
In Brazil, the market is expected to grow at a CAGR of 5.8%, driven by the packaging industry’s transition to biobased smart coatings. Propylene glycol-based coatings enhance moisture resistance, antimicrobial protection, and product shelf life — critical factors for food and beverage packaging. Supported by the National Policy on Solid Waste, Brazil’s push toward recyclability and biodegradability is accelerating the use of renewable PPG in packaging and consumer goods.
India and Germany: Automotive and Industrial Growth
India and Germany, each recording steady growth rates of 5.5% and 5.0% respectively, are witnessing strong adoption of biobased PPG in automotive coolants and industrial applications. Both nations’ regulatory focus on decarbonization and sustainable materials positions them as key markets for new product innovation.
Technological Advancements and Feedstock Challenges
While renewable feedstocks like corn, sugarcane, and soy underpin the growth of biobased PPG, supply chain vulnerabilities — such as weather impacts and competition from food sectors — remain key challenges.
To mitigate these risks, manufacturers are investing in feedstock diversification, agro-tech integration, and waste-to-chemical innovations, ensuring a more stable and ethical production cycle.
The use of bio-circular feedstocks and carbon-neutral energy in production is also emerging as a priority, reducing both cost and environmental impact.
Expanding Applications Across Industries
Biobased PPG’s versatility is redefining multiple industries:
- Aviation: It is replacing ethylene glycol in aircraft deicing fluids, complying with FAA Ground Deicing Program sustainability guidelines.
- Pharmaceuticals: Its non-toxic, hypoallergenic properties are driving use in drug formulations and topical solutions.
- Food & Beverage: Used as a humectant and stabilizer, biobased PPG aligns with clean-label trends.
- Industrial Coolants and Automotive: Its thermal stability and biodegradability make it ideal for engine cooling systems in EVs and hybrids.
Future Outlook: A Decade of Sustainable Transformation
Between 2025 and 2035, the biobased propylene glycol market is expected to witness an era of sustained innovation, strategic expansion, and evolving regulations. The combined efforts of Tier 1 market leaders, regional mid-tier innovators, and emerging sustainable startups will redefine how industries produce, process, and consume renewable materials.
With growing consumer awareness, corporate sustainability mandates, and global policy alignment, biobased propylene glycol is set to become a cornerstone of the green chemical revolution — offering a pathway toward cleaner industries and a circular global economy.
As the market marches toward its projected USD 7.95 billion valuation by 2035, it signals not just a transformation in chemistry but a global commitment to sustainable progress — where innovation, responsibility, and collaboration lead the way.
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