Bio-Based Propylene Glycol Market By Source (Corn Starch, Soybean Oil, Glycerin, Sugarcane), By Production Process (Fermentation, Hydrolysis, Hydrogenation), By Form (Liquid, Solid), By Application (Food and Beverages, Pharmaceuticals, Cosmetics and Personal Care, Industrial Applications, Automotive), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Bio-Based Propylene Glycol Market was valued at USD 0.8 billion in 2023 and will surpass USD 1.3 billion by 2030; growing at a CAGR of 6.3% during 2024 - 2030.

The bio-based propylene glycol market is expanding as industries increasingly shift towards sustainable and renewable alternatives. Traditionally produced from petroleum-based sources, propylene glycol is now being derived from bio-based materials, such as corn starch, soybean oil, and glycerin, to reduce environmental impact. This transition is spurred by rising consumer demand for eco-friendly products, as well as increasing regulations aimed at reducing the use of fossil fuels and lowering greenhouse gas emissions. Bio-based propylene glycol offers significant environmental advantages, including a lower carbon footprint and reduced toxicity compared to its petroleum-derived counterpart.

As demand for bio-based products continues to rise across industries such as food and beverages, pharmaceuticals, cosmetics, and industrial applications, the bio-based propylene glycol market is expected to experience substantial growth. Bio-based propylene glycol, known for its versatility as a solvent, humectant, and stabilizer, is increasingly used in various formulations. The shift to bio-based sources is also driven by the increasing focus on sustainability and the need to replace harmful chemicals in everyday products. Innovations in production processes and raw materials are likely to further support the market's expansion.

Corn Starch Source Is Largest Owing to Abundant Availability and Cost-Effectiveness

The corn starch source is the largest segment in the bio-based propylene glycol market, owing to the widespread availability and cost-effectiveness of corn as a raw material. Corn is a highly abundant and renewable crop, making it an ideal feedstock for bio-based production processes. The fermentation process, which converts corn starch into bio-based propylene glycol, is both efficient and well-established, providing a sustainable alternative to petroleum-based sources. Additionally, the widespread use of corn in bio-based products across industries such as food, beverages, and cosmetics further drives the adoption of corn-based propylene glycol.

Corn starch-derived propylene glycol is highly favored due to its renewable nature and the established infrastructure for large-scale production. The U.S. and several other countries with large-scale corn production capacities are major contributors to the global supply of bio-based propylene glycol derived from corn starch. As the demand for eco-friendly and biodegradable products grows, corn starch continues to be a key source for bio-based propylene glycol production, especially in markets focused on reducing environmental footprints.

Fermentation Production Process Is Fastest Growing Owing to Sustainability Benefits

The fermentation production process is the fastest-growing method for producing bio-based propylene glycol, driven by its sustainability benefits and efficiency. Fermentation, which uses microorganisms to convert sugars derived from plants like corn or sugarcane into propylene glycol, is a more environmentally friendly process compared to other methods like hydrolysis or hydrogenation. This process allows for a higher yield of bio-based propylene glycol with fewer byproducts, making it an attractive option for manufacturers aiming to meet sustainability goals.

Fermentation-based production also supports the circular economy model, as it utilizes renewable resources and generates fewer emissions. The increasing demand for bio-based and biodegradable products across sectors such as food, pharmaceuticals, and cosmetics is propelling the growth of fermentation-based bio-based propylene glycol. With further advancements in microbial fermentation technology, this production method is expected to continue to grow, providing an efficient and eco-friendly solution for propylene glycol production.

Food and Beverages Application Is Largest Owing to Widespread Use of Bio-Based Ingredients

The food and beverages application is the largest segment for bio-based propylene glycol, driven by its widespread use as a food additive and stabilizer. Bio-based propylene glycol is commonly used in the food and beverage industry for its humectant properties, which help maintain moisture in products like baked goods, ice cream, and salad dressings. It also serves as a solvent for flavorings and colorings, ensuring product stability and consistency. As consumers increasingly demand natural and sustainable food ingredients, bio-based propylene glycol has become a preferred choice due to its renewable nature and lower environmental impact compared to its petroleum-based counterpart.

The demand for bio-based propylene glycol in food and beverages is further bolstered by growing trends towards clean-label products, where consumers are seeking transparency in the ingredients used in food production. Bio-based propylene glycol meets these consumer demands, offering a safer and more sustainable alternative to traditional additives. As the food and beverages sector continues to embrace natural ingredients, the use of bio-based propylene glycol is expected to increase, driving the growth of this segment.

North America Region Is Largest Market Owing to Agricultural Resources and Sustainability Trends

North America is the largest market for bio-based propylene glycol, owing to the region’s abundant agricultural resources and strong emphasis on sustainability. The U.S. and Canada, with their large-scale corn and soybean production, provide a steady supply of raw materials for bio-based propylene glycol production. Additionally, the North American market is supported by strict environmental regulations that promote the use of bio-based products over petroleum-based ones. Policies encouraging the reduction of greenhouse gas emissions and promoting renewable resource use are driving the shift toward bio-based alternatives.

In North America, the food and beverages sector, along with pharmaceuticals and cosmetics industries, are major consumers of bio-based propylene glycol. As these industries increasingly seek environmentally friendly ingredients, the demand for bio-based propylene glycol continues to rise. Moreover, the region's well-developed manufacturing infrastructure and R&D capabilities are driving innovation in bio-based propylene glycol production, further consolidating North America’s position as the largest market for this product.

Competitive Landscape

The bio-based propylene glycol market is competitive, with key players focusing on improving production processes, lowering costs, and expanding their product offerings. Major companies such as Dow Chemical, LyondellBasell, and Archer Daniels Midland are investing in sustainable production technologies and expanding their portfolios of bio-based products. These companies are leveraging their extensive R&D capabilities to innovate in raw material sourcing and fermentation technologies, ensuring they meet growing consumer demand for environmentally friendly products.

In addition to large players, several smaller companies are entering the market with specialized bio-based propylene glycol products, particularly in niche applications such as pharmaceuticals and cosmetics. The market is also seeing strategic partnerships between raw material suppliers, biotechnology firms, and chemical manufacturers to enhance production efficiency and meet sustainability goals. As competition intensifies, companies will continue to focus on product innovation and cost reduction to capture a larger share of the growing bio-based propylene glycol market.

Recent Developments:

• In November 2024, BASF SE announced the expansion of its bio-based propylene glycol production facility, focusing on renewable raw materials.
• In October 2024, Dow Chemical Company launched a new bio-based propylene glycol product line for use in cosmetics and personal care applications.
• In September 2024, Archer Daniels Midland Company (ADM) increased its production of bio-based propylene glycol from corn, focusing on industrial applications.
• In August 2024, LyondellBasell Industries N.V. entered into a partnership with a renewable energy company to develop bio-based propylene glycol from glycerin.
• In July 2024, Huntsman International LLC introduced a new bio-based propylene glycol for use in food and beverage processing, meeting stringent regulatory standards.

List of Leading Companies:

• BASF SE
• Dow Chemical Company
• Archer Daniels Midland Company (ADM)
• LyondellBasell Industries N.V.
• Global Bio-Chem Technology Group Company Limited
• Cargill, Incorporated
• SK Chemicals
• Huntsman International LLC
• BioAmber Inc.
• DuPont de Nemours, Inc.
• Eastman Chemical Company
• INEOS Group Limited
• Ineos Oxide
• Renewable Energy Group, Inc.
• Wilmar International Limited

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