Shift Toward Organic Products to Significantly Propel the Global Bio-based Propylene Glycol Market Until 2020, Says Technavio
By Business Wire News
By Business Wire News
According to the latest research report released by Technavio, the global bio-based propylene glycol market is expected to reach USD 575 million by 2020.
This report titled ‘Global Bio-based Propylene Glycol Market 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. The report presents projections for the overall market based on application and geographical segments.
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“The demand for bio-based products is expected to increase rapidly during the forecast period due to the demand from the pharmaceutical, cosmetics, and food sectors. It is expected to translate into a demand for bio-based propylene glycol in these sectors. For instance, the global organic personal care products market is expected to grow at a CAGR of more than 10% during the forecast period. The market is expected to touch USD 13.25 billion in revenue by 2018. Rising concerns over health, side effects of synthetic products, and hygiene will therefore continue to propel market growth until 2020,” said Chandrakumar Badala Jaganathan, one of Technavio’s lead industry analysts for bio chemicals and materials.
Some of the other driving forces behind the growth of the global bio-based propylene glycol market are as follows:
- Demand from automobile industry
- Growing demand from APAC
- Rising environmental concerns
Demand from automobile industry
The global automobile industry is expected to grow rapidly during the forecast period. Economic recovery in the US and Europe has increased the demand for automotive products. The recovery has also increased employment, increased per capita income, and accessible credit facilities, increasing the buying power of consumers.
This demand will compel automotive manufacturers to increase their production levels by either installing new capacities or expanding the existing ones. The global automobiles market is expected to grow at a CAGR of 5%-6% during the forecast period. Bio-based propylene glycol is used for different applications in the automobile industry such as sheet molding compounds and antifreeze agent.
Growing demand from APAC
APAC is the strongest growing market for bio-based propylene glycol. The rapid increase in industrialization and developments in infrastructure in China, India, and South Korea are the primary drivers for bio-based propylene glycol in this region. The construction market in China is expected to rise to USD 2.49 trillion by 2019, growing at a CAGR of 12.14% during 2016-2020.
Unsaturated polyester resins made from propylene glycol are widely used for construction. Therefore, the growth in construction market will translate into the demand for bio-based propylene glycol over the forecast period.
Rising environmental concerns
Propylene glycol is produced from propylene oxide and is widely used in the manufacture of plastics, food products, electronics, and pharmaceuticals. However, growing environmental concerns such as the use of perishable resources (petroleum) and hazardous petrochemical process pollutants released during the production and use of propylene glycol have compelled vendors to develop advanced bio-based processing technologies.
Although propylene glycol is recognized safe, the acceptable intake is only 25 mg per kg of body weight (according to WHO). Bio-based propylene glycol is eco-friendly and complies with stringent government regulations regarding emission.
ADM, a US-based company, has been manufacturing bio-based propylene glycol in its Illinois, US plant since 2011. It has a plant capacity of 100 kilotons per year. The company also manufactures industrial-grade bio-based propylene glycol using refined glycerin as feedstock. In addition, the company has developed an innovative technology for the production of bio-based propylene glycol using sorbitol. Realizing the potential of this market, many new entrants are anticipated to flock to this market in the next four years.
Browse related reports
- Global Propylene Market 2015-2019
- Global Hydrogen Peroxide Market 2015-2019
- Global Styrene Market 2015-2019
- Global Polyols Market 2015-2019
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