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1, 2-Propanediol (1,2-PD) is a versatile organic compound with the molecular formula CH3-CH(OH)-CH2-CH2-OH. It is a colorless, viscous liquid used as a raw material in various industries, including polymers, engineering plastics, textiles, personal care, and cosmetics. The 1,2-PD market is driven by its applications in the production of polyesters, such as Polytrimethylene terephthalate (PTT), and engineering plastics like Polyurethane. The market for 1,2-PD is experiencing significant growth due to the increasing demand for bio-based products. The supply chain for 1,2-PD is subject to disruptions due to the complex manufacturing process, which involves the conversion of biomass into substrates like glucose, lactate, and methylglyoxal using enzymes and cofactors.
In addition, the production process also involves the use of anaerobic conditions and the Methylglyoxal pathway, Deoxyhexose pathway, or Lactate pathway. Major manufacturers of 1,2-PD include Metabolic Explorer, a leading French biotech company, and various players in the consumer goods industry. The market for 1,2-PD is expected to grow due to its applications in textile applications, particularly Triexta fibers, and the retail sector. However, the production process involves the use of toxic intermediates and requires genetic engineering and strain optimization, which may have environmental impacts. The petrochemical industry also produces 1,2-PD, but the shift towards bio-based production is expected to drive the market towards sustainable production methods.
The increased demand for 1,2-propanediol from APAC is notably driving the market growth. In the global market, APAC holds the largest market share and is anticipated to expand significantly over the course of the forecast period, primarily driven by consistent demand from end-users in the personal care, pharmaceutical, and food and beverage industries. Pharmaceutical markets in China, India, and Japan are all significant. During the forecast period, there is anticipated to be an increase in demand for 1,2-propanediol due to rising healthcare costs and growing consumer awareness of the benefits of consuming healthy and environmentally friendly products.
Consumer preference for less toxic products combined with expanding pharmaceutical and personal care industries are anticipated to boost the market growth. Personal care items like soaps, detergents, hair conditioners, and moisturizing lotions are the main uses for 1,2-propanediol. It is also successfully used in pharmaceutical products as an excipient. Additionally, it is anticipated that during the forecast period, demand for 1,2-propanediol will increase due to the increased need for glycerol to produce food- and pharmaceutical-grade propanediol.
Rising demand for unsaturated polyester resins with increasing wind power installations is one of the major market trends. The wind energy sector is expected to grow significantly due to improved environmental policies and the expected rollout of projects currently in the development stage. Wind energy is expected to increase by more than 20% by the end of 2030, according to the Global Wind Energy Council. Onshore wind capacity is expected to grow by 839 gigawatts (GW) by the end of 2023, accounting for 50% to 60% of current installations, and offshore wind capacity will reach 52 GW by the end of 2023, according to the IEA. The increase in wind power capacity is supported by an increase in the number of wind turbines.
Unsaturated polyester resins are widely used in wind turbine rotor blades as laminating resins and adhesive pastes. The wind energy sector focuses on building large machines such as tall hubs, large rotors, and long blades. An increase in the use of unsaturated polyester resins in turbine connections is expected. Therefore, the increasing number of wind turbines and the growing need to manufacture large machinery are expected to increase the demand for unsaturated polyester resins, driving the growth of the market during the forecast period.
Health hazards associated with 1,2-propanediol are challenging the market growth. In the food and pharmaceutical industries, 1,2-propanediol-related health problems are a significant problem. Throughout the forecast period, the global market could be hampered by a number of health-related issues, including skin irritation and allergic reactions, harmful effects on the kidneys and liver, severe mental symptoms, and cardiovascular issues.
Additionally, the inclusion of 1,2-propanediol in pet food has sparked worries about animal illness. For instance, after receiving reports of animal illness, the Ministry of Agriculture, Livestock, and Supply decided to stop using two batches of 1,2-propanediol in September 2022. Such developments are expected to hamper the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ADM - The company offers different types of 1,2-propanediol products such as aircraft deicing fluid, heat transfer fluids, and liquid detergents.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
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The industrial grade segment was valued at USD 1.58 billion in 2018. Due to this segment's heat transfer medium, it is preferred in many applications. The demand for industrial grade 1,2-propanediol is also growing due to advantages like reinforced plastic lamination in marine construction, gel coats, sheet molding compounds, and synthetic marble castings. Additionally, it is the preferred product type among end users due to its excellent anti-freeze properties and low-temperature heat transfer in automotive and aircraft deicing fluids. As a result, the proliferation of end-user industries like construction, automotive, and consumer goods, including cosmetics, as well as the availability of numerous Companies selling industrial grade 1,2-propanediol, is likely to fuel the segment's growth, which will ultimately drive the market during the forecast period.
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APAC is estimated to contribute 46% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The rising demand from the pharma, cosmetic, and food sectors is one of the key factors propelling the market's expansion in APAC. Glycerol is commonly found in detergents, soaps, shampoos, and other personal care products because consumers prefer eco-friendly goods. The largest revenue-producing nations in the market in APAC are led by their expanding pharmaceutical industries: China, India, and Japan. The expansion of the region's construction, electrical, and electronics industries is a major factor in the segment growth of unsaturated polyester resins during the forecast period. Numerous industrial, commercial, and residential projects are being built in nations like China, Indonesia, South Korea, and India.
For instance, in its Union Budget for 2021–22, India allotted USD 868 million. Additionally, the Goods and Services Tax (GST) rollout, a strengthening economy, and an increase in government-driven large-scale infrastructure projects, including the building of bridges, airports, and other mega-projects like metro rail projects, are all anticipated to support the growth of the construction industry in India. Such developments are expected to increase the demand for unsaturated polyester resins, which, in turn, will propel the growth of the market in the region during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
1,2-Propanediol (1,2-PD) is a versatile organic compound with the molecular formula C3H8O2. It is a colorless, viscous liquid with a sweet taste and is widely used in various industries, including polymers, textiles, and consumer goods. The market for 1,2-PD is experiencing significant growth due to its applications in different sectors. The supply chain for 1,2-PD production is influenced by several factors, including manufacturing facilities, raw material availability, and market demand. The primary raw materials for 1,2-PD production are glycerol and various microorganisms, such as Klebsiella pneumoniae, Clostridium butyricum, Clostridium pasteurianum, and Citrobacter freundii. These microorganisms are used in fermentation processes to convert glycerol into 1,2-PD. 1,2-PD is used extensively in the production of polyesters, such as polytrimethylene terephthalate (PTT), which is used in textile applications. It is also used in the production of engineering plastics, such as polyurethane, and in the manufacturing of Triexta fibers. In the personal care and cosmetics industries, 1,2-PD is used as a solvent and as a raw material in the production of various products. The retail sector is another significant consumer of 1,2-PD, as it is used in the production of various consumer goods.
Additionally, the production of 1,2-PD involves various synthetic methods, such as the Degussa process and the Shell process, which use catalysts like hydroformylation catalysts and hydrogenation catalysts to enhance the catalytic performance of the reaction network. The biochemical route for 1,2-PD production is gaining popularity due to its green chemistry approach, which involves the use of hydrothermal conditions and glycerol dehydratase to convert glycerol into 1,2-PD. This method is more sustainable and eco-friendly compared to traditional methods, making it an attractive option for companies looking to reduce their carbon footprint. In summary, the 1,2-PD market is driven by its applications in various industries, including polyesters, engineering plastics, textiles, personal care, cosmetics, and consumer goods. The production of 1,2-PD involves various synthetic methods, and the biochemical route is gaining popularity due to its sustainability and eco-friendliness. The supply chain for 1,2-PD production is influenced by factors such as raw material availability, manufacturing facilities, and market demand.
Market Scope |
|
Report Coverage |
Details |
Page number |
190 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market Growth 2024-2028 |
USD 1.80 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
China, US, Germany, Japan, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Arham Petrochem Pvt. Ltd., Avril SCA, BASF SE, Dow Chemical Co., Global Bio chem Technology Group Co. Ltd., HELM AG, Huntsman International LLC, INEOS AG, LyondellBasell Industries N.V., Manali Petrochemicals Ltd., Merck KGaA, Repsol SA, Shell plc, Sisco Research Laboratories Pvt. Ltd., SKC, Sumitomo Chemical Co. Ltd., Tokyo Chemical Industry Co. Ltd., Toronto Research Chemicals Inc., and Vizag Chemical International |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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