1, 2-Propanediol Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, Japan, India - Size and Forecast 2024-2028

1, 2-Propanediol Market Size 2024-2028

The 1, 2-propanediol market size is forecast to increase by USD 1.8 billion at a CAGR of 6.78% between 2023 and 2028.

The 1,2-Propanediol market is experiencing significant growth due to several key factors. Favorable government policies, particularly in the form of subsidies and incentives, are driving market expansion. Additionally, the increasing demand for eco-friendly construction materials is boosting the market, as 1,2-Propanediol is used in the production of polyurethane foam insulation. However, the market faces notable challenges, particularly regarding health risks linked to the production and usage of this chemical. Ensuring worker safety and addressing environmental concerns are critical for sustainable growth. Despite these obstacles, the market is poised for continued expansion, driven by rising demand across key industries such as automotive, textiles, and food and beverage.

What will be the 1, 2-Propanediol Market Size During the Forecast Period?

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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.
• Moreover, 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.

How is this 1, 2-Propanediol Industry segmented and which is the largest segment?

The 1, 2-propanediol industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product Type
  • Industrial grade
  • Food grade
  • Pharmaceutical grade
• Application
  • Unsaturated polyester resins (UPR)
  • Functional fluids
  • CP and F
  • Liquid detergents
  • Others
• Geography
  • APAC
    • China
    • India
    • Japan
  • Europe
    • Germany
  • North America
    • US
  • South America
  • Middle East and Africa

By Product Type Insights

• The industrial grade segment is estimated to witness significant growth during the forecast period.

The market is a significant sector in the chemical industry, with various applications in polyesters, polytrimethylene terephthalate, bio-based products, engineering plastics, polyurethane, textile applications, and even in triexta fibers, personal care, cosmetics, and the retail sector. However, the market faces challenges due to supply chain disruptions, which can impact the production of these polymers. Manufacturing facilities utilize synthetic methods such as the Degussa process and Shell process, which involve hydroformylation, hydrogenation, glycerol hydrogenolysis, and the use of catalysts. These processes convert glycerol under specific reaction conditions, including biochemical routes and hydrothermal conditions.

Metabolic Explorer, a leading company in the industry, employs microorganisms like Klebsiella pneumoniae, Clostridium butyricum, Clostridium pasteurianum, and Citrobacter freundii in the fermentation process to produce 1, 2-propanediol. The use of bio-based methods aligns with green chemistry principles, enhancing catalytic performance and glycerol conversion in the reaction network. The production of 1, 2-propanediol also has applications in the production of biodiesel, making it a patented and valuable commodity in the chemical industry. The versatility of this compound in various sectors underscores its importance in the global market.

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The industrial grade segment was valued at USD 1.58 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• APAC is estimated to contribute 46% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The 1, 2-Propanediol (PDO) market is a significant segment of the bio-based chemical industry, driven by its applications in textile manufacturing and polymer production. The microbial biosynthesis of PDO is facilitated by enzymes such as Propanediol dehydratase, which catalyzes the conversion of 1,3-propanediol to 1,2-PDO under anaerobic conditions. Metabolosomes, specialized subcellular organelles, play a crucial role in the metabolic engineering of bacteria and yeasts for efficient PDO production. The metabolic pathways for PDO biosynthesis include the methylglyoxal pathway, deoxyhexose pathway, and lactate pathway. The choice of substrates, such as glucose, lactate, or methylglyoxal, influences the stereoisomers produced, with R-1,2-PDO and S-1,2-PDO being the primary forms.

Moreover, the metabolic engineering of microorganisms involves optimizing strains, genetic engineering, and adaptive laboratory evolution to improve PDO yield, reduce toxic intermediates, and enhance carbon flux. Downstream processing of PDO involves the conversion of chiral synthons into high-value chemicals and the production of byproducts. The environmental impact of PDO production is a critical consideration, with ongoing research focusing on optimizing fermentation conditions and reducing the use of non-renewable resources. The chassis cells used in synthetic biology, such as Escherichia coli and Saccharomyces cerevisiae, are continually being engineered to improve PDO production efficiency and reduce production costs. Protein engineering and enzyme engineering are also essential tools in enhancing PDO production and improving the overall sustainability of the bio-based chemical industry.

Market Dynamics

Our 1, 2-propanediol market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of 1, 2-Propanediol Industry?

Favorable government policies are the key drivers of the market.

• The global 1,2-propanediol market is experiencing significant growth due to increasing demand for eco-friendly products and favorable government policies. Regulatory bodies such as REACH, U.S. Environmental Protection Agency (EPA), Toxic Substances Control Act (TSCA), and Chemical Substances Control Law (CSCL) promote the use of glycerol in various applications, including the production of 1,2-propanediol. This eco-friendly chemical does not contribute to greenhouse gas emissions, hazardous pollutants, or volatile organic compounds (VOCs), making it an attractive alternative to traditional chemicals. 1,2-Propanediol is widely used in the production of polyesters, polytrimethylene terephthalate (PTT), bio-based products, engineering plastics, polyurethane, textile applications, triexta fibers, personal care, cosmetics, and retail sector.
• Moreover, manufacturing facilities employ various synthetic methods such as the Degussa process, Shell process, hydroformylation, and hydrogenation to produce 1,2-propanediol. Microorganisms like Klebsiella pneumoniae, Clostridium butyricum, Clostridium pasteurianum, and Citrobacter freundii are used in the biochemical route for glycerol conversion through fermentation. This biochemical route is gaining popularity due to its green chemistry approach and catalytic performance. The reaction network involves glycerol hydrogenolysis under hydrothermal conditions to produce 1,2-propanediol. Cellulose and glycerol dehydratase are also used in the production process. Biodiesel production is another significant application of 1,2-propanediol. Patented polymers and synthetic methods, such as the hydroformylation process using catalysts, are used to enhance the catalytic performance and glycerol conversion efficiency. The reaction conditions, including temperature, pressure, and catalyst type, play a crucial role in the production process. The 1,2-propanediol market is expected to continue growing as the demand for eco-friendly and sustainable chemicals increases.

What are the market trends shaping the 1, 2-Propanediol Industry?

Increasing demand for green construction is the upcoming trend in the market.

• The market is witnessing significant growth due to its extensive applications in various industries, particularly in the production of bio-based polyesters. These polyesters find extensive use in engineering plastics, such as Polytrimethylene terephthalate (PTT), used in textile applications like Triexta fibers. Moreover, the demand for bio-based products is increasing in the retail sector, consumer goods, and personal care industries, including cosmetics, due to the growing awareness and concern for the environment. Manufacturing facilities are adopting green chemistry principles, using the biochemical route for the production of 1, 2-propanediol. This involves the fermentation of glycerol using microorganisms such as Klebsiella pneumoniae, Clostridium butyricum, Clostridium pasteurianum, and Citrobacter freundii.
• Moreover, the patented processes for the production of 1, 2-propanediol include the Degussa process and Shell process, which employ hydroformylation and hydrogenation, respectively. The reaction conditions for glycerol hydrogenolysis, a critical step in the production process, are crucial for optimal catalytic performance. The biochemical route offers several advantages, including the use of renewable resources, reduced carbon footprint, and the production of less waste. The reaction network for glycerol conversion to 1, 2-propanediol involves hydrothermal conditions and the use of cellulose and glycerol dehydratase as catalysts. The demand for bio-based 1, 2-propanediol is also driven by its use in the production of polymers and synthetic methods, such as hydrothermal conditions and glycerol hydrogenolysis, which are essential for the production of various polymers, including polyurethane and polyester resins. These polymers find extensive applications in various industries, including textiles, engineering plastics, and consumer goods.

What challenges does 1, 2-Propanediol Industry face during the growth?

Health hazards are a key challenge affecting the industry growth.

• The global 1,2-propanediol market faces challenges due to health concerns arising from its use in various sectors, particularly in food and pharmaceuticals. Health issues, including skin irritation and allergic reactions, negative effects on the kidneys and liver, severe mental symptoms, and cardio problems, may hinder market growth during the forecast period. In the pet food industry, the use of 1,2-propanediol has raised concerns regarding animal illness. For instance, in September 2022, the Ministry of Agriculture, Livestock, and Supply suspended the use of two batches of 1,2-propanediol following reports of animal illness. This development, among others, is anticipated to impede market expansion during the forecast period.
• In the manufacturing sector, 1,2-propanediol is used to produce polyesters, polytrimethylene terephthalate, engineering plastics, polyurethane, and textile applications, including Triexta fibers. It also finds applications in the retail sector, personal care, cosmetics, and consumer goods. The production of 1,2-propanediol is typically achieved through synthetic methods, such as the Degussa process and Shell process, which involve hydroformylation, hydrogenation, glycerol hydrogenolysis, and other reaction conditions. Alternatively, a biochemical route using microorganisms like Metabolic Explorer's Klebsiella pneumoniae, Clostridium butyricum, Clostridium pasteurianum, and Citrobacter freundii can be employed for glycerol conversion through a reaction network under hydrothermal conditions. Green chemistry principles, such as catalytic performance and glycerol conversion efficiency, are essential in optimizing the production process. These methods are patented and offer advantages in terms of cost, sustainability, and scalability.

Exclusive Customer Landscape

The 1, 2-propanediol market forecasting 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry. The 1, 2-propanediol industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• 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.
• Vizag Chemical International

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 industry 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.

Research Analyst Overview

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.

Moreover, 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. 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.

Additionally, 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.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the 1, 2-Propanediol industry during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of industry companies

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