Global 1, 3 - Propanediol Market: High demand for environment-friendly, bio-based products is strongly propelling market growth.

Published Date: 07/05/2021

The global 1, 3-propanediol market size is projected to reach USD 815.7 million by 2027 from USD 398.9 million in 2020, at a CAGR of 10.8 %. 1, 3-propanediol is a class of specialty compounds, a colorless liquid that is miscible in water. These compounds can be produced either by hydration of acrolein or by hydroformylation of ethylene oxide. 1, 3-propanediol is mainly used as a feedstock in the production of various chemicals and materials. These high specialty compounds find its applications in the production of polytrimethylene terephthalate (PTT), polyurethane, cosmetics & personal care, and household cleaners. The other niche applications include engine coolants, de-icing fluid, and heat transfer fluid among others. The growing demand for polytrimethylene terephthalate (PTT) in various end-use industries is anticipated to be the major factor driving the global 1, 3-propanediol market during the assessed period. Glycerol is a byproduct of the biodiesel production process, which is a prominent raw material in the production of 1, 3-propanediol.

Hence, the growing production of biodiesel is expected to positively affect the growth of the global 1, 3-propanediol market. The volatility in crude oil prices along with the growing environmental regulations has resulted in investment in the research and development activities for the production of bio-based 1, 3-propanediol. This is anticipated to be a major opportunity for the market growth. Biobased 1, 3-propanediol is a FDA certified biobased product, which can be used in many applications such as functional &deicing fluid, coatings, cosmetic & personal care, home care, polymers, and fibers among others.

The global 1, 3-propanediol market is anticipated to grow at a healthy CAGR during the given period. Among the various application segments in 1, 3-propanediol market, the polytrimethylene terephthalate (PTT) followed by polyurethane is dominating the market and is anticipated to continue its dominance over the forecast period. polytrimethylene terephthalate (PTT) is extensively used in the production of cosmetic & personal care products, home care products, engine coolants, and heat transfer fluids among others, whereas polyurethane is mainly used in the building & construction and automobile industries.

A gradual paradigm shift in consumer preference for bio-based products is witnessed across the world. The growing awareness of consumers, increasingly stringent government regulations, and depletion of conventional sources have prompted companies to innovate and market sustainable products. PDO is one such biochemical which is estimated to have high demand. Bio-based PDO utilizes renewable feedstock, such as corn sugar and crude glycerin, making it more sustainable.

1,3-PDO is used as a replacement for petroleum-based glycols such as propylene glycol, butylene glycol, and glycerin. These products are available at a comparatively lower price than PDO, which is used in cosmetics, personal care & cleaning products, pharmaceutical & dietary supplements, and food &flavor applications. Moreover, the promotion of bio-based PDO is difficult in countries where there are no regulations regarding the adoption of bio-based products in various end-use applications.

The key market players profiled in the report include as DuPont Tate & Lyle Bio Products Company, LLC (US), Zhangjiagang Glory Biomaterial Co., Ltd. (China), Haihang Industry Company Ltd. (China), Tokyo Chemical Industry Co., Ltd. (Japan), ZoupingMingxing Chemical Co., Ltd. (China), and Merck KGgA (Germany), In addition, players such as METabolicEXplorer (France) and Sheng Hong Group Holdings Ltd. (China) who are planning to enter 1,3-propanediol market have also been profiled.

North America dominated the regional market in terms of both demand and market valuation. The region accounted for approximately three-fourth of global consumption in 2013. Emerging markets such as the Asia Pacific and Central & South America are presumed to experience the highest growth rate over the forecast period. Emerging economies such as China, India, Brazil, and Argentina are estimated to lead the regional market growth. Countries such as China, Brazil, Russia, and Argentina are taking ardent steps to reduce their fossil fuel dependence and encourage biodiesel production. Favorable regulations and mandates regarding biodiesel in these economies are poised to contribute to higher glycerol production and in turn, assist the market.