GLOBAL 1,3 PROPANEDIOL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The Global 1,3 Propanediol Market size is valued at US$ 424.5 Mn in 2024 and is expected to reach US$ 799.3 Mn by 2031, growing at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2031.

s1,3 propanediol which is also known as trimethylene glycol or simply propanediol, is an organic compound with many industrial uses. It exists as a colorless and viscous liquid with a slight odor. Propanediol belongs to a group of compounds known as alkanediols, which are diols with three carbon atoms. There are two main types of propanediol namely petrochemical-based and bio-based. Petrochemical propanediol is produced from fossil fuel sources like crude oil, whereas bio-based propanediol is derived through the fermentation of renewable feedstocks like corn or sugarcane.

Propanediol has several advantages over other polyols. It is less toxic and more environmentally friendly than ethylene and propylene glycol. It has a higher boiling point which makes it suitable for high-temperature applications. Propanediol is completely miscible in water and has good solvent properties. Its viscosity can be easily modified based on the end use. Some key applications of propanediol include polytrimethylene terephthalate production, cosmetics, paints, coatings, personal care products, and de-icers. However, propanediol production via petrochemical routes relies on non-renewable resources. The fermentation process for bio-based propanediol is complex and costly.

Global 1,3 Propanediol Market Regional Insights

• North America: North America holds the largest market share in the 1,3 propanediol market, due to 45% high demand for 1,3 propanediol market in the cosmetics and personal care products and the presence of major market players in the region.
• Asia Pacific: The market in the Asia Pacific region is projected to hold the second largest market share 35%, driven by the growing demand for 1,3 propanediol market in cosmetics and personal care products .
• Europe: The 1,3 Propanediol Market in Europe holds 10% share in the market and the presence of major players in the region.

Figure 1. Global 1,3 Propanediol Market  Share (%), By Region, 2024

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Global 1,3 Propanediol Market  Analyst Viewpoint:

Global 1,3 propanediol market is expected to witness significant growth over the next decade (2030-2040). One of the main drivers boosting this market is the increasing demand for bio-based polymers and fibers. 1,3 propanediol is increasingly being used as a key raw material in producing polylactic acid (PLA) and polytrimethylene terephthalate (PTT), which are becoming more popular sustainable alternatives to traditional plastics.

Another driver is the rising application of 1,3 propanediol in cosmetics and personal care products. Skin and hair care brands are using it as a moisturizer and emollient in creams, lotions, and other products. Its non-irritating nature makes it appealing for these applications.

However, high production costs pose a challenge to widespread adoption. 1,3 propanediol is produced through fermentation processes which require significant capital investment and operating expenses. This restrains its price competitiveness against conventional plastics. Volatility in raw material prices also adds economic risks.

The Asia Pacific region, led by China, is expected to continue dominating the global 1,3 propanediol market over the forecast period. This is due to sizable manufacturing bases for downstream end use industries like polymers and fibers.

Global 1,3 Propanediol Market  Drivers:

• Increasing use in polytrimethylene terephthalate(PTT) production: The use of 1,3 propanediol is rapidly expanding as it is the key raw material that is used in the production of polytrimethylene terephthalate which is commonly known as PTT. PTT is a synthetic polyester which exhibits properties similar to nylon such as high strength, elasticity, and resistance to degradation by microorganisms. These properties have made PTT popular for manufacturing textiles, carpeting, upholstery and medical fabrics. Unlike nylon, PTT is moisture-wicking which makes it suitable for outdoor and sportswear. Leading brands are increasingly incorporating PTT fabric in their athletic and casual wear due to its soft texture and moisture management abilities. The demand for PTT has been growing at an impressive rate over the past few years as consumers are looking for high-performance fabrics for outdoor and athletic activities. The moisture transportation and quick-drying features of PTT fabric meet the evolving needs of active consumers. Several apparel manufacturers have expanded their PTT capacity which in turn is augmenting the consumption of 1,3 propanediol that acts as building block for producing PTT polymer. The favorable properties coupled with improving production technologies which are supporting the widening scope of PTT applications beyond textiles into areas such as filaments and films. This widespread utilization of PTT resin across diverse industries is driving significant volume growth for 1,3 propanediol in the near future. For example, Brazil is one of the leading producers of sugarcane-derived 1,3 propanediol. The Brazil country accounted for over 30% of global bio-1,3 propanediol production in 2021 according to the National Confederation of Agriculture.
• Expanding use in polyurethanes synthesis: 1,3 propanediol is finding increasing usage as an important intermediate in manufacturing polyurethanes on an industrial scale. Polyurethanes have diverse applications ranging from foam insulation to adhesives & sealants to coatings & artificial leathers. When 1,3 propanediol is used to synthesize polyurethanes, it offers producers the flexibility to cater to varied performance characteristics depending on the specific end use. For instance, polyurethane flexible foams when manufactured by using 1,3 propanediol as a raw material exhibit superior structural integrity, longevity, and compression set resistance. These high-quality flexible foams find wide applicability in bedding, furniture, automotive interiors and more. Besides flexible foams, 1,3 propanediol derived polyurethanes are also suitable for producing rigid foams, thermoplastic elastomers, adhesives, and synthetic leather. Their versatile properties and competitive production economics as compared to petrochemical-based routes are spurring the replacement of conventional polyol sources with bio-based 1,3 propanediol. The eco-friendly credentials and compliance with stringent regulatory standards make 1,3 propanediol an attractive proposition for the constantly evolving polyurethane industry. As polyurethane consumption continues to grow across major regional markets, the incorporation of bio-1,3 propanediol ensures simultaneous growth of the target market in the near future. For instance, according to data provided by the International Energy Agency's  report, in 2020, the global plastic demand is projected to double by 2050 with polyurethanes accounting for over 20% of total plastic production.

Global 1,3 Propanediol Market  Opportunities:

• Growth of Polyethylene Terephthalate (PET) substitutes demand: The demand for PET substitutes has been growing steadily in recent years due to rising environmental concerns and sustainability efforts of manufacturers. PET plastic is non-biodegradable in nature and takes hundreds of years to decompose. This has raised questions on its long term impact. 1,3 propanediol is a building block used to produce polytrimethylene terephthalate (PTT), which is a viable biodegradable alternative to PET in production oftextiles, containers and bottles. PTT breaks down quicker in municipal waste streams as compared to conventional plastics. For instances, according to statistics by United Nations Environment Program, around 11 Mn metric tonnes of plastic ends up in oceans annually, wreaking havoc on marine life and ecosystem. This has prompted governments worldwide to impose restrictions on single-use plastic items.
• Investments in research and development (R&D) activities: Investing in research and development is key for companies in the 1,3 propanediol market to gain a competitive advantage and drive future growth. 1,3 propanediol is primarily used to manufacture polytrimethylene terephthalate (PTT), which is a lightweight synthetic fibre that is stronger and softer than conventional polyester. As demand for sustainable and eco-friendly fibres grows, significant R&D efforts are being made to improve the production process for 1,3 propanediol to make it less resource-intensive and have a lower environmental impact. Companies that successfully develop more sustainable production technologies through R&D will be well-positioned to capitalize on the increasing preferences of textile brands and consumers for greener materials. For instance, research is ongoing to evaluate 1,3 Propanediol's potential as a platform chemical in producing biodegradable plastics, solvents, and cosmetic ingredients. As evidenced by the European Commission, global R&D expenditure on green chemicals is projected to grow over 6% annually between  2020-2023.

Global 1,3 Propanediol Market  Trends:

• Capacity expansion activities by key players:  The 1,3 propanediol market has been witnessing significant capacity expansion activities by major players over the past few years(2020). Several leading manufacturers have announced plans to set up new production facilities or expand existing units across major markets to cater to the growing demand for 1,3 Propanediol. The capacity enhancements by key manufacturers are aimed at capitalizing on the rising requirements for 1,3 PDO especially from polytrimethylene terephthalate(PTT) producers and other application industries. The demand for PTT fiber and resins has grown multi-fold in recent times on the back of increased textile and packaging needs. For instance, SK Innovation, a prominent South Korea based petrochemical company, started commercial operations of its new 180,000 tonne/year 1,3 PDO plant in Ulsan in 2021. This has significantly boosted SK Innovation's total PDO production capacity.
• Focus on bio-based 1,3-propanediol: The demand for bio-based 1,3-propanediol is rising significantly which is influencing the overall 1,3 propanediol market positively. There is an increasing consumer demand for more sustainable and eco-friendly products which is driving many brands and manufacturers to switch to bio-based alternatives. 1,3-propanediol is mainly used in polyester manufacturing for fabrics, films, and fibers. It is also used in cosmetics, personal care products, and pharmaceuticals. The rise in focus on sustainability and eco-friendliness in all of these industries is contributing to the growing demand for bio-based 1,3-propanediol. Major brands such as Patagonia, Nike and Adidas have committed to increasing the use of bio-based and recycled materials in their products. For instances, in 2021, Adidas announced their goal of using only recycled polyester in all of their products by 2024.       

Global 1,3 Propanediol Market  Restraints:               

• Volatility in raw material prices:  Volatility in raw material prices is presenting a considerable challenge for the 1,3 propanediol market. 1,3 propanediol is typically derived from corn or sugarcane, and fluctuations in agricultural commodity costs directly impact its production costs. In the past year (2020), corn and sugarcane prices have swung dramatically due to various market forces like weather conditions, energy costs, trade policies, and supply chain disruptions from the ongoing pandemic. Such instability in key feedstock pricing makes it difficult for 1,3 propanediol manufacturers to set stable product rates. When input prices rise sharply, companies may be forced to temporarily raise prices or halt production if customers resist rate hikes. This undermines confidence in the reliability of supply. Alternatively, unanticipated feedstock price drops squeeze manufacturer margins if rates cannot be adjusted quickly enough. The unpredictability hangs over long-term market forecasts and planning. It discourages new capacity additions as well as research and development for product improvements. Input price volatility also disproportionately impacts smaller-scale producers. Major industry players have more flexibility to negotiate long-term supply contracts or hedge commodity risks, but smaller companies lack these options. For instances, according to the U.S. Department of Agriculture, corn prices shifted by 30% between 2020 and 2021 alone. This degree of fluctuation makes it difficult even for mid-sized 1,3 propanediol producers to maintain consistent profitability and market share.
• Competition from substitute products: The 1,3 propanediol market is facing significant restraint from substitute products available in the market. 1,3 propanediol is mainly used in the production of polytrimethylene terephthalate (PTT) which is a substitute for polyester and nylon. However, polyester and nylon have been used in the textile and fiber industry for a very long time and have established strong product loyalty among manufacturers as well as consumers. Any new substitute product usually finds it difficult to gain widespread acceptance against entrenched incumbents. Polyester and nylon have reliable supplier networks and proven production processes that allow for mass manufacturing. Setting up new supply chains and production facilities for PTT requires large investments and comes with technology risks that traditional polyester and nylon manufacturers are hesitant to accept. This provides a competitive advantage to polyester and nylon in cost of production as well as reliability of supply. For instances, according to data provided by the  Fiber Year in 2020, global production of polyester was at over 100 Mn metric tons while nylon production was at over 11 Mn metric tons. The huge scale of existing polyester and nylon industries makes PTT a relatively niche substitute product.
• Counterbalance: The key market players in the 1,3 propanediol market needs to keep on innovating so as to be in the competition with other substitute products in the market.

Recent Development:

• In February 2023, Huntsman International LLC made headlines by launching three innovative products at the European Coatings Show. The highlight of these releases includes JEFFAMINE M-3085, a unique mono-polyether amine, and POLYRESYST IC6005, an advanced polyurethane system that is designed specifically for intumescent coatings. Huntsman International LLC, a subsidiary of Huntsman Corporation, is a global manufacturer and marketer of specialized and differentiated chemicals. The company operates across three divisions and features over 60 manufacturing, research and development, and operations facilities in approximately 30 countries.
• In September 2022, Covation Biomaterials teamed up with Primient, a company known for its 100% plant-based 1,3-propanediol production. This collaboration marked their entry into Primient's sustainable agriculture program. The initiative is a boon for corn farmers in the American Midwest, aiding them in implementing sustainable and regenerative farming practices. These practices are intended to cover an area equal to the total agricultural footprint of the corn used in the production of their plant-derived products, which include Zemea PDO, Susterra PDO, and the Sorona polymer. Covation Biomaterials is a leading global innovator that offers a product portfolio of high-performance, sustainable solutions. The company was founded in 2022 in Delaware, U.S. and is known for its expertise in providing innovative, high-performance, and bio-based materials at scale.
• In October 2021, Ashland unveiled Sensidin Pure Skin Multifunctional, a novel deodorant that boasts swift and potent effectiveness against odor-causing microorganisms. This new product combines the benefits of 1,3-propanediol, recognized for its natural solvent and humectant properties, with octenidine HCl, an active antimicrobial component. Ashland LLC, which is known as Ashland Global Holdings Inc. (NYSE: ASH), is a specialty materials company that offers a wide range of products, including adhesives, acrylates, cellulosics, emulsifiers, hydrogels, and specialty additives. Ashland is known for its proactive approach to sustainability and its commitment to innovation and research and development.

Figure 2. Global 1,3 Propanediol Market Share (%), By Application, 2024

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Top Companies in Global 1,3 Propanediol Market

• Tokyo Chemical Industry Co., Ltd.
• Shenghong Group Holdings
• Primient
• Haihang Industry
• DuPont, Metabolic Explorer
• Zhangjiagang Glory Biomaterial Co., Ltd.
• Zouping Mingxing Chemical Co., Ltd.
• Shell Chemicals LP
• Merck KGaA.

Definition: 1,3-propanediol (PDO) is a colorless to pale yellow and a very viscous liquid that is miscible with water. It is a bifunctional organic compound that is used for the chemical synthesis of various compounds, particularly for polycondensations. This 3-carbon diol is mainly used as a building block in the production of polymers such as polytrimethylene terephthalate. It can also be formulated into a variety of industrial products including composites, adhesives, laminates, coatings, moldings, aliphatic polyesters, and copolyesters. It is used as an antifreeze, a component in wood paint, and a common solvent. PDO is mainly produced by the hydration of acrolein, and biotechnological routes and bioprocessing by certain micro-organisms are also known for its production.