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

Global 1,3 Propanediol Market Size and Trends

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.

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.