Global 1,3-Propanediol Market Outlook to 2030

Global 1,3-Propanediol Market Overview

• The global 1,3 propanediol market size was estimated at USD 420 million in 2023. The market growth is driven primarily by the increasing demand for eco-friendly and sustainable chemicals. 1,3-Propanediol is used in various applications such as in the production of polymers, cosmetics, and personal care products due to its biodegradability and lower environmental impact.
• The key players in the global 1,3-Propanediol market include DuPont Tate & Lyle Bio Products, Metabolic Explorer, Zhangjiagang Glory Biomaterial, Shanghai Demeng New Material Co., Ltd., and Haihang Industry Co., Ltd. These companies dominate the market due to their extensive distribution networks, advanced product offerings, and strategic partnerships.
• In 2023, DuPont Tate & Lyle Bio Products expanded their 1,3-Propanediol production facility in Loudon, Tennessee, increasing their annual production capacity by 15,875 metric tons. This expansion is aimed at meeting the growing demand from the cosmetics and personal care industry.
• The United States dominated the 1,3-Propanediol market in 2023, accounting for the largest share of the regional market due to the presence of key manufacturers such as DuPont Tate & Lyle Bio Products, extensive research and development infrastructure, and strong governmental support for sustainable chemical production.

Global 1,3-Propanediol Market Segmentation

Global 1,3-Propanediol market is segmented into application, production method, and region.

• By Application: The 1,3-Propanediol market is segmented by application into polytrimethylene terephthalate (PTT), cosmetics and personal care, food and beverage, and others (pharmaceuticals, detergents, antifreeze, lubricants, and industrial solvents). In 2023, the cosmetics and personal care segment dominated this segment, driven by the increasing demand for natural and sustainable ingredients in cosmetics. 1,3-Propanediol is preferred for its moisturizing properties and compatibility with various cosmetic formulations.

• By Region: The market is segmented by region into North America, Europe, Asia Pacific, Middle East & Africa, and South America. In 2023, North America held the largest market share. The dominance of these regions is due to the presence of major manufacturers and high adoption rates of sustainable products.

• By Production Method: The 1,3-propanediol market is segmented by production method into fermentation and chemical synthesis. In 2023, the fermentation segment dominated the market due to its eco-friendly nature and the growing consumer awareness regarding the benefits of bio-based products.

Global 1,3-Propanediol Market Competitive Landscape

• Metabolic Explorer: Metabolic Explorer introduced a new cost-effective fermentation process in 2023, reducing the production cost of 1,3-Propanediol by 15%. This innovation has made bio-based 1,3-Propanediol more competitive in the market, enhancing its adoption in various applications.
• Shanghai Demeng New Material Co., Ltd.: In 2023, Shanghai Demeng New Material Co., Ltd. announced a collaboration with Nestl, a major food and beverage company, to develop new applications for 1,3-propanediol in food products. This development is expected to increase the adoption of 1,3-propanediol in the food and beverage sector.

Global 1,3-Propanediol Market Analysis

Global 1,3-Propanediol Market Growth Drivers:

• Expansion in the Polymer Industry: The polymer industry, particularly in the production of polytrimethylene Terephthalate (PTT), is a consumer of 1,3-Propanediol. In 2023, the polymer industry consumed 40,000 metric tons of 1,3-propanediol.
• Increased Demand in Cosmetics and Personal Care: The demand for bio-based chemicals such as 1,3-Propanediol in the cosmetics and personal care industry is increasing. In 2023, the cosmetics and personal care industry utilized more than 20,000 metric tons of 1,3-propanediol. This trend is projected to continue as consumers increasingly prefer natural and sustainable ingredients.
• Advancements in Biotechnology: The continuous advancements in biotechnology are enhancing the production efficiency of 1,3-Propanediol. In 2023, innovations in fermentation technology increased the production yield by 15%, leading to a total global production of 125,000 metric tons.

Global 1,3-Propanediol Market Challenges:

• Supply Chain Disruptions: The global supply chain for 1,3-Propanediol experienced some disruptions in 2023, with logistical challenges leading to a decrease in the timely delivery of raw materials. Such disruptions were particularly evident in the aftermath of the COVID-19 pandemic, which strained global shipping and logistics networks. These challenges affected the overall production and availability of 1,3-propanediol in the market, making it difficult for manufacturers to meet the growing demand.
• Competition from Petrochemical Alternatives: Despite the environmental benefits, 1,3-Propanediol faces stiff competition from cheaper petrochemical alternatives. In 2023, the global market share of petrochemical-based products was substantially higher, overshadowing the bio-based chemicals market. This competition stems from the lower production costs and established supply chains of petrochemical alternatives, which continue to dominate the market due to their cost-effectiveness and extensive industrial use.

Global 1,3-Propanediol Market Government Initiatives:

• European Union's Bioeconomy Strategy: The European Union has invested in promoting bio-based chemicals through its bioeconomy strategy. In 2023, under the Horizon Europe research and innovation program, the EU invested approximately EUR 916 million in projects that advance both the bioeconomy and circular economy sectors. This substantial funding aims to reduce dependence on non-renewable resources and promote sustainable industrial practices.
• Indias Bio-based Chemical Promotion: The growth potential of the bio-based chemicals market in India, is estimated it to be around USD 1.5 billion in 2023 with a projected CAGR of 15-20% over the next five years. This initiative is aimed at fostering the growth of sustainable chemical production, including 1,3-Propanediol, within the country.

Global 1,3-Propanediol Future Market Outlook

Global's 1,3-Propanediol market is expected to grow in the coming years. The market is also likely to shift towards more organized with established players and online platforms expanding their reach.

Global 1,3-Propanediol Future Market Trends:

• Increased Adoption in Industrial Applications: Over the next five years, the use of 1,3-Propanediol in industrial applications is expected to rise. By 2028, it is projected that the demand for 1,3-Propanediol in the industrial sector will reach substantial levels due to its high-performance characteristics and environmental benefits.
• Expansion of the Bio-based Chemicals Market: The global bio-based chemicals market is expected to expand over the next five years, with 1,3-Propanediol playing a crucial role. By 2028, the market is projected to reach new heights, driven by the increasing demand for sustainable and environmentally friendly products across various industries.