The Global"1,3-Propanediol Market" is predicted to reach a high CAGR of 14.2% during the forecast period (2022-2029).
1,3-Propanediol is a colorless, viscous liquid having a boiling point of 210℃. It is non-miscible and the melting point of the liquid is 246 kelvin. It is used in the formation of polymers like poly trimethylene terephthalate. It is also an aprotic solvent, also used as antifreeze and in coatings and wood paints. It is formed by the hydration of an aldehyde called propenal or acrolein.
The major factor driving the rising demand for Global 1,3-Propanediol is the use of 1,3-propanediol in the production of polyesters, polyethers and polyurethanes. It is also used in cosmetics, personal care and cleaning products. An increase in focus on eco-friendly products is also driving the market for bio-based 1,3-propanediol.
Increasing Use of Polyesters, Polyethers and Polyurethanes is driving the growth of the market
1,3-propanediol is used in the synthesis of polyethers, polyesters, and polyurethanes and polymethylene terephthalate. It is used in cosmetics, food flavours, personal care products, engine coolants and transfer fluids. Polyesters are used in various industries like clothing, audiotapes, electrical insulation, X-ray films etc and their demand is increasing which is increasing the market growth of 1,3-propanediol. Polyurethanes are used in the textile industry, paints and coatings. Polyethers are used in adhesives, elastomers, flexible foams etc. Poly trimethylene terephthalate(PTT) is used in the textile industry and also in the manufacturing of sportswear, carpet etc.
An increase in the use of eco-friendly products is also driving the growth of the market
Increasing the focus on eco-friendly products due to environmental regulations is driving the growth of the market of bio-based 1,3-propanediol(PDO). People are becoming more aware of eco-friendly products as conventional resources are depleting. Companies like DuPont Tate & Lyle Bio Products Company, LLC are producing 1,3-propanediol using renewable livestock like crude glycerol. Many companies are using biological processes for the manufacture of 1,3-propanediol. Some companies are expanding their production like DuPont Tate & Lyle Bio Products Company, LLC expanded their manufacturing facility to Loudon, Tennessee in 2018 to produce 35 million pounds bio-based 1,3-propanediol annually along with 135 million pounds. Even many governments are making plans to shift to a bio-based economy as many agreements have been made recently like European union want a 40% reduction in greenhouse gas emissions by 2030 compared to 1990 and 25% of chemicals will be bio-based in the European Union by 2030. According to the report by Dupont and Tate& Lyle, 47% fewer greenhouse emissions are produced by bio-based PDO than petroleum-based PDO and bio-based PDO produces 42% fewer emissions than propylene glycol, and bio-based PDO produces 48% fewer emissions than butanediol. Petroleum-based PDO harms the environment and is quite expensive.
The Presence of low costly substitutes and lack of awareness among the people are hampering the growth of the Global 1,3-Propanediol Market.
COVID-19 Impact Analysis
The Global 1,3-Propanediol Market has shown a slight decline due to the COVID-19 pandemic, as there were full or partial lockdowns in many countries of the world. 1,3 propanediol(PDO) is used in the production of polyesters, polyethers, polyurethanes, and poly trimethylene terephthalate. Poly trimethylene terephthalate(PTT) is used in the textile industry and also in the manufacturing of sportswear, carpet, etc. Due to the restrictions due to lockdown, demand for sportswear and other types of apparel declined during the pandemic. According to the reports, the global sports apparel market was USD 181 billion in 2019 and decreased to USD 178 billion in 2020. It is expected that the sports market will grow due to more promotional activities over E-commerce sites. It is used in cosmetics, food flavors, personal care products. During the pandemic, the cosmetics industry declined as there was less demand for both regional and professional users due to travel restrictions. Beauty parlors, salons were also closed in major parts of the world. France, and the USA, which are the biggest producers of cosmetics, skincare products were in really bad conditions, so factories were shut down. Covid-19 also affected the textile industry as many factories were closed down and the global supply chain was also affected but the demand for masks and other essentials saved the industry from declining. These factors affected the market of 1,3-propanediol.
Global 1,3-Propanediol is segmented based on Source, Application, End-User Industry, and Region.
Based on the source, the Global 1,3-Propanediol Market is segmented as - bio-based propanediol and petrochemical-based propanediol.
The bio-based propanediol(PDO) has a significant market share in the Global 1,3-propanediol as people are becoming more aware of the use of bio-based 1,3-propanediol, even the strict regulations are driving the market growth. Increasing demand for biodiesel production is driving the market growth of 1,3-propanediol(PDO) as bio-based PDO is produced with the use of renewable livestock like crude glycerol, corn sugar, etc. crude glycerol is the byproduct released during the production of biodiesel. Increasing the use of biodiesel is due to low carbon emissions, lower cost, low environmental impact. According to the report by Dupont and Tate& Lyle, 47% fewer greenhouse emissions are produced by bio-based PDO than petroleum-based PDO and bio-based PDO produces 42% fewer emissions than propylene glycol, and bio-based PDO produces 48% fewer emissions than butanediol. Even bio-based PDO consumes 42% less non-renewable energy than petroleum-based PDO. Since petroleum is a limited resource and it increases global warming, even natural gas and shale gas are some of the temporary solutions to the problem, so people are focusing more on fossil-free resources which in turn increases the use of bio-based 1,3- propanediol(PDO). An increase in focus on sustainability and green economy and various strategies and plans are taken by governments across the world to shift to the bio-based economy like European union proposed that there should be a 40% reduction in greenhouse gas emissions by 2030 compared to 1990 and 25% of chemicals should be bio-based in the European Union by 2030. Bio-based PDO can also be used in hair products instead of petroleum glycols. However, petroleum-based glycols like propylene glycol and butylene glycol are cheaper than bio-based PDO and also there are many countries where there are no regulations regarding the use of bio-based products.
Based on application, the Global 1,3-Propanediol market is segmented into poly trimethylene terephthalate(PTT), Polyurethane(PU), Cosmetics, Personal Care, Cleaning Products and others.
Based on End-User Industry, Global 1,3-Propanediol Market is segmented into Synthetic Drugs, Engineering Plastics, Textile Dyeing and Finishing, and others.
Based on Region, the Global 1,3-Propanediol is segmented as - North America, Europe, Asia-Pacific, Middle East, Africa, South America.
North American region has the highest market share of Global 1,3-Propanediol and it is expected that it will grow at a much higher rate in the future as it is used in large quantities in manufacturing cleaning products, cosmetics, and polyurethane. Polyurethane is used in the textile industry. USA is the third-largest producer of 1,3-propanediol(PDO) with a global market share of 5-6%. The USA is also the third-largest exporter of cosmetics and skincare products, in 2019 USA had a market share of approximately 10% with total exports of USD 6 billion. Some of the major cosmetics companies in this region are - Johnson&Johnson, Proctor&Gamble, Estée Lauder, Coty, etc. High biodiesel production is also another factor for the growth of the Global 1,3-Propanediol Market, a by-product of biodiesel production- crude glycerol is used for producing 1,3-Propanediol. The US is among the largest producer of biodiesel. According to the report by International Energy Agency, the total production of biodiesel in the USA was 8.4 billion, 8.2 billion in 2019, 2020 respectively. USA has the highest market share in this region due to the increase in R&D of bio-based raw materials. DuPont Tate & Lyle Bio Products Company, LLC is the largest producer of 1,3 propanediol in this region.
Global 1,3-Propanediol Market is fragmented with key global players in the market. Some of the major companies contributing to the market's growth are- Dupont Tate & Lyle Bio Products Company, Ltd, Zouping Mingxing Chemical Co., Ltd, Haihang Industry Co., Ltd, Hunan Rivers Bioengineering Co., Ltd, Merck KGgA, Tokyo Chemical Industry Co., Ltd, Zhangjiagang Huamei Biomaterial Co., Ltd, Metabolic Explorer, Sheng Hong Group Holdings Ltd.
Mergers and Acquisitions, expansions, joint ventures etc increases competition in the market such as DuPont Tate & Lyle Bio Products Company, LLC expanded their manufacturing facility to Loudon, Tennessee in October 2018.
New products, services launched, partnerships and agreements also increase competition between companies as in 2019, the DuPont Tate & Lyle Bio Products Company, LLC completed the plan of producing additional 35 million pounds bio-based 1,3-propanediol annually along with 135 million pounds. DuPont Tate & Lyle Bio Products Company, LLC also collaborated with Inolex Inc and Corbion for creating bio-based personal care products and natural products in May 2019.
Dupont Tate & Lyle Bio Products Company, Ltd
The Dupont Tate & Lyle Bio Products Company, Ltd is an American company that is the largest producer of bio-based, petroleum-free 1,3-propanediol (PDO). It is a 2005 joint venture of Dupont and Tate & Lyle. The headquarters of the company is located in Loudon, Tennessee, USA. The main motive of the company is to provide customers with products made from petroleum-free, sustainable and renewable resources. DuPont Tate & Lyle Bio Products Company, LLC expanded their manufacturing facility to Loudon, Tennessee in 2018 to produce additional 35 million pounds bio-based 1,3-propanediol annually along with 135 million pounds. Dupont is an American chemical company that in 2017 merged with dow chemical, it is headquartered in Wilmington, US. Tate & Lyle plc is a British company which supplies ingredients of food and beverages to the market. Tate & Lyle plc is headquartered in London. It is a 1921 merger of Henry Tate & Sons and Bernard Lyle & Sons. Dupont is ranked 144 on the list of fortune 500 companies and the market value of the company is USD 41.3 billion. Tate & Lyle plc is also listed on the London Stock Exchange. The focus of The Dupont Tate & Lyle Bio Products Company, Ltd is on expansions, innovations and agreements to retain its position in this competitive market. The products of the company are distributed in various countries like the US, Italy, Poland, Russia, Turkey etc.
Dupont De Nemours Ltd is ranked 144 on the list of fortune 500 companies and the market value of the company is USD 41.3 billion. Tate & Lyle plc is also listed on the London Stock Exchange. The major shareholders of Dupont De Nemours Ltd are The Vanguard Group, Inc, SSgA Funds Management, Inc, BlackRock Fund Advisors with market shares of 7.68%, 5.22%, 4.28% respectively. Some of the major shareholders of Tate & Lyle plc are Threadneedle Asset Management Ltd., The Vanguard Group, Inc., SEB Investment Management AB with market shares of 7.88%, 3.3%, 2.99% respectively.
Why Purchase the Report?
The Global 1,3-Propanediol radar market report will provide access to approximately 53 market data tables, 44 figures, and 180 pages
Target Audience 2022
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