Polypropylene Glycol Market Insights: USD 6.8 Bn by 2034

Overview

New York, NY – May 28, 2025 – The Global Polypropylene Glycol (PPG) Market is growing steadily, driven by its wide use in industries like automotive, construction, and personal care. In 2024, the market was valued at USD 4.3 billion, and it is expected to reach USD 6.8 billion by 2034, growing at a CAGR of 4.7% from 2025 to 2034.

Petroleum-based Polypropylene Glycol held an 87.2% market share in 2024, dominating the By Source segment of the Polypropylene Glycol Market. Industrial-grade Polypropylene Glycol led the By Grade segment with a 64.8% market share. Its dominance stems from its superior chemical properties and affordability, making it ideal for applications like lubricants, hydraulic fluids, and antifreeze products. The transportation sector accounted for a 34.6% share of the Polypropylene Glycol Market in 2024, leading the end-use segment.

US Tariff Impact on Polypropylene Glycol Market

New tariffs on imported polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC) will increase costs for U.S. manufacturers relying on international supplies, with a 10% tariff on plastic resin imports from China and a 15% tariff on petrochemical feedstocks from the Middle East. These tariffs are pushing manufacturers to prioritize domestic sourcing or seek alternative suppliers to offset the immediate rise in raw material costs.

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An American Chemistry Council report indicates that manufacturers dependent on imports may see cost increases of 12-20%, depending on supply chain adjustments. Plastics also reported that 60 plastic products exported from the EU to the U.S. could face retaliatory tariffs in response to the 25% tariffs on steel and aluminum announced by Trump on March 12, 2025. The association estimates these EU tariffs could affect USD 5.9 billion in U.S. exports.

Key Takeaways

• Global Polypropylene Glycol Market is expected to be worth around USD 6.8 billion by 2034, up from USD 4.3 billion in 2024, and grow at a CAGR of 4.7% from 2025 to 2034.
• Petroleum-based Polypropylene Glycol dominated with 87.2%, driven by its widespread industrial applications.
• Industrial Grade accounted for 64.8% share, attributed to its extensive use in lubricant production.
• The transportation sector led the demand for Polypropylene Glycol with a 34.6% share in 2024.
• The Polypropylene Glycol Market in Asia-Pacific reached USD 2.0 billion, showcasing strong demand.

Report Scope

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Key Market Segments

By Source Analysis

• Petroleum-based Polypropylene Glycol held an 87.2% market share in 2024, dominating the By Source segment of the Polypropylene Glycol Market. Its widespread use across industries is driven by cost-effectiveness and ready availability. The material’s excellent chemical stability and performance make it a staple in industrial applications, particularly in manufacturing lubricants and antifreeze products, which see strong industrial demand. Its critical role in producing polyurethane foams further strengthens its market position.

By Grade Analysis

• In 2024, Industrial-grade Polypropylene Glycol led the By Grade segment with a 64.8% market share. Its dominance stems from its superior chemical properties and affordability, making it ideal for applications like lubricants, hydraulic fluids, and antifreeze products. The material’s widespread use in polyurethane foam production, particularly for insulation in construction and automotive industries, further solidifies its market leadership. position.

By End-use Analysis

• The transportation sector accounted for a 34.6% share of the Polypropylene Glycol Market in 2024, leading the end-use segment. Its prominence is driven by extensive use in automotive and aerospace applications, including antifreeze formulations, brake fluids, and lubricants. Growing demand for high-performance lubricants and coolants, essential for vehicle efficiency and engine performance, boosts the segment’s share.
• The rise in vehicle production and focus on maintenance further increases Polypropylene Glycol consumption. Its thermal stability and viscosity control make it ideal for heat transfer fluids, while the growth of electric and hybrid vehicles drives demand for specialized fluids, cementing transportation’s dominance in the market.

Regional Analysis

• The Asia-Pacific region led the Polypropylene Glycol Market in 2024, securing a 46.6% share valued at USD 2.0 billion. Its dominance is fueled by strong demand in key industries like automotive, construction, and manufacturing, where Polypropylene Glycol is widely utilized in lubricants, antifreeze, and polyurethane foams. North America experienced significant growth, driven by the rising use of Polypropylene Glycol in hydraulic fluids and heat transfer applications.
• Europe trailed closely, with increased investments in the automotive and aerospace sectors boosting demand for high-performance lubricants and coolants. The Middle East & Africa saw consistent demand, mainly from construction and industrial applications. Latin America held a moderate share, supported by growing industrial activities and increased adoption of polyurethane-based products. Asia-Pacific’s sustained demand and expanding industrial applications solidify its position as the leading market for Polypropylene Glycol in 2024.

Top Use Cases

• Lubricants: Polypropylene Glycol is widely used in making lubricants for machines and vehicles. Its excellent viscosity and thermal stability ensure smooth operation and reduced wear in engines and industrial equipment. PPG-based lubricants are popular in automotive and manufacturing sectors, supporting high-performance needs and extending machinery life with cost-effective solutions.
• Antifreeze and Coolants: PPG is a key ingredient in antifreeze and coolant formulations for vehicles and industrial systems. It prevents freezing and overheating, ensuring optimal engine performance. Its ability to maintain stability in extreme temperatures makes it ideal for automotive and aerospace applications, driving demand in transportation sectors.
• Polyurethane Foams: PPG is essential in producing polyurethane foams used in insulation, furniture, and automotive parts. Its flexibility and durability make it a preferred choice for creating lightweight, energy-efficient materials. The construction and automotive industries rely on PPG for insulation and cushioning, boosting its market growth.
• Hydraulic Fluids: PPG is used in hydraulic fluids for machinery and vehicles due to its high viscosity control and stability. It ensures efficient power transfer and equipment protection in industrial and automotive applications. The demand for reliable hydraulic systems in manufacturing and construction drives PPG’s popularity in this segment.
• Cosmetics and Personal Care: PPG is found in cosmetics like lotions, creams, and shampoos for its moisturizing and thickening properties. It enhances product texture and skin hydration, making it a staple in personal care formulations. Its safe, non-toxic nature supports its growing use in the beauty industry, especially in skincare products.

Recent Developments

1. Formosa Plastics Corporation

• Formosa Plastics has been expanding its polypropylene glycol (PPG) production to meet growing demand in polyurethane foams and coatings. The company is investing in sustainable production methods, including bio-based raw materials, to reduce environmental impact. Recent initiatives focus on high-performance PPG grades for automotive and construction applications.

2. Huntsman Corporation

• Huntsman launched new JEFFOL PPG products with enhanced flexibility and durability for adhesives and elastomers. The company is also developing low-VOC (volatile organic compound) formulations to support eco-friendly manufacturing. Huntsman’s R&D focuses on PPG innovations for electric vehicle (EV) battery components.

3. Repsol

• Repsol has integrated PPG into its circular economy strategy, producing bio-based polypropylene glycol from renewable feedstocks. The company’s recent partnership with Puig aims to develop sustainable PPG for cosmetics and pharmaceuticals, reducing the carbon footprint.

4. Ineos

• INEOS Oxide introduced new low-monol PPG grades for high-resilience foams and specialty chemicals. The company is scaling up production in Europe to meet demand from the automotive and industrial sectors, emphasizing energy-efficient processes.

5. SABIC

• SABIC’s latest PPG innovations focus on medical and personal care applications, offering ultra-pure, pharma-compliant grades. The company is also exploring PPG-based solutions for 3D printing materials, enhancing performance in additive manufacturing.

Conclusion

Polypropylene Glycol’s versatility and cost-effectiveness drive its strong demand across industries like automotive, construction, cosmetics, and pharmaceuticals in 2024. Its dominant role in lubricants, antifreeze, and polyurethane foams, supported by robust supply chains, ensures market leadership. With expanding applications and regional growth, particularly in Asia-Pacific, PPG remains a vital component, poised for continued market expansion.

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