1,3-Propanediol Market Analysis

1,3-Propanediol Market Analysis

The 1,3-propanediol market is segmented by source into bio-based and petrochemical-based. Bio-based segment accounted for a largest revenue share in the global market, valued at USD 363.47 Million in 2020. Growing environmental awareness, increasing demand for bio-based products, and government intensives is expected to augment the market growth.
 

The demand for biodiesel increased significantly in recent past driven by favorable government initiatives and mandates such as, European Union set up a mandator biofuel target of 10% for the European transport sector in 2020. Increasing biodiesel production particularly in Asia-Pacific and Europe has resulted into increased availability of glycerol and reduction in price. This may boost the development of the glycerol fermentation pathway.
 

The global market is bifurcated on the basis of application as polyurethane, polytrimethylene terephthalate (PTT), personal care & detergents, pharmaceutical, food & beverages, heat transfer fluid, inks and coatings and others. Polyurethane application was valued at USD 80.90 million in 2020. Increasing demand for high performance and bio-based polymer textile, footwear and automotive application will augment the 1,3-propanediol market revenue. Moreover, increasing bio-based polyurethane coatings, bio-based waterproof breathable films, bio-based TPU outsoles and bio-based synthetic leather uppers will augment the market growth.
 

The long-term growth of the market is set to be optimistic owing to significant investment for Research & development and capacity expansion in bio-based product universe. Furthermore, favorable government policies for green economy and sustainable development, changing lifestyle and economic growth will support the growth of the global 1,3-propanediol market.
 

Asia-Pacific was valued at USD 148.8 million in 2020 and is anticipated to register a CAGR of 9.6% during the review period. The market growth is attributed to increasing manufacturing of personal care & cosmetic product in Asia-Pacific region such as in China and India driven by increasing consumer spending and growing affluent population. Furthermore, growing automotive industry coupled with increasing investment in construction activities to spur the 1,3-propanediol market sales.
 

In sync with the global trend the companies in the region are adapting to new technologies and are looking for renewable and sustainable products. Furthermore, favorable government regulations and mandated regarding biodiesel in countries such as China, India, Indonesia, and Malaysia are leading to increase in biodiesel production thereby contribute to higher glycerol production and in turn will assist the 1,3-Propanediol market growth. In countries such as China and Malaysia several manufacturers are investing in R&D for process development and building production units of 1,3-propanediol to meet the growing demand in the Asia Pacific.