The global propylene oxide market is estimated to be valued at US$ 18.8 billion in 2021 and is expected to exhibit a CAGR of 5.55% over the forecast period (2021-2027), as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Propylene oxide is a highly versatile chemical compound used in various industries such as automotive, construction, furniture, packaging, and textiles. It is primarily utilized in the production of polyurethane, which finds extensive use in manufacturing foam products, coatings, adhesives, and sealants. Moreover, propylene oxide is also used in the production of propylene glycol, a key ingredient in cosmetics, pharmaceuticals, and food products. The growing demand for polyurethane and propylene glycol is expected to drive the market growth during the forecast period.
B) Market Dynamics:
The market dynamics of the propylene oxide market are influenced by two key drivers:
- Increasing Demand for Polyurethane: The rising demand for polyurethane in various end-use industries such as construction, automotive, and furniture is driving the growth of the propylene oxide market. Polyurethane foam is widely used as insulation material in buildings and as cushioning material in automotive seating. Moreover, the increasing trend of energy-efficient buildings and lightweight vehicles is further fueling the demand for polyurethane, thereby boosting the propylene oxide market.
- Growing Demand for Propylene Glycol: Propylene glycol is extensively used as a solvent, humectant, and emulsifier in various industries. It is commonly used in personal care products such as lotions, creams, and cosmetics. Additionally, it is employed as a food additive and ingredient in pharmaceuticals. The expanding personal care and food industries are driving the demand for propylene glycol, thereby positively impacting the propylene oxide market.
C) Market Key Trends:
One key trend observed in the Propylene Oxide Market is the increasing focus on the development of bio-based propylene oxide. Manufacturers are striving to reduce their carbon footprint and enhance sustainability by replacing petroleum-based feedstocks with bio-based alternatives. Bio-based propylene oxide is derived from renewable sources such as biomass and can help reduce greenhouse gas emissions. For instance, the collaboration between The Dow Chemical Company and Royal Dutch Shell aims to commercialize a bio-based propylene oxide technology known as HPPO (Hydrogen Peroxide to Propylene Oxide). This trend is expected to gain traction in the coming years and drive the market growth further.
D) SWOT Analysis:
- Strength: Increasing demand for polyurethane and propylene glycol
- Weakness: High production costs and fluctuating raw material prices
- Opportunity: Growing investments in research and development for bio-based propylene oxide
- Threats: Stringent regulations regarding environmental impact and alternative technologies
E) Key Takeaways:
- The global propylene oxide market is expected to witness high growth, exhibiting a CAGR of 5.55% over the forecast period due to the increasing demand for polyurethane and propylene glycol.
- Asia Pacific is expected to be the fastest-growing and dominating region in the propylene oxide market, driven by rapid industrialization, infrastructure development, and expanding automotive and construction sectors.
- Key players operating in the global propylene oxide market include SK Chemicals, The Dow Chemicals Royal Dutch Shell, Tokuyama Corporation, Co., Ltd., BASF S.E., Huntsman International LLC., AGC Chemicals, CSPC Pharmaceutical Group Limited, Air Products and Chemicals, Inc., China Petrochemical Corporation, Eastman Chemical Company, Inc., PetroChina International Co., Ltd., Ineos Group Limited, Tokuyama, Hanwha Group, Sumitomo Chemical, Repsol, Air Liquide, and Mitsui Chemicals.