Global 1,3 Propanediol Market is Estimated to Witness High Growth Owing to Technological Advancements in Production Process
1,3 Propanediol is a colorless, viscous and hygroscopic organic compound that is miscible in water and commonly utilized as a monomer for manufacturing polymers such as polytrimethylene terephthalate and polyester polyurethane. It has various commercial applications in manufacturing textiles, home and personal care products, packaging films and resins due to its non-toxic, biodegradable and biocompatible properties. The global 1,3 propanediol market has witnessed significant growth over the past few years owing to the rising demand from different end use industries and advancement in production process that has lowered its manufacturing costs. The growing use of biodegradable polymers in textile, packaging and home care sectors is boosting the demand for 1,3 propanediol.
The Global 1,3 Propanediol Market is estimated to be valued at US$ 424.5 MN in 2024 and is expected to exhibit a CAGR of 9.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the 1,3 Propanediol are Tokyo Chemical Industry Co., Ltd., Shenghong Group Holdings, Primient, Haihang Industry, DuPont, Metabolic Explorer, Zhangjiagang Glory Biomaterial Co., Ltd., Zouping Mingxing Chemical Co., Ltd., Shell Chemicals LP, and Merck KGaA. The market players are focusing on strategic collaborations to develop innovative production technologies and expand their global footprint.
The growing use of biopolymers in packaging, textile and home care industries is creating lucrative opportunities for 1,3 Propanediol manufacturers. Moreover, the rising demand for eco-friendly chemicals from different sectors will further aid the market growth over the forecast period.
Technological advancements in production process such as introduction of microbial fermentation process to manufacture 1,3 Propanediol from sustainable feedstock like sugarcane has significantly lowered the production cost, propelling the product adoption.
Market Drivers
Rising demand from polymer manufacturing industries is a major market driver. Global 1,3 Propanediol Market Size is extensively used as a monomer to produce polytrimethylene terephthalate polymer utilized in manufacturing textiles and home furnishings. It is also used to synthesize polyurethane elastomers and resins having numerous industrial applications. The growing polymer market especially in Asia Pacific region is fueling the demand for 1,3 propanediol. Moreover, increasing government policies and regulations regarding use of bio-based and sustainable chemicals is also boosting the global 1,3 propanediol market.
Current challenges in the Global 1,3 Propanediol Market:
The Global 1,3 Propanediol Market is facing numerous challenges currently which is hampering its growth potential. Stringent environmental regulations around the production of 1,3 Propanediol using bio-based routes is one of the major challenge. Ensuring sustainable and eco-friendly production methods is key to long term growth. Secondly, volatility in raw material prices poses a major risk. Prices of products like corn and sugarcane which are used for bio-based production fluctuates frequently impacting production costs. This results in uncertainty. Developing cost-effective technologies for large scale production using alternative feedstocks can help overcome this challenge. Also, building long term supply agreements can provide price stability.
SWOT Analysis
Strength: Bio-based production methods making it a sustainable chemical. Wide range of applications across various industries like construction, automotive etc providing diversification.
Weakness: High production costs compared to petro-based methods. Dependence on agricultural commodities as raw materials exposes to price fluctuations.
Opportunity: Growing demand for eco-friendly chemicals will drive volumes. Potential for development of novel applications especially in polymer industry.
Threats: Stiff competition from substitutes. Stringent regulations around waste disposal during production.
In terms of value, the North American region currently holds the largest share in the Global 1,3 Propanediol Market owing to presence of major players and rapidly growing polymer industry. Asia Pacific is another key geographical region concentrated owing to large manufacturing base and rapidly expanding end-use industries in countries like China and India.
The fastest growing region for the Global 1,3 Propanediol Market during the forecast period from 2024 to 2031 will be Asia Pacific. This is mainly due to robust economic growth, rising disposable incomes, increasing population and significant developments across various end-use industries like construction and automotive in China and India. Growing affinity towards sustainable chemicals is also supporting the market growth in Asia Pacific region.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
