What is Propylene Glycol
Analysts Sentiment
Bullish
56.7%
Neutral
17.0%
Bearish
26.3%
What's driving sentiment this week:
Past Week (2026-06-02 to 2026-06-08) — Sentiment: Bullish
Dow Chemical’s June 2 price increase on Propylene Glycol directly supports producer margins and tightens supply economics in the US market.
US May ISM report confirming Propylene Glycol in short supply alongside strong manufacturing PMI at 54% signals robust demand driving tighter end-use availability.
Rising propylene feedstock prices in North America, Europe, and Northeast Asia in May strengthen upstream cost inputs, reinforcing bullish pricing pressure globally.
This Week (2026-06-08 to 2026-06-14) — Outlook: Bullish
Propylene Glycol market remains supported by firm producer pricing, sustained demand from manufacturing, and elevated feedstock costs maintaining producer margins.
Upcoming monitor on contract price movements post the May US PGP contract drop of 7¢/lb could confirm whether demand resilience offsets downward spot pressure (expected).
A sudden easing of US manufacturing activity or a sharp decline in propylene prices would risk softening near-term price momentum.
Key Market Impact
Strong producer price hikes combined with persistent manufacturing demand are driving tighter supply-demand balance and supporting margin expansion for Propylene Glycol.
Producers will likely maintain or raise prices while buyers adjust purchasing timing amid steady underlying demand to secure supply.
How About the Price?
Price Trajectory 2020–2026 (Brief Recap)
Phase 1 — Stable Pricing (2020): Prices held steady around $1205 USD/ton in January 2020 with no significant supply disruptions or demand shocks noted in the influence log.
Phase 2 — Weather-Driven Supply Disruptions (2021–2024): Severe winter storms such as Winter Storm Uri (Feb 2021), Landon (Feb 2022), Mara (Feb 2023), and Heather (Jan-Feb 2024) repeatedly caused force majeure events disrupting U.S. Gulf Coast propylene production, driving supply shortages and sharp price increases, including a 155% price rise in Feb 2022 and Feb 2023 and a 42% rise in early 2024.
Phase 3 — Elevated Price Levels (up to June 2026): Propylene glycol prices reached $1920 USD/ton by June 8, 2026, reflecting ongoing upstream volatility and constrained supply conditions since 2021 winter storm events, representing a cumulative increase of $715 since January 2020.
Supply-side factors
- Repeated force majeure due to winter storms causing production shutdowns on the U.S. Gulf Coast (e.g., 40% capacity lost during Winter Storm Uri, Feb 2021)
- Significant upstream propylene feedstock disruptions linked to extreme cold weather events (Landon 2022, Mara 2023)
- Volatility in natural gas prices impacting propylene supply chains (Henry Hub averaging $4.38/MMBtu in Feb 2021)
Demand-side factors
- Continued demand for propylene glycol as a key derivative of propylene, with downstream output sensitive to upstream feedstock availability
- Market price spikes driven by supply shortages causing temporary demand tightening or substitution
- Indirect weather impacts on industrial activity and logistics affecting consumption patterns during severe winters
Substitutes & Alternatives
| Substitute | Replacement Scenario / How It Substitutes |
|---|---|
| Ethylene Glycol (EG) | Used as a direct substitute in industrial antifreeze and heat-transfer fluid applications where low toxicity is not required. EG offers a slightly lower freezing point at equivalent concentrations and is cheaper, but is acutely toxic to mammals, so it cannot replace PG in food, pharmaceutical, or pet-safe antifreeze formulations. Substitution is straightforward in closed-loop HVAC and engine cooling systems. |
| Glycerol (Glycerin) | Replaces PG as a humectant, solvent, and moisture-retention agent in food, cosmetics, and pharmaceutical formulations. Glycerol is also GRAS and non-toxic. It is more viscous and slightly less effective as a solvent for some actives, so reformulation is typically required to adjust concentrations. Widely used as a partial or full substitute in personal care products (lotions, toothpaste) and as a food humectant. |
| Dipropylene Glycol (DPG) | A co-product of PG production, DPG substitutes for PG in fragrance carriers, plasticizers, and some industrial solvent applications where its higher boiling point and lower volatility are advantageous. It is not suitable for food or pharmaceutical use at the same regulatory status as PG. Drop-in substitution is feasible in many industrial solvent blends. |
| 1,3-Propanediol (PDO) | Replaces PG in polyol applications for polyurethane and polyester synthesis, and in cosmetic formulations as a humectant and solvent. Bio-based PDO (DuPont Tate & Lyle) is marketed as a sustainable alternative. It has a higher boiling point and slightly different solvency profile; reformulation is generally needed. Growing use in personal care as a PG substitute for consumers seeking bio-derived ingredients. |
| Sorbitol | Substitutes for PG as a humectant in food and personal care products (toothpaste, baked goods, confectionery). Sorbitol is a sugar alcohol with higher molecular weight and greater sweetness; it is used in higher concentrations to achieve equivalent moisture retention. Reformulation is required. It cannot replace PG in solvent or antifreeze applications. |
| Polyethylene Glycol (PEG, various MW) | Replaces PG as a solvent and carrier in pharmaceutical formulations (oral, topical, injectable) and in industrial lubricants and heat-transfer fluids. Low-MW PEGs (PEG-200, PEG-400) are liquid and most directly comparable. PEG is generally less hygroscopic than PG and has different regulatory limits; substitution requires formulation adjustment and regulatory review for pharmaceutical applications. |
| Vegetable-based / Bio-PG | Bio-based propylene glycol (produced via glycerol hydrogenolysis or bio-based propylene oxide) is chemically identical to petroleum-derived PG and is a drop-in replacement in all applications. It commands a price premium and is used by manufacturers seeking bio-content claims or sustainability certifications (e.g., USDA BioPreferred). No reformulation is needed. |
| Butylene Glycol (1,3-Butanediol) | Used as a substitute for PG in cosmetic and personal care formulations as a humectant, solvent, and skin-conditioning agent. It has lower irritation potential for some consumers and is perceived as a more premium ingredient. Substitution is typically straightforward in topical formulations at similar use levels, though solvency and viscosity effects must be evaluated. |
Regulatory Status
| Region | Regulation / Policy Name | Issuing Authority | Year (enacted or latest revision) | Key Requirement / Threshold | Source |
|---|---|---|---|---|---|
| United States | 21 CFR 184.1666 (USP-grade food additive) | U.S. FDA | 1977 (amended) | Generally Recognized As Safe (GRAS) for direct addition to food as multipurpose food additive; acceptable dietary intake 25 mg/kg body weight | https://nepis.epa.gov/Exe/ZyPURL.cgi?Dockey=P100WLVI.TXT |
| United States | Consolidated List of Lists | U.S. EPA | 2025 | Included in regulatory lists (no additional restrictions) | https://www.epa.gov/system/files/documents/2025-04/consolidated-list-of-lists-updated-april-2025.pdf |
| United States | Not classified as hazardous | U.S. DOT / IATA / IMDG | N/A | Not regulated for transport (UN number: none) | https://cameochemicals.noaa.gov/chemical/9030 |
| European Union | Registration under REACH (CAS 57-55-6) | ECHA | 2010 | 01-2119456809-23; no hazardous classification under CLP Regulation (EC) No 1272/2008 | https://www.propylene-glycol.com/faq/ |
| European Union | Not classified as dangerous | ECHA (REACH/CLP) | 2010 | No GHS or CLP hazard classification | https://www.belart.com/media/catalogstudio/SDS/Propylene%20Glycol.pdf |
| European Union | Approved feed material | EU Commission | 2010 (EU Reg 892/2010) | Approved as feed material (Catalogue of Approved Feed Materials, no. 13.11.1) | https://www.propylene-glycol.com/faq/ |
| China | Prohibition on new chlorohydrin plants | Ministry of Ecology and Environment (MEE) | 2015 | No new construction of chlorohydrin-based propylene oxide plants (older plants phasing out due to environmental wastewater/ byproducts) | https://www.nexanteca.com/blog/technological_independence-chinas-propylene-oxide-industry |
| India | Anti-dumping investigation | Directorate General of Trade Remedies (DGTR) | 2003 (ongoing review) | Investigation into imports of Propylene Glycol from USA, Singapore, Korea and European Union | https://www.dgtr.gov.in/en/anti-dumping-cases/propylene-glycol-usa-singapore-korearp-and-european-union |
Key Influence Events
Propylene glycol (PG), also known as 1,2-propanediol (CAS 57-55-6), is a clear, colorless, viscous, hygroscopic liquid with the molecular formula C3H8O2 and a molecular weight of 76.09 g/mol. It is miscible with water, ethanol, and many organic solvents, and has a low toxicity profile that distinguishes it from ethylene glycol. Commercially, it is produced predominantly by the hydration of propylene oxide, which is itself derived from propylene. Propylene glycol serves as a humectant, solvent, antifreeze, and heat-transfer fluid across a wide range of industries including food and beverage, pharmaceuticals, cosmetics, animal feed, unsaturated polyester resins, and industrial antifreeze/de-icing formulations. It is classified as Generally Recognized As Safe (GRAS) by the US FDA for food applications.
Top Countries Production Capacity
Production Process of Propylene Glycol
Propylene glycol (PG), also known as 1,2-propanediol (CAS 57-55-6), is a clear, colorless, viscous, hygroscopic liquid with the molecular formula C3H8O2 and a molecular weight of 76.09 g/mol. It is miscible with water, ethanol, and many organic solvents, and has a low toxicity profile that distinguishes it from ethylene glycol. Commercially, it is produced predominantly by the hydration of propylene oxide, which is itself derived from propylene. Propylene glycol serves as a humectant, solvent, antifreeze, and heat-transfer fluid across a wide range of industries including food and beverage, pharmaceuticals, cosmetics, animal feed, unsaturated polyester resins, and industrial antifreeze/de-icing formulations. It is classified as Generally Recognized As Safe (GRAS) by the US FDA for food applications.
Specs & Grades
| Property | Typical Value / Range | Unit | Grade |
|---|---|---|---|
| Purity (1,2-Propanediol) | ≥ 99.5 | % w/w | USP / Food / Industrial |
| Purity (1,2-Propanediol) | ≥ 99.8 | % w/w | Pharmaceutical (USP/EP) |
| Water content | ≤ 0.2 | % w/w | All grades |
| Color (APHA/Hazen) | ≤ 10 | APHA | USP / Food |
| Color (APHA/Hazen) | ≤ 20 | APHA | Industrial |
| Specific gravity (20/20°C) | 1.035 – 1.040 | g/cm³ | All grades |
| Boiling point (760 mmHg) | 187 – 188 | °C | All grades |
| Freezing point | -59 | °C | All grades |
| Flash point (Cleveland open cup) | 99 | °C | All grades |
| Viscosity (25°C) | 40 – 60 | mPa·s (cP) | All grades |
| Acidity (as acetic acid) | ≤ 0.010 | % w/w | USP / Food |
| Residue on evaporation | ≤ 0.01 | % w/w | USP / Pharma |
| Heavy metals (as Pb) | ≤ 5 | ppm | USP / Food |
| Arsenic | ≤ 1.5 | ppm | USP / Pharma |
| Refractive index (20°C) | 1.431 – 1.433 | — | All grades |
| Dipropylene glycol (DPG) content | ≤ 0.3 | % w/w | USP / Food |
| Dipropylene glycol (DPG) content | ≤ 1.0 | % w/w | Industrial |
Who are the Top Players?
| Company | Headquarters | Key Facilities |
|---|---|---|
| Dow Chemical | Midland, Michigan, USA | Freeport TX, Plaquemine LA, Terneuzen, Stade, Map Ta Phut, Aratu Industrial Plant |
| LyondellBasell Industries | Houston, Texas, USA | Bayport, TX, Fos, France |
| Shell plc | London, UK | Geismar, LA, Norco, LA |
| INEOS Oxide | Rolle, Switzerland | Antwerp, Belgium, Lavera, France, Plaquemine, LA, Bayport, TX |
| BASF SE | Ludwigshafen, Germany | Ludwigshafen, Germany |
| ADM | Chicago, Illinois, USA | |
| Huntsman Corporation | The Woodlands, Texas, USA | |
| Repsol S.A. | Madrid, Spain | Tarragona, Spain, Puertollano, Spain |
| Adeka Corporation | Tokyo, Japan | |
| SKC Co., Ltd. | Seoul, South Korea | Ulsan, South Korea |
| Manali Petrochemicals Limited | Chennai, Tamil Nadu, India | Manali, Tamil Nadu, India |
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