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Germany Propylene Glycol Market - Forecast(2023 - 2028)
Germany Propylene Glycol Market Overview
Germany's Propylene Glycol Market size is projected to reach US$292.8 million by the end of 2027 after growing at a CAGR of 4.6% during the forecast period
2022-2027. Propylene glycol is often produced from propylene oxide, glycerol is
a synthetic liquid material that easily absorbs water. Propylene glycol is
used to make polyester composites and hydraulic fluid and is used as a base for
de-icing solutions. The growing automotive industry in Germany and the eco-friendly
production process of bio-based propylene glycol are expected to drive the
market during the forecast period. The other factors driving the growth of the
Germany Propylene Glycol market are the increasing preference for ethylene
glycol, expanding demand from the cosmetic & personal care industry, the flourishing
building & construction industry and growing applications in the food &
beverage industry. Several end-use
industries in the Germany Propylene Glycol industry suffered negative effects
as a result of the novel coronavirus pandemic. The production halt owing to
enforced lockdown resulted in decreased supply, demand and consumption of Propylene
Glycol in Germany, which had a direct impact on the Germany Propylene Glycol market
size in the year 2020.
Germany Propylene Glycol Market Report Coverage
The “Germany Propylene Glycol
Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth
analysis of the following segments in the Germany Propylene Glycol industry.
Key Takeaways
- The Germany Propylene Glycol market is increasing at a rapid pace, owing to the increasing production and demand for automotive in Germany. This increase in production and demand can be attributed to the increasing urbanization, growing per capita income and population in Germany.
- Future market growth will primarily be driven by the creation of an industrial-scale direct synthesis technique for the production of propylene glycol and an increasing preference for propylene glycol over ethylene glycol.
- The rising demand for unsaturated polyester resins, which are used as reinforced plastic or fiberglass composite in the transportation, building, automotive and marine industries, is driving the German propylene glycol market. In Germany, each of these markets is expanding quickly, which helps the propylene glycol market expand as well.
Figure: Germany Propylene Glycol Market Revenue Share, By Source, 2021 (%)
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Germany Propylene Glycol Market Segment Analysis – by Source
The bio-based segment held a significant share in the Germany Propylene Glycol market share in 2021 and is projected to grow at a CAGR of 6.9% during the forecast period 2022-2027. Propylene glycol can be made from glycerin using bio propylene glycol as an alternative to propylene glycol produced from propylene oxide and glycerol. Detergents and other cleaning products that contain ingredients derived from plants can support trust-building "green" claims like "sustainable," "renewable," and "plant-based." Additionally, products may earn the "USDA Certified Biobased Product" label if they contain a certain amount of biobased material. In the event of significant global events, the price of crude oil derivatives such as propylene oxide and glycerol may change dramatically. Prices for biobased products are typically more consistent. The Department of Energy claims that switching from petroleum-based propylene glycol to renewable propylene glycol made from biomass can reduce greenhouse gas emissions by 61 percent. As a result, the demand for bio-based Propylene Glycol in Germany is on a significant upsurge, thereby driving segmental growth.
Germany Propylene Glycol Market Segment Analysis – by Application
The Unsaturated polyester resins segment held the largest share in
the Germany Propylene Glycol market share in 2021 and is forecasted to grow at
a CAGR of 4.8% during 2022-2027. The majority of
commercially available unsaturated polyester resins (UPR) are made from
1,2-propylene glycol as the diol in the polymer and phthalic and maleic
anhydride as the saturated and unsaturated components. Unsaturated polyester
resins are primarily used in the manufacture of filled plastic products and fiber-reinforced
plastics, such as sanitary ware, tanks, pipes, gratings and high-performance
components for the infrastructure, marine and transportation industries, such
as closure and body panels, fenders, boat hulls/decks and other large glass fiber
reinforced plastic articles. Coatings and adhesives both use unsaturated
polyester resins. Unsaturated polyester resins are in high demand as
infrastructure development picks up. All these markets are rapidly growing
which has generated high demand for unsaturated polyester resins, thus, aiding
the propylene glycol market growth in the unsaturated polyester resins segment.
Germany Propylene Glycol Market Segment Analysis – by End-use Industry
The automotive & transportation segment held the largest share in the Germany Propylene Glycol market share in 2021 and is forecasted to grow at a CAGR of 5.3% during the forecast period 2022-2027, owing to the growing demand for propylene glycol from the transportation industry in Germany. The increase in the use of propylene glycols in applications, such as aircraft deicing fluid, unsaturated polyester resins, automotive coolants, hydraulic fluids and brake fluids, is driving the propylene glycol market growth in the automotive & transportation industry. The automotive industry is growing in Germany, for illustration, according to the Verband der Automobilindustrie (VDA), in contrast to the standstill in passenger car production in April 2020 (-97 percent), in April 2021, 316,200 cars were built (+2701 percent). In the first four months of this year, production reached almost 1.3 million units (+22 percent). According to the Federal Ministry for Economic Affairs and Energy (BMWi), in Germany, more than 360 shipping companies operate around 2,700 seagoing vessels. According to owner nationality, with its merchant fleet, Germany is the largest shipping nation after Greece, Japan and China. In container shipping, Germany holds around 29 percent of all container-carrying capacities worldwide and is still positioned as an international leader. According to the International Trade Administration (ITA), in 2019, the German aerospace industry reported revenues of EUR 41 billion, representing a growth of 2.5% over 2018 (EUR 40 billion). As a result, the expanding transportation sectors are expected to boost demand for deicing fluid, unsaturated polyester resins, automotive coolants, hydraulic fluids and brake fluids, propelling the market growth.
Germany Propylene Glycol Market Drivers
Growing Building and Construction Activities:
Propylene glycol is often used to manufacture
unsaturated polyester resins, which are then used to formulate paint, coatings
and adhesives. And they find many applications in the construction industry,
particularly as masonry adhesives for bonding, filling and repairing natural
and artificial stones, decorating and more. The German building and
construction industry are gradually growing, for illustration, according to the
European Construction Sector Observatory (ECSO), in Germany, between 2010 and
2020, the total number of businesses in the construction sector grew by 33.2%,
from 536,874 to 715,198. The narrow subsector of construction, which increased
by 71.7 percent and architectural and engineering activities, which increased
by 20.6 percent, were the main drivers of this growth. Similar to this, between
2015 and 2020, the volume index of production in the overall construction
sector rose by 16.6%, primarily due to increases of 26.9% and 15.1% in the
volume index of production in the construction of civil engineering and
buildings, respectively. Similarly, the overall construction sector's revenue
increased by 64.0 percent from 2010 to reach EUR 618.6 billion in 2019. (EUR
377.3 billion). In 2020, it increased even more, reaching EUR 638.9 billion, a
growth of 69.3% from 2010. According to the German Federal Statistical Office
(Destatis), seasonally and working-day adjusted price-adjusted new orders in
the country's primary construction industry increased by 0.5 percent in May
2022 compared to April 2022. With the increasing construction activities, the
demand for paint, coatings and adhesives was also spurred in Germany, thereby
fueling the Germany Propylene Glycol market growth during the forecast period.
Bolstering Growth of the Pharmaceutical Industry:
A variety of oral, topical and intravenous medications use propylene
glycol. Additionally, it is employed as a solvent and a drug stabilizer.
Propylene glycol can be used as a solvent for insoluble pharmaceutical
formulations because of its miscibility with water. Similar uses for propylene
glycol include intravenous drug administration, where it facilitates better
chemical absorption by the body. In Germany, there is bolstering the growth of
the pharmaceutical industry, for instance, according to the Germany Trade &
Invest (GTAI), Pharmaceutical R&D, manufacturing and sales are all best
done in Germany. The largest pharmaceutical market in Europe is expanding more
quickly than the German economy due to trends like demographic change, an
increase in chronic diseases and a growing emphasis on self-medication and
prevention. After the United States, China and Japan, Germany is the
fourth-largest pharmaceutical market in the world. The European Federation of
Pharmaceutical Industries and Associations (EFPIA) estimates that the
pharmaceutical industry as a whole generated revenue of EUR 46.4 billion in
2019, an increase of 5.7%. From EUR 32,905 million in 2018 to EUR 33,158
million in 2019, pharmaceutical production increased. With the increasing
pharmaceutical industry in Germany, the demand for oral, topical and
intravenous medicines is increasing at a robust pace, thereby driving the Germany
Propylene Glycol market.
Germany Propylene Glycol Market Challenge
Concerns Related to Propylene Glycol Usage:
Propylene glycol is certainly less dangerous than ethylene glycol,
however, it has various health hazards and concerns related to it. Propylene
glycol commonly causes mild skin irritation, which can result in redness, as
one adverse reaction. This typically occurs in people who are allergic to the
substance and goes away quickly after the body has had a chance to break down
the substance. Many IV medications, including the anxiety-relieving and
seizure-treatment drug lorazepam, contain propylene glycol. This medication is
frequently given to psychiatric patients or patients with severe burns to
sedate them while they heal. Clinicians have found elevated blood levels of
creatinine when lorazepam is administered in high doses over an extended period,
which may indicate kidney problems. Propylene glycol toxicity was examined in a
2007 study from the University of Connecticut, which also noted that people
with liver issues may be at risk. Only in the area of neurological symptoms did
the CDC's toxicity profile give propylene glycol a poor rating. Several
individuals were found to have varying degrees of neurological problems,
including stupor, convulsions and other unspecified "severe mental
symptoms" after taking the substance orally and being tested by patch test
to determine the amount of the chemical still in their system. It is
anticipated that these concerns related to Propylene Glycol will have an impact
on its demand, thereby negatively affecting the Germany Propylene Glycol market
size during the forecast period.
Germany Propylene Glycol Industry Outlook
Technology launches,
acquisitions and R&D activities are key strategies adopted by players in
the Germany Propylene Glycol market. The top 10 companies in the Germany
Propylene Glycol market are:
- The Dow Chemical Company
- LyondellBasell Industries N.V.
- BASF SE
- Archer Daniels Midland Company
- Huntsman Corporation
- SKC Co. Ltd.
- Ineos Oxide
- DuPont Tate & Lyle Bio Products Company LLC
- The Lubrizol Corporation
- Adeka Corporation
Relevant Reports
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Report Code: CMR 0812
Report Code: CMR 0493
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