Dipropylene Glycol Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Dipropylene Glycol Market is Segmented by Type (Fragrance Grade and Industrial Grade), Application (Polyester Resins, Functional Fluids, Human Food/ Pharmaceutical/Cosmetics and Personal Care Products, Liquid Detergents, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for Dipropylene Glycol in volume (kilo tons) for all the above segments.

Market Snapshot

Dipropylene Glycol Market Size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: >4 %
Dipropylene Glycol Market Key players

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Market Overview

The Global Dipropylene Glycol Market accounted for around 160 kilo tons in 2021 and is projected to register a CAGR over 4% during the forecast period (2022-2027).

The market was negatively impacted by COVID-19 in 2020. Due to the COVID-19 outbreak in the first half of 2020, the cosmetic industry was significantly affected. This, in turn, has unfavorably impacted the consumption of dipropylene glycol. The market is projected to grow steadily as fragrances production observed growth in 2021.

  • Over the short term, rising demand from personal care and cosmetic industries, coupled with increasing demand for DPG as a solvent, coupling agent and chemical intermediate in various end-use applications in the emerging economies are some of the driving factors which are stimulating the market demand.
  • However, availability of substitute such as 2-Methyl-1,3-propanediol may hinder the growth of the target market.
  • Nevertheless, rising trends for bio-based dipropylene glycol are likely to create lucrative growth opportunities for the global market over the forecast period.
  • Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period. This growth is attributed to rise in the production of polyurethane resins and plasticizers in China, and India.

Scope of the Report

Dipropylene glycol (DPG) is a clear, colorless industrial product used as benzoate ester plasticizers and glycol component in unsaturated polyester resins. It is byproducts of propylene glycol, manufactured by non-catalytic propylene oxide hydration reaction. Dipropylene Glycol is a superior solvent completely miscible with water and various organic compounds. It finds its application in alkyd resins, urethane polyols, inks and paints, functional fluids, fragrances and cosmetics. The dipropylene glycol market is segmented by type, application, and geography. By type, the market is segmented into fragrance grade and industrial grade. By application, the market is segmented into polyester resins, functional fluids, humanfood/pharmaceutical/cosmetics and personal care products, liquid detergents, and other applications. The report also covers the market size and forecasts for the dipropylene glycol market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kilo tons).

Fragrance Grade
Industrial Grade
Polyester Resins
Functional Fluids
Human Food/ Pharmaceutical/Cosmetics and Personal Care Products
Liquid Detergents
Other Applications
South Korea
Rest of Asia-Pacific
North America
United States
United Kingdom
Rest of Europe
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Rising Demand for Dipropylene Glycol in Functional Fluid Applications

  • Functional fluid application segment accounted for significant share in the dipropylene glycol market in 2021, with market share over 57%, in terms of volume.
  • Dipropylene glycol is primarily used in the functional fluid such as cutting oils in hydraulic brake fluid production, coolants, solvents for printing inks, paints and coatings, agricultural chemicals such as insecticides, and anti-freeze and de-icing fluids. Superior properties of dipropylene glycol benefits functional fluids crucial functionality to corresponding end-user performance requirements.
  • Augmenting infrastructure construction activities, growth of the automotive industry, and rising adoption agricultural chemicals across the globe are among key factors driving growth of the global dipropylene glycol market.
    • For instance, as per the data published by US Census Bureau in 2021, the total value of residential housing during April 2020-2021 was USD 217,30 million over USD 178,362 million for FY 2019-2020, up by 21.8%. This trend is anticipated to continue and will boost demand for paints and coatings and thereby growth of the target industry soon.​
    • Further, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), global sales of passenger cars were 56.39 million in 2021, compared to 53.91 million during 2020, thereby, enhanced the consumption of dipropylene glycol in manufacturing of coatings and sealants, cutting oils to provide lubrication to the machine parts, coolants etc.
  • Therefore, considering the aforementioned factors, the demand for dipropylene glycol is expected to rise in the functional fluids application segment significantly in near future.
Dipropylene Glycol Market Share

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the worldwide market in 2021, with the significant market share in terms of revenue, and is projected to maintain its dominance during the forecast period of 2022-2027. 
  • Growing demand for dipropylene glycol into cosmetics and fragrances, plasticizers, polyurethane applications across the Asian countries is primary factor driving growth of the target industry in Asia Pacific.
  • Fragrance grade dipropylene glycol, is commonly used as a carrier for fragrances and in deodorant applications. Rising personal care and fragrance industry in the Asian countries is creating huge demand for the dipropylene glycol, which is in turn fueling growth of the region.
    • For instance, Japan is one of the largest markets for fragrances across the Asia Pacific. According to Statista, Japan fragrances industry valued USD 0.57 billion in 2021, compared to USD 0.56 billion in 2020, and is expected to grow annually by 4.75%, which in-turns stimulates the demand for dipropylene glycol market.
  • Moreover, rapid industrialization, increasing automotive sector in India, China, and Japan are propelling demand for plasticizers which will further enhance growth of market studied.
    • According to OICA, China produced 26.08 million units in 2021, registering an increase of 3% compared to 25.23 million units produced in 2020. As per India Energy Storage Alliance (IESA), the Indian EV industry is expected to expand at a CAGR of 36%, which in-turns stimulates the demand for plasticizers and thereby demand for dipropylene glycol.
  • Additionally, presence of major players such as Manali Petrochemicals Limited, Adeka Corporation, BASF, Dow in the Asia Pacific region will augment growth of the region during the forecast period. The key companies operating in the Asia Pacific dipropylene glycol market are focusing on the capacity expansion. This trend is anticipated to continue and will boost growth of the region over the forecast period.
  • All aforementioned factors are likely to fuel growth of the Asia-Pacific dipropylene glycol market over the forecast time frame.
Dipropylene Glycol Market Growth rate

Competitive Landscape

The dipropylene glycol market is highly consolidated in nature. Some of the major players in the market include Dow, LyondellBasell Industries Holdings B.V., BASF SE, Shell Plc, and Manali Petrochemicals Limited among others. (not in any particular order)

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Drivers

      1. 4.1.1 Rising Demand from Personal Care and Cosmetic Industries

      2. 4.1.2 Increasing Demand for DPG in Plasticizer Applications

    2. 4.2 Restraints

      1. 4.2.1 Availability of Substitutes

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition


    1. 5.1 Type

      1. 5.1.1 Fragrance Grade

      2. 5.1.2 Industrial Grade

    2. 5.2 Application

      1. 5.2.1 Polyester Resins

      2. 5.2.2 Functional Fluids

      3. 5.2.3 Human Food/ Pharmaceutical/Cosmetics and Personal Care Products

      4. 5.2.4 Liquid Detergents

      5. 5.2.5 Other Applications

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      2. 5.3.2 North America

        1. United States

        2. Canada

        3. Mexico

      3. 5.3.3 Europe

        1. Germany

        2. United Kingdom

        3. Italy

        4. France

        5. Rest of Europe

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. Saudi Arabia

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%)**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Dow

      2. 6.4.2 LyondellBasell Industries Holdings B.V.

      3. 6.4.3 BASF SE

      4. 6.4.4 Shell Plc

      5. 6.4.5 Manali Petrochemicals Limited

      6. 6.4.6 INEOS

      7. 6.4.7 Sumitomo Corporation

      8. 6.4.8 ADEKA CORPORATION

      9. 6.4.9 Repsol

      10. 6.4.10 Huntsman Corporation

    5. *List Not Exhaustive

    1. 7.1 Rising Trends for Bio-based Dipropylene Glycol

**Subject to Availability

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Frequently Asked Questions

The Dipropylene Glycol Market market is studied from 2017 - 2027.

The Dipropylene Glycol Market is growing at a CAGR of >4% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Dow, LyondellBasell Industries Holdings B.V. , Manali Petrochemicals Limited, BASF SE, Shell Plc are the major companies operating in Dipropylene Glycol Market.

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