Sourcing In Chemical Industry - Study of Propylene Glycol Supplier Trends

The global propylene glycol (PG) market is highly concentrated and enjoys ample supplies for PG.

The U.S. holds the largest market, followed by Germany and China. China is the major PG consumers globally. A majority of the demand comes from Consumer Produced Goods, pharmaceuticals, transportation and construction industries.

Global Supply Situation for PG

The global propylene glycol supply-demand gap is expected to reduce by the end of 2021.

The main sources for PG supply include the existing industry experts from the core industries, as well as the service providers, distributors, suppliers, manufacturers, and organizations existing within the industrial supply chain segments.

Regionwise Supply Trends

Globally there are three main regions having the key propylene glycol suppliers. These regions are North America, APAC and Europe. Here is a market scenario of some of the key suppliers in these regions:

North America

North America has an extremely well-established market for propylene glycol. Currently, it has seven producers globally and locally who constitute the majority of the market share. Some of the major suppliers in North America include Dow Chemicals, Huntsman Corp., LyondellBasell, Archer Daniels Midland, Polioles SA de CV, and Monument Chemical.

Europe

Europe has a consolidated propylene glycol market. Currently, it has seven suppliers, of which only the top five suppliers account for the overall market share. The chief regional and local suppliers include Dow Chemicals,  Ineos Oxide, LyondellBasell, Repsol Chemicals, Oltchim SA, and Oleon NV.

APAC

The Asian PG market is quite fragmented with presently twenty-one suppliers. The top five suppliers constitute more than half of the market share. Some of the main local and regional suppliers in the APAC region are Shell, Dow Chemicals, SKC Chemicals, Sumitomo Chemicals, Tongling Jintai Chemical.

Factors Influencing the Supply of PG

If we consider the global footprint of suppliers, Dow Chemicals is the largest supplier in the PG market in the world. It has a powerful presence across all the regions. The second in line is LyondellBasell, which the second largest producer of PG in the world. Another major supplier is BASF, which holds a strong presence in the European market. While these key global players have a consolidated PG market, a number of factors influence the supply growth of propylene glycol for these players. Let us find out what these factors are:

Dow Chemicals
The main factors hindering the supplies for Dow Chemicals include falling crude oil prices, high revenue dependency on Europe and North America, facing strict environmental regulations from the government and the rising demand for Bio propylene glycol from the U.S. and Belgium.  

LyondellBasell

The main factor hindering the supplies for LyondellBasell is the threat from cheap exports from the Middle East. The rise in the prices of crude oil in the future is also expected to impact the rivalry and the run rate of PG plants.

BASF

The main competitors for BASF in the European market are the European PG manufacturers, who have more installed capacity. BASF is also exposed to unpredictable market dynamics, as uncertain economic scenarios like BREXIT, high volatility in the raw material costs and a high competition level.

As the global propylene glycol market continues to grow, a comprehensive market assessment of the global PG suppliers will prove beneficial for the new entrants to understand the facts, data, and statistics on the demand-supply dynamics.