Product Code: 69414
The Global 1,3-Propanediol (PDO) Market was valued at over USD 420 million in 2020 and the market is projected to register a CAGR of over 7% during the forecast period (2021-2026).
The global beauty industry faced a critical time due to COVID-19. 1,3-propandiol is mainly used in personal care and in the production of polymers. The pandemic has negatively effected the personal care and beauty industry as demand from residential and professional users has reduced to a considerable extent. Polyurethane and polytrimethylene terephthalate are mainly used in textile industry and the textile market has suffered from prolonged lockdowns and regulations thus decreasing the market for PDO. According to the study by the International Labour Organization (ILO) the global textile trade collapsed during the first half of 2020. Also, exports to the major buying regions in the European Union, the United States, and Japan fell by around 70%. The industry also suffered several supply chain disruptions due to the shortages of cotton and other raw materials.
- Over the medium term, the increasing application scope of polyesters using 1,3-propanediol and growing demand for polytrimethylene terephthalate (PTT) are the major driving factors for the market.
- On the other side, presence of cheaper substitutes and unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.
- North America region dominated the region across the globe with the largest consumption from countries such as United States and Mexico.
Key Market Trends
Increasing Demand from Bio-Based PDO Segment
- The production of 1,3-propanediol (PDO) can be done from two sources, petrochemical-based and bio-based. Glycerol has been attaining importance as the most important raw material to produce 1,3-propanediol (PDO). Glycerol is manufactured from a by-product resulting from biodiesel. The growing production of biodiesel is likewise projected to take a positive effect on the development of the market.
- A transition of decreasing dependence on petroleum products on account of increasing concerns about the environment and instability about its pricing has encouraged the demand for biodiesel.
- Bio-based 1,3-propanediol is an FDA-certified product, which can be employed in various applications namely functional & deicing fluid, coatings, cosmetic & personal care, home care, polymers, and fibers among others.
- Being a skin-friendly preservative, 1,3-propanediol is widely used in cosmetics. According to LOREAL, the global cosmetics industry market is estimated at over EUR 200 billion, a sharp fall compared to 2019 due to COVID-19 and is expected to increase during the forecast period post pandemic.
- Increasing R&D initiatives to develop bio-based feedstock is expected to create opportunities for market players. Bio-based PDO is presumed to witness a high growth rate compared to its conventional counterpart.
North America Region to Dominate the Market
- North America is the largest market for 1,3-propanediol and is expected to continue its dominance during the forecast period. The market is primarily driven by increasing production and consumption of 1,3-propanediol in PTT, cosmetics, personal care & cleaning products, and polyurethane applications.
- However, due to COVID-19, the North-America region had experienced a 24% breakdown of the cosmetic market in the year 2020, according to the LOREAL annual report, thus hindering the demand for PDO over the short term.
- Neverthless, the increasing investments in the advancement of the retail sector have made the availability of consumer goods easier, which in turn is boosting the demand for 1,3-propanediol from the personal care and home care industries.
- Besides, the transition towards the use of biobased products along with the prevalence of stringent environmental regulations has further increased the production of biodiesel primarily in the United States and Canada, which, in turn propelling the market growth.
- Additionally, polyester manufactured using 1,3-Propanediol offers excellent resistance to impact and flexibility as associated with polyester that does not comprise 1,3-propanediol. Hence, the growing use of polyesters manufactured using 1,3-Propanediol is stirring the development of it.
- All such aforementioned factors are propelling the demand for the market studied in the region during the forecast period.
The global 1,3-propanediol (PDO) market is consolidated in nature with a few major players holding a significant portion of the market. Some of the major companies are Metabolic Explorer, Merck KGaA, Dupont Tate & Lyle Bio Products Company, Zhangjiagang Glory Chemical Industry Co., Ltd, and Haihang Industry, among others.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Increasing Application Scope of Polyesters Using 1,3-Propanediol
- 4.1.2 Growing Demand for Polytrimethylene Terephthalate (PTT)
- 4.2 Restraints
- 4.2.1 Presence of Cheaper Substitute Products
- 4.2.2 Unfavorable Conditions Arising Due to COVID-19 Outbreak
- 4.3 Industry Value-Chain Analysis
- 4.4 Porters Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Source
- 5.1.1 Bio-Based PDO
- 5.1.2 Petrochemical-Based PDO
- 5.2 Application
- 5.2.1 Polyurethane
- 5.2.2 Personal Care Products
- 5.2.3 Polytrimethylene Terephthalate
- 5.2.4 Others
- 5.3 End-user Industry
- 5.3.1 Synthetic Drugs
- 5.3.2 Engineering Plastics
- 5.3.3 Textile Dyeing and Finishing
- 5.3.4 Others
- 5.4 Geography
- 5.4.1 Asia-Pacific
- 126.96.36.199 China
- 188.8.131.52 India
- 184.108.40.206 Japan
- 220.127.116.11 South Korea
- 18.104.22.168 Rest of Asia-Pacific
- 5.4.2 North America
- 22.214.171.124 United States
- 126.96.36.199 Canada
- 188.8.131.52 Mexico
- 5.4.3 Europe
- 184.108.40.206 Germany
- 220.127.116.11 United Kingdom
- 18.104.22.168 Italy
- 22.214.171.124 France
- 126.96.36.199 Rest of Europe
- 5.4.4 South America
- 188.8.131.52 Brazil
- 184.108.40.206 Argentina
- 220.127.116.11 Rest of South America
- 5.4.5 Middle-East and Africa
- 18.104.22.168 Saudi Arabia
- 22.214.171.124 South Africa
- 126.96.36.199 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share** (%)/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 DuPont Tate & Lyle Bio Products
- 6.4.2 DSM
- 6.4.3 Haihang Industry
- 6.4.4 Hunan Rivers Bioengineering Co., Ltd.
- 6.4.5 Merck KGaA
- 6.4.6 Metabolic Explorer
- 6.4.7 Sheng Hong Group Holdings Ltd.
- 6.4.8 Royal Dutch Shell plc
- 6.4.9 Tokyo Chemical Industry Co., Ltd.
- 6.4.10 Zhangjiagang Glory Chemical Industry Co., Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Growing Demand for Bio-Based Products
- 7.2 Other Opportunities