1,3-Propanediol (PDO) Market - Growth, Trends, and Forecasts (2023 - 2028)

The Global 1,3-Propanediol (PDO) market is projected to register a CAGR of over 7% during the forecast period (2022-2027).

The market was negatively impacted due to COVID-19. Due to supply chain disruptions, work stoppages due to measures imposed by governmental authorities to slow the spread of the virus have negatively affected the market. Hence, such impact and uncertainties due to the COVID-19 outbreak acted as a stumbling block for 1,3-Propanediol (PDO) market. However, this is expected to be temporary, and the market is expected to recover in the coming years.

Key Highlights

• Over the medium term, the increasing application scope of polyesters using 1,3-propanediol and the growing demand for polytrimethylene terephthalate (PTT) are the major driving factors.
• On the other side, the presence of cheaper substitutes hinders the market's growth.
• The North American region dominated the globe, with the most significant consumption from countries like the United States and Mexico.

1,3-Propanediol (PDO) Market Trends

Increasing Demand from the Engineering Plastics End-User Industry

• 1,3 Propanediol serves as an intermediate in the production of engineering plastics like PTT and PU. PTT is used as an engineering plastic and a thermoplastic
• Polyester fabrics and yarns made from PET, PBT, and PTT fibers are suitable for engineering applications such as automotive parts, mobile phone housings, and many other industrial and consumer products. The rising production of PU and other engineering plastics made with PDO is expected to drive the market.
• Polyurethane production in the United States hugely contributes to the US economy. The polyurethanes industry operates in nearly 1,000 locations in the United States. According to Statista, by 2021, the U.S. market value of polyurethane will be registered at USD 13.2 billion.
• Multinational companies are expanding their polyurethane production business in China due to the increasing demand. Coverstro planned to increase production capacity by establishing new plants for thermoplastic polyurethanes in the Shanghai site, China. The plant is due to be completed in 2023.
• From the above-mentioned factors, the demand for engineering plastics end-user industry is expected to grow over the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is to dominate the market for 1,3-propanediol 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, polyurethane, and textile applications.
• 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.
• According to the National Bureau of Statistics of China, in May 2021, cosmetics retail sales in China amounted to around CNY 31.86 billion. This indicated an approximately 14.6% increase in revenue compared to May 2020. Thus growth in the personal care products market is expected to drive the market studied in China during the forecast period.
• According to data from the Ministry of Industry and Information Technology, China's textile industry continued steady expansion in the first 10 months of 2021. The combined operating revenue of major textile enterprises rose by 14.2 percent year on year (YoY) to top 4.13 trillion yuan (USD 650.4 billion) during the period, the statistics showed.
• The aforementioned factors propel the demand for the market studied in the region during the forecast period.

1,3-Propanediol (PDO) Market Competitor Analysis

The global 1,3-propanediol (PDO) market is consolidated, with a few major players holding a significant portion of the market. Some major companies (not in a particular order) include Metabolic Explorer, Merck KGaA, Dupont Tate & Lyle Bio Products Company, Zhangjiagang Glory Chemical Industry Co. Ltd, and Haihang Industry.

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