1,3-Propanediol (PDO) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• Over the medium term, the increasing application scope of polyesters using 1,3-propanediol and the growing polytrimethylene terephthalate (PTT) demand are the major driving factors.
• On the other side, the presence of cheaper substitutes hinders the market's growth.
• Growing demand for bio-based products acts as an opportunity for the growth of the market in near future.
• Asia-Pacific region is expected to be the fastest growing market, with the most significant consumption from countries like China and India.

1,3-Propanediol (PDO) Market Trends

Increasing Demand from the Engineering Plastics End-User Industry

• 1,3 Propanediol is used as an intermediate in the production of 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 ideal for engineering applications such as automotive parts, mobile phone housings, and other industrial and consumer products. The rising production of PU and other engineering plastics made with PDO is expected to drive the market.
• Companies associated with the 1,3-Propanediol (PDO) business are looking for the expansion of polyurethane production across the regions, which escalated the demand worldwide.
• 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.
• Various major chemicals producing companies are working on expanding portfolios for engineering plastics by investing in the establishment of manufacturing facilities. For instance, in July 2022, BASF SE opened up new manufacturing facilities for engineering plastics in the Zhanjiang Verbund site in the province of Guangdong in southern China, with an annual capacity of 60,000 metric tons.
• The chemical industry plays an important role in the growth of the propanediol market. Over the three years from 2021 to 2024, the industry is expected to grow in every segment, with overall industry growth expected to be 1.8% in 2024.
• 1,3-Propanediol (PDO) is an appealing chemical for use in the production of new types of polymers such as poly trimethylene terephthalate. PTT is mainly used in fibers for carpets, and textiles known as Triexta fibers. The global production of textile fibers amounted to 14 kilograms per capita and is expected to increase to approximately 17.5 kilograms per capita by 2030.
• From the abovementioned factors, the demand for the engineering plastics end-user industry is expected to grow over the forecast period.

Asia-Pacific Region to be the Fastest Growing Market

• Asia-Pacific region is expected to be the fastest growing 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 retail sector advancement made the availability of consumer goods easier, which in turn is boosting the 1,3-propanediol demand from the personal care and home care industries.
• According to the Ministry of Economy and Industry, India's beauty and personal care industry is expected to reach more than USD 12 billion by the end of 2023, with an annual growth rate of 6.5 %.
• According to the World's Top Exporters, China was the third-largest importer of cosmetics in the world in 2021, with a total value of about USD 18.5 billion. Hong Kong, which imported skincare and cosmetics worth over USD 7.3 billion in 2021, was the next-largest cosmetics importer in Asia-Pacific.
• China is also one of the major consumers of cosmetics, which increases the consumption of PDO from the cosmetics segment of the country. In 2022, wholesale and retail companies' retail sales of cosmetics in China totaled about USD 55 billion. Thus growth in the cosmetics and 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 its steady expansion in 2021. The combined operating revenue of significant textile enterprises rose by 14.2% year on year (YoY) to reach USD 650.4 billion during the period.
• Therefore, the aforementioned factors may contribute toward the growth in the demand for 1,3-Propanediol (PDO) in the Asia-Pacific region, during the forecast period.

1,3-Propanediol (PDO) Industry Overview

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