Global propanediol market to reach $ 776 mn by 2022

Growing polytrimethylene terephthalate (PTT) and polyurethane (PU) consumption is driving the growth of 1,3 propanediol (PDO) market, which is expected to reach $ 776.3 million by 2022 globally, according to a Grand View Research report. The global demand for 1,3 propanediol is expected to increase to 225.9 kilo tonnes by 2022 from 146 kilo tonnes in 2014, growing at a CAGR of 5.8 percent from 2015 to 2022.
 
Growth of personal care industry particularly in emerging markets of Asia Pacific and Latin America is also expected to have a positive influence on the market growth.
 
Favourable regulations and government policies encouraging biodiesel production is presumed to further augment the market growth. Low white space availability on account of multiple proprietary methods developed by the market participants is anticipated to ward off new entrants and may slow down market development.
 
PTT emerged as the leading application segment and accounted for 71.8 percent of total market volume in 2014. Industry shift towards replacing conventional polyesters by PTT is expected to remain a key driving factor for this segment over the forecast period. Polyurethane is expected to be one of the fastest growing application segment at a CAGR of 5.9 percent from 2015 to 2022. Increasing PU penetration across automotive and construction industries is expected to drive the global market.
 
North America emerged as a clear leader in the global PDO market and accounted for 74 percent of total market volume in 2014. Favourable regulatory scenario particularly in the US to promote bio-based chemicals is expected to drive the regional market. North America is expected to maintain its lead position in the global market over the forecast period.
 
Asia Pacific is expected to witness the highest growth rate of 6.2 percent from 2015 to 2022. Growth of regional automotive industry coupled with increasing construction spending is expected to drive the regional market over the next seven years.
 
Major industry participants have been taking initiatives to develop bio-based 1,3 PDO with superior properties. Companies are constantly involved in mergers & acquisitions or forging partnerships with those who possess R&D capabilities and have access to raw materials.