CEH Report

Table of Contents

Abstract

Propylene glycol, dipropylene glycol and higher glycols are produced commercially from propylene oxide. Propylene glycol is used in a wide variety of applications, including unsaturated polyester resins (UPR), cosmetics and personal care products, functional fluids and antifreezes, liquid detergents, and dog food. Dipropylene glycol is used in unsaturated polyester resins, plasticizers and personal care applications. Tripropylene glycol is used in polyurethanes and acrylates.

The following pie chart shows world consumption of propylene glycols:

Unsaturated polyester resins are the largest end use for propylene glycol in the United States, Western Europe, Japan and China. This market segment accounted for 19%, 39%, 17% and 80%, respectively, of domestic consumption in those regions in 2010.

Demand for UPR is heavily influenced by regional construction industry trends and the overall health of local economies. Unsaturated polyester resins are consumed primarily in the construction, marine, and transportation industries, for which the economy is the driving force.

The antifreeze market, which includes engine coolants, has increased its use of propylene glycol, although it accounts for a small percentage of the total worldwide market. In North America, although marketers have touted environmental and safety concerns, there has not been a significant penetration of propylene glycol into this market. Another important application in North America and Western Europe is use as a solvent for liquid detergents.

Many additional smaller uses for propylene glycol will show varying degrees of growth. In the United States, the markets exhibiting the greatest growth potential are functional fluids and personal care products. Growth prospects in Western Europe appear strong for food, personal care and pharmaceutical usage. The Japanese segment that has the best growth potential is cutting oils for silicon wafer production.

Sales in the primary markets for monopropylene glycol—unsaturated polyester resins and a variety of industrial uses—depend on the performance of the general economy.

Two companies are now producing monopropylene glycol from renewable resources. Global BioChem Technology Group (started up in 2008) and Archer Daniels Midland Company (started up in March 2011) both have propylene glycol capacity. Global BioChem Technology Group is expected to start up another polyols plant with monopropylene glycol capacity in the second quarter of 2012. Several glycerin–to–propylene glycol plants in the United States and Western Europe planned for 2007–2008 were later cancelled.

The market is consolidating and shifting to China and other Asian countries (excluding Japan). The market is at continued high risk for consolidation; an increasing number of global players and rationalization of small, older producers/production lines will continue.