1,3-Propanediol (PDO) Market size is forecast to reach $977.58 million by 2025, after growing at a CAGR of 12.2% during 2020-2025. 1,3-Propanediol is mainly produced by the hydration of acrolein. An alternative route involves the hydroformylation of ethylene oxide to afford 3-hydroxypropionaldehyde. The Aldehyde is subsequently hydrogenated to give 1,3-propanediol. 1,3-Propanediol finds application in manufacturing of polytrimethylene terephthalate (PTT), polyurethane, cosmetics, personal care and cleaning products among others. Increasing demand for polyesters for example Polytrimethylene Terephthalate (PTT) and growing infiltration of polyurethane through a number of end-use industries is driving the 1,3- Propanediol (PDO) market.
- North America region dominated the region across the globe with the largest consumption from countries such as United States and Mexico.
- Rising demand for bio-based products to minimize greenhouse gas emissions and energy consumption is anticipated to create opportunities for 1,3-propanediol market.
- Industry shift towards replacing conventional polyesters by Polytrimethylene Terephthalate (PTT) is expected to remain a key driving factor for Polytrimethylene Terephthalate (PTT) segment over the forecast period.
By Type - Segment Analysis
Bio-Based PDO segment held a significant share in 1,3-propanediol (PDO) market in 2019. 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. 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 pertaining to its pricing has encouraged the demand for biodiesel. Bio-based 1,3-propanediol is a 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.
By Application - Segment Analysis
Polytrimethylene Terephthalate (PTT) segment held a significant share in 1,3-propanediol (PDO) market in 2019 growing at a CAGR of 12.34% during the forecast period. The market growth is driven mainly by the increasing demand for polytrimethylene terephthalate (PTT) in the manufacturing of carpets and apparel due to its good physical properties and high mechanical performance. PTT is preferred over polymers such as nylon 6 and nylon 6,6 in these applications. 1,3-propanediol is the major feedstock for manufacturing PTT.
The COVID-19 pandemic and subsequent halt in manufacturing activities shall have an impact on the supply availability of a variety of renewable chemicals. Furthermore, current disruption in trade shall also gravely impact the availability of chemical stocks in import-dependent countries.
By End-User Industry - Segment Analysis
Textile Dyeing and Finishing segment held a significant share in 1,3-propanediol (PDO) market in 2019. The demand for PTT is growing in apparel and textiles. The growth of the global textiles and apparels industries is expected to play an important role in augmenting the demand for PTT, which in turn, is expected to bolster the sales of 1,3-propanediol as it is the primary feedstock for PTT. The manufacture of bio-based PTT uses less energy and releases less greenhouse gas compared to nylon 6 and nylon 6,6. Increasing PTT acceptance as a substitute for other polyesters is presumed to open up multiple opportunities for the industry participants.
Geography- Segment Analysis
North America dominated the 1,3-propanediol (PDO) market with a share of more than 39%, followed by Europe and Asia Pacific. The market is primarily driven by increasing production and consumption of 1,3-propanediol in PTT, cosmetics, personal care & cleaning products, and polyurethane applications. Furthermore, with the increasing investments in the advancement of the retail sector has 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. In addition, 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. Also, 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.
Drivers – 1,3-Propanediol (PDO) Market
- High demand for environment - friendly, bio-based products
The growing awareness of consumers, increasingly stringent government regulations, and depletion of conventional sources have prompted companies to innovate and market sustainable products. 1,3-propanediol is one such biochemical which is estimated to have high demand. Bio-based PDO utilizes renewable feedstock such as corn sugar and crude glycerin, making it more sustainable. The easy availability of renewable raw materials required for biologically producing PDO prompts the adoption of the fermentation process. Bio processed PDO consumes lesser energy and has lower greenhouse gases emissions compared to chemically synthesized PDO.
According to DuPont Tate & Lyle Bio Products Company, LLC, the production process of bio-based PDO produces 56% less GHG emissions and consumes 42% less non-renewable energy than petroleum-based PDO. When compared with propylene glycol (PG), bio-based PDO produces 42% less GHG and uses 38% less non-renewable energy. Bio-based 1,3-propanediol also produces 52% less GHG and uses 32% less non-renewable energy when compared to butanediol (BDO). The major application of PDO is the production of PTT. The use of bio-based PDO for the manufacture of PTT helps reduce energy consumption and emission of greenhouse gases. These characteristics of biologically manufactured 1,3-propanediol are driving the market growth.
Challenges – 1,3-Propanediol (PDO) Market
- Availability of substitutes with comparatively lower cost
Breakthroughs in R&D led to PDO production through the synthesis of petrochemicals. The foremost companies manufacturing PDO were Shell and Degussa. The Degussa technology was later acquired by DuPont. However, the shift towards eco-friendly products led to the development of a sustainable manufacturing process. Companies such as DuPont Tate & Lyle Bio Products Company, LLC have developed technologies for the manufacture of PDO utilizing renewable feedstock. In the recent past, many Chinese players have also developed biological processes for manufacturing PDO. PDO is used as a replacement of petroleum-based glycols such as propylene glycol, butylene glycol, and glycerin. These products are available at a comparatively low price compared to PDO, which is used in cosmetics, personal care & cleaning products, pharmaceutical & dietary supplements, and food & flavors applications. Moreover, the promotion of bio-based PDO is difficult in countries where there are no regulations regarding the adoption of bio-based products in various end-use applications. For instance, in Vietnam, even though PDO is used in skincare applications, it is facing competition from conventional products such as glycerin because of the comparatively higher price of PDO. Thus, the growth of the market is constrained due to the availability of substitutes with comparatively lower price, especially in developing countries.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the 1,3-propanediol (PDO) market. In 2019, the market of 1,3-propanediol (PDO) has been consolidated by the top five players accounting for xx% of the share. Major players in the 1,3-propanediol (PDO) market are Zouping Mingxing Chemical Co., Ltd., Metabolic Explorer, Shell Chemicals LP, Zhangjiagang Glory Biomaterial Co. Ltd, DuPont Tate & Lyle, Zhangjiagang Huamei Biomaterial Co., Ltd., Tokyo Chemical Industry Co., Ltd., Hunan Rivers Bioengineering Co., Ltd., Merck KGgA, Hai hang Industry Company Ltd and TCI Chemicals, among others.
- In May 2019, DuPont Tate & Lyle Bio Products Company, LLC (US), Corbion (Netherlands), INOLEX Inc. (US), and ACT Solutions Corp (US) have entered into a partnership to create a bio-based content formulation for personal care products market. This partnership helped the company to meet the growing demand for natural products.
- In October 2018, DuPont Tate & Lyle Bio Products Company, LLC (US), opened a warehouse and distribution center in its manufacturing site in Loudon (Tennessee, US). Earlier, only bulk shipments were fulfilled from the manufacturing facility, as the orders of package goods were handled off-site by a third-party provider. The expansion allows the company to deliver package goods such as pails, drums, and totes to be directly filled, stored, and shipped from the manufacturing facility to any destination around the world, thereby simplifying the global supply chain.
- In September 2018, DuPont Industrial Biosciences, a DowDuPont Specialty Products business, completed the expansion of their Kinston, North Carolina, a manufacturing facility that produces Sorona, bio-based polymer. The expansion helped the company to increase the production capacity of Sorona fabric by 25% and to meet the growing demand for Sorona polymer throughout the carpet and apparel markets.
- In June 2018, DuPont opened its industrial biosciences global business headquarters in Delaware (US). It is a part of DuPont’s Experimental Station, which is a breeding ground for numerous shifting technologies over the decades from nylon to DuPont Kevlar to Lycra to Sorona.
- In March 2018, DuPont has increased its annual production of bio-based 1,3-propanediol by 35 million pounds in its manufacturing facility at Tennessee (US). The expansion will help the company to expand its market reach in the cosmetics, personal care, flavors, fibers, and PU markets, among other applications.