Australia Propylene Glycol Market Size, Share Analysis and Forecast Report (2025-2034)

Australia Propylene Glycol Market Trends

The growth of the Australia propylene glycol market is driven by its versatile applications across industries such as food, pharmaceuticals, cosmetics, and manufacturing. It is recognised as safe for consumption by regulatory bodies and is an effective antifreeze agent in cooling systems. Additionally, it helps retain moisture in skincare products and acts as a solvent in pharmaceuticals to enhance solubility. The 1 Litre Propylene Glycol from BeerCo is perfect for refilling or topping up your Glycol Chiller. This food-grade glycol, commonly used in beer dispensing systems and fermenters, guarantees optimal performance. For effective use in chillers and temperature control systems, it should be diluted at a ratio of 3:1 with distilled water.

Opportunities in the Australia propylene glycol market include its widespread use as a food additive to retain moisture and prevent spoilage. It is non-toxic, making it safer for both humans and animals. Propylene glycol also serves as a carrier for flavourings and colourants in food and beverages. Furthermore, it is biodegradable, making it an eco-friendly option, and is used in cosmetics to dissolve active ingredients.

Australia Propylene Glycol Market Growth

The demand for the Australia propylene glycol market is rising due to its use in refrigeration and air conditioning systems, where it prevents freezing and boosts efficiency. It has a lower environmental impact compared to alternatives like ethylene glycol. The increasing use of propylene glycol in e-cigarettes, as a base for e-liquids, also contributes to its growing demand, as it improves product stability and shelf life. The change in Australian legislation on 1 July 2024, which limits the sale of vapes and vaping products to pharmacies for smoking cessation purposes, is expected to drive demand for propylene glycol in the market. As vaping becomes regulated for therapeutic use, the need for high-quality, safe propylene glycol will increase, benefiting the market.

The Australia propylene glycol market revenue is impacted by its use in hair care products, where it acts as a moisturising agent, improving texture and hydration. It also helps to adjust the viscosity of liquid formulations, making it essential in the manufacturing process. As demand for propylene glycol rises across the food, cosmetic, and pharmaceutical sectors, its production expands, remaining cost-effective and driving industrial growth.

Australia Propylene Glycol Market Insights

• Valued at approximately USD 3.5 billion by the International Trade Administration, Australia’s cosmetics industry contributes to the propylene glycol market. Propylene glycol is widely used in skincare, haircare, and cosmetic products to enhance texture and stability, boosting demand in the growing cosmetic sector.
• In 2022-23, Australia sold 14.8 million tonnes of food and non-alcoholic beverages, according to the Australian Bureau of Statistics. Propylene glycol plays a significant role in the food industry, helping to maintain moisture, preserve freshness, and improve the shelf life of products, thereby driving demand.
• According to industry reports, the November 2024 seasonally adjusted estimate showed a rise of 18.4% in the value of non-residential building, reaching USD 5.96 billion. This growth benefits the propylene glycol market, as it is used in materials such as paints, coatings, and adhesives, boosting its demand in construction.

Australia Propylene Glycol Market Drivers

The pharmaceutical sector is a significant trend in the Australia propylene glycol market, as its use increases due to its functions as a solvent, emulsifier, and stabiliser in oral, topical, and injectable medications. With the pharmaceutical industry expanding, particularly in the production of liquid medicines and vaccines, the role of propylene glycol is growing. Its application in nasal sprays and other liquid-based treatments is further boosting demand. Moreover, the rise of personalised medicine and the growth of generic drug manufacturing in Australia are contributing to the propylene glycol market's development. Regulatory approvals and safety assurances are crucial to the continued progress of this trend. Leonardi Laboratories offers premium-quality Propylene Glycol (PG) USP/EP 99.8% in 100 ml, a versatile product of exceptional purity, ideal for various uses in cosmetics, personal care, and pharmaceuticals, meeting the highest safety and quality standards.

Opportunities in the Australia Propylene Glycol Market

Propylene glycol is widely used in industrial applications such as antifreeze, cooling systems, and lubrication, contributing to the Australia propylene glycol market development. As the manufacturing and industrial sectors expand, propylene glycol remains vital in ensuring equipment efficiency, especially in refrigeration and air conditioning systems. Its growing role as an anti-corrosive agent in industrial machinery and automotive sectors is also notable. The continued growth of industries like automotive manufacturing, food processing, and HVAC systems is expected to further boost the demand for propylene glycol across various industrial sectors in Australia, ensuring a steady growth forecast. ADM sources the raw materials for its plant-based propylene glycol from soybeans and canola, using proprietary technology to process crude glycerin into refined propylene glycol.

Market Restraints

The Australia propylene glycol market encounters various challenges. High production costs, due to expensive raw materials and complex processes, limit affordability for certain industries. Environmental concerns persist, with energy consumption and waste generation impacting sustainability. The market also faces competition from alternatives like glycerin and ethylene glycol, which are often more cost-effective.

Regulatory hurdles, especially in food and pharmaceuticals, can hinder market growth and increase production costs. Additionally, supply chain disruptions, such as raw material shortages or transport issues, affect product availability. Lastly, while considered safe, health concerns regarding prolonged use may influence its adoption, particularly in food and pharmaceutical applications.

Australia Propylene Glycol Market Share

Market Analysis by Source

According to the Australia propylene glycol market analysis, petroleum-based propylene glycol dominates due to its cost-effectiveness and high production scalability. It ensures consistent quality and performance, making it ideal for various industrial applications such as refrigeration, automotive, and food processing. Its availability and established production infrastructure make it a dependable choice in Australia's market. Companies like Sydney Solvents, Melbourne Solvents, and Australian Wholesale Oils supply "propylene glycol USP" (United States Pharmacopeia grade), which indicates a high purity level suitable for food and pharmaceutical uses.

The growth of the Australia propylene glycol market is further supported by bio-based propylene glycol, derived from renewable sources such as soybeans and canola. This appeals to environmentally conscious consumers and industries, offering a reduced carbon footprint and supporting sustainability initiatives. With increasing demand for eco-friendly products in Australia, bio-based options align with regulatory trends and consumer preferences for sustainable alternatives.

Market Analysis by Application

According to the Australia propylene glycol market report, the market is primarily driven by its use in the food industry, where it functions as a humectant, stabiliser, and preservative. It helps retain moisture, prolong shelf life, and improve texture in products such as baked goods, beverages, and confectionery. Its GRAS (Generally Recognised as Safe) status assures consumer safety, making it a trusted ingredient for food manufacturers in Australia.

The demand for the Australia propylene glycol market is further bolstered by its widespread use in the pharmaceutical industry, where it acts as a solvent, stabiliser, and carrier for active ingredients in oral, topical, and injectable medications. It aids in proper absorption and enhances drug solubility. Its safety and non-toxicity make it a dependable component in drug formulations, playing a crucial role in the Australian healthcare market.

In the Australia propylene glycol market, the cosmetics and personal care industry benefits from its use as a moisturiser, solvent, and emulsifier. It helps improve the texture, stability, and effectiveness of products such as skincare creams, shampoos, and deodorants. Its non-toxic and hydrating properties make it essential in formulating safe, high-quality products.

Market Analysis by End Use

The Australia propylene glycol market revenue is impacted by its use in transportation, where it is an essential component in antifreeze and coolant formulations for vehicles and machinery. It helps prevent freezing in cold temperatures and offers protection against corrosion. Its high thermal stability and non-toxic properties make it a safe and effective choice for Australia's transport sector. In 2022-23, 158 billion passenger kilometres were travelled by car on capital city roads, and 10.5 billion passenger kilometres were covered on heavy rail networks, according to BITRE. This contributes to enhanced vehicle longevity and improved performance, especially in extreme weather conditions.

The growth of the Australia propylene glycol market is driven by its use in building and construction, particularly as a component in antifreeze agents for cement and concrete. It enhances the workability of cement mixes and speeds up the curing process. Its versatility and ability to prevent cracking in cold weather make it an essential product for the construction industry in Australia. Additionally, propylene glycol is primarily used in the production of unsaturated polyester resins (UPR), which are vital for materials like fiberglass, boat hulls, furniture, and certain flooring applications, according to DOW.

Australia Propylene Glycol Market Regional Insights

New South Wales Propylene Glycol Market Overview

New South Wales experiences strong demand for propylene glycol, particularly in industries such as food processing, pharmaceuticals, and transportation. Its applications in antifreeze, coolants, and various industrial processes support the region's expanding manufacturing and industrial sectors. According to data from the Australasian Railway Association and NSW Ports, only 17% of freight arriving at ports for export is transported by rail, where propylene glycol is used in rail cooling and lubrication systems, improving the efficiency and lifespan of both freight and passenger services.

Queensland Propylene Glycol Market Trends

In Queensland, the propylene glycol market is growing, driven by the demand for eco-friendly and bio-based alternatives. Industries like agriculture, food production, and pharmaceuticals contribute to the increased use of propylene glycol, benefiting from its versatility and sustainability. Queensland currently has 106 reporting hospitals, which admit nearly 1.6 million patients annually and provide over 2.3 million emergency services and more than 6.5 million outpatient services. Propylene glycol is used in the cooling systems of medical equipment, ensuring optimal performance, and prolonging the lifespan of hospital machinery.

Western Australia Propylene Glycol Market Dynamics

Western Australia's propylene glycol market is shaped by its expanding mining and industrial sectors. The demand for propylene glycol in lubricants, coolants, and other industrial applications drives strong market growth, with its non-toxicity and efficiency being key benefits in the region's industries. In 2024–25, winter crop production is projected to rise by 24%, reaching 18.4 million tonnes, surpassing the 10-year average. This increase is expected to boost demand for propylene glycol in food processing and storage, enhancing crop preservation and quality.

Competitive Landscape

The Australia propylene glycol market key players specialise in supplying chemicals for food, pharmaceutical, and industrial applications, with a strong emphasis on sustainability and customer satisfaction. They offer a diverse portfolio, including propylene glycol, glycerin, and other essential ingredients, meeting the needs of manufacturers, formulators, and suppliers across Australia. Known for their reliability and technical expertise, these companies collaborate with leading global manufacturers to maintain the highest standards of quality and safety.

Key Industry Players

BASF SE: Founded in 1865, BASF SE is a leading global chemical company headquartered in Ludwigshafen, Germany. It produces a wide range of products, including chemicals, plastics, and performance materials. BASF focuses on innovation and sustainability, serving industries such as agriculture, automotive, and consumer goods.

The Dow Chemical Company: Established in 1897 and headquartered in Michigan, United States, The Dow Chemical Company is a multinational corporation specialising in chemicals, materials science, and agricultural products. Dow’s innovations in sustainability and technology serve industries ranging from healthcare to energy, with a strong emphasis on advanced materials and performance chemicals.

Leonardi Laboratories Pty Ltd.: Leonardi Laboratories Pty Ltd., established in 1994 and based in Melbourne, Australia, is a prominent supplier of high-quality chemicals, including propylene glycol, to various industries. The company focuses on providing specialised chemical solutions for food, pharmaceutical, and industrial sectors, maintaining a reputation for reliability and excellence.

BeerCo Pty Ltd.: Founded in 2009 and headquartered in Brisbane, Australia, BeerCo Pty Ltd. is a supplier and distributor of brewing ingredients and equipment. The company serves the craft beer industry, offering a wide range of products such as hops, malt, and yeast, supporting brewers with quality ingredients and expert advice.

Other key players in the Australia propylene glycol market report are Sydney Solvents, Melbourne Solvents, and Able Westchem, among others.

Recent Developments

November 2023

The Australian Industrial Chemicals Introduction Scheme (AICIS) expanded its inventory by adding new chemicals, including propylene glycol derivatives. This move reflects the growing demand for such chemicals across various industries, such as pharmaceuticals, food production, and manufacturing. The inclusion ensures better regulation and tracking of these essential substances.

March 2023

ChemCloud reported that a severe ice storm had struck Texas in February 2021, where most of the US propylene glycol is produced. Bloomberg stated that 83% of US PG capacity was shut down by the storm, with 60% still offline a month later, driving prices to record highs. Australia experienced a similar price surge, with PG prices rising by 30% between February and March, and 75% by June 2023.