Propylene Carbonate Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Electrolytic Solvent, Cosmetics & Personal Care, Plastics & Polymers, Reagents, Fuel Additives, Others), By Region and Competition, 2020-2030F

Market Overview

Global Propylene Carbonate Market was valued at USD 419.80 Million in 2024 and is expected to reach USD 515.79 Million by 2030 with a CAGR of 2.48% during the forecast period. Propylene carbonate, a biodegradable and non-toxic solvent, is widely utilized in sectors such as lithium-ion batteries, paints and coatings, personal care, and pharmaceuticals. Recognized for its low toxicity and biodegradability, propylene carbonate is favored as an environmentally friendly solvent. Regulatory bodies like the U.S. Environmental Protection Agency (EPA) have endorsed its use as a safer alternative to conventional solvents, further boosting its market appeal.

Despite the positive growth trajectory, the market faces challenges such as fluctuations in raw material prices and competition from alternative solvents. Additionally, the need for compliance with stringent environmental regulations may impact production processes and operational costs. The global propylene carbonate market is poised for continued growth, supported by technological advancements, increasing environmental awareness, and the expanding applications of propylene carbonate in emerging industries.

Key Market Drivers

Growth in Cosmetic Industry

The global cosmetic industry is experiencing robust growth, and one of the key ingredients driving this expansion is propylene carbonate. The beauty and personal care market has experienced significant growth and innovation in recent years, driven by the increasing global focus on self-care and wellness. Despite a brief decline in 2020, the global cosmetics market has seen continuous expansion since 2004 and is projected to generate nearly USD 140 billion in revenue by 2030. This versatile solvent is increasingly being used in a wide range of cosmetic and personal care products due to its unique properties, including its ability to dissolve a variety of substances, its low toxicity, and its ability to enhance the stability and texture of products. As consumer demand for high-quality, innovative, and eco-friendly cosmetic products rises, propylene carbonate is gaining traction as a preferred ingredient in various formulations. This shift is significantly contributing to the growth of the global propylene carbonate market.

As consumers become more conscious of the ingredients in the products they use, there is a noticeable shift toward eco-friendly and non-toxic options in the cosmetics sector. In clinical studies, undiluted Propylene Carbonate caused moderate skin irritation, while 5% and 10% aqueous solutions did not result in irritation or sensitization. Cosmetic products containing up to 20% Propylene Carbonate are generally nonsensitizing, at most moderately irritating to the skin, and are neither phototoxic nor photosensitizing. Propylene carbonate, a solvent known for its low toxicity and biodegradability, is increasingly preferred over harsher chemicals. This trend aligns with the growing demand for natural and sustainable beauty products. Manufacturers are incorporating propylene carbonate into formulations for skin care, hair care, and makeup products to meet consumer preferences for safe, gentle, and environmentally responsible ingredients. The rising emphasis on clean beauty is expected to continue driving the adoption of propylene carbonate in the cosmetic industry.

Growth in Plastic Industry

Since the onset of mass plastic production in the 1940s, more than nine billion tons have been produced globally. The global plastics market, valued at USD 712 billion in 2023, is projected to see significant growth in the coming decade, fueled by rising demand across multiple industries. Propylene carbonate is widely used as a solvent in plastic manufacturing processes, particularly in applications requiring low toxicity, high polarity, and excellent solvency. It enhances the workability and process efficiency of polymer blends, particularly in the production of polyurethane-based plastics and specialty polymers. With industries increasingly shifting toward formulations that meet stringent environmental and performance standards, propylene carbonate is gaining prominence as a safer and effective alternative to traditional solvents.

The global shift toward sustainable and low-emission plastics has further amplified the relevance of propylene carbonate, which is considered a more environmentally friendly chemical. Its biodegradability and low VOC (volatile organic compound) content make it an attractive choice for manufacturers aiming to comply with green chemistry regulations and reduce their environmental footprint. As sustainability becomes a core focus in plastic production, the adoption of propylene carbonate is expected to expand significantly.

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Key Market Challenges

Raw Material Price Volatility

The prices of raw materials, particularly propylene, are directly linked to global oil market dynamics. As crude oil prices experience sharp fluctuations due to geopolitical tensions, supply chain disruptions, and changes in global demand, the cost of producing propylene and by extension, propylene carbonate can rise significantly. Such volatility increases production costs for manufacturers, which can erode profit margins and result in higher prices for end-users of propylene carbonate.

For manufacturers, the challenge lies in managing these fluctuations while maintaining competitive pricing in a price-sensitive market. The inability to predict raw material costs accurately can lead to difficulties in budgeting, price setting, and long-term financial planning, creating a level of uncertainty for both producers and consumers of propylene carbonate.

Key Market Trends

Surge in Lithium-Ion Battery Demand

The global shift toward electric mobility is one of the key drivers of the growing demand for lithium-ion batteries. Light-duty vehicles (LDVs), encompassing passenger light-duty vehicles (PLDVs) and light commercial vehicles (LCVs), are projected to remain the dominant segment of electric vehicles (EVs), excluding 2/3Ws, through 2035. This trend is driven by robust policy support, such as fuel economy and CO2 standards for LDVs, along with the growing availability of EV models and the large size of the LDV market. For instance, Canada and the United Kingdom have recently introduced policies aimed at boosting zero-emission vehicle (ZEV) sales by 2030, targeting 60% of PLDVs in Canada and 80% in the UK. As governments and corporations worldwide invest in clean energy solutions and decarbonization efforts, the adoption of electric vehicles is accelerating. Lithium-ion batteries are the backbone of EVs, and as their production scales to meet rising consumer demand, propylene carbonate is increasingly being used as a critical solvent in battery electrolytes. The ability of propylene carbonate to enhance the performance and stability of lithium-ion batteries is driving its growing application in this sector, supporting the long-term growth of the global propylene carbonate market.

In addition to the electric vehicle sector, the growing need for energy storage solutions, particularly for renewable energy sources such as solar and wind, is contributing to the demand for lithium-ion batteries. As energy grids integrate more renewable energy, the need for efficient storage systems has intensified. Lithium-ion batteries, known for their high energy density and long cycle life, are increasingly being used in large-scale energy storage applications. Propylene carbonate, as an important component in the electrolyte formulation of these batteries, is critical in ensuring high performance, durability, and safety in energy storage systems, thereby fostering the growth of the propylene carbonate market.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, Direct have emerged as the fastest growing segment in the Global Propylene Carbonate Market in 2024. Direct sales help eliminate intermediaries, such as wholesalers and distributors, thereby reducing the overall cost of propylene carbonate for both manufacturers and end-users. By bypassing these intermediaries, manufacturers can offer more competitive pricing, making propylene carbonate more affordable for large-scale consumers. This price advantage has been a key factor in attracting businesses looking to streamline their supply chains and reduce procurement costs, further accelerating the growth of the direct segment.

End Use Insights

Based on End Use, Fuel Additives have emerged as the fastest growing segment in the Global Propylene Carbonate Market during the forecast period. As environmental regulations become stricter worldwide, there is a growing emphasis on reducing emissions from vehicles and industrial equipment. Propylene carbonate, when used as a solvent in fuel additives, helps improve fuel quality and combustion efficiency, making it an essential component for manufacturers seeking to meet these regulatory standards. Fuel additives formulated with propylene carbonate are known to improve the overall performance of fuels, ensuring better combustion, enhanced lubrication, and reduced wear in engines. This has led to greater adoption of such additives in the automotive and transportation industries, where fuel efficiency and cost-effectiveness are critical.

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Regional Insights

Based on Region, Asia Pacific have emerged as the dominating region in the Global Propylene Carbonate Market in 2024. Asia Pacific, particularly countries like China, India, and Japan, serves as a global manufacturing powerhouse. The extensive presence of industries such as automotive, electronics, pharmaceuticals, and cosmetics in the region has significantly boosted the demand for propylene carbonate. The growing industrial activities across these sectors continue to drive the need for propylene carbonate as a vital solvent and electrolyte solvent, particularly in lithium-ion batteries and various chemical formulations.

Recent Development

• In March 2024, Dow introduced two new sustainable propylene glycol (PG) solutions in North America, utilizing bio-circular and circular feedstocks. These solutions, suitable for various applications, enable customers to offer high-performance products with externally verified sustainability benefits, leveraging a mass balance approach. This method tracks the flow of bio-circular and circular materials in PG production, ensuring verifiable sustainability through accurate accounting. Similarly, Dow has applied this approach to propylene carbonate, enhancing its sustainability profile by using bio-circular and circular feedstocks. Like PG, propylene carbonate can now be produced with certified sustainability benefits, ensuring alignment with growing environmental demands across multiple industries. This approach recently received ISCC PLUS certification in Freeport, Texas.
• In 2025, Rönesans Holding secured financing for a USD 2 billion petrochemical and port infrastructure project in Ceyhan, one of Turkey’s largest private sector investments. This project will boost domestic polypropylene (PP) production and reduce reliance on imports. Central to the development is a PP plant, built with SONATRACH, Algeria’s state energy company, which will supply raw materials. The plant will produce 472,500 tons annually, meeting 17% of Turkey’s PP demand and operating on renewable energy. The increased production of polypropylene could also enhance the supply of propylene, a key feedstock for propylene carbonate, potentially boosting its availability for applications in batteries, coatings, and pharmaceuticals.
• In 2025, Wanhua Chemical made a notable impact at the PCHi exhibition with its launch of bio-based 1,3-butylene glycol, designed for use in moisturizers and solvents in cosmetic products like serums, cleansers, and sunscreens. This follows the company’s 2022 announcement of a 30,000-ton annual capacity skin conditioning agent project, which includes both industrial- and cosmetic-grade 1,3-butylene glycol facilities. This new product aligns with the beauty industry's demand for sustainable, low-carbon materials, similar to propylene carbonate, which is also valued for its eco-friendly properties and versatility in cosmetics. Both developments reflect the industry's shift toward more sustainable, innovative raw materials.
• In April 2025, AGC, a global leader in glass, chemicals, and advanced materials, introduced a chemical absorption solution for Direct Air Capture (DAC) technology, designed to capture CO2 directly from the air. DAC is recognized as a critical technology for achieving carbon neutrality by 2050, with global research advancing its practical application. AGC’s solution uses polypropylene glycol (PPG) as a non-aqueous chemical absorbent, offering significant energy savings compared to traditional aqueous methods. Similarly, propylene carbonate (PC), another non-aqueous solvent, is also being explored in DAC systems for its excellent CO2 absorption capacity and low energy consumption, positioning both PPG and PC as promising alternatives to conventional absorption solutions in the pursuit of more efficient carbon capture technologies.

Key Market Players

• Balaji Amines Limited
• Unilong Industry Co., Ltd
• Jinan finer chemical Co., Ltd
• Qingdao Aspirit Chemical Co., Ltd
• Chemichase Chemical Co.,Ltd
• Shandong Longze Chemical Co.,Ltd
• Lihua Yiweiyuan Chemical Co., Ltd.
• TIANJIN ZHONGXIN CHEMTECH CO.,LTD.(ZX CHEMTECH)
• Shandong Shida Shenghua Chemical Group
• Shandong Depu Chemical Industry Science and Technology Co.,Ltd

Report Scope

In this report, the Global Propylene Carbonate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Propylene Carbonate Market, By Sales Channel:

o   Direct

o   Indirect

• Propylene Carbonate Market, By End Use:

o   Electrolytic Solvent

o   Cosmetics & Personal Care

o   Plastics & Polymers

o   Reagents

o   Fuel Additives

o   Others

• Propylene Carbonate Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Propylene Carbonate Market.

Available Customizations:

Global Propylene Carbonate Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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