Dipropylene Glycol (DPG) Market Size & Outlook, 2025-2033

Dipropylene Glycol (dpg) Market Size

The global dipropylene glycol (DPG) market size was valued at USD 4.22 billion in 2024 and is estimated to grow from USD 4.34 billion in 2025 to reach USD 5.53 billion by 2033, growing at a CAGR of 3.07% during the forecast period (2025–2033).

Dipropylene glycol (DPG) is a colorless, nearly odorless, and hygroscopic organic compound commonly used as a solvent in various industries. It belongs to the glycol family and consists of two propylene glycol units. DPG is widely used in cosmetics, perfumes, and personal care products due to its low toxicity and ability to dissolve active ingredients. Additionally, it serves as a carrier fluid in fragrances, a plasticizer in polymers, and a component in hydraulic fluids and industrial cleaners. Its low volatility and mild scent make it ideal for fragrance formulations.

The market is driven by rising demand in the cosmetics and personal care industry, where it serves as a low-toxicity solvent and carrier in products like moisturizers and shampoos. Growing consumer preference for high-quality personal care items, especially in emerging markets, further fuels demand. Moreover, increasing environmental awareness and strict regulations are pushing industries toward safer, low-emission chemicals. Dipropylene glycol’s eco-friendly profile and regulatory compliance make it a preferred choice in various formulations, supporting its growing adoption across multiple applications.

Key Market Trends

Expansion in the Global Fragrance and Perfume Industry

One of the key trends shaping the global dipropylene glycol market is the significant expansion of the fragrance and perfume industry. Dipropylene glycol is widely used as a solvent and carrier in fragrance formulations due to its odorless nature and high solvency. The growing inclination toward premium and niche fragrances is boosting the demand for high-quality solvents.

• According to Statista, the global fragrance and perfume industry is projected to reach $52.4 billion in 2025, fueled by demand for hyper-personalized products, evolving consumer preferences, and sustainable practices.

This surge directly impacts the consumption of dipropylene glycol, especially in fine fragrance production. Moreover, clean-label and eco-friendly fragrance innovations are encouraging manufacturers to opt for low-toxicity ingredients like dipropylene glycol, further propelling the market growth.

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Dipropylene Glycol (dpg) Market Growth Factors

Growing Industrialization and Demand in End-User Sectors

The rapid pace of industrialization, particularly in emerging economies, is fueling the demand for dipropylene glycol (DPG) across several end-user sectors such as automotive, construction, and personal care. DPG’s applications as a solvent, plasticizer, and intermediate in chemical formulations make it indispensable in these industries.

• According to data from the China Passenger Car Association (CPCA), retail sales of passenger vehicles (PVs) in China rose to 1.94 million units in March 2025, reflecting a 14.4% increase compared to the same month last year and thereby enhancing the consumption of DPG in manufacturing coatings, sealants, and cutting oils.

As industrial output continues to rise globally, especially in Asia-Pacific, the demand for versatile, cost-effective chemicals like DPG is expected to grow steadily.

Market Restraint

Health and Safety Concerns

Health and safety concerns associated with dipropylene glycol pose a significant restraint to market growth. Although generally considered safe in low concentrations, excessive exposure, particularly through inhalation or direct skin contact, can lead to irritation and adverse health effects. Regulatory bodies such as the EPA and ECHA have set safety limits, prompting manufacturers to adopt strict handling and labeling protocols. These regulations can increase production costs and restrict their use in certain applications, especially in consumer-facing products. Moreover, growing consumer awareness regarding chemical safety may lead to a shift toward alternative, less controversial ingredients, limiting the widespread adoption of dipropylene glycol.

Market Opportunity

Innovation in Product Formulations

Innovation in product formulations continues to unlock growth potential in the global dipropylene glycol market, particularly across the cosmetics, personal care, and industrial sectors. Manufacturers are seeking high-performance, sustainable, and multifunctional ingredients that enhance product efficacy and meet evolving regulatory demands.

• For instance, in April 2023, Dow introduced Dipropylene Glycol LO+, a product specifically designed for fragrance and cosmetic applications. This formulation offers 99.5% purity and a specified isomer distribution, ensuring consistency and quality across global markets.

Such developments allow formulators to create products with better stability, safety, and sensory appeal. As consumers increasingly favor premium and clean-label products, innovations like these position dipropylene glycol as a critical enabler in next-generation formulations, driving market expansion and differentiation.

Regional Insights

Asia-Pacific is experiencing substantial growth in the dipropylene glycol market, driven by booming industrial sectors and consumer demand. In countries like China and India, the personal care and cosmetics industries are key contributors, with dipropylene glycol widely used in skincare, haircare, and fragrance formulations. For example, China’s expanding beauty market, supported by increasing disposable incomes, significantly fuels dipropylene glycol consumption. In Japan, dipropylene glycol is utilized in industrial applications such as automotive lubricants and plasticizers.

• South Korea is also embracing bio-based alternatives due to strong environmental policies, creating demand for eco-friendly dipropylene glycol. Additionally, the fast-growing fragrance industry in Southeast Asian nations like Thailand and Malaysia further boosts regional market growth, making Asia-Pacific a vital hub for chemical consumption.
• Japan's advanced technology sector and innovation in chemical manufacturing drive the demand for dipropylene glycol, especially in electronic and automotive lubricants. The country's cosmetics market, with brands like Shiseido and SK-II, also contributes significantly to dipropylene glycol usage, especially in high-end skincare and beauty products. Japan’s focus on precision and product quality continues to create opportunities for the market.
• India is emerging as a key growth region for dipropylene glycol, spurred by industrialization and the expanding personal care sector. Domestic cosmetic brands like Himalaya and Nivea India use dipropylene glycol in skincare formulations. With increasing manufacturing activities and investments in chemical plants, India is becoming a hub for the production and consumption of dipropylene glycol in both industrial and consumer products.
• China's growing industrial and manufacturing sectors are contributing to the rising demand for dipropylene glycol. The country’s vast cosmetic market, including brands like L'Oréal China and consumer products such as detergents, drives its use in formulations. Additionally, China’s push for environmental sustainability is prompting interest in bio-based dipropylene glycol alternatives, contributing to innovation and growth within the sector.

North America

In North America, the dipropylene glycol market is driven by the robust demand from the cosmetics, personal care, and industrial sectors. The United States, a major consumer, accounts for a significant share due to the flourishing beauty and skincare industry, where dipropylene glycol is used in products like lotions, shampoos, and deodorants. For example, brands like Estée Lauder and Procter & Gamble incorporate dipropylene glycol in their formulations. Moreover, the growing trend for eco-friendly products in North America is boosting the demand for sustainable and bio-based dipropylene glycol alternatives. The region also benefits from a well-established manufacturing infrastructure, with key chemical manufacturers like Dow and Eastman Chemical Company leading production and distribution across North America, further fueling market growth.

U.s.

The U.S. is one of the largest markets for dipropylene glycol, driven by the demand from cosmetics, pharmaceuticals, and industrial sectors. The country has a robust chemical manufacturing industry, with key players like Dow Chemical producing dipropylene glycol. Additionally, the growth of the personal care market, especially in skincare and haircare products, fuels market demand, exemplified by brands like Estée Lauder and Procter & Gamble.

• Mexico is witnessing growth in the dipropylene glycol market, fueled by industrial development and the expanding personal care market. The country’s proximity to the U.S. allows for seamless trade, supporting demand in the cosmetics and automotive industries. Brands like Avon Mexico and local manufacturers are using dipropylene glycol in personal care products, while the industrial sector relies on it for lubricants and plasticizers in production processes.

Europe

• UK: The UK sees steady growth in the dipropylene glycol market, particularly in personal care and the fragrance industry. British cosmetic brands like The Body Shop and Lush, which emphasize eco-friendly products, have increased demand for non-toxic, sustainable solvents. Additionally, the industrial applications in lubricants and plasticizers are growing, with a focus on high-quality, eco-conscious formulations aligning with the UK’s environmental goals.
• Italy: Italy’s luxury cosmetics industry, including brands like Gucci and Prada, has led to an uptick in the demand for dipropylene glycol for use in perfumes and skincare products. The country is also a key player in the European Union's chemical market, with a focus on high-quality, eco-friendly products. Italy’s growing awareness of sustainable chemicals drives innovation in the production of bio-based dipropylene glycol.
• South Africa: In South Africa, the demand for dipropylene glycol is increasing, particularly in the personal care industry, as local brands like Sorbet and African Extracts use it in skincare products. The country’s industrial sector, including automotive manufacturing and paints, also utilizes dipropylene glycol for its functional properties. With the growing trend toward sustainable chemical alternatives, South Africa is also exploring bio-based solutions to meet environmental standards.

Type Insights

The industrial grade segment holds a significant share in the global dipropylene glycol market, driven by its extensive usage across diverse manufacturing applications. This grade is commonly used as a solvent, plasticizer, and intermediate in the production of resins, lubricants, and functional fluids. Its low volatility and high solvency make it ideal for use in chemical processing, adhesives, and cleaning agents. Moreover, the growing demand for eco-friendly and low-toxicity chemicals in industrial formulations further enhances its appeal. With increasing industrialization across emerging economies, particularly in Asia-Pacific, the consumption of industrial-grade dipropylene glycol is projected to witness steady growth.

Application Insights

The paints and coatings segment represents a key application area for dipropylene glycol due to its excellent solvency and low odor characteristics. It functions as a coalescing agent and viscosity controller, enhancing the durability, spreadability, and finish of coatings. The compound’s compatibility with water-based formulations supports its use in environmentally friendly paint systems. As global construction and infrastructure development continue to rise, especially in Asia-Pacific and the Middle East, the demand for high-performance coatings is increasing. Consequently, dipropylene glycol’s role in improving application properties and extending the shelf life of paints makes it an essential ingredient in modern coating formulations.

List of key players in Dipropylene Glycol (DPG) Market

1. Dow Inc.
2. BASF SE
3. LyondellBasell Industries
4. Reliance Industries Limited
5. ExxonMobil Chemical
6. Shell Chemicals
7. SABIC
8. Huntsman Corporation
9. Eastman Chemical Company
10. SKC Inc.
11. China National Petroleum Corporation (CNPC)
12. PetroChina Company Limited

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Recent Developments

• March 2024 – Dow (NYSE: DOW) introduced two new sustainable propylene glycol (PG) solutions in the North American market, which were developed using bio-circular and circular feedstocks. These innovative products are designed for a wide range of applications and allow customers to deliver high-performance offerings with verified sustainability credentials through a mass balance approach.

Analyst Opinion

As per our analyst, the global dipropylene glycol market is poised for steady growth, driven by rising demand in personal care, cosmetics, and industrial applications. Its favorable properties, such as low toxicity, high solvency, and low odor, make it a preferred ingredient in formulations for skincare, perfumes, and functional fluids. Additionally, increasing environmental consciousness is steering manufacturers toward safer, greener solvents further boosting dipropylene glycol adoption.

However, the market faces challenges such as health-related concerns from prolonged exposure and fluctuating raw material prices, particularly propylene oxide. Regulatory pressures and the availability of alternatives may also hinder growth to some extent. Despite these constraints, the market outlook remains optimistic due to expanding applications and robust demand from emerging economies. Ongoing R&D and strategic expansions by key players are expected to sustain momentum and create long-term growth opportunities across diverse sectors.