Propylene Glycol Procurement Intelligence
The procurement of propylene glycol usually entails the sourcing of this synthetic organic compound, primarily for applications such as polyurethane production, cosmetics, anti-freeze, pharmaceuticals, and food additives. The global propylene glycol market is predicted to grow at a CAGR of 6.1% from 2024 to 2030.
Key factors driving the growth of this industry include rising demand from food & beverages, growing usage in cosmetics and personal care products such as skin care and toiletries, expanding applications in pharmaceuticals, rising demand for petroleum-based propylene glycol, and a recent drop in crude oil prices. For instance, recently, the crude oil (brent) prices dropped from USD 91 / barrel in October 2023 to USD 80 / barrel in February 2024. This reduced production costs for propylene glycol suppliers, drove down its prices, and improved its demand from downstream industries. Market sentiment for propylene glycol also improved in this period.
Order your copy of the Propylene Glycol category procurement intelligence report 2024-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Propylene Glycol Procurement Intelligence Report Scope
The Propylene Glycol category is expected to have pricing growth outlook of 5% - 10% increase (Annually) from 2024 to 2030, with below pricing models.
- Cost-plus pricing
- Volume-based pricing
- Demand-based pricing
- Competition based pricing
Supplier Selection Scope of Report
- Cost and pricing
- Past engagements
- Productivity
- Geographical presence
Supplier selection criteria of Report
- Geographical service provision
- industries served
- years in service
- employee strength
- revenue generated
- regulatory certifications
- key clientele
- product source
- product grade
- use of sustainable materials
- customer service
- lead time
- others
Propylene Glycol Procurement Intelligence Report Coverage
Grand View Research will cover the following aspects in the report:
- Market Intelligence along with emerging technology and regulatory landscape
- Market estimates and forecasts from 2022 to 2030
- Growth opportunities, trends, and driver analysis
- Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments
- Porter’s 5 forces
- Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis
- Engagement and operating models, KPI, and SLA elements
- LCC/BCC analysis and negotiation strategies
- Peer benchmarking and product analysis
- Market report in PDF, Excel, and PPT and online dashboard versions
Propylene Glycol Procurement Cost and Supplier Intelligence
Raw materials, labor, equipment, packaging, and logistics are some of the key costs associated with the production of this material. Other cost components comprise rent & utilities, R&D, compliance, general and administration, sales and marketing, and taxes. Raw materials and labor embrace the largest segment of the cost structure. Key suppliers generally adopt the cost-plus pricing model for pricing their products. Key reasons affecting product prices include fluctuations in the prices of raw materials such as propylene oxide, glycerol, and catalysts (such as sulfuric acid and sodium hydroxide).
Other reasons include variations in labor costs, changes in energy costs, and geographic location-based price fluctuations. For instance, in Q1 2023, prices of propylene oxide in China increased by 130 USD per metric ton as compared to its Q4 2022 prices. On the other hand, prices of propylene oxide in Brazil declined in Q1 2023 by 243 USD per metric ton as compared to its previous quarter prices. In North America, average prices of propylene oxide stood at USD 1.32 / KG in March 2024, 3.9% up from February 2024. In Europe, the average propylene oxide prices in March 2024 were USD 1.7 / KG, rising 3% as compared to the previous month.
List of Key Suppliers
- Adeka Corporation
- Archer Daniels Midland Company
- BASF SE
- Cargill Incorporated
- Huntsman Corporation
- INEOS AG
- LyondellBasell Industries N.V.
- Repsol S.A.
- Shell plc
- The Dow Chemical Company
Add-on Services provided by Grand View Research Pipeline:
- Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
- Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
- Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
- Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
