BASF to Increase Neopentylglycol Prices in the U.S. and Canada to Meet Growing Demand

BASF To Raise Its Price For Neopentylglycol In The United States And Canada

BASF announced the expansion of its Ludwigshafen Verbund site to increase the production of high-purity Neopentylglycol (NPG). This investment aims to satisfy growing demand for pharmaceutical-grade excipients in North American and European markets.

Market Context

Neopentylglycol (NPG) is a premium polyalcohol prized for exceptional chemical and thermal stability. Its unique structure makes it a vital building block for high-performance polyester and alkyd resins, which are essential for producing durable coatings and various plastic materials.BASF produces neopentyl glycol (NPG) under the brand name NEOL®, utilizing it as a key building block in the synthesis of pharmaceuticals like painkillers, cardiovascular drugs, and hormones. NPG is also essential for manufacturing plasticizers and lubricants.

According to Towards Chemicals And Materials Analytics and Consulting, the Hexylene Glycol (HG) Market size accounted for USD 1.85 billion in 2025 and is predicted to increase from USD 1.95 billion in 2026 to approximately USD 3.21 billion by 2035, expanding at a CAGR of 5.65% from 2026 to 2035 as product demand from the personal care and cosmetic sector is increasing rapidly.

About BASF

Headquartered in Florham Park, New Jersey, BASF Corporation serves as the North American arm of Germany-based BASF SE. With a regional workforce of about 16,000 employees, the company generated $19.7 billion in sales throughout 2024.

Cosmetics and Personal Care Demand Accelerates the Hexylene Glycol (HG) Market

• HG is extensively used as a solvent, humectant, and viscosity-reducing agent in haircare, skincare, and cosmetic products.
• The industrial sector depends heavily on HG to improve the flow, levelling, and stability of coatings used in construction and industrial applications.
• Advancements in chemical processing and formulation techniques have improved the overall efficiency of HG in various applications.
• Rapid urbanisation and infrastructural development in regions such as the Asia Pacific, especially in countries such as China and India, are propelling demand for automotive and construction-related products.