Ethylene Oxide Market Size, Share, and Industry Analysis, By End-use (Ethylene Glycols, Ethoxylates, Ethanolamines, Glycol Ethers, and Others), and Regional Forecast, 2024-2032

Ethylene oxide is a colorless, flammable gas with a sweet odor at room temperature. The primary production method for ethylene oxide is the direct oxidation of ethylene in the presence of a catalyst. Ethylene oxide has a wide range of End-uses across various industries. Its most significant use is as an intermediate in the production of ethylene glycols, which are extensively used in the manufacturing of polyesters and antifreeze solutions. The chemical industry uses ethylene oxide to produce various chemicals, including glycol ethers, ethanolamine, and polyethylene glycol. Ethylene oxide derivatives are used in detergents, personal care products, and agrochemicals. In the healthcare industry, it serves as a sterilizing agent for medical equipment due to its effectiveness against microorganisms.

Segmentation:

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Regions


• Key Developments: Mergers, Acquisition, and Partnerships


• Latest Technological Advancements


• Insights on Sustainability


• Porters Five Forces Analysis


• Impact of COVID-19 on the Market

Analysis by End-use

By End-use, the market is segmented into ethylene glycols, ethoxylates, ethanolamines, glycol ethers, and others. The glycol ethers segment holds a considerable share of the global ethylene oxide market. The demand for glycol ethers is primarily driven by the paints and coatings industry due to their superior solvency properties and compatibility with water-based formulations. As environmental regulations become stricter, the industry is shifting toward low VOC and water-based products, where glycol ethers play a crucial role as coalescing agents and film-forming additives. The growing construction and automotive sectors, particularly in developing countries, are fueling the demand for paints and coatings, prompting market growth in tandem.

Several key factors across various industries drive the demand for ethylene glycol. Primarily, the polyester fiber and resin industry is a major consumer, using ethylene glycol as a key raw material in the production of polyethylene terephthalate, which is widely used in textiles and packaging. The growing global population and their increasing disposable incomes, particularly in developing countries, have led to higher demand for textiles and packaged goods, subsequently fueling ethylene glycol consumption and driving market growth in tandem.

Ethylene glycols play a crucial role in the production of polyethylene terephthalate, which is widely used in packaging, particularly for food and beverage products. PET bottles are widely used for soft drinks, water, juices, and other beverages due to their clarity, strength, and ability to be recycled. The rising demand for PET in packaging across the globe is expected to fuel the demand for ethylene glycol, driving market growth.

• According to a study article published by OpenOceans Global, Polyethylene terephthalate (PET) packaging accounted for 44.7% of single-serve beverage packaging in the U.S. in 2021, dominating the beverage packaging industry.

Ethoxylates are key ingredients in a wide range of applications due to their surfactant properties, making them versatile and irreplaceable in various industries. In the personal care industry, it is used as an emulsifier, wetting agent, and solubilizer in products such as shampoo, conditioners, creams, lotions, and soaps. The increasing consumer demand for personal care and cosmetic products, driven by rising disposable income and beauty awareness, is fueling the demand for ethoxylates and driving market growth in tandem.

• According to an article published by Business Sweden, in developing countries, such as India, the beauty and personal care sector is growing at 11%. As of 2021, it is a USD 18 billion market. India’s large consumer base with an increasing ability of consumers to spend is likely to create space for growth, consequently driving market growth.

Regional Analysis

The global market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific is the leading region in the market, primarily driven by rapid industrialization and urbanization, particularly in emerging countries, such as China and India. The growing population and rising disposable income are fueling the consumption of products that utilize ethylene oxide derivatives, such as polyester fibers, PET bottles, and detergents, among others.

• According to Textile Exchange, a non-profit organization based in the U.S., polyester continues to be the most produced fiber, accounting for 54% of the global market in 2022.

The major ethylene oxide market consumers by region are China, Japan, and India in Asia Pacific; the U.S. & Canada in North America; Germany and France in Europe; and Saudi Arabia and UAE in the Middle East.

• China consumed around 60.5%% of the Asia Pacific Ethylene Oxide market demand in the year 2023. According to an article published by Mysteel Global, considering the growing demand, China will increase its ethylene oxide production capacity with plants distributed across different regions of China. This distributed production will help lower operational costs incurred during procurement and transportation.


• The article also states that by the end of 2024, China will complete more ethylene oxide projects in East China, North China, and Northeast China, resulting in a capacity increase of 1.53 million tons annually.

Key Players Covered

The report includes the profiles of key players, such as BASF SE, LyondellBasell Industries Holdings B.V., Shell, Reliance Industries Limited, Indorama Ventures Public Company Limited, NIPPON SHOKUBAI CO., LTD., Balchem Corp., INEOS, China Petrochemical Corporation, and Mitsui Chemicals, Inc.

Key Industry Developments

• In May 2024, INEOS Oxide announced that it had acquired LyondellBasell's Ethylene Oxide and Derivatives business and related manufacturing facilities located in Bayport, Texas. The move is part of the company's strategic plan to increase its presence in the U.S. and support its customers with less friction by integrating with existing businesses, locations, and teams.


• In October 2023, BASF announced the expansion of the production capacity for ethylene oxide and ethylene oxide derivatives at its facility in Antwerp, Belgium. The expansion will increase the production of corresponding products by 400,000 metric tons per year. The move is part of the company’s strategy to support the growing customer demand for alkoxylates in cleaning products used in homecare, institutional, and industrial settings.