Ethylene Glycol Market Size, Share & Industry Analysis, By Type (Monoethylene Glycol (MEG), Diethylene Glycol (DEG), and Triethylene Glycol (TEG)), By Application (Polyethylene Terephthalate (PET), Polyester Resins, Antifreeze & Coolants, Solvents & Chemical Intermediates, and Others), and Regional Forecast, 2024-2032

The global ethylene glycol market size was valued at USD 21.77 billion in 2023. The market is expected to grow from USD 22.61 billion in 2024 to USD 31.18 billion by 2032 at a CAGR of 4.1% during the forecast period. Asia Pacific dominated the ethylene glycol market with a market share of 71.75% in 2023.

Ethylene Glycol (EG) is a colorless and odorless liquid widely used in industrial applications. It possesses several important physical and chemical properties that make it an essential ingredient in various industries such as polymers & plastics, automotive, chemicals, paints & coatings, and others. One of the most significant properties of EG is its ability to depress the freezing point of water. A mixture of EG and water in proper proportions (commonly referred to as antifreeze) can lower the freezing point well below that of pure water, making it useful as a coolant and antifreeze agent. Owing to its unique set of properties, it has emerged as a versatile compound with significant industrial applications, which is expected to drive its market growth during the forecast period.

The COVID-19 pandemic adversely affected the market due to the lockdown measures that disrupted global import-export activities. The imposition of lockdowns, economic uncertainty, and travel restrictions, led to significant interruptions and delays in the supply chain in key end-use sectors such as automotive, chemical, and others, which lowered revenue in 2020. Furthermore, transportation activities were at an all-time low, and EG, a crucial ingredient in automotive aftermarket applications, experienced a similar decline trend during the pandemic.

Ethylene Glycol Market Trends

Trend of Bio-based Ethylene Glycol to Create New Lucrative Opportunities in the Market

Conventional EG is derived from fossil fuels, contributing to greenhouse gas emissions. Increasingly stringent environmental regulations and sustainability goals globally have incentivized the development and adoption of bio-based alternatives in various industries, including the chemicals and automotive sectors. In response, manufacturers operating in the global market have developed bio-based EG to align with the market trend. Bio-based EG is a renewable alternative sourced from biomass, which can help mitigate carbon emissions and reduce environmental impact. Countries aiming for energy independence and security may seek alternatives such as bio-based EG to reduce reliance on imported petroleum products. The need for bio-based EG emerged from a combination of environmental, economic, regulatory, and technological factors, which is slated to create new lucrative opportunities in the market.

Ethylene Glycol Market Growth Factors

Growing Demand for Polyethylene Terephthalate (PET) to Remain Growth Engine of the Market

Polyethylene Terephthalate (PET) is created by combining an organic acid, terephthalic acid, with a base, EG. Owing to its lightweight nature and exceptional durability, it has emerged as an ideal material over alternatives such as aluminium and glass. In addition, it needs fewer materials to package each product, lessening the environmental impact. The lightweight nature of PET makes it the go-to option for bottlers creating daily items such as soft drinks and water. The lightweight characteristics of PET simplify the transportation of products, which is advantageous for both consumers and the final users. Its aforementioned advantages make it a versatile material that is used in packaging, fabrics, the textile industry, and others. As a result, global demand for PET is poised to grow significantly in the forecast period. The demand for EG, which is an essential ingredient in PET production, is expected to grow in line with the PET market.

RESTRAINING FACTORS

Concerns over Environmental Impact Coupled With Regulatory Compliance May Restrict Market Growth

EG is primarily utilized in a wide range of applications, such as in antifreeze, coolants, and other industrial products. Still, due to its few hazardous environmental impacts, it is typically regulated or restricted. It is toxic to humans and animals if ingested, and it can cause severe health problems, including kidney damage and potentially fatal poisoning. Moreover, its improper disposal can harm the environment, contaminating soil and water sources and posing risks to wildlife and ecosystems. Ongoing efforts are to develop safer and more environmentally friendly alternatives to EG for certain applications, which may influence its consumption patterns over time. Overall, the restraints on EG consumption are primarily driven by concerns over human health, environmental impact, and regulatory compliance to mitigate these risks.

Ethylene Glycol Market Segmentation Analysis

By Type Analysis

Monoethylene Glycol (MEG) Segment Held the Largest Share Owing to its High Usage as Antifreeze Formulations

Based on type, the market is segmented into Monoethylene Glycol (MEG), Diethylene Glycol (DEG), and Triethylene Glycol (TEG).

The MEG segment held the largest global ethylene glycol market share in 2023. MEG finds a wide range of applications across various industries due to its unique chemical properties. One of the primary uses of MEG is in producing antifreeze formulations for automotive and industrial applications. It lowers the freezing point of water, preventing engine coolant from freezing in cold temperatures.

DEG is another important compound that has various industrial applications. It is commonly used as a solvent in different industries, including textile processing, printing inks, dyes, and adhesives. DEG is valued for its ability to dissolve a wide range of organic compounds. As a result, the segment is anticipated to grow moderately during the forecast period.

TEG is a more purified form of DEG, primarily used in the natural gas industry for dehydration. It is an effective desiccant that removes water from natural gas streams to prevent hydrate formation, which can obstruct pipelines and equipment. Moreover, owing to growing niche applications, the demand for TEG is expected to grow faster than the other two types.

By Application Analysis

Polyethylene Terephthalate (PET) Segment Depicted a Leading Position Attributed to Product’s Chemical Compatibility

Based on application, the market is classified into Polyethylene Terephthalate (PET), polyester resins, antifreeze & coolants, solvents & chemical intermediates, and others.

The Polyethylene Terephthalate (PET) segment accounted for the major share of the global market in 2023. EG is readily available on a large scale and is produced economically, making it a cost-effective choice for PET production. EG’s role in PET production is pivotal due to its chemical compatibility with terephthalic acid or its esters. Its ability to form strong and versatile polymer chains is slated to drive its demand in PET production during the forecast period.

In addition, EG is a key raw material used to produce polyester resins. These resins are used to manufacture Fiberglass-Reinforced Plastics (FRP), polyester fibers, and packaging materials. These factors collectively contribute to polyester resins widespread use in packaging and other industries globally, which is set to drive the segment’s growth moderately till 2032.

The others segment consists of various applications, including hydraulic fluids, heat transfer fluids, deicing fluids, and others. Ability to withstand high temperatures and efficacy in offering efficient heat transfer drive the demand for EG in various niche applications, which is anticipated to drive the segment’s growth stagnantly during the forecast period.

REGIONAL INSIGHTS

Regionally, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific has been identified as the largest consumer in the market due to the presence of leading economies such as China, India, and Japan. China is identified as the leading country in the region. The humongous demand is mainly due to the presence of a well-established polyester and PET production base. As this mineral is widely used in these industries, it makes China the leader in the region.

The shale gas revolution in the U.S. has given its producers an advantage in ethylene as a feedstock material, ensuring the U.S. is a low-cost region for MEG production. The largest competitors in North America include Shell Chemical, MEGlobal, and Sabic, which mainly fulfill regional demand and are expected to moderately lead to the North America market growth during the forecast period.

Europe has demonstrated significant demand for the product, driven by major economies such as the U.K., France, and Germany, which are among the top 10 manufacturing powerhouses. This demand is further supported by an extensive manufacturing infrastructure in the region. According to the Plastics Europe Association, Europe accounted for nearly 18% of global plastic production in 2021. As EG is highly utilized in the production of polyester resin and PET, the region is poised to expand at a stagnant growth rate during the forecast period.

The Middle East & Africa and Latin America are expected to experience moderate growth throughout the projected timeframe. The ongoing industrialization in key economies, including South Africa, the UAE, Saudi Arabia, Mexico, and Brazil, is anticipated to support the ethylene glycol market growth in the. In addition, as per the Gulf Petrochemicals & Chemicals Association (GPCA), GCC accounts for 12% of the global ethylene production, which is a key raw material for producing EG. As a result, the average selling price of EG in GCC is lower compared to many developed economies.

KEY INDUSTRY PLAYERS

Companies Adopted a Blend of Organic and Inorganic Strategies to Capture Bigger Share

BASF, China Petrochemical Corporation, EQUATE Petrochemical, Indorama Ventures, INEOS, and LG Chem are identified as key manufacturers in the study of the global market. The global market for MEG is highly competitive, involving a large number of producers located throughout the world. Players operating in the market have invested millions of dollars in organic and inorganic strategies to capture a bigger chunk of the global market share. Leading players such as INEOS, ExxonMobil, and SABIC were involved in strategies including acquisition, production capacity expansion, and joint ventures to meet the growing demand for the product. Companies with aggressive investment strategies are likely to grab the highest sales revenue in the market.

List of Top Ethylene Glycol Companies:

• BASF (Germany)


• China Petrochemical Corporation (China)


• EQUATE Petrochemical (Kuwait)


• Indorama Ventures (Thailand)


• INEOS (U.K.)


• LG Chem (South Korea)


• Mitsubishi Chemical Corporation (Japan)


• Reliance Industries Limited (India)


• SABIC (Saudi Arabia)


• Shell (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• December 2023: In a strategic step toward reducing carbon emissions, SABIC collaborated with Scientific Design (SD) and Linde Engineering. This joint effort seeks to investigate ways to make the EG production process more eco-friendly, focusing on creative approaches that greatly lower the carbon impact and introducing technology for low-emission processes.


• October 2022: Braskem and Sojitz formed a joint venture and launched a product brand named Sustainea. This brand will produce and market bio-monoethylene glycol and bio-monopropylene glycol. Under this new brand, companies will construct three industrial plants with an annual production capacity of 700 kilotons of renewable MEG.


• January 2022: ExxonMobil and SABIC successfully established a new manufacturing plant at the Gulf Coast Manufacturing Facility. The new plant will include a 1.8 million tons per year ethane steam cracker, two polyethylene units capable of producing around 1.3 million tons per year, and an MEG unit with a capacity of 1.1 million tons per year.


• November 2021: SABIC announced the establishment of a new EG production plant at its manufacturing affiliate, Jubail United Petrochemical Company (United), with a production capacity of 700 kilotons annually.


• January 2020: Indorama Ventures acquired Huntsman’s integrated oxides and derivative businesses, which include a flagship site on the US Gulf Coast (USGC) at Port Neches, Chocolate Bayou and Dayton in Texas, Ankleshwar in India, and Botany in Australia. With such massive expansion, Indorama Ventures has gained significant share points in the global EG market.

REPORT COVERAGE

The research report provides a detailed market analysis and focuses on crucial aspects such as leading companies, types, and applications. In addition, it provides quantitative data regarding volume and value, market analysis, research methodology for market data, and insights into market trends and highlights vital industry developments and competitive landscape. In addition to the above-mentioned factors, the report encompasses various factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation