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The global ethylene glycol market size is estimated to grow by 9,171.73 thousand t between 2022 and 2027 and the size of the market is forecast to increase at a CAGR of 4.83%.
The growth of the market depends on several factors, including growing demand from developing countries, an increase in demand for PET bottles, and growing demand for polyester fiber and films.
This report extensively covers market segmentation by type (MEG, DEG, and TEG), application (polyester fiber and films, pet, antifreeze and coolant, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for polyester fiber and films is driving the market growth. Polyester fibers, which are used to produce apparel, furniture, carpets, blankets, and home furnishing products, are manufactured using ethylene glycol and pure terephthalic acid (PTA). The global home textile retail market is expected to grow at a CAGR of approximately 6.03% by 2026, driven by favorable demographics, such as a large consumer base and an expanding middle class with increasing income, particularly in the Asia-Pacific region due to rapid urbanization.
Moreover, the demand for polyester fibers for various industrial applications, including safety belts, conveyor belts, tires, and coated fabrics, is expected to drive the global market for ethylene glycol. The use of polyester fibers as a cushioning material in upholstery padding, comforters, and pillows in the furniture industry is also expected to fuel the growth of the global ethylene glycol market during the forecast period.
Volatility in raw material prices is a major challenge in the market. Ethylene oxide is the main raw material used in the production of ethylene glycol. Ethylene is the major raw material used for the production of ethylene oxide. The oil and gas industry is one of the major suppliers of ethylene for the production of ethylene glycol. The fluctuations in crude oil prices will affect the prices of petroleum fraction products, which will subsequently have an impact on the overall cost of ethylene glycol production. For instance, in 2020, the average price of ethylene worldwide accounted for around USD 697 per metric ton. Further, as of July 2021, the average price for that year rose to USD 1,014 per metric ton, an increase of more than 45% when compared to the previous year. According to the US Energy Information Administration (EIA), global oil demand fell drastically owing to the outbreak of COVID-19 in 2020. Therefore, the heavy dependency of the global ethylene glycol market on crude oil is expected to hinder market growth during the forecast period.
An increase in the production of natural gas in the US is a trend influencing market growth. The production of natural gas in the US has been boosted by horizontal drilling and hydraulic fracturing techniques. As a result, there is a growing need for proper transportation of natural gas, which is expected to drive the demand for ethylene glycol during the forecast period.
The rise in natural gas production in the US in 2019 was attributed to the growth of natural gas production in the Permian Basin, Appalachian Basin, and Haynesville shale formations. The natural gas industry has benefited from improved drilling technologies, increased takeaway capacity, and high natural gas prices. During the period of 2018-2019, 16 new natural gas projects were launched in the US, such as Vicksburg, Tonga Phase II, and Tomcat in the Gulf of Mexico. Ongoing exploration activities and the production of offshore and onshore natural gas are also expected to drive the demand for ethylene glycol in the forecast period.
The market share growth of the MEG segment will be significant during the forecast period. Monoethylene glycol (MEG) is mainly used in the production of polyester fibers for garments and textiles. It is also used in the production of PET plastics for packaging applications. Due to the rising demand for polyester fibers, particularly in the textile and apparel industries, MEG demand has increased recently.
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The MEG segment was valued at 15,218.12 thousand t in 2017 and continued to grow until 2021. MEG is considered to be one of the primary derivatives of ethylene. It is produced using ethylene as a primary raw material. It is widely used as a raw material in creating polyester fibers, resins, and antifreeze solutions, which significantly increases demand for the substance. MEG is used as an antifreeze agent for automotive and other industrial applications owing to its excellent stability and performance.
Polyester fiber and films held the largest share of the global ethylene glycol market in 2022. The growing demand for polyester fiber from textile and industrial applications is expected to drive the demand for ethylene glycol. Polyester fibers are mainly used in the production of synthetic fibers. Polyester fiber accounted for more than 40% of the global synthetic fiber market in 2020. The high concentration of the polyester fiber market in APAC is expected to drive market growth. China and India hold substantial market share in global polyester fiber production. Polyester fibers are used in the production of apparel, bedsheet, and upholstered furniture. The growing use of polyester fibers in the production of conveyors and safety belts in industrial applications is also expected to augment market growth.
APAC is estimated to contribute 64% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The increase in demand for ethylene glycol from various end-user industries, such as textiles, packaging, automobile, and coating industries, is driving market growth in APAC. The growth of these industries in countries such as China, Japan, South Korea, India, and Indonesia is fostering market growth. There is a growing demand for PET resins in packaging applications, mainly for beverages is expected to drive the demand for ethylene glycol. The presence of a large consumer base in China and India is increasing the demand for food and beverages and consumer goods in APAC. The organized retailing and rapidly expanding e-commerce in APAC are expected to drive the packaging industry.
The ethylene glycol market in the region witnessed certain challenges due to COVID-19 in 2020 and early 2021. However, the large-scale COVID-19 vaccination drives reduced the number of COVID-19 cases in 2021. This, in turn, supported the complete resumption of operations in the manufacturing sites of ethylene glycol vendors and end-user industries such as automotive, textile, and others. Further, the regional market in focus is expected to register a growth of 3.35% in 2023 and 3.73% in 2024. This implies the increase in the demand for ethylene glycol in the APAC region resulting in the growth of the overall market in focus during the forecast period.
Vendors are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Saudi Arabian Oil Co. - The company offers Ethylene Glycol such as SABIC Diethylene Glycol, SABIC Monoethylene Glycol, and SABIC Triethylene Glycol under its subsidiary called Saudi Basic Industries Corp. Under this segment, the company offers the production of energy and chemical products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Ethylene Glycol Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Ethylene Glycol Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.83% |
Market growth 2023-2027 |
USD 9,171.73 th t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.83 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 64% |
Key countries |
US, China, India, South Korea, and Taiwan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, BASF SE, CHINA MAN MADE FIBER Corp., Dow Inc., Eastman Chemical Co., Huntsman Corp., India Glycols Ltd., Indian Oil Corp. Ltd., Indorama Ventures Public Co. Ltd., INEOS Group Holdings SA, Lotte Corp., LyondellBasell Industries NV, Mitsubishi Chemical Corp., Mitsui Chemicals Inc., PJSC SIBUR Holding, PTT Public Co. Ltd., Reliance Industries Ltd., Saudi Arabian Oil Co., Shell plc, and Sinopec Shanghai Petrochemical Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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