Monoethylene glycol, also known as ethylene glycol or MEG, is a colorless, virtually odorless and sweet-tasting liquid that is widely used in the production of polyester fibers, polyethylene terephthalate and antifreeze formulations. It serves as an important raw material in many industrial applications owing to its excellent solvent properties and high boiling point. The global Monoethylene Glycol Market Demand has witnessed robust growth over the years, driven by its wide ranging applications in textiles, garments and household furnishings.
The global Monoethylene Glycol Market size is estimated to be valued at US$ 38.84 Billion by 2030 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Monoethylene Glycol Market are SABIC, Sinopec, Reliance Industries, Shell, Lotte Chemical, DowDuPont and Huntsman Corporation. These players account for over 50% of the global MEG production capacity.
The global polyester fiber demand especially in emerging economies of Asia Pacific presents significant growth opportunities for monoethylene glycol manufacturers. China dominates global polyester resin production and demand for MEG.
Several MEG manufacturers are expanding production capacities globally especially in the Middle East, Asia and North America to cater to growing demand. Reliance Industries started commercial operations of its MEG plant in Jamnagar, India with a capacity of 1.1 million metric tons per annum.
Market Drivers
The robust growth of the polyester fiber industry driven by increasing apparel consumption in Asia Pacific and Middle East & Africa is a key factor spurring demand for MEG. Monoethylene glycol acts as a raw material for polyester resins which are further processed to make polyester fibers and films. Over 60% of the global MEG production is consumed by the polyester industry.
Growing usage of polyethylene terephthalate or PET bottles for packaging beverages and packaged water is another major demand creator for monoethylene glycol. MEG serves as a precursor in the production of PET resin from which PET bottles are manufactured.
PEST Analysis
Political: Monoethylene Glycol Market is influenced by government regulations and policies on the production and usage of chemicals and petrochemicals. Stringent environmental norms can impact the growth of this market.
Economic: Fluctuations in crude oil and natural gas prices affect the production cost of monoethylene glycol. As it is used in various end-use industries, the economic performance of those industries influences the demand dynamics of this market.
Social: Increasing population and changing lifestyles drive the packaging, construction and automotive industries which spurs the demand for monoethylene glycol. Also, the rising health awareness elevates the requirements in polyester fibers and medical applications.
Technological: New technologies facilitate cost-effective manufacturing processes and enable utilization of monoethylene glycol in novel applications. Advances in polymer engineering help develop specialty fibers with improved performance using monoethylene glycol.
Geographical concentration
The Monoethylene Glycol Market is concentrated in Asia Pacific region in terms of value. Countries like China, India, Japan and South Korea dominate the demand owing to large manufacturing bases and rapid industrialization. China alone accounts for more than half of the global monoethylene glycol consumption due to wide usage of PET bottles, polyester fibers and automotive antifreeze.
Fastest growing region
The Monoethylene Glycol Market is projected to grow fastest in Middle East & Africa region during the forecast period. This is attributable to expanding polyester production plants, increased automotive production and government initiatives for infrastructural development and economic diversification in the region. The market in countries like Saudi Arabia, UAE, South Africa is anticipated to grow at a strong pace supported by rising industrial and construction activities.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
