Mono Ethylene Glycol (MEG) Market is projected to be worth USD 61.2 Billion by 2030, registering a CAGR of 6.10% during the forecast period (2022 - 2030).
Mono ethylene Glycol Market Overview
The mono ethylene glycol market is expected to gain a market value of USD 61.2 billion by 2030 at a CAGR of 6.10% from 2022-2030.
Mono ethylene glycol (MEG) is a colorless, non-toxic chemical substance produced by the reaction of ethylene or ethylene oxide. It is used as a corrosion inhibitor in antifreeze, coolants, and in manufacturing many other products. Mono ethylene glycol is eco-friendly and has proven safe as a food additive.
The consumption of mono ethylene glycol is highly dependent on the country's economy. While the cyclic economy is observed in the countries in Asia, for applications such as polyester fibers and PET, mono ethylene glycol's demand will remain prominent in Asia. Furthermore, the rapid rise in the global mono ethylene glycol market has been mainly attributed to rising urbanization, changing lifestyles, and increasing disposable income. However, one of the major obstacles to the growth of the mono ethylene glycol market is the fluctuations in raw material prices and the availability of crude oil and other feedstock. The sustainability concerns over mono ethylene glycol are compelling some end users to shift towards alternative products offering enhanced material performance that mono ethylene glycol cannot provide. Still, the mono ethylene glycol market is expected to experience growth in the forecast period due to the rising acceptance of bio-based mono ethylene glycol. Market development is forecasted to play a significant role in the research and development activities over the forecast period, with numerous market participants already engaged in developing environment-friendly products. According to the survey, in 2021, the global market volume of mono ethylene glycol (also known as ethylene glycol) amounted to around 30.2 million metric tons. It is forecasted that the market volume of this organic compound will grow to over 40.6 million metric tons by 2029.
The COVID-19 spread affected most countries in the world. Huge business losses were incurred due to the pandemic. The global economy was down as a result. One of the industries that were severely affected was construction. Due to a labor shortage and the imposition of lockdowns, building projects became scarce, and a decrease in demand could be observed. Production slowed down for mono ethylene glycol, and the market fell based on several pandemic-related issues. One of the main reasons was that production halted, yet demand continued to rise, resulting in a surplus demand. It is predicted that after the COVID-19 pandemic, the mono ethylene glycol market will see positive growth.
The market Demand of the monoethylene glycol market is highly influenced by the market drivers and market restraints. The market drivers drive the growth of the monoethylene glycol market, whereas the market restraints hamper the growth of the market.
One of the major drivers of the market is the increasing demand if polyester fabrics. Monoethylene glycol is highly used in the manufacturing of polyester fabrics. Polyester fabrics are used in home furnishing, apparel, yarns and ropes, and other industrial applications, including conveyor belts and insulating tapes, which are driving the monoethylene glycol market growth. Monoethylene glycol is also used in PET films, and PET is crystal clear thermoplastic and gives high performance as compared to other plastic films. PET film has higher tensile strength, excellent stability, low moisture absorption, and resistance to temperature. PET also has electrical properties, UV resistance, good optical clarity, high gloss, and good gas barrier. And it makes PET great for printing and lamination, and it is also used in sheets and plastic films. PET has a high melting point which makes it useful for a wide range of applications. The demand for PET is increasing; as a result, it is driving the monoethylene glycol market growth. Apart from that, Monoethylene glycol is used in construction, automotive, pharmaceuticals, chemical processing, consumer goods, and a wide range of applications of Monoethylene glycol is driving the monoethylene glycol market size.
Monoethylene glycol is a bio-degradable product that doesn’t hamper the environment, and the aquatic organisms won’t be affected. Due to this, it is a good replacement for other products; as a result, it is generating opportunities for the monoethylene glycol market. Apart from that need for non-ionic surfactants and rising fiber and textile businesses are expected to create many opportunities for the Monoethylene glycol industry. monoethylene glycol market size will grow with the increasing need for PET and manufacturing fiber. Increasing lifestyle if people owing to better economics will also boost the Monoethylene glycol industry in future.
There are many negative impacts of Monoethylene glycol on overall health. Too much exposure to Monoethylene glycol can be very harmful, and it can cause kidney problems, heart, central nervous system problems, and many more, which is a big restraint in the market. Monoethylene glycol is toxic to inhalation, contact, or ingestion. If it contacts the eye, then it can cause irritation, eye pain, blurred vision, and contact with the skin can cause skin irritation.
There are some underdeveloped areas that are still used alternative methods to produce PET or polyester fabrics, and it is a challenge for the Monoethylene glycol industry. The fluctuation in raw materials price is another challenge for the market. The key players of the market are trying their best to overcome these challenges and boost the demand of the market in the coming years.
Cumulative growth analysis
There are many applications of Monoethylene glycol in Industries. Starting from production or PET to production of polyester fabrics, and many more. Monoethylene glycol is used in various sectors, and the demand for monoethylene glycol market price will increase more in the coming years. The market was valued at $ 26 billion in 2018, and it is expected to register a CAGR rate of 5% during the monoethylene glycol market forecast period 2019-2025.
The Monoethylene glycol is segmented on the basis of application, technology, and region.
The major regions in the monoethylene glycol market are Asia Pacific, Europe, North America, and the rest of the world. The Asia Pacific holds the highest monoethylene glycol market share. China is one of the major contributors to this region. China is the fastest-growing market for PET films and polyester fibers. Also, China is the largest population with high availability of skilled labor, and that is why it is one of the largest manufacturers of Monoethylene glycol in the world. The high demand for PET and polyester fibers is boosting the monoethylene glycol market in this region. The monoethylene glycol market price will increase more in this region in the forecast period. Also, expansion in the automotive sector in this region is expected to fuel the monoethylene glycol market price in this region.
Europe holds the second highest monoethylene glycol market share due to the high demand for bio-based products. Increasing use of bio-PET in packaging Industries due to environmental concern is driving the market in the region. North America is also expected to grow in the forecast period.
The major key players in the monoethylene glycol market are:
|Market Size||USD 61.2 billion|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Technology, Function, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Royal Dutch Shell PLC (Netherlands),Dow (US),Mitsubishi Chemical Corporation (Japan),Exxon Mobil Corporation (US), China Petroleum & Chemical Corporation (China),India Glycols Limited (India),MEGlobal (UAE),Petro Rabigh (Saudi Arabia),NAN YA PLASTICS CORPORATION (Taiwan),LyondellBasell Industries Holdings BV (Netherlands),LOTTE Chemical CORPORATION (South Korea),Reliance Industries Limited (India),SABIC (Saudi Arabia)|
|Key Market Opportunities||Need for non-ionic surfactants and rising fiber and textile businesses are expected to create many opportunities for the Monoethylene glycol industry.|
|Key Market Drivers||Highly used in the manufacturing of polyester fabrics.|
The Asia Pacific holds the highest share in the Monoethylene glycol market.
China is responsible for the highest share of Monoethylene glycol in the Asia Pacific.
The expected CAGR rate of Monoethylene glycol in the forecast period is 6.10%.