The Monoethylene Glycol Market refers to the production and consumption of monoethylene glycol as an important industrial chemical. Monoethylene glycol, also known as ethylene glycol or MEG, is an organic compound with the formula (CH2OH)2. It is primarily used in the production of polyethylene terephthalate (PET) resin which is used in a wide variety of bottled beverages and food packaging.
It can also be used as an antifreeze and coolant for engines and HVAC systems. As a raw material in PET manufacturing, it provides properties like durability, transparency and resistance to heat and chemicals. The growing Monoethylene Glycol Market Demand is expected to drive significant growth in the Monoethylene Glycol Market over the forecast period.
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 Reliance Industries Limited, SABIC, BASF SE, DowDuPont Inc., India Glycols, AkzoNobel, LyondellBasell Industries, and Lotte Chemical Corp. The growing demand for PET bottles, especially from the beverages industry is a major driver for the Monoethylene Glycol Market. Manufacturers are increasingly investing in new production plants and capacity expansion projects to capitalize on the rising global demand for PET resin. Additionally, many companies are focusing on Middle East and Asia Pacific regions which are witnessing surge in PET consumption.
Market drivers
A major market driver is the rising demand for PET bottles from the beverages industry. PET exhibits properties like lightweight, shatter-resistance and recyclability which have made it a preferred material for bottled drinks manufacturing. The global beverage packaging industry has seen strong growth over the past few years and PET demand is forecast to increase further. Additionally, MEG also finds applications as an antifreeze and coolant fluid. Rising vehicle ownership and increasing air conditioning usage is expected to boost the coolant fluid market and in turn positively impact the monoethylene glycol industry. Manufacturers are continuously investing in capacity expansions to cater to the growing demand from emerging economies.
The current geopolitical situations have significantly impacted the growth of the Monoethylene Glycol Market globally. The ongoing Russia-Ukraine conflict has disrupted the supply chains and export/import of key raw materials required for monoethylene glycol production. Russia is one of the leading producers of ethylene and natural gas, both of which are primary feedstock used in monoethylene glycol production. With sanctions on Russia, producers around the world are facing raw material shortage and rising prices. This is negatively impacting the Monoethylene Glycol Market growth. Additionally, the fluctuating energy prices due to sanctions have further increased production costs for manufacturers.
The producers are exploring new avenues and trading partnerships to ensure continuity in feedstock supply. However, shifting entire supply chain and establishing new linkages will require significant time and capital investments. To sustain in such market conditions, producers will need to focus on efficient utilization of available resources and improving production processes. Adopting innovative technologies for waste reduction and energy optimization could help stabilize costs. However, the market uncertainties arising due to ongoing issues may continue hampering short-term growth. Resolving trade conflicts and easing sanction policies could facilitate global trade and boost future prospects.
In terms of value, North America and Europe account for over 55% share of the global Monoethylene Glycol Market currently. Asia Pacific is also a major regional market led by China, which is presently the largest producer and consumer globally. China meets over 30% of worldwide consumption. Within Asia Pacific, India is emerging as one of the fastest growing countries for monoethylene glycol due to expanding polyester production. Governments in India are also undertaking initiatives to boost domestic ethylene glycol production through technology transfers and investments. This will help the country reduce import dependence and better cater to rising domestic demand in the forecast period.
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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)
