Glycol Market Analysis

Global Glycol Market Overview

Glycol Market Size was valued at USD 41.2 Billion in 2022. The Glycol market industry is projected to grow from USD 44.2 Billion in 2023 to USD 77.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.30% during the forecast period (2023 - 2032). Increased demand for ethylene glycol (EG) in the automotive industry and the expanding use of propylene glycol (PG) in the food and beverage, pharmaceutical, and cosmetics sectors are the key market drivers enhancing the market growth.    

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Glycol Market Trends

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  Growing demand for ethylene glycol (EG) in the automotive industry is driving the market growth

  
  

Market CAGR for glycol is being driven by the rising demand for ethylene glycol (EG) in the automotive industry. EG is a vital ingredient in the formulation of engine coolants and antifreeze solutions. These products are essential for maintaining the optimal operating temperature of internal combustion engines, preventing freezing in cold climates, and protecting against overheating in hot conditions. With the global automotive industry continuously expanding, the requirement for engine coolants and antifreeze solutions remains consistently high.

The automotive sector has experienced substantial growth, particularly in emerging markets, as rising incomes and urbanization have led to increased vehicle ownership. As a result, the production of passenger cars, commercial vehicles, and other forms of transportation has been on the rise. This surge in automotive production directly correlates with the increased demand for EG. Governments worldwide have implemented stringent regulations aimed at reducing vehicle emissions and improving fuel efficiency. To comply with these regulations, automotive manufacturers are developing vehicles with more efficient engines that operate at higher temperatures. This necessitates the use of high-quality EG-based coolants to ensure proper engine performance. The growing popularity of electric vehicles, which require effective thermal management for their batteries and electric drivetrains, has further fueled the demand for high-performance coolants and heat transfer fluids. EG-based solutions play a critical role in maintaining the temperature stability and performance of EVs, thus boosting EG consumption.

Beyond the initial fill-in new vehicles, the aftermarket for engine coolants and antifreeze solutions is substantial. Consumers regularly maintain and replace these fluids to ensure the longevity and efficient operation of their vehicles. This consistent need for aftermarket products contributes to ongoing EG demand. The automotive industry's global supply chain has expanded significantly, with manufacturing operations located in various regions. As a result, the glycol market benefits from this geographic diversity as EG is used in automotive production and maintenance worldwide. Ongoing research and development efforts are focused on creating more advanced engine cooling solutions, including coolants with longer service life, improved corrosion protection, and enhanced heat transfer capabilities. These innovations stimulate the adoption of EG-based products in the automotive sector.

Further, the expanding use of propylene glycol (PG) in the food and beverage, pharmaceutical, and cosmetics sectors is also driving the market growth. PG is a versatile ingredient in these industries, serving as a non-toxic and food-grade heat transfer fluid, a humectant in personal care products, and a carrier for pharmaceuticals and flavorings, driving its market growth. Thus driving the Glycol market revenue.

Glycol Market Segment Insights

Glycol Product Insights

The Glycol Market segmentation, based on product, includes Ethylene Glycol and Propylene Glycol. The ethylene glycol segment dominates the market, accounting for the largest market revenue due to its extensive use in the automotive industry as a key component of engine coolant and antifreeze. Its excellent properties, such as low freezing point and high boiling point, make it a critical ingredient for maintaining engine temperature and preventing freezing or overheating. The ever-growing global automotive sector, coupled with the need for reliable and efficient engine cooling solutions, ensures a sustained high demand for ethylene glycol and secures its dominant position in the glycol market. Further, the propylene glycol category is the second most common category as it has diverse applications, including its use as a food-grade heat transfer fluid, a humectant in personal care products, and a carrier for pharmaceuticals and flavorings.

Figure 1: Glycol Market, by Product, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Glycol Application Insights

The Glycol Market segmentation, based on application, includes Automotive, HVAC, Textiles, Airlines, Medical, Pipeline Maintenance, Polyester Fibers and Resins, Food and Beverage, and Others. The automotive category dominates the market due to its essential role in maintaining the optimal operating temperature of vehicles. Ethylene glycol and propylene glycol, commonly used as antifreeze and engine coolant, are critical components that protect engines from freezing in cold temperatures and overheating in hot conditions, ensuring reliable and efficient vehicle performance. With the ever-growing global automotive industry, a consistent demand for glycols in engine cooling systems solidifies their dominant position in the glycol market. Further, the HVAC category is the second most common application as HVAC systems frequently utilize glycols, such as ethylene glycol and propylene glycol, as antifreeze agents to prevent freezing in chilled water systems and as heat transfer fluids in both heating and cooling processes.

Glycol End User Insights

The Glycol Market segmentation, based on end users, includes Automotive and Transportation, Packaging, Food and Beverage, Cosmetics, Pharmaceuticals, Textile, and Others. The automotive and transportation category dominates the market as Glycols, particularly ethylene glycol, are extensively used as antifreeze and engine coolant in the automotive industry to prevent freezing and overheating, making this sector the largest consumer of glycols. Glycols are crucial for maintaining the temperature and performance of internal combustion engines, and their demand is closely tied to the production and maintenance of vehicles. Further, the food and beverage industry is the second most common as glycols, especially propylene glycol (PG), are commonly used in the food and beverage sector as heat transfer fluids, humectants, and carriers for food additives, flavors, and colors. They play a crucial role in maintaining product quality, consistency, and safety in various food and beverage applications.

Glycol Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Glycol market area dominates this market due to its robust industrial and automotive sectors, resulting in a high demand for ethylene glycol (EG) as an essential component in engine coolant and antifreeze. Additionally, the region's well-established chemical manufacturing infrastructure, stringent quality standards, and significant presence of key glycol producers further solidify its position as a primary hub for glycol production and consumption.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil

Figure 2: GLYCOL MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Glycol market accounts for the second-largest market share due to its increasing use in the pharmaceutical and cosmetics industries, where glycols, such as propylene glycol (PG), serve as crucial ingredients in various products, including pharmaceutical formulations and personal care items. Further, the German Glycol market held the largest market share, and the UK Glycol market was the fastest-growing market in the European region.

The Asia-Pacific Glycol Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rapid expansion of the industrial and automotive sectors, coupled with increasing construction activities and a growing focus on advanced industrial processes. Moreover, China’s Glycol market held the largest market share, and the Indian Glycol market was the fastest-growing market in the Asia-Pacific region.

Glycol Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Glycol market grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Glycol industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Glycol industry to benefit clients and increase the market sector. In recent years, the Glycol industry has offered some of the most significant advantages to several industries. Major players in the Glycol market, including Dow, LyondellBasell Industries N.V., BASF SE, ADM, Global Bio-chem Technology Group Company Limited, DuPont Tate & Lyle Bio Products, SKC, Temix Oleo, INEOS Oxide, Huntsman International LLC, ADEKA CORPORATION, Chaoyang Chemicals, Inc., Manali Petrochemicals Limited, Haike Chemical Group Co., Ltd., Arch Chemicals Inc., Repsol, and others, are attempting to increase market demand by investing in research and development operations.

LyondellBasell is a global chemical company known for its operations in the production of polyolefins, chemicals, and refining. LyondellBasell is a major player in the chemical industry, with a diversified product portfolio that includes polyethylene, polypropylene, chemicals, advanced polymers, and refining. They serve a wide range of industries, including packaging, automotive, construction, and electronics. LyondellBasell places a strong emphasis on research and innovation. They invest in research and development to develop new materials, technologies, and solutions for various industries. Their focus on innovation often involves creating advanced plastics and polymers. In May 2023, LyondellBasell and Neste announced a partnership to develop and commercialize sustainable glycol products made from renewable feedstocks. The two companies will collaborate on the development of new technologies and the construction of new production facilities.

BASF is a diversified company that produces a wide range of chemical products and materials with a focus on innovation and technology. Their products are used in various industries, including automotive, construction, agriculture, pharmaceuticals, and consumer goods. The company produces a broad spectrum of chemicals, polymers, and specialty materials, including engineered materials, acetyl products, and other high-performance products. Their offerings include materials used in the manufacture of everything from automotive components to consumer electronics and medical devices. In June 2023, BASF and INVISTA announced a partnership to develop and market a new generation of sustainable glycols. The two companies will combine their expertise in catalysis and technology to develop new processes for the production of glycol from renewable feedstocks.

Key Companies in the Glycol market include

• Dow


• LyondellBasell Industries N.V.


• BASF SE


• ADM


• Global Bio-chem Technology Group Company Limited


• DuPont Tate & Lyle Bio Products


• SKC


• Temix Oleo


• INEOS Oxide


• Huntsman International LLC


• ADEKA CORPORATION


• Chaoyang Chemicals, Inc.


• Manali Petrochemicals Limited


• Haike Chemical Group Co., Ltd.


• Arch Chemicals Inc.


• Repsol

Glycol Industry Developments

July 2023: Dow and Shell announced a partnership to develop and commercialize sustainable glycol technologies. The two companies will collaborate on research and development, as well as on the construction and operation of a commercial-scale sustainable glycol plant.

August 2023: Eastman Chemical announced the acquisition of Avantor Performance Materials' glycol business for $2.1 billion. This acquisition will expand Eastman's portfolio of glycol products and strengthen its position in the growing market for sustainable glycols.

June 2023: Saudi Basic Industries Corporation (SABIC) announced the acquisition of the ethylene oxide and ethylene glycol business of ExxonMobil Chemical for $1.5 billion. This acquisition is part of SABIC's strategy to expand its global presence and become a leading producer of ethylene glycol.

Glycol Market Segmentation

Glycol Product Outlook

• Ethylene Glycol


• Propylene Glycol

Glycol Application Outlook

• Automotive


• HVAC


• Textiles


• Airlines


• Medical


• Pipeline Maintenance


• Polyester Fibers and Resins


• Food and Beverage


• Others

Glycol End User Outlook

• Automotive and Transportation


• Packaging


• Food and Beverage


• Cosmetics


• Pharmaceuticals


• Textile


• Other

Glycol Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America