Mono Ethylene Glycol Market

• Increased demand for textile boosts the market growth

Textile is a primary end-user industry for mono-ethylene glycol, as the derivatives synthesize various polyester fibers. The production volume of textile fibers reached 113,600 thousand metric tons in 2021 and registered a growth of 4.8% compared to 108,300 thousand metric tons in 2020. India, China, and the United States represent major textile manufacturing countries worldwide. With growing investments and improved infrastructure facilities, the demand from the sector is likely to increase market CAGR in the forecast period.

According to the IBEF, in India, exports of textiles and apparel, including handicrafts, totaled USD 29.8 billion from April to December 2021, up from USD 21.2 billion in the same period last year, thus registering a robust 41% increase over the previous year. Furthermore, favorable demographics and a shift in preference for branded products are expected to boost demand for the textile sector, thus boosting the mono-ethylene glycol market. The United States is among the key countries in exports of textile-related products. In 2021, US Fiber, textile, and apparel exports were USD 28.4 billion.

According to the National Council of Textile Organizations report, the value of shipments for textiles and apparel was USD 65.2 billion. Thus, the abovementioned factors are expected to impact market growth during the forecast period significantly.

Additionally, increasing demand for polyester fiber from the textile sector increases the mono ethylene glycol (MEG) market revenue during the forecast period. Moreover, the upsurge witnessed in the packaging and textile industry is, in turn, driving the Monoethylene Glycol Market. Besides, the increasing use of plastics, preferably paperboard, wood, and metal, in the packaging industry is feeding the polyethylene terephthalate (PET) sector in the forecast period. Moreover, pharmaceutical and food & beverage packaging is the notable factor for the industry growth due to its extensive usage of PET to manufacture several packaging materials such as sheets, films, bottles, containers, etc.

April 2024

Glencore, a Swiss mining and commodities trading corporation, is in talks to buy Shell's Singapore oil refinery and petrochemical plants.  

The UK-based oil company is looking for a new owner for the assets, which include a refinery with a capacity of 237,000 barrels per day (bpd), a one-million-tonne-per-year ethylene plant on Bukom Island, and a mono-ethylene glycol manufacturing facility on Jurong Island.

Glencore plans to have a strong physical presence in Asia's key oil hub after acquiring the Bukom and Jurong properties.

The Swiss firm is in discussions with Indonesian company PT Chandra Asri Petrochemical about a possible takeover. However, the aging facilities have been encountering economic issues, notably in the petrochemicals industry, and are competing with newer refineries, mainly in China. 

The automotive industry plays a pivotal role in the Global Mono Ethylene Glycol (MEG) Market Industry, as MEG is utilized in the production of antifreeze and coolants. With the increasing production of vehicles globally, the demand for MEG is anticipated to rise. The shift towards electric vehicles (EVs) also contributes to this growth, as these vehicles require efficient cooling systems. As a result, the Global Mono Ethylene Glycol (MEG) Market Industry is likely to see an increase in MEG consumption, aligning with the projected market value of 88.3 USD Billion by 2035, reflecting the automotive sector's expanding needs.

The packaging sector significantly influences the Global Mono Ethylene Glycol (MEG) Market Industry, as MEG is essential in producing polyethylene terephthalate (PET) used in bottles and containers. The rising demand for sustainable packaging solutions drives the need for PET, thereby increasing MEG consumption. As global awareness of environmental issues grows, the shift towards recyclable materials further propels the market. The Global Mono Ethylene Glycol (MEG) Market Industry is expected to benefit from this trend, with projections indicating a market value of 46.0 USD Billion in 2024, highlighting the packaging industry's vital role in MEG demand.

The Global Mono Ethylene Glycol (MEG) Market Industry is characterized by various trends and growth projections that indicate a dynamic landscape. The market is expected to reach a value of 46.0 USD Billion in 2024, with a robust growth trajectory anticipated through 2035. The projected CAGR of 6.1% from 2025 to 2035 suggests that the industry will continue to evolve, driven by factors such as rising demand from key sectors and technological advancements. This growth reflects the increasing importance of MEG in multiple applications, reinforcing its position as a critical component in various industries.

The Global Mono Ethylene Glycol (MEG) Market Industry experiences a robust demand surge from the textile sector, primarily due to MEG's critical role in producing polyester fibers. As the global textile market expands, driven by increasing consumer preferences for synthetic fabrics, MEG consumption is projected to rise significantly. In 2024, the market value is estimated at 46.0 USD Billion, reflecting the textile industry's growing reliance on MEG for production. This trend is likely to continue, with the Global Mono Ethylene Glycol (MEG) Market Industry expected to witness a compound annual growth rate (CAGR) of 6.1% from 2025 to 2035, indicating sustained growth in the coming years.

The Global Mono Ethylene Glycol (MEG) Market Industry is significantly impacted by its application in chemical manufacturing, where MEG serves as a precursor for various chemicals and solvents. The growing demand for chemicals in diverse industries, including pharmaceuticals and agriculture, is likely to drive MEG consumption. As the global chemical industry expands, the need for MEG as a fundamental building block becomes increasingly apparent. This trend suggests a positive outlook for the Global Mono Ethylene Glycol (MEG) Market Industry, with expectations of a CAGR of 6.1% from 2025 to 2035, indicating a sustained increase in demand.

Technological innovations in the production of Mono Ethylene Glycol (MEG) are poised to enhance efficiency and reduce costs, thereby impacting the Global Mono Ethylene Glycol (MEG) Market Industry positively. Advanced production techniques, such as the use of renewable feedstocks and improved catalytic processes, may lead to higher yields and lower environmental footprints. These advancements could attract investments and foster growth within the industry. As a result, the Global Mono Ethylene Glycol (MEG) Market Industry is likely to see increased competitiveness and market expansion, aligning with the projected growth trajectory towards 88.3 USD Billion by 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific mono ethylene glycol (MEG) market will dominate this market; the Region's growth is attributed to rapidly growing per capita income and swelling economic conditions will boost the market growth in this Region. Moreover, China’s Mono Ethylene Glycol (MEG) market held the largest market share, and the Indian Mono Ethylene Glycol (MEG) market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: MONO ETHYLENE GLYCOL (MEG) MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's mono ethylene glycol (MEG) market accounts for the second-largest market share due to the rises in the standard of living of the people are crucial. The increasing use of plastics, preferably paperboard, wood, and metal, in the packaging industry is feeding the polyethylene terephthalate (PET) sector. Further, the German mono-ethylene glycol (MEG) market held the largest market share, and the UK mono ethylene glycol (MEG) market was the fastest-growing market in the European Region.

The North American mono ethylene glycol (MEG) market is expected to grow at the fastest CAGR from 2023 to 2030. The increasing use of plastics, preferably paperboard, wood, and metal, and the increasing environmental concern supports regional market growth.

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

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the mono ethylene glycol (MEG) industry to benefit clients and increase the market sector. In recent years, the mono ethylene glycol (MEG) industry has offered some of the most significant advantages to the automobile sector.

Major players in the mono ethylene glycol (MEG) market, including Royal Dutch Shell PLC, Dow (US), Mitsubishi Chemical Corporation, Exxon Mobil Corporation (US), China Petroleum & Chemical Corporation, India Glycols Limited (India), ME (UAE), Petro Rabigh (Saudi Arabia), NAN YA PLASTICS CORPORATION, LyondellBasell Industries Holdings BVand others, are attempting to increase market demand by investing in research and development operations.

Shell is a energy company with around 87,000 employees in over 70 countries. We work together to power progress through more and cleaner energy solutions. We serve over 30 million customers at almost 46,000 retail service stations daily. Shell is an Anglo–Dutch multinational oil and gas company moving forward with the development plan for a US$ 1.2 billion Monoethylene glycol plant in Louisiana. MEG is used to manufacture paints, adhesives, papers, polyester fibers, and polyester terephthalate, a resin for plastic bottles and antifreeze.

Saudi Basic Industries Corporation, known as SABIC, is a Saudi chemical manufacturing company. Saudi Aramco owns 70% of SABIC's shares. It is active in petrochemicals, chemicals, industrial polymers, fertilizers, and metals.SABIC is identifying and developing opportunities in key end markets such as electrical and electronics, transportation, medical devices, construction, packaging, agri-nutrients, and clean energy. SABIC has over 33,000 employees worldwide and operates in over 50 countries. Fostering innovation and a spirit of ingenuity, we have about 12,500 patent filings.

We have significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, North East Asia, and South East Asia.

SABIC announced the initial startup activities of the Ethylene Glycol Plant – 3 at its manufacturing affiliate, Jubail United Petrochemical Company (United), with an estimated annual production capacity of 700,000 metric tons of mono-ethylene glycol. Saudi Basic Industries Corporation, known as SABIC, is a Saudi chemical manufacturing company. Saudi Aramco owns 70% of SABIC's shares. It is active in petrochemicals, chemicals, industrial polymers, fertilizers, and metals. SABIC is identifying and developing opportunities in key end markets such as electrical and electronics, transportation, medical devices, construction, packaging, agri-nutrients, and clean energy.

SABIC has over 33,000 employees worldwide and operates in over 50 countries. Fostering innovation and a spirit of ingenuity, we have about 12,500 patent filings. We have significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, North East Asia, and South East Asia. SABIC announced the initial startup activities of the Ethylene Glycol Plant – 3 at its manufacturing affiliate, Jubail United Petrochemical Company (United), with an estimated annual production capacity of 700,000 metric tons of mono-ethylene glycol.