Global Mono-Ethylene Glycol Market - 2022-2029

Global Mono-Ethylene Glycol Market - 2022-2029

Market Overview

The global mono-ethylene glycol market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of 6.9% during the forecast period 2022-2029.

Mono-ethylene glycol is a type of glycol that mainly finds application as a chemical intermediate for resins, solvent couplers and is widely used as antifreeze and for the manufacture of polyester fabrics, PET, among others. Mono-ethylene glycol is produced by converting ethylene into intermediate ethylene oxide. Ethylene oxide then combines with water to create ethylene glycol under high temperatures in the presence of acids or bases to produce mono-ethylene glycol. Mono-ethylene glycol of 90% purity is generally generated in most processes and tri-ethylene glycol, tetramethylene glycol and oligomers diethylene glycol are major byproducts during mono-ethylene glycol synthesis.

Market Dynamics

Increasing demand for antifreeze liquid due to experienced growth in the automotive industry is a major market driver for the respective market. Nonetheless, high toxicity and governmental regulations associated with the disposal restrain the market's growth.

Increasing demand for antifreeze liquid due to experienced growth in the automotive industry

Antifreeze refers to those chemicals capable of lowering the freezing point o a water-based liquid to prevent it from freezing under cold weather. Since regions such as U.S. and Europe are prone to cold weather with frequent temperatures dropping below 0oC, antifreeze liquids are mandatory to ensure the safety and proper working of internal combustion engines. As mono-ethylene glycol is one of the most prominently used antifreeze liquids globally, the global automotive industry's exclusive growth could be a significant driver for the global mono-ethylene glycol market.

Though the global automotive market was constantly pummeled by COVID-19 initially, the fourth quarter of 2021 shows significant growth. As per data, GM reported a 4.8% increase in sales along with Toyota Motor Corp and Volkswagen Ag, who reported a 9.4% and 10.8% rise in sales, respectively. Additionally, Volkswagen AG is expected to sell almost 15.6 million vehicles in U.S. market by the end of 2021. From an analysis of the statistics, it could be quickly concluded that the global automotive market is expected to witness a significant boost during the forecast period. As a result, the global mono-ethylene glycol market is expected to develop substantially in terms of market prospects such as sales and demand due to the extensive and effective utilization of mono-ethylene glycol as an antifreeze liquid.

High toxicity and governmental regulations associated with the disposal

Though mono-ethylene glycol has a wide range of applications, including antifreeze in cooling and heating systems and hydraulic braking fluids, even acute exposure to this chemical results in health impacts such as central nervous system (CNS) depression, cardiac effects and eventually kidney impairment in humans. Further, the effect of mono-ethylene glycol on the environment, particularly on the marine and aquatic organisms such as fathead minnow and frogs, among others, is disastrous, as per the survey conducted by the World Health Organization.

As a result of the drastic impact on humans and the environment, specific rules are set effective in U.S. to regulate the manufacture of mono-ethylene glycol. For instance, as per the Toxic Substances Control Act (TSCA), the manufacture of seven ethylene glycol, including mono-ethylene glycol, require the manufacturers to notify the Environmental Protection Agency of U.S. 90 days before the manufacture so that the agency can analyze the safety of the product, associated production process and facility. Since regulation such as the TSCA requires the manufacturers to spend extensive money and time to ensure proper good manufacturing practices, many small and large-scale manufacturers refrain from entering the respective market. Since the high toxicity of mono-ethylene glycol forces the government to enforce regulations restricting the market players' functioning, the respective factor could be considered a significant market restrain that constricts the global mono-ethylene glycol market growth.

COVID-19 Impact Analysis

The outbreak of COVID-19 has positive and negative impacts on the MEG market. Before the outbreak of COVID-19, growing technological advancements have escalated the overall market share for the product globally. However, during COVID-19, the market has seen various challenges such as reduced demand from the end-user and supply chain disruption. The MEG market is highly focused on sourcing chemicals from different sites as crude oil is one of the primary raw materials in MEG manufacturing. Thus, companies also outsource crude oil from other countries to produce MEG. Although the outbreak has shut down major transportation mediums for MEG globally for a limited period, hampering the market growth during the 2019-2020 period.

Shutting down various end-user industries for the product or partially opening manufacturing units has reduced the overall demand for the product in the region. End-User industries such as textile and healthcare have shown a booming demand for MEG as the product uses major raw materials in medical textiles. Different types of fibers are used in hospitals, such as polyesters, cotton, polyethylene and others for various applications such as Surgical clothing gowns, Beddings, Uniforms, Surgical hosiery, Gowns, Masks and others. Masks and PPE are some of the driving applications of MEG during COVID-19. Apart from the healthcare, packaging and plastic industry has seen an unprecedented market rise during COVID-19. For instance, plastic resins, the building elements of all plastic items, grew by 0.9% in 2020 in U.S., compared to 1.2% in 2019. Plastic was the only section of U.S. chemistry industry, which covers everything from fertilizer to synthetic rubber, to rise last year, despite slower growth than the previous year, according to a year-end report by the American Chemistry Council.

Furthermore, The public's impression of plastic as resistant to COVID-19 transmission contributes to its stability. Plastics are used to make masks, gloves and other protective gear, as well as delivery cartons, soda bottles and another single-use packaging that are used and discarded as they get more food and other products delivered to their homes. After COVID-19, the market share for the product is expected to regain momentum.

Segment Analysis

The global mono-ethylene glycol market is classified based on the production process, application, end-user and region.

Higher yield, selectivity and environmentally friendly nature allow gas-based to dominate the production process segment

Traditional MEG manufacture follows a petrochemical approach, starting with petro-ethylene and going through an oxidation and hydration process. The depletion of petro-resources, on the other hand, puts much pressure on countries that don't have enough petroleum to maintain development. Therefore, countries are developing a new process from nonpetroleum resources (i.e., coal-based or natural-gas-based syngas) as an alternative to the petroleum-based process, becoming highly attractive in recent years. Thus growing hydrogen and CO production has triggered the gas-based segment market for the production of mono-ethylene glycol globally. The respective invention relates to a new method for producing ethylene glycol and ethylene glycol derivatives from syngas, employing a novel catalyst system that allows for higher yields and ethylene glycol selectivity. Gas-based MEG production is favored by various MEG producing companies such as SABIC since it is important to explore other alternative routes of MEG synthesis as they offer a greener and more sustainable alternative to the current production methods. To get ethylene via thermal cracking, the industrial process of MEG manufacture from Ethylene oxide hydrolysis fully relies on non-renewable fossil fuel-based feedstocks such as petroleum, natural gas and naphtha. As a result, this process contributes to dangerous greenhouse gases in the atmosphere, such as carbon dioxide (CO2) and methane (CH4). Furthermore, the commercial process has limited MEG selectivity since higher-order glycols are formed due to Ethylene oxide's enhanced reactivity towards MEG than water.

Thus, developed countries have started relying on alternative methods with less environmental damage. Gaseous substrates such as CO2, CO and H2 could be an alternative and valuable feedstock if biochemical processes for converting these gases to MEG can be found. The greenhouse gas CO2 is abundant in the environment and CO & H2 are components of synthesis gas (syngas), generated inexpensively and abundantly from natural gas, coal gasification, plant biomass gasification and pyrolysis of organic waste products. For instance, In October 2018, Johnson Matthey and Eastman Chemical licensed a new ethylene glycol technology to Jiutai. The new process enables the production of MEG from various raw materials, including natural gas, coal or biomass, thereby enabling companies to produce MEG without the need to access ethylene.

Geographical Analysis

The growing textile and PET production markets in Asia-Pacific boost the region’s mono-ethylene glycol market

Asia-Pacific, where China and India are the two biggest consumers of mono-ethylene glycol, led the regional segment of the global mono-polyethylene glycol market. The consumption of mono-ethylene glycol in China is very heavy because China leads the world in terms of biggest polyethylene terephthalate production, a derivative of mono-ethylene

Further, due to the plentiful supply of raw materials and the affordable cost of production, China is one of the world's top producers of PET resins and mono-ethylene glycol. The region is currently the main hub of businesses like PetroChina Group and Jiangsu Sangfangxiang, two of the world's largest manufacturers of mono-ethylene glycol in terms of volume and capacity at over 2 million tonnes. Therefore, the demand for mono-ethylene glycol in the region is mostly driven by the increasing demand for PET manufacturing and other end-user sectors.

Like this, China's textile industry, a major consumer of mono-ethylene glycol, is one of its key industries and the world's top exporter of clothes. According to data, China's textile industry expanded significantly during the first nine months of 2021, with combined profits totaling about USD$ 26.80 billion (CNY 171.1 billion), with a 31.7 percent year-over-year (YoY) rise. The respective factors boost Asia-Pacific’s mono-ethylene glycol demand and supply, securing a first place among all the global regions.

Competitive Landscape

The global mono-ethylene glycol market is highly dynamic regarding global and local producers' numbers and strengths. The market is fragmented due to numerous large-scale manufacturers such as Exxon Mobil Corporation, BASF SE, MEGlobal, LyondellBasell Industries Holdings B.V., Dow, SABIC, NAN YA PLASTICS CORPORATION, Shell, Reliance Industries Limited, LOTTE Chemical Corporation, Indorama Ventures Public Company Limited, Eastman Chemical Company and Sasol. Pivotal market stakeholders employ tactics like mergers, acquisitions, product launches, contributions and collaborations to gain competitive advantages and recognition in their respective markets.

Eastman Chemical Company

Overview: Eastman Chemical Company is a renowned manufacturer of materials that find applications on a day–to–day basis. The company aims to provide innovative solutions and products that are sustainable by utilizing advanced technology. The company’s product portfolio is divided into four segments, namely, fibers, additives & functional products, advanced materials and chemical intermediates that include products for markets such as transportation, building and construction, consumables, industrial and chemical processing, food, feed and agriculture, health and wellness, among others. The company has over 50 manufacturing facilities globally and employs around 14,500 people. The company's customer base spread across 100 countries and generated around US$ 8.5 billion in 2020.

Product Portfolio:

Mono–ethylene Glycol – Polyester Grade: The Company manufactures polyester grade mono–ethylene glycol, which has excellent clarity and appearance.

Key Development:

On January 29, 2021, Eastman Chemical Company announced an investment of U$ 250 million for building a new methanolysis facility in Kingsport, Tennessee. The facility would manufacture mono–ethylene glycol and dimethyl terephthalate from hard-to-recycle polyester plastic. The new facility will have a 150,000 – 200,000 tons/year capacity.

Why Purchase the Report?
• To visualize the global mono-ethylene glycol market segmentation based on the production process, application, end-user and region, as well as understand key commercial assets and players.
• Identify global mono-ethylene glycol market commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of mono-ethylene glycol market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global mono-ethylene glycol market report would provide approximately 70 tables, 69 figures and almost 187 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies