Mono-Ethylene Glycol Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Mono-Ethylene Glycol Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The mono-ethylene glycol market is expected to register a CAGR of less than 5.5% during the forecast period.

· Major factors driving the market studied are the growing demand for PET in the packaging sector and increased demand for MEG from the textile sector.

· On the flip side, the fluctuation in raw material prices due to volatility in crude oil prices can restrict the market.

· The increased popularity of bio-based MEG materials is likely to act as an opportunity for the market studied.

· The Asia-Pacific region is likely to dominate the global market.

· Textile is a major end-user industry for mono-ethylene glycol as the derivatives are used for the synthesis of a wide variety of polyester fibers.

· India, China, and the US represent major textile manufacturing countries in the world. With growing investments and improved infrastructure facilities, the demand from the sector is likely to increase 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 to branded products are expected to boost demand for the textile sector, thus boosting the mono-ethylene glycol market.

· The US is among the key countries in exports of textile-related products. In 2020, US fiber, textiles, and apparel exports combined accounted for USD 25.4 billion, and the value of shipments for textiles and apparel were USD 64.4 billion as per the report by the National Council of Textile Organizations.

· Thus, all the abovementioned factors are expected to significantly impact market growth during the forecast period.

· The global market was dominated by Asia-Pacific, where China and India are the major consumers of MEG.

· China is one of the largest global consumers of mono-ethylene glycol and its derived polyethylene terephthalate (PET). The abundant availability of raw materials and the low cost of production have supported the region’s production growth.

· China is a major producer of PET resins, being home to companies such as PetroChina Group and Jiangsu Sangfangxiang, which are among the largest manufacturers globally in terms of volume, with capacities of more than 2 million ton. Thus, the rising demand for PET from end-user industries is driving the demand for mono-ethylene glycol.

· China’s textile sector is one of its major sectors, and the country is the largest clothing exporter across the world. China’s textile industry grew steadily during the first nine months of 2021 with collective profits worth CNY 171.1 billion (approximately USD 26.80 billion), a 31.7% year-on-year (YoY) increase, according to the Ministry of Industry and Information Technology (MIIT).

· According to the Chemical and Petrochemicals Manufacturers Association, India, in FY2020-21, the annual capacity of MEG stood at 2,215 KT, with production amounting to almost 2000 KT.

· Also, the region is the largest automotive manufacturing hub, accounting for almost 60% of the global share. According to OICA, in the first nine months of 2021, the total production of vehicles stood at 32.67 million units, which was an increase of 11% compared to the same period last year.

· Thus, the aforementioned factors are expected to boost the demand for mono-ethylene glycol through the forecast period in the region.

The mono-ethylene glycol market is partially fragmented in nature. Major players (not in any particular order) include Nouryon, BASF SE, Dow, LyondellBasell Industries Holdings BV, and Royal Dutch Shell PLC, among others.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support