Monoethylene glycol is
elevating as an ideal solution in a wide variety of antifreeze formulations,
specifically for automobile radiators. Hence, it is well-known as an active
anti-freezing agent. In general, the ethylene glycol products are mainly
utilized in coolants, chemical intermediates, heat transfer fluids, polyester
resins, and solvents. In addition to this, MEG is also useful in gas
dehydration and treating. MEG is an essential raw material, which is highly
preferred by the market players mainly for industrial applications such as for
making polyester resins, fibers, and films. Many advantages of ethylene glycol
are attracting industry players. These advantages are low volatility and low
boiling point.
Furthermore, it also
acts as a versatile intermediate and TETRA EG that is fully mixable with water
and also with organic solvents. These characteristics are increasing its applications
in various industries and are proving to be growth-promoting drivers for the
mono-ethylene glycol market. MEG also acts as a key ingredient in the
manufacturing of paints, paper, textiles, and adhesives. As a result, the rise
in demand for these applications is also boosting the growth of the MEG market
on a global basis. Therefore, the global Mono-Ethylene Glycol Market size was
evaluated at $26.5 billion in 2018 and is estimated to grow with a CAGR of 4.8%,
during the forecast period 2019-2025.
Prevalence of MEG in
PET Application:
MEG is a primary raw
material, which is gaining traction from making polyethylene terephthalate
(PET) resin makers, among others which include fibers, films, and antifreeze
& coolant industrial players. Owing to its durability and hydrophobic
features, this raw material is highly preferred for manufacturing PET films
& polyester fibers. Consequently, PET application of mono-ethylene glycol
will be growing at the fastest CAGR of 5.6% through to 2025. Additionally, PET
is the most important engineering thermoplastic material, and the polymer is
widely used in various recycled plastics, such as grocery bags, plastic
bottles, gas cylinders, space blankets, and others. Presently, MEG is broadly
accepted polyester, particularly in fabric, packaging, engineering,
electronics, and biomedical industries. Moreover, mono-ethylene glycol is
extensively used in polyethylene terephthalate (PET) resins, especially to make
plastic bottles for soft drinks and packaging films. Thus, PET products are
preferred as they are energy-saving, cost-efficient, and recyclable.
For instance, in 2017,
Braskem, a Brazil-based company, and Haldor Topsoe, a Denmark-based company
announced to sign an agreement. It is aimed for the development of MEG from sugar
instead of using traditional fossil fuels at a new plant which is located in
Denmark. This new solution not only decreases the investment costs but also
boosts the productivity level as well. Thus, this approach is getting
attention, which is supporting the goal regarding the large-scale renewable MEG
production. Furthermore, the MEG plant has become the most important step
towards improving the sustainability of PET plastic packaging coupled with
reduced carbon emissions. Subsequently, this partnership that targeted for the
development of renewable MEG has been reflecting as a significant advancement
in competitiveness for Green PET. On the other hand, it is also increasing the
MEG market demand in the respective regions.
Flood of Mono-ethylene
Glycol Imports in Asia-Pacific:
APAC region has
established a leading position in the global mono-ethylene glycol market, with
its dominating share of 45% among other regions, as of 2018. The ethylene
glycol market in Asia is rising due to increasing demand for PET resins and
polyester fibers in packaging and textile industries. According to the
International Trade Centre, $14.8 billion value ethylene glycol got imported in
2018, worldwide. China alone holds for a ruling share of 61.2% in the world
ethylene glycol imports and has topped with a value of $9 billion among other
importers for the year 2018. The increase in the necessity for ethylene glycol
in APAC countries, especially in China, Indonesia, Vietnam, Singapore, and
Thailand are boosting the APAC mono-ethylene glycol market demand.
Major Players in
Monoethylene Glycol Market Include:
Some of the players
which are operating in the global mono-ethylene glycol market are Akzo Nobel
N.V., BASF SE, Exxon Mobil Corporation, Indorama Corporation, Mitsubishi
Chemical Corporation, Mitsui Chemicals, SABIC, Ineos Oxide, Lotte Chemical, and
Sibur. These companies have been continuously concentrating on plant expansions
and product launches to strengthen their product portfolio and their brand
value in respective geographies.
Diverse Strategies in
the Monoethylene Glycol Market:
· In May 2019, Shell
Chemical LP announced that its plan to invest $1.2 billion as a part of
manufacturing expansion in Louisiana. As of now, this project got approval from
the Ascension Parish Council and the Ascension Parish School Board under
Industrial Tax Exemption Program. Louisiana Economic Development (LED) stated
that Royal Dutch Shell is expected to approve the construction of world-scale
mono-ethylene glycol plant by 2020. This expansion will impact the growth of
mono-ethylene glycol market in the U.S.
· On 9th September
2018, Jiutai Company signed an agreement with Johnson Matthey PLC and Eastman
Chemical Company. This agreement briefs that Jiutai uses novel technology proposed
by the other two companies for the production of MEG. This technology is
helpful in the manufacture of methanol and formaldehyde within an integrated
MEG facility, coupled with maximized feedstock conversion and reduced utility
consumption. Thus, coal is used to produce MEG in the Jiutai’s 1,000,000 metric
tons per year facility for ethylene glycol. Therefore, this new plant
production in Inner Mongolia contributes to more growth of MEG market revenue
in China to fulfill the customers demand in this country compared to other
Asian countries.
· Avatinum N.V. is a
leading technology development company. In June 2018, this company started the
construction of bio-MEG demonstration plant with a capacity of around 10 tons
of plant-based mono-ethylene glycol in the Netherlands. This plant uses
renewable sugars to produce bio-based mono-ethylene glycol. Currently, both
consumers and leading brand suppliers are interested in adopting this unique
single-step process of Mekong technology, as it satisfies the demand in an
eco-friendly manner. Avatinum also disclosed that it had invested an amount of
€15-20 million in advanced technologies. Henceforth, this plant has aimed to
scale up the bio-MEG technology by producing cost-effective bio-MEG. This
strategic development is attributing to the demand influx of the mono-ethylene
glycol market in this region.
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