Ethylene Glycol Market Analysis :
Ethylene glycol is an organic compound, which is used as a raw material in the production of polyester fiber. It is used as coolant in the automobile’s engine. In addition, it acts as a heat transfer agent. In addition, the mixing of ethylene glycol with water provides the benefits of preventing corrosion, acid degradation, and preventing the growth of certain bacteria. MEG is one of the main raw materials used in the production of polyethylene terephthalate (PET). MEG-based PET is used in the manufacture of bottles of drinking water, carbonated drinks, and food packages.
COVID-19 scenario analysis
With global lockdown and supply chain disruptions, the demand for many products decreased significantly. The textile industries have shut down their production operation, owing to the outbreak of COVID-19. Fabric production has currently suspended as people are not allowed to go for shopping. With many industries facing crises, the pharmaceutical industry is still functional in the market. The COVID-19 pandemic has increased the demand for personal protective care such as face masks and disinfectants. Ethylene glycol has anti-bacterial properties, thus making it an ideal disinfectant during this crisis. Ethylene glycol is used in hospitals for sterilizing surgical tools. Thus, the global ethylene glycol market is witnessing significant growth in this pandemic.
Ethylene glycol has witnessed rise in the demand due to high adoption of polyester fibers among MEG manufacturers. Polyester fibers are the most widely used fibers, accounting of over 50% of the total fiber demand. This is attributed to the fact that polyester fibers provide various advantages over the traditional fibers (cotton) such as resistance to stains, moisture, wrinkle, and oil. The expansion of the textile industry and surge in demand for the polyester fibers are expected to drive the market growth for ethylene glycol. Similarly, the packaging industry is witnessing extensive growth due to surge in demand for the packaged food across the globe. Thus, increased use of PET in package industry is expected to boost the global ethylene glycol market during the forecast period. However, the fluctuating prices of ethylene glycol is expected to pose a major challenge for expansion of the global market.
The use of ethylene oxide in sterilizers is expected to drive the market growth exponentially in the coming years. Ethylene glycol has anti-bacterial properties, which help to act as a disinfectant and is used to sterilize medical devices. Ethylene glycol can eliminate various bacterial infections. This further increases its value in the healthcare industry. Consumers choose products which are better packaged. Thus, the use of PET in the packaging of various foods & beverages has increased the demand for ethylene glycol.
One of the major challenges restricting the growth of ethylene glycol is its toxicity. Many food authorities have banned the use of PET due to its toxic nature. However, with no alternate in the market, the ethylene glycol market is expected to grow in the coming years.
Asia-Pacific dominated the ethylene glycol market with over half of the share. This is attributed to the development in the textile and automobile industries in the developing countries such as India and China. North America is the second largest shareholder in the ethylene glycol market, due to increase in demand for packaged products and expansion of industries such as paints in the region.
Key benefits of the report
- This report presents the analytical depiction of the global ethylene glycol industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers and opportunities along with detailed analysis of the global ethylene glycol market share.
- The current market is quantitatively analyzed to highlight the global ethylene glycol market growth scenario.
- The report provides a detailed market analysis depending on competitive intensity and how the market will take shape in coming years.
Questions answered in the global ethylene glycol market research report:
- Which are the leading players active in the global ethylene glycol market?
- What are the current trends that will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities of the market?
- What are the projections for the future that would help in taking further strategic steps?
Ethylene Glycol Market Report Highlights
Key Market Players
LyondellBasell, India Glycols, SABIC, NANYA plastics, Reliance Industries, Exxon Mobil, LOTTE Chemicals, Dow, Royal Dutch Schell, Mitsubishi Chemicals