The global mono-ethylene glycol (MEG) market is expected to witness a CAGR of 4.5% owing to the increase in utilization of polyethylene terephthalate (PET) in the packaging industry, as per a report by www.360researchreports.com.
The growing demand for polyester from the textile industry is also likely to stimulate the MEG market during the forecast period. The demand of PET is on the surge from the packaging industry and has significantly upscaled the mono-ethylene glycol market, as it is widely used in PET production. Food & beverage and pharmaceutical packaging are the key contributors to the industry growth, due to the predominant utilization of PET to produce packaging products, such as films, sheets, bottles, etc.
Polyester fiber application accounted for more than 50% of the MEG market share. The driving force for polyester fibers market is the increasing demand from the textile industry, primarily in the Asia-Pacific region. PET bottles are the second leading market for MEG globally. Around 10% of the market is attributed to antifreeze, where MEG is used for different purposes, such as for preserving biological tissues and organs, or as de-icing fluids in windshields and aircraft. The PET application is expected to grow at the fastest rate, due to increasing demand for packaging from the food & beverage industry. Asia-Pacific leads in the consumption and production of MEG and is likely to continue its position due to the increasing textile and fiber production in the region. The rise in demand from the automotive industry, where MEG is used as antifreeze and coolants, is a major factor contributing to the growth of the mono-ethylene glycol market in Asia-Pacific. North America and Europe are likely to show a sluggish growth owing to the presence of stringent regulations regarding the manufacturing of the product.