Global monoethylene glycol market anticipated to reach US$ 40.85 bln in 2023, at a CAGR of 6.1%

The global monoethylene glycol (MEG) market stood at US$27.21 bln in 2014 and is anticipated to reach US$40.85 bln in 2023, expanding at a CAGR of 6.1% between 2015 and 2023. In terms of volume, the market was valued at 24,782.6 kilo tons in 2014, as per Transparency Market Research. Growth in the packaging industry is estimated to drive the demand for monoethylene glycol. Polyethylene terephthalate (PET) is the fastest growing application of the monoethylene glycol market. Increase in usage of polyethylene terephthalate in the packaging industry is projected to boost the monoethylene glycol market. Rise in production of polyester fiber in Asia Pacific is also likely to propel the demand for monoethylene glycol in the near future. Monoethylene glycol is produced from ethylene, a downstream product of crude oil and natural gas. Ethylene-intermediator ethylene oxide is hydrated to monoethylene glycol. Therefore, prices of monoethylene glycol fluctuate significantly. This results in unpredictable supply, which hampers manufacturing processes. Hence, fluctuation in prices of raw materials can be a major setback for the monoethylene glycol market. Coal is also used in the production of monoethylene glycol, especially in Asia Pacific. Synthetic gas (carbon monoxide and hydrogen) is oxidized in the presence of methanol to produce monoethylene. Sustainability issues related to monoethylene glycol are anticipated to hamper the market, especially in developed economies. However, increasing popularity of bio-based monoethylene glycol is estimated to offer opportunities to the monoethylene glycol market. Demand for monoethylene glycol was the largest for polyester application. The demand for polyester fiber application was more than 50% of the global MEG demand in 2014. However, polyethylene terephthalate (PET) application is anticipated to witness the fastest growth rate during the forecast period owing to rising usage of these products as packaging materials in the food and beverage industry. This is ascribed to their low cost and high durability. Polyethylene terephthalate (PET) is also projected to be the most attractive application segment of the monoethylene glycol market during the forecast period. The monoethylene glycol market is highly competitive, with the presence of large oil & mining and chemical companies. High degree of forward integration from raw material manufacturers exists in the monoethylene glycol market. Largest manufacturers of monoethylene glycol include Saudi Arabia Basic Industries Corporation (SABIC), Royal Dutch Shell plc, Reliance Industries Limited, Nan Ya Plastics Corporation, and