Growing demand from Asia Pacific to drive global Monoethylene Glycol market at 6.1% CAGR

19-Feb-16

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, as per Transparency Market Research, estimated to expand at a CAGR of 6.1% during the period. Based on volume, the market stood at 24,782.6 kilo tons in 2014. The report points out that the growing demand for polyester fiber in Asia Pacific has boosted the growth of the global monoethylene glycol market. The increasing production of polyethylene terephthalate (PET) will further augment the market growth during the forecast horizon. However, the report states that the fluctuating prices of feedstock materials are expected to restrain the market. Monoethylene glycol is produced from ethylene, which is a downstream product of natural gas and crude oil. Hydration of ethylene-intermediator ethylene oxide produces monoethylene glycol. The fluctuating prices of crude oil and natural gas will negatively impact the production of monoethylene glycol. Further, sustainability issues related to monoethylene glycol are anticipated to hamper the market, especially across the developed economies. The overall market has a huge opportunity to grow with the production of bio-based monoethylene glycol (MEG) and the emerging application of monoethylene glycol in solar panels. In terms of application, the report segments the global monoethylene glycol market into PET, polyester fiber, antifreeze, and others. In 2014, the demand for monoethylene glycol was the highest for application in polyester. However, during the forecast horizon, the application of PET is projected to witness the fastest growth due to the growing usage of PET as packaging materials across the food and beverage industry. Low cost and high durability of PET have contributed significantly towards the growth of the application segment. In fact, PET is expected to be the most attractive segment in the market in the coming years.