Prismane

Global Ethylene Glycol (EG) Market Demand & Forecast Analysis, 2016-2032

Ethylene Glycol Market Size

The global Ethylene Glycol Market Size is projected to grow from USD 23.3 billion in 2022 to an estimated USD 54 billion by 2032, with an anticipated CAGR of 5.9% during 2023-2032. The upswing in demand for Ethylene Glycol (EG) is attributed to its versatile applications, playing a pivotal role in the production of polyester fibres, antifreeze, and other industrial applications. The Ethylene Glycol demand is poised to grow further on the increasing production of polyester, mainly in Asia Pacific, which is the major end-user market for Ethylene Glycol. Asia Pacific has continued to dominate the global Ethylene Glycol market is driven by new capacity addition in downstream derivatives capacity across the value chain.

Ethylene Glycol is produced through the reaction of ethylene oxide and water. The global Ethylene Glycol market is categorized into three types: Monoethylene Glycol (MEG), Diethylene Glycol (DEG), and Triethylene Glycol (TEG). MEG, the most extensively produced type, is predominantly utilized in the polyester (PET) market, where over 85% of MEG is employed in the manufacturing of polyester resins, fibres, and films. Consequently, the Monoethylene Glycol demand is closely linked to the growth of the PET market, making it a key driver for the overall ethylene glycol demand.

Global Ethylene Glycol Demand, By Type 2016-2032 (Kilo Tons)

Ethylene Glycol Market, By Type
Source: Secondary & Primary Research and Prismane Consulting estimates
For several decades, the demand for polyester has been a major factor influencing the ethylene glycol market. China, with a strong presence in the polyester market, accounts for more than half of the global ethylene glycol consumption. The Asia-Pacific region contributes over 65% to the ethylene glycol market, driven by a high demand for polyester fibres used in the production of synthetic apparel. Other notable regions fuelling demand include North America and Western Europe.

Ethylene Glycol Demand Supply Overview

The global Ethylene Glycol market boasts a capacity exceeding 57,000 kilo tons in 2022 marking an increase of approximately 25,000 kilo tons since 2016. Asia Pacific stands at the forefront, accounting for over 60% of the total capacity. The Ethylene Glycol operating rare have averaged to 76% in last five years due to 18,000 kilo tons of new ethylene glycol capacity addition in the Chinese market. In next five years over 5,000 kilo tons of new Ethylene Glycol capacity addition is estimated to commence operation in China, thereby increasing the country's total capacity to 31,500 kilo tons.

Global Ethylene Glycol Demand Supply Analysis, 2016-2032 (Kilo Tons)

Global Ethylene Glycol Demand Supply Analysis, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
In 2022, global Ethylene Glycol demand reached approximately 36,000 kilo tons, with Asia Pacific being the largest consumer, constituting more than 75% of the total demand. Asia Pacific on the back of China, South Korea and India dominates the global Ethylene Glycol market and it is further projected to witness a CAGR of 4.8% during the forecast period. The escalating need for ethylene glycol in the production of polyester fibres, surfactants, and various chemicals is expected to drive market during the forecast period. 

Ethylene Glycol Trade Overview

Amidst increasing domestic production capacity, China witnessed decline in Imports, indicating path towards self-sufficiency in ethylene glycol market. In 2020 the ethylene glycol imports were 10,547 kilo tons, but by the end of 2021, it declined by 20.1%, followed by further 10.9% decline in 2022. Prismane Consulting estimates that by the end of 2023 imports are set to decline further. Saudi Arabia is a major exporter of Ethylene Glycol to China with an average export quantity of over 3900 kilo tons in last five years. China accounted for over 55% of ethylene glycol imports from Saudi Arabia in 2022, with comparatively smaller volumes originating from Canada and the United States.

European producers are also expected to witness more pressure from inflows of discounted ethylene glycol and other derivatives from the United States, as it is naturally blessed with cheaper ethane feedstock. Additionally, weak demand in US has made more ethylene in the market for export. New ethylene capacities in the US are anticipated to further pressurize margins of European producers.

Ethylene Glycol Current Market Trends

In the latter half of 2023, the global ethylene and ethylene glycol markets are projected to face challenges due to oversupply and subdued demand. The slowdown in downstream derivative consumption, particularly in key packaging markets, persists despite the anticipation of a seasonal rebound in Q2 2023. Unfavorable conditions, such as instable crude oil prices affecting naphtha-dependent regions like Europe and APAC, contrast with the cost advantages enjoyed by the USA and the Middle East using discounted ethane feedstock.

Global markets are closely monitoring China for signs of a domestic demand resurgence that could alleviate oversupply and boost downstream ethylene demand. However, this expected rebound has so far to materialize, and the upcoming ethylene production capacities, especially in Asia, are likely to face challenges finding sufficient demand. The cumulative addition of 45,000 kilo tons/year of ethylene capacity between 2020 and 2024, with a significant portion in China, is expected to outpace demand by over 9%.

As new ethylene production comes online in Asia, Europe is grappling with volatile upstream energy costs and utility expenses. The Russia-Ukraine war continues to cast a shadow over the global economy, influencing ethylene markets. European ethylene markets, in particular, are expected to remain under pressure in H2-2023 due to weak demand and oversupply, contrary to earlier expectations of a demand uptick in H1.

In addition to weak demand, monoethylene glycol prices of European markets are historically low. Downstream PET demand is also historically weak, driven by consumer efforts to cut costs amid increasing inflation and interest rates. European suppliers face additional challenges from the influx of discounted ethane-fed US ethylene and downstream derivatives.

Global Ethylene Glycol Demand, By Application, 2016-2032 (Kilo Tons)

Ethylene Glycol market, By Application, 2016-2032 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
China, as the largest global consumer of monoethylene glycol, continues to attract exports despite efforts to increase self-sufficiency through capacity additions. However, poor margins in APAC have impacted production, making US monoethylene glycol more attractive. Despite anti-dumping duties ranging from 3% to 60%, US monoethylene glycol shipments to Europe are anticipated to remain at lower levels. 

Key Players in Ethylene Glycol Market

BASF SE, Dow, Shell, SABIC, INEOS Oxide, LyondellBasell, Lotte Chemical, Reliance Industries Limited, Formosa Plastics, Sinopec, SASOL, Sibur-Neftekhim, Indian Oil Corporation, India Glycols, China Man-Made Fibre Corp, Oriental Petrochemical Taiwan Co. , Petronas, Petro Rabigh, MEGlobal (EQUATE), Ultrapar (Grupo Ultra)- Oxiteno, IDESA, Pemex, Indorama Venture (Huntsman) and Zhejiang Satellite Energy are some of the key Ethylene Glycol producers. MEGlobal (EQUATE) is the major Ethylene Glycol producer with installed capacity of over 3200 kilo tons with plants located in Saudi Arabia, Canada, and United States.

Recent Developments in Ethylene Glycol Market

Saudi Basic Industries Corporation (SABIC), Scientific Design (SD), and Linde Engineering, a subsidiary of Dublin-based Linde, have formalized a memorandum of understanding to explore collaborative opportunities aimed at decarbonizing SD's ethylene glycol process. This strategic partnership aims to pioneer innovative solutions for reducing carbon emissions by leveraging SABIC's CO2 recovery and purification technology within SD's licensed glycol production plants.

In a significant move, INEOS successfully completed the acquisition of Eastman's Texas City plant for 500 million USD. Subsequently, on December 8, 2023, INEOS settled an agreement with LyondellBasell to acquire its ethylene oxide business, along with the production facility in Bayport, Texas, at an estimated cost of 700 million USD. The agreement includes the purchase of LyondellBasell's ethylene oxide and its derivatives businesses, including a 420 kilo tons/year ethylene oxide plant, a 375 kilo tons/year ethylene glycol plant, and a 165 kilo tons/year ethylene glycol ether plant, along with all associated operations at the Bayport site.

Scope of Report 

The Ethylene Glycol report describes the global Ethylene Glycol market, with focus on the country, applications and other end-use scenarios. The study provides

Market Data & Forecast (Short-term and Long-term)
•  Demand-Supply Analysis
•  Demand Composition, by Types and Applications
•  Capacity & Production
•  Trade (Import, Export and Net Export)
•  Sales & Revenue
•  Pricing Analysis
•  Market Dynamics

Country Summaries & Product Review
•  Supply Demand Balance 
•  Ethylene Glycol Market data in terms of volume and value for each end-use 
   at regional and country level
•  Ethylene Glycol Market analysis for Production, Capacity and Demand, at regional and country level
•  Historical, Current & Market Forecast
•  Macro-economic factors like GDP, Population and World Economic integration
•  Economic & Energy Outlook
•  Industry & Policy Developments 
•  End-use Industry / Applications Market 
•  Reasoning & Analysis
•  Insightful Commentary
•  Market Review
•  Comparative Analysis
•  Latest Trends and market developments
•  Key players
•  Strategic Issues and Recommendations
•  Business Opportunity Assessment

1.  Introduction
      •  Scope
      •  Market Coverage
          -  Type
          -  Application
          -  Regions
          -  Countries
      •  Years Considered
          -  Historical - 2016 – 2022
          -  Base - 2022
          -  Forecast Period - 2023 – 2032
      •  Research Methodology
          -  Approach
          -  Research Methodology
          -  Prismane Consulting Market Models
          -  Assumptions & Limitations
          -  Abbreviations & Definitions
          -  Conversion Factors
          -  Data Sources
2.  Market Synopsis 
      •  Market Evolution
      •  Demand-Supply Overview
      •  Industry Structure
      •  Strategic Issues
      •  End-use Trends
      •  Growth Forecast
3.  Economic & Energy Outlook
      •  GDP and Demographics
      •  Monetary & Fiscal Policies
      •  Crude Oil Production and prices
      •  Natural Gas
      •  Electricity Prices
4.  End-use Sector Performance
      •  Chemicals
      •  Industrial
      •  Others
5.  Plants & Projects Analysis
      •  Ethylene Glycol Production Capacity, by Company
      •  Ethylene Glycol Production Capacity, by Country and by region
      •  Capacity Overview, By Technology
6.  Introduction to Ethylene Glycol and Market Overview 
      •  Product Description
      •  Grades & Properties
      •  Raw Material
      •  Manufacturing Process
      •  Environmental Issues
      •  Value Chain
      •  Applications
7.  Market Dynamics and Industry Trends 
      •  Market Dynamics 
          -  Drivers
          -  Restraints
          -  Opportunities
          -  Challenges
8.  Global Ethylene Glycol Demand-Supply Analysis, By Type, By Application, (Volume, Value) (2016–2032)
      •  Strategic Issues
      •  Demand-Supply Analysis and Forecast (2016 – 2032)
          -  Capacity
          -  Capacity Utilization (%)
          -  Production
          -  Imports
          -  Exports
          -  Net Exports
          -  Demand
          -  Demand Growth Rate (%)
          -  Driving Force Analysis
      •  Global Ethylene Glycol Market, By Type
          -  Monoethylene Glycol (MEG)
          -  Diethylene Glycol (DEG)
          -  Triethylene Glycol (TEG)
      •  Global Ethylene Glycol Market, By Application 
          -  Chemical Intermediates
                -  Polyester
                -  Solvents
                -  Others
          -  Antifreeze & Coolants
          -  Others
9.  Demand-Supply Analysis and Market Review, By Region, By Country (Volume, Value), (2016– 2032)
      •  Strategic Issues
      •  Capacity
      •  Capacity Utilization (%)
      •  Production
      •  Imports
      •  Exports
      •  Net Exports
      •  Demand
      •  Demand Growth Rate (%)
      •  Ethylene Glycol Market, By Type
      •  Ethylene Glycol Market, By Application
Note: Demand-Supply Analysis has been provided for all major Regions / Countries as mentioned below. The demand-supply (consumption) split by type, by Application, has been provided for each of the countries/regions in Volume (Kilotons) and Value (USD Million).
      •  North America
         -  USA
         -  Canada
         -  Mexico
      •  Western Europe
         -  Germany
         -  France
         -  Italy
         -  United Kingdom
         -  Spain
         -  Rest of Western Europe
      •  Central & Eastern Europe
         -  Russia
         -  Poland
         -  Rest of Central & Eastern Europe
      •  Asia-Pacific
         -  China
         -  Japan
         -  India
         -  South Korea
         -  Rest of Asia-Pacific
      •  Central & South America
         -  Brazil
         -  Rest of CSA
      •  Middle East & Africa
         -  Saudi Arabia
         -  Egypt
         -  South Africa
         -  Rest of MEA
Note: CAGR will be calculated for all the types and applications to arrive at the regional/global demand growth for the forecast period (2023 – 2032)
10.  Pricing Analysis
      •  Average Ethylene Glycol Prices, USD/Kg
      •  Average Ethylene Glycol Prices, by Type
      •  Average Ethylene Glycol Prices, by Application
      •  Average Ethylene Glycol Prices, by Country 
      •  Average Ethylene Glycol Prices, by Region
      •  Price Forecast
11.  Key Strategic Issues
12.  Business Opportunity Assessment 
      •  Market Attractiveness Assessment
      •  Prospective & Target Market Study
13.  Strategic Recommendation & Suggestions
14.  Company Analysis and Market Share Analysis
      •  Ethylene Glycol Manufacturers Profiles/ Company Analysis
         -  Basic Details
         - Headquarters, Key Markets
         -  Ownership
         -  Company Financial
         -  Manufacturing Bases
         -  Global Turnover
         -  Total Employee
         -  Product Portfolio / Services / Solutions
         -  Recent Developments
         -  Companies Covered
             -  BASF SE
             -  Dow
             -  Shell
             -  SABIC
             -  LyondellBasell
             -  Lotte Chemical
             -  Reliance Industries Limited
             -  Formosa Plastics
             -  Sinopec
             -  SASOL
             -  Sibur-Neftekhim
             -  Indian Oil Corporation
             -  India Glycols
             -  China Man-Made Fibre Corp
             -  Oriental Petrochemical Taiwan Co. 
             -  Petronas
             -  Petro Rabigh
             -  MEGlobal (EQUATE)
             -  INEOS Oxide
             -  Ultrapar (Grupo Ultra)- Oxiteno
             -  IDESA
             -  Pemex
             -  Indorama Venture (Huntsman)
             -  Zhejiang Satellite Energy 
             -  Other Manufacturers
Note: This section includes company information, company financials, manufacturing bases, and operating regions. Company financials have been mentioned only for those companies where financials were available in SEC Filings, annual reports, or company websites. All the reported financials in this report are in U.S. Dollars. Financials reported in other currencies have been converted using average currency conversion rates. Company profiles may include manufacturers, suppliers, and distributors.
15.  Appendices
      •  Demand-Supply - Regions
      •  Demand-Supply– Countries
      •  Capacities, 2016-2032

Scope of Report 

The Ethylene Glycol report describes the global Ethylene Glycol market, with focus on the country, applications and other end-use scenarios. The study provides

Market Data & Forecast (Short-term and Long-term)
•  Demand-Supply Analysis
•  Demand Composition, by Types and Applications
•  Capacity & Production
•  Trade (Import, Export and Net Export)
•  Sales & Revenue
•  Pricing Analysis
•  Market Dynamics

Country Summaries & Product Review
•  Supply Demand Balance 
•  Ethylene Glycol Market data in terms of volume and value for each end-use 
   at regional and country level
•  Ethylene Glycol Market analysis for Production, Capacity and Demand, at regional and country level
•  Historical, Current & Market Forecast
•  Macro-economic factors like GDP, Population and World Economic integration
•  Economic & Energy Outlook
•  Industry & Policy Developments 
•  End-use Industry / Applications Market 
•  Reasoning & Analysis
•  Insightful Commentary
•  Market Review
•  Comparative Analysis
•  Latest Trends and market developments
•  Key players
•  Strategic Issues and Recommendations
•  Business Opportunity Assessment


Frequently Asked Questions

What is the current market size of Ethylene Glycol?
The global Ethylene Glycol Market Size is projected to grow from USD 23.3 billion in 2022 to an estimated USD 54 billion by 2032, with an anticipated CAGR of 5.9% during 2023-2032.
What is the current global Ethylene Glycol capacity?
The global Ethylene Glycol market boasts a capacity exceeding 57,000 kilo tons in 2022 marking an increase of approximately 25,000 kilo tons since 2016.
Who are the key players in the Global Ethylene Glycol market?
BASF SE, Dow, Shell, SABIC, INEOS Oxide, LyondellBasell, Lotte Chemical, Reliance Industries Limited, Formosa Plastics, Sinopec, SASOL, Sibur-Neftekhim, Indian Oil Corporation, India Glycols, China Man-Made Fibre Corp, Oriental Petrochemical Taiwan Co. , Petronas, Petro Rabigh, MEGlobal (EQUATE), Ultrapar (Grupo Ultra)- Oxiteno, IDESA, Pemex, Indorama Venture (Huntsman) and Zhejiang Satellite Energy are some of the key Ethylene Glycol producers.
What are the key drivers of the Ethylene Glycol market's demand growth?
Ethylene Glycol market is driven by new capacity addition in downstream derivatives capacity across the value chain.