Methyl Vinyl Glycolate: Introduction
- Methyl vinyl glycolate, also known as methyl 2-hydroxybut-3-enoate, is available through zeolite catalyzed degradation of mono- and disaccharides. It is a renewable platform molecule for commercially relevant catalytic transformations.
- Methyl vinyl glycolate is used in various industrial applications. It is primarily used as a key component in Polyethylene Terephthalate (PET) plastic. Rise in global demand for PET plastic used for food packaging, especially bottles, is expected to drive the methyl vinyl glycolate market during the forecast period.
Key Drivers of Methyl Vinyl Glycolate Market
- PET plastic packaging possesses properties that make it preferable over other packaging technologies. Certain beneficial properties of PET plastic packaging are high transparency, shiny surface, good stability, high-pressure resistance, good barrier properties, and light weight. This is anticipated to drive the PET plastic market, thereby boosting the global methyl vinyl glycolate market during the forecast period.
- Many companies have started manufacturing bio-based methyl vinyl glycol. For instance, Haldor Topsoe A/S Company has launched MOSAIK solution for sugar cracking to a reactive intermediate. The new product is bio-based building block molecule for usage in polymers. It also allows for replacement as well as new formulations.
- Greater transparency and shiny surface of a PET plastic package provide a special appearance and give it a sophisticated image. Furthermore, PET containers are virtually unbreakable owing to their outstanding material qualities. This results from no fractures while filling, transporting, and usage. PET gives optimal protection to consumers. Thus, PET packaging is advantageous over other packaging materials.
Polyethylene Terephthalate (PET) Plastic Application Segment to Offer Attractive Opportunities
- The PET plastic segment is estimated to hold significant share of the market during the forecast period, owing to high demand for PET plastic in the packaging industry. Methyl vinyl glycolate is used as a raw material in the production of PET plastic, which is employed in various packaging sectors such as food & beverage packaging, consumer goods packaging, and electronics.
Rise in Environmental Regulations on Plastic Likely to Hamper Market
- Governments of several countries across the globe have imposed regulations on usage of single use plastic. The European Parliament has approved a ban on single-use plastics such as straws, plates, cutleries, and cotton-swab sticks in Europe. It would come into effect by 2021. This helps the European Parliament join a global shift, as environmentalists emphasize the urgency of halting the use of materials that are detrimental to the environment. This is likely to affect the global methyl vinyl glycolate market.
Covid-19 Impact on Methyl Vinyl Glycol Market
- According to the International Monetary Fund (IMF), the world economy is expected to experience the worst recession since the Great Depression (1929–1933) in the near future. The packaging industry is also projected to feel the impact of the coronavirus pandemic. Impact of the coronavirus pandemic on the packaging industry is anticipated to be mixed in countries such as China and South Korea. Demand for packaging for groceries, health care products, and e-commerce transportation is estimated to rise sharply in the near future. At the same time, demand for industrial, luxury, and some transport packaging is estimated to decline.
- Industrial, bulk, and transportation packaging are anticipated to account for major share of demand for packaging. Demand for this type of packaging is closely linked to the trend in GDP and the level of industrial activity. Thus, the sharp decline related to COVID-19 has led to a reduction in demand for packaging. However, packaging for food and pharmaceutical industries continues to rise significantly. High growth in demand for corrugated packaging for e-commerce and grocery deliveries is also offsetting some demand lost elsewhere with industrial customers. Therefore, the impact of Covid-19 pandemic is estimated to be low on the methyl vinyl glycolate market in 2020 and 2021.
Asia Pacific to Hold Major Share of Global Methyl Vinyl Glycolate Market
- Based on region, the global methyl vinyl glycolate market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific is estimated to constitute major share of the market, owing to the presence of a number of plastic and chemical companies in the region. The methyl vinyl glycolate market in China is expected to account for prominent market share, due to the presence of large number of chemical companies in the country.
- The market in North America is projected to expand at a rapid pace during the forecast period, due to increase in production of PET plastic products across the region
- On February 6, 2019, Braskem and Haldor Topsoe together started a unit for developing renewable methyl vinyl glycolate (MVG). The demonstration plant is located in Lyngby, Denmark.
Key Players in Market
The global methyl vinyl glycolate market is highly concentrated with top manufacturers accounting for approximately 35%–40% share. Major players operating in the global methyl vinyl glycolate market include:
- Haldor Topsoe A/S
- Royal Dutch Shell PLC
- Mitsubishi Chemical Corporation
- LyondellBasell Industries Holdings BV
- LOTTE Chemical CORPORATION
- India Glycols Limited
Global Methyl Vinyl Glycolate Market: Research Scope
Global Methyl Vinyl Glycolate Market, by Chemical intermediate
Global Methyl Vinyl Glycolate Market, by Application
- Polyester Fiber
- Polyethylene Terephthalate (PET) Plastic
- Anti-freeze Coolants
Interested in this report?
Get a FREE Brochure now!