Global Monoethylene Glycol (MEG) Market: Snapshot
Over the recent past, the demand for polyester has spiked owing to a growing demand for apparel in the developing economies of Asia Pacific and Latin America. This domestic demand for polyester fiber is a result of the fast improving economies in the regions and the increasing disposable income among its middle class citizens. This is a direct driver for the growth in production of monoethylene glycol (MEG).
With a large number of these economies lying in the tropical regions, the fact that polyester can remain intact in coarse and diverse weather conditions is a big plus point towards its consumption. The manufacture of polyester fibers in Asia Pacific has grown to such an extent that the textile makers in Europe and North America are finding it easier to stick to cheap imports over local manufacturing.
Another material that uses monoethylene glycol as a raw material and is in great demand is polyethylene terephthalate, or PET. The use of PET for beverage packaging and in pharmaceutical packaging has grown drastically recently, due to the massive demand for them in developing economies.
However, the volatile pricing of the raw materials required to produce monoethylene glycol is deterring many companies from entering or profiting from MEG production. This is because the raw materials are all currently derived from crude oil, one of the most sought-after resource in the world today and also a very volatile product.
All in all, the global market for monoethylene glycol is expected to expand at a CAGR of 6.1% from 2015 to 2023, in terms of revenue. This revenue is expected to reach US$26.93 bn by the end of 2016 and US$40.84 bn by 2023.
Asia Pacific Continues Showing Massive Demand for Monoethylene Glycol
Asia Pacific has by far the leading demand for monoethylene glycol among all key regions. By the end of 2023, Asia Pacific is expected to garner 69% of the globally produced volume of monoethylene glycol. China, India, and Taiwan are attributed as the leading consumers of monoethylene glycol, owing to their extremely high demand for polyester fiber and polyethylene terephthalate.
The demand for monoethylene glycol is also increasing at a significant rate in Latin America and MEA due to increasing consumption of polyester and PET. Meanwhile, the remand for monoethylene glycol in North America and Europe looks to be in a state of decline over slow economic growth and concerns over sustainability of the material.
Extensive Use of Monoethylene Glycol in Production of Polyesters
A staggering volume of monoethylene glycol goes into the manufacture of polyesters across the world. By the end of 2023, 55.1% of the global monoethylene glycol volume will go into the manufacture of polyester fibers, followed by PET and antifreeze. Owing to its many physical properties and chemical stability, polyester is one of the more commonly found synthetic fibers in textiles in the world today. Most of it is attributed to the high demand from the Asia Pacific textile industry. However, there has been a reduction in its demand since 2014, mostly caused by heavy price cuts and oversupply of polyester fibers.
The popularity of PET has been growing in developing economies as a cheaper and lighter replacement for glass in the manufacture of bottles and packaging. The application scope of PET is growing at a very fast rate across emerging economies, significantly adding to the demand for monoethylene glycol.
The top producers of monoethylene glycol from a global standpoint include SABIC, The Dow Chemical Company, Royal Dutch Shell Plc., Reliance Industries Limited, Nan Ya Plastics (Huizhou), and Zhenhai Refining & Chemicals.
Monoethylene glycol is a colorless, odorless, and barely viscous liquid that is miscible in water, aldehydes, alcohols, and many other organic compounds. It is an organic compound used primarily as a raw material in the manufacture of polyethylene terephthalate resins (PET), which are employed in bottles and polyester fibers in the fabric industry. It cannot dissolve heavy petroleum and vegetable oils, cellulose acetate, and rubber. Monoethylene glycol is low volatile and hygroscopic compared to glycerol at room temperature. Monoethylene glycol in its pure form is a colorless liquid with sweet taste. Ethylene glycol production is carried out from ethylene through the intermediate ethylene oxide.
This report provides detailed analysis and forecast of the monoethylene glycol (MEG) market on a global and regional level from 2015 to 2023. On the global level, the market has been segmented based on volume (kilo tons) and revenue (US$ Mn) from 2015 to 2023. In order to provide in-depth understanding of the market at the regional level, the demand for monoethylene glycol has been forecast in terms of volume (kilo tons) and revenue (US$ Mn) from 2015 to 2023. The report includes drivers and restraints, and their impact on market growth during the forecast period. Furthermore, the study encompasses various opportunities for market growth at the global and regional level.
The report thoroughly analyzes the value chain to provide detailed understanding of the market. Additionally, it covers Porter’s Five Forces model, which offers an insight into the intensity of competition in the market. The study also comprises market attractiveness analysis, wherein various end-users are benchmarked based on their market size, growth rate, and general attractiveness.
We conducted in-depth interviews and discussions with numerous key industry participants and opinion leaders for the research report. Primary research represents the bulk of our research efforts coupled with an extensive secondary research. We reviewed key players’ annual reports, product portfolio, press releases, and relevant documents for competitive analysis and better understanding of the market. Secondary research includes in-depth research on current trends, technical writing, recent trade, Internet sources, trade associations, and statistical data from government websites and associated and authorized agency websites. This proved to be the most successful, effective, and reliable approach for obtaining concise data, capturing industry participants’ insights, and recognizing opportunities and growth.
Inflation is not a part of pricing in this report. This report provides the size of the monoethylene glycol market for 2014 and forecast for the next eight years (from 2015 to 2023). The global market size of monoethylene glycol is presented in terms of volume and revenue. Market volume and revenue have been estimated and forecast in kilo tons and US$ Mn, respectively. Market numbers are estimated on the basis of various key applications of monoethylene glycol. Market size and forecast of each segment is provided in the context of the global as well as regional markets.
The market has been segmented based on various applications. Each segment has been analyzed and forecast based on volume (kilo tons) and revenue (US$ Mn) from 2015 to 2023. Additionally, the segments have been analyzed and forecast based on current trends at the global and regional level. Geographically, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa (MEA). Demand has been analyzed and forecast based on the current trends for the period of eight years.
The report includes profiles of leading companies such as Saudi Arabia Basic Industries Corporation (SABIC), Royal Dutch Shell plc, Reliance Industries Limited, Nan Ya Plastics Corporation, Mitsubishi Chemical Corporation (MCC), BASF SE, The Dow Chemical Company, and LyondellBasell Industries N.V. The market has been segmented as below:
Monoethylene Glycol (MEG) Market - Application Analysis
- Polyester Fiber
- Polyethylene Terephthalate (PET)
- Others (Including Intermediate Chemicals)
Monoethylene Glycol (MEG) Market - Regional Analysis
- North America
- Asia Pacific
- Latin America
- Middle East and Africa (MEA)