Global Polyalkylene Glycol (PAG) Market: Snapshot
The global market for polyalkylene glycol (PAG), also known as polyether polyols, is being boosted by a number of factors. The growing demand for polyurethane foam, which finds application in the automobile, furniture, building and construction, textiles, footwear, adhesives, and electronic components industries, is one such growth driver. The rising uptake of functional fluids and lubricants is also boosting the market for polyalkylene glycol (PAG).
Acting as a deterrent to the global market for polyalkylene glycol (PAG) is the unstable crude oil prices and the steep process of PAG-based lubricants and functional fluids. However, a flourishing pharmaceutical and an exploding personal care goods market will likely help the market overcome the challenges to grow at a healthy clip.
A report by Transparency Market Research forecasts the global polyethylene glycol (PEG) to expand at a CAGR of 11.0% from 2015 to 2023 to attain a value of US$16.96 bn in 2023 from US$7.49 billion in 2014. In terms of volume, the market was worth 6,522.8 kilo tons in 2014, finds the report.
Manufacturers to Profit from the Fast Expanding Personal Care Products Market
The main types of polyalkylene glycol (PAG) available in the market are polypropylene glycol (PPG) and polyethylene glycol (PEG), among others, including copolymers and higher adducts. Among them, PPG and PEG rake in maximum revenue. This is because of the widespread application of PPG in polyurethane foam and the extensive use of PEG in areas such as pharmaceutical, personal care, lubricant, CASE, and functional fluid.
Based on applications, the global market for polyalkylene glycol (PAG) can be classified into lubricants, polyurethane (PU) foam, personal care, functional fluids surface active agents, and pharmaceutical, among others. Of them, the PU foam segment accounts for a leading share in the market. The application segment of lubricants also holds a key position in the market. It held 15% share in the market vis-à-vis volume in 2014, uncovers the TMR report. Going forward, however, the personal care application segment is projected to outpace all others in terms of growth rate. In fact, producers of global polyalkylene glycol (PAG) are already profiting significantly from the personal care and pharmaceutical sectors.
Booming Construction Industry Makes Asia Pacific Market Leader
Geographically, the key segments of the global market for polyalkylene glycol (PAG) are Asia Pacific, Latin America, North America, Europe, and the Middle East and Africa. Asia Pacific, among them, is the leading region that held 45% share in the overall market in 2014. Application segments of polyurethane foam lubricants, personal care, and pharmaceutical are main drivers of growth in the region. This in turn is on account of the burgeoning construction industry in Asia Pacific, which will continue catalyzing growth in the market in the upcoming years as well.
North America is another key market for polyalkylene glycol (PAG) that is expected to expand at a rate greater than the market average in the upcoming years. This is because of the construction industry picking up steam after taking a blow from the financial meltdown precipitated by the banking collapse in 2008 in the U.S. Another factor majorly stoking growth in the market in the region is the fast-expanding pharmaceutical and automotive industries.
The market for polyalkylene glycol (PAG) in the Middle East and Africa (MEA) is also slated to demonstrate good growth due to the PU foam and lubricant applications driving demand. The construction industry again will be a main driver of growth in the region.
Polyalkylene glycols (PAG) are polymeric compounds of one or more alkylene oxide (ethoxide) monomers connected through -R–O- ether linkages. PAGs are also known as polyether polyols, polyglycols, polyethers, and polyalkylene oxides in the industry. PAG includes polymers of the corresponding ethoxides; for instance, polyethylene glycol (PEG) is obtained from ethylene oxide (EO) and similarly, polypropylene glycol (PPG) is produced from propylene oxide (PO). PAGs are versatile polymeric compounds used in the manufacturing of variety of products. The end-products manufactured from PAGs are used in several industries including construction, automotive, aerospace, marine, pharmaceutical, personal care, and chemicals.
This report provides a detailed description of the global PAG market based on volume share (kilo tons) and revenue (US$ Mn) for the period from 2014 to 2023. It highlights the factors contributing to the growth of the market, and the restraints impeding the market. Detailed forecast for PAG from 2015 to 2023 has been given separately for providing a better understanding of the market scenario. The PAG market is described with respect to various segments along with the expected opportunities during the next six years.
In terms of geography, the global PAG market has been segmented into the following regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa (MEA). Each region has been further divided into countries which have been found to be the key markets for PAG.
On the basis of products, the study segments the market into: polyethylene glycol (PEG), polypropylene glycol (PPG), and others (including higher adducts and copolymers). The study also segments the PAG market on the basis of applications into: polyurethane (PU) foam, functional fluids, lubricants, personal care, pharmaceutical, surface active agents, and others (including chemical intermediates, CASE, and additives). It provides forecasts and estimates for each product and application segment in terms of revenue and volume during the forecast period from 2015 to 2023 for each region, and inclusive of the countries as well. The study also analyzes market attractiveness for all applications of PAG with the help of the market attractiveness tool.
Increasing demand for PAG in key applications such as PU foam and lubricants is projected to fuel the global PAG market. Swift growth in construction and automotive industries in the emerging countries is anticipated to generate huge demand for PU foams and lubricants, and eventually lead to the growth of the PAG market. The personal care and pharmaceuticals applications are high-value, low-volume markets for PAG and are expected to be prospective markets driving the growth of PAG market in the near future. However, the fluctuating prices of crude oil prices put a downward pressure on the margins of market players. Furthermore, cheaper alternatives of PAG such as conventional oils are available for lubricant applications. The two factors mentioned above are likely to hamper growth of the PAG market during the forecast period.
Value chain analysis and Porter’s five forces model have been given for providing a comprehensive view of the market. These would also help understand the specifics of the industry structure apart from giving an overview of the degree of competitiveness. Additionally, the company market share analysis has been included in order to illustrate the competitive scenario in the PAG market further. The report also includes detailed profiles of key players such as the Dow Chemical Company (Dow), Bayer AG, BASF SE, Royal Dutch Shell plc (Shell), LyondellBasell Industries N.V., E. I. du Pont de Nemours and Company (DuPont), INEOS Group AG, Clariant International Ltd., Saudi Basic Industries Corporation (SABIC), and Repsol Group. A detailed description of the players includes parameters such as company overview, financial overview, business strategies, upcoming facilities, capacity addition, mergers, acquisitions and joint ventures, new products, and recent developments.
The report segments the global PAG market as:
Polyalkylene Glycol (PAG) Market – Product Segment Analysis
- Polyethylene Glycol (PEG)
- Polypropylene Glycol (PPG)
- Others (Including higher adducts, copolymers, etc.)
Polyalkylene Glycol (PAG) Market – Application Analysis
- Polyurethane (PU) Foam
- Functional Fluids
- Personal Care
- Surface Active Agents
- Others (Including chemical intermediates, CASE, additives, etc.)
Polyalkylene Glycol (PAG) Market & Regional Analysis
- Rest of North America
- Rest of Europe
- Rest of Asia Pacific
- Rest of Latin America
Middle East and Africa (MEA)
- South Africa
- Rest of MEA