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

Executive Summary : -

Ethylene Glycol is manufactured using ethylene oxide and water. Ethylene Glycol can be classified into three types; monoethylene glycol (MEG), Diethylene Glycol (DEG) and Triethylene Glycol (TEG). Monoethylene glycol is the largest volume product amongst above mentioned types and its demand is primarily driven by polyester (PET) market where more than 85% of MEG is used in manufacturing polyester resins, fibers and films. Therefore, from past few decades, polyester demand is driving the overall ethylene glycol market and demand growth for EG is proportional to PET market. Due to strong presence in polyester market, China consumes more than half of the ethylene glycol produced in the world. Asia pacific accounts for more than 65% of ethylene glycol market due to high demand for polyester fibres which are further used in manufacturing synthetic apparels. Other significant demand driving regions are North America and Western Europe. The main applications of EG include polyester, antifreeze & coolants, chemical intermediate, solvents and others.

There have been number of investments in MEG capacities in regions like Middle East / Africa and Asia-Pacific. The MEG industry is cyclical in nature where it had declined during the economic recession and it increased in 2013 and 2014. It was earlier expected that the coal based technologies to produce MEG in China to change the complete cost economics of the industry; however, the coal-to-MEG industry is at a disadvantage due to lower operating rates and reliable process other than product quality. Currently MEG suffers from oversupply as the increase in demand is not able to keep its pace with the increase in capacity. Prismane Consulting estimates the MEG demand to grow at CAGR of 3%-6% for diferrent geographies with China and other Asian economies witnessing much higher than average growth rates.