Ethylene Glycol Market - By Product, By Application, By End Use & Forecast, 2024 - 2032

Ethylene Glycol Market Size

The global ethylene glycol market was valued at USD 37.6 billion in 2023 and is estimated to grow at a CAGR of over 6.7% from 2024 to 2032.
 

The ethylene glycol industry is experiencing steady growth driven by increasing demand from industries such as automotive, textiles, and packaging. Ethylene glycol, a key component in the production of antifreeze, polyester fibers, and PET resins, has seen rising demand due to expanding automotive manufacturing and the shift towards lightweight materials in the transportation sector. Additionally, the growth of the textile and apparel industry, particularly in emerging markets, has boosted the consumption of polyester fibers. The global push towards sustainability and recycling also plays a role in shaping the market, with companies investing in greener production processes.
 

The market is expected to continue its upward trend, supported by both industrial demand and advancements in production technologies. Future growth in the ethylene glycol industry will be driven by several key factors. The increasing adoption of electric vehicles (EVs) is expected to boost demand for ethylene glycol as a crucial component in battery cooling systems and thermal management solutions. Additionally, the continued expansion of the polyester fiber industry, especially in emerging economies, will sustain demand for ethylene glycol in textile production. The rise in PET packaging, fueled by consumer preferences for lightweight, recyclable materials, will further contribute to market growth. Moreover, technological advancements in bio-based and recycled ethylene glycol production will align with global sustainability trends, supporting long-term market expansion.
 

Ethylene Glycol Market Trends

The ethylene glycol industry is witnessing significant transformation, driven by a confluence of factors shaping its growth trajectory. One of the most notable trends is the increasing demand for ethylene glycol from the automotive sector, where it is primarily used in antifreeze and coolant applications. With the global automotive industry rebounding post-pandemic and the surge in electric vehicle production, the need for efficient thermal management solutions further amplifies ethylene glycol consumption. Additionally, the textile industry continues to be a substantial consumer of ethylene glycol, particularly in the production of polyethylene terephthalate (PET) fibers, which are essential for synthetic textiles.
 

As fashion trends shift towards more sustainable and recyclable materials, the demand for PET is expected to grow, consequently driving ethylene glycol consumption. Moreover, the rise of the packaging industry, particularly in food and beverages, is fostering the need for PET production, further bolstering the market. In parallel, advancements in production technologies and the adoption of bio-based ethylene glycol alternatives are emerging as noteworthy trends, aligning with the global push towards sustainability. These bio-based products not only reduce dependency on fossil fuels but also cater to the increasing consumer preference for eco-friendly materials.
 

However, the market also faces challenges, particularly from volatility in raw material prices due to fluctuations in oil prices and supply chain disruptions. This uncertainty can lead to increased production costs, affecting profit margins across the industry. Additionally, stringent environmental regulations pose another hurdle, compelling manufacturers to invest in cleaner production processes or risk compliance issues. Despite these challenges, the overall outlook for the market remains positive, driven by robust growth in emerging economies, particularly in Asia-Pacific, where industrialization and urbanization fuel demand across various applications. In summary, the market is positioned for growth, characterized by rising consumption in the automotive and textile industries, increased production of bio-based alternatives, and a strong focus on sustainability amid evolving regulatory landscapes.
 

Ethylene Glycol Market Analysis

The ethylene glycol industry is influenced by several major restraints and opportunities, along with evolving regulations that shape its landscape. One significant restraint is the volatility of raw material prices, primarily driven by fluctuations in crude oil costs, which can impact production costs and profit margins. Additionally, stringent environmental regulations aimed at reducing carbon emissions and promoting sustainability pose challenges for manufacturers, requiring investment in cleaner production technologies and potentially limiting growth in traditional production methods. Conversely, there are ample opportunities for growth in the market, particularly with the increasing demand for bio-based ethylene glycol as consumers and industries shift towards more sustainable options.
 

The rise of electric vehicles and advancements in thermal management systems also present opportunities, as ethylene glycol is crucial in cooling applications for these vehicles. Furthermore, the expanding textile and packaging sectors, particularly in developing regions like Asia-Pacific, offer significant growth potential, fueled by rising disposable incomes and changing consumer preferences for synthetic materials. Overall, while the market faces challenges from price volatility and regulatory pressures, it is well-positioned to capitalize on emerging trends in sustainability and the growing demand for innovative applications across various industries.
 

Based on product, the ethylene glycol market is segmented into monoethylene glycol (MEG), diethylene glycol (DEG), triethylene glycol (TEG). Monoethylene glycol (MEG)dominates the market by generating USD 27.6 billion revenue in the year 2023. Monoethylene glycol (MEG) is the fastest-growing segment within the market, driven by its extensive use in multiple industries, especially in the production of polyester fibers and polyethylene terephthalate (PET) resins. MEG plays a critical role as a key raw material in the manufacturing of PET, which is widely used in packaging, particularly in beverage bottles and food containers.
 

The rising demand for lightweight, recyclable, and sustainable packaging solutions has significantly boosted PET production, propelling MEG’s market growth. Furthermore, MEG’s application in the textile industry for polyester production aligns with the increasing demand for synthetic fibers in fashion and home textiles. The automotive sector also contributes to MEG’s rapid growth due to its use in antifreeze and coolant formulations, essential for vehicle thermal management systems. The robust industrial expansion in emerging markets like Asia-Pacific, combined with ongoing urbanization and growing disposable incomes, further accelerates the demand for MEG. As industries increasingly prioritize cost-effective and versatile materials, MEG is poised to continue its strong growth trajectory in the market.
 

Based on application, the market is segmented into polyester fibers, PET resins, antifreeze & coolants, and others. Polyester fibers hold a dominant market share of 45.4% in the market. Polyester fibers are the fastest-growing segment in the market, driven by the surging demand for synthetic textiles across various industries. Ethylene glycol, particularly monoethylene glycol (MEG), is a crucial component in the production of polyester, which is extensively used in the textile industry for apparel, home furnishings, and industrial applications. The growth in fast fashion, increased consumer demand for affordable and durable clothing, and the expanding use of polyester in technical textiles and non-woven fabrics have significantly fueled this segment.
 

Additionally, polyester fibers are preferred due to their recyclability, aligning with the global shift towards more sustainable textile production. The expansion of e-commerce and changing lifestyle trends further amplify demand for polyester-based products. Emerging economies, particularly in Asia-Pacific, are witnessing rapid industrialization, increasing disposable incomes, and a booming textile manufacturing sector, which contributes to the accelerated growth of polyester fibers. This trend is expected to continue as polyester remains a versatile, cost-effective, and sustainable option for various applications.
 

Based on end use, The textile industry is the fastest-growing segment in the ethylene glycol market, primarily due to the high demand for polyester fibers, which rely heavily on ethylene glycol, especially monoethylene glycol (MEG), as a key raw material. Polyester, favored for its durability, affordability, and versatility, is extensively used in fashion, home textiles, and industrial fabrics. The rise of fast fashion, expanding consumer demand for synthetic textiles, and advancements in textile manufacturing are driving this growth.
 

Additionally, the textile industry's increasing emphasis on sustainability and the recyclability of polyester fibers contribute to the growing reliance on ethylene glycol. In emerging markets, particularly in Asia-Pacific, rapid industrialization, urbanization, and rising disposable incomes are leading to a booming textile production industry, further boosting the demand for ethylene glycol. As fashion and textile industries continue to expand globally, the market's growth within the textile segment is expected to remain strong, driven by the ongoing adoption of polyester-based materials.
 

U.S. ethylene glycol market was valued at USD 9.7 billion in 2023. U.S. market has been experiencing substantial growth, driven by increasing demand from various end-use industries, including automotive, construction, and textiles. Ethylene glycol is primarily utilized in the production of antifreeze and coolants, polyester fibers, and resins, which are essential for manufacturing PET bottles, clothing, and packaging materials. The growing automotive sector, alongside the rising demand for lightweight materials in manufacturing, is propelling the need for ethylene glycol, particularly in applications that enhance vehicle efficiency and sustainability. Additionally, advancements in production technologies and the expansion of manufacturing capacities are contributing to market growth, making ethylene glycol an integral chemical in the U.S. industrial landscape.

From a North American perspective, the ethylene glycol market is projected to continue its growth trajectory due to robust demand across various applications and industries. The region benefits from a well-established chemical manufacturing infrastructure, with several major players operating in the market. Additionally, the rising emphasis on environmentally friendly products and sustainable practices is leading to the development of bio-based ethylene glycol alternatives, which are gaining traction. The construction industry's expansion, driven by infrastructural developments and increased residential construction activities, further bolsters the demand for ethylene glycol as a component in antifreeze and as a raw material for construction chemicals. However, fluctuations in raw material prices and regulatory challenges could impact growth, necessitating strategic responses from market participants to navigate these challenges effectively.
 

Ethylene Glycol Market Share

In the ethylene glycol industry, companies like BASF SE, Dow chemical, Eastman chemical, Formosa plastics, and Indian oil play significant roles in driving growth through their extensive production capabilities and diverse product portfolios. BASF SE and Dow chemical are industry leaders with advanced production technologies, contributing to increased supply and innovation in applications such as antifreeze, polyester fibers, and PET resins. Eastman Chemical focuses on developing sustainable solutions, enhancing market competitiveness. Formosa Plastics and Indian Oil contribute through their robust infrastructure and supply chains, particularly in Asia, further strengthening the global market’s accessibility and demand. These companies collectively fuel growth through innovation, scalability, and regional expansion.
 

Ethylene Glycol Market Companies

Major players operating in the ethylene glycol industry are:

• BASF SE
• Dow Chemical
• Eastman Chemical
• Formosa Plastics
• Indian Oil
• Ineos Group
• LG Chem
• LOTTE Chemical
• LyondellBasell
• Mitsubishi Chemical
• Nan Ya Plastics
• Nippon Shokubai
• PETRONAS Chemicals
• Reliance Industries
• SABIC
• Shell Chemical
• Sinopec
   

Ethylene Glycol Industry News

• In May 2024, Japan-based Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical agreed to conduct a joint feasibility study on feedstock and fuel conversion at their ethylene production facilities in Western Japan. This initiative aimed to promote carbon neutrality and advance the decarbonization of society through sustainable practices.
   
• In July 2024, Sinopec, headquartered in China, announced plans to further reduce ethylene output, following a cut in June. The move was likely aimed at increasing fuel production, as the company shifted its focus to meet rising demand in the energy sector.
   

This ethylene glycol market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) & volume (Metric Tons) from 2021 to 2032, for the following segments:

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Market, By Product

• Monoethylene glycol (MEG)
• Diethylene glycol (MEG)
• Triethylene glycol (TEG)

Market, By Application

• Polyester fibers
• PET resins
• Antifreeze & coolants
• Others (e.g. heat transfer fluids, dehydrating agents)

Market, End Use

• Textile industry
• Automotive industry
• Healthcare and pharmaceuticals
• Industrial applications
• Chemical industry
• Packaging industry
• Construction industry

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa