Monoethylene Glycol Market Size

Monoethylene Glycol Market Size

Monoethylene Glycol Market size estimated at USD 25 billion in 2016 and will grow at a CAGR of more than 6% from 2017 to 2024.
 

Growing use of monoethylene glycol (MEG) as a raw material for producing polyester fiber and polyethylene terephthalate (PET) will likely surge the monoethylene glycol market size by 2024. Improved standard of living in addition to modern fashion inclinations of the consumers for recently designed attires is expected to drive the polyester fiber demand, directly surging the product market size in the forecast period. The product further finds application in several industrial uses such as antifreeze, hydrate inhibitor in gas pipelines, coolants and as a heat transfer agent, that is projected to produce ample prospects from various end-use industries. In addition, swelling demand for polyester fiber from the textile sector is increasing MEG production in the forecast period. Asia Pacific proves to be one of the key profitable regions for the polyester fiber market. It registered a revenue more than USD 50 billion in 2016. This is owing to the surging disposable income, drift in customer preferences and abundant availability of low-cost labor will surely boost the product market size by 2024.

Furthermore, growing use of plastics instead of paperboard, wood and metal in the packaging industry is fueling the polyethylene terephthalate (PET) sector in the forecast timeframe. This shift in trend considerably upsurge the product market size by 2024. Pharmaceutical and food & beverage packaging are the major industry growth contributors owing to their extensive usage of PET to manufacture various packaging materials such as sheets, films, bottles, containers etc. In addition, improved chemical resistance, ease of recyclability, elevated barrier properties and dimension stability will surely boost the PET demand, surging the production of MEG by 2024.

Growing inclination for bio-based materials and volatility in oil prices is anticipated to trigger substantial resistance in the growth of product monoethylene glycol (MEG) market size by 2024. The product is mainly obtained from ethylene, which is a byproduct of crude oil, and the volatility in crude oil prices has led to fluctuations in raw material prices. However, the decline in crude oil prices in 2014 piloted a reduction in MEG prices to USD 750/kilo ton in Asia Pacific, that is certain to bring abundant opportunities for the product market size in the forecast timespan.