Market Overview The global monoethylene glycol (MEG) market had a valuation of USD 26.69 billion in 2022 and is projected to reach USD 46.25 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.3% during the forecast period. The increasing demand for MEG in various industries such as packaging, textile, automotive, construction, and chemicals is the primary driver of market growth.
The packaging sector, which relies on MEG for the production of Polyethylene Terephthalate (PET) resins used in food and beverage packaging, is the largest end-user of MEG. The growing population and consumption of packaged foods and beverages are expected to drive the demand for MEG in the packaging industry. The textile sector is another significant consumer of MEG, utilizing it in the production of polyester fibers and fabrics. The demand for polyester apparel, known for its durability, affordability, and ease of maintenance, is driving the need for MEG in the textile industry.
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MEG is commonly used in the automotive industry for the production of engine coolants and antifreeze agents. The increasing vehicle production rates and the demand for high-performance coolants are driving the use of MEG in the automotive sector. Additionally, MEG finds applications in the construction industry for manufacturing building products such as adhesives, sealants, and coatings. The growing construction activity, particularly in developing countries, is expected to boost the demand for MEG in the construction sector. In the chemical industry, MEG is widely employed as a raw material for producing various compounds, including resins, solvents, and plasticizers. The increasing demand for chemicals in multiple end-use industries is driving the need for MEG in the chemical sector.
The market for MEG is also influenced by the growing emphasis on environmentally friendly and sustainable products. As awareness of the environmental impact of petrochemicals and fossil fuels rises, there is a shift towards the production of bio-based MEG, which promotes sustainability and reduces carbon emissions.
However, market expansion faces challenges due to factors such as fluctuating crude oil prices, the availability of alternative chemicals like Ethylene Glycol and Diethylene Glycol (DEG), and stringent government regulations. The production cost of MEG is affected by fluctuations in crude oil prices, which impacts market revenue. Furthermore, the presence of alternative chemicals and the strict regulations governing the use of MEG pose obstacles to revenue growth.
Data and Statistics: According to the U.S. Environmental Protection Agency, MEG is used in various industrial processes in the United States, including as an antifreeze agent and coolant for automotive applications. The U.S. Geological Survey estimates that the total consumption of MEG in the United States was 5.8 million barrels in 2017, equivalent to approximately 250 million gallons. MEG accounted for 1% of total U.S. petroleum consumption in 2015, making it the fifth-largest use of petroleum products after motor gasoline, distillate fuel oil, jet fuel, and residual fuel oil, according to the Energy Information Administration (EIA). About 97% of MEG in the United States is derived from petrochemical sources, with the remaining sourced from natural gas liquids or biomass-based ethanol, according to the American Chemistry Council (ACC). The United States was a net exporter of MEG in 2017, with approximately 2 million barrels exported and 1.2 million barrels imported, according to the ACC.
Regulations Regarding the Monoethylene Glycol Market: The U.S. Environmental Protection Agency has established regulations to reduce emissions of Volatile Organic Compounds (VOCs) and smog-forming Oxides of Nitrogen (NOx) by limiting the use of MEG in motor vehicles. The U.S. Occupational Safety and Health Administration has set standards for the safe handling and storage of MEG in workplaces, including requirements for Personal Protective Equipment (PPE) and safety training. The U.S. Food and Drug Administration regulates the use of MEG in food and beverage applications, setting limits on the amount of MEG that can be added to food and beverages. The U.S. Department of Transportation has regulations governing the transport of MEG, including requirements for labeling and placarding vehicles carrying MEG. The California Air Resources Board regulates the use of MEG in motor vehicle emissions control systems, imposing standards to reduce emissions of smog-forming Oxides of Nitrogen (NOx).
The Antifreeze Coolants segment is expected to exhibit steady growth throughout the forecast period. MEG is used as an antifreeze and coolant in various applications, including automotive HVAC systems and industrial operations. The increasing demand for antifreeze and coolants in the automotive sector, driven by their ability to reduce fuel consumption and prevent engine damage, contributes to market expansion. Additionally, coolants and antifreeze are used in the HVAC sector to regulate humidity and temperature levels, further fueling market growth.
The Chemical Intermediate segment is anticipated to experience significant growth during the forecast period. MEG serves as a chemical intermediary in the synthesis of various compounds, including resins, solvents, and humectants. The expanding demand for chemicals across multiple end-use sectors, including packaging, automotive, and construction, is expected to drive the need for MEG as a chemical intermediate.
End-Use Insights: In 2021, the packaging sector accounted for a significant revenue share in the global monoethylene glycol market. The market for monoethylene glycol is divided into various end-use segments, including packaging, automotive, textile, construction, and others. The packaging sector contributed a substantial portion of the sales in 2021. Monoethylene glycol is in high demand in the packaging industry due to its excellent chemical and physical properties, such as a high boiling point, good solubility, and low vapor pressure. It is used to produce plastic bottles, films, and fibers made of Polyethylene Terephthalate (PET). The expanding use of PET bottles in the beverage industry and the growing demand for plastic packaging are expected to drive the growth of the packaging segment during the forecast period.
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