According to DataM Intelligence, the global Ethylene Glycol Market reached USD 29.2 billion in 2022 and is projected to reach USD 40.1 billion by 2031, growing at a CAGR of 4.2% during the forecast period from 2024 to 2031. The polyester fibers and polyethylene terephthalate (PET) resins segments dominate the market due to their extensive use in textiles and packaging, while North America holds the largest market share, driven by major manufacturers and robust demand. The Asia-Pacific region is the fastest-growing, fueled by rapid industrialization and urbanization in countries like China and India. The global ethylene glycol market is experiencing consistent growth, propelled by its critical role in industries such as automotive, packaging, and textiles, as well as advancements in sustainable production technologies.

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Market Segmentation

Based on the DataM Intelligence report, the global ethylene glycol market is segmented as follows:

By Type:

• Monoethylene Glycol (MEG)

• Diethylene Glycol (DEG)

• Triethylene Glycol (TEG)

• Others

By Technology:

• Gas-Based

• Naphtha-Based

• Coal-Based

• Bio-Based

• Methanol-Based

By Application:

• Polyester Fibers

• Polyethylene Terephthalate (PET) Resins

• Antifreeze and Coolants

• Chemical Intermediates

• Others

By End-User Industry:

• Transportation

• Packaging

• Oil & Gas

• Building and Construction

• Food & Beverages

• Sports

• Fabric & Textiles

• Personal Care & Cosmetics

• Medical & Healthcare

• Others

By Region:

• North America

• Europe

• Asia-Pacific

• South America

• Middle East & Africa

Market Share

Regionally, North America dominated the global ethylene glycol market with a revenue share of 40.5% in 2023, driven by the presence of major manufacturers like Dow Chemical Company and strong demand from industries such as automotive, packaging, and textiles. The region’s advanced industrial infrastructure and established supply chains further solidify its market leadership.

Asia-Pacific is the fastest-growing region, propelled by rapid industrialization, urbanization, and increasing demand from emerging economies like China and India. The region’s textile and packaging industries, which consume significant amounts of polyester fibers and PET resins, are key growth drivers. Europe maintains a steady market share, supported by its established automotive and textile sectors, while South America and the Middle East & Africa are experiencing moderate growth due to expanding industrial and infrastructure activities.

Market Drivers

1. Rising Demand from End-User Industries: The growing consumption of polyester fibers and PET resins in textiles and packaging is a major driver. The global packaging industry, projected to grow from USD 1 trillion in 2022 to USD 1.3 trillion by 2027, significantly boosts demand for ethylene glycol in PET production.

2. Automotive Industry Expansion: The increasing production of vehicles, with global output reaching approximately 80 million units in 2023, drives demand for ethylene glycol in antifreeze and coolant applications. The rise of electric vehicles (EVs) further supports the use of ethylene glycol in battery cooling systems.

3. Technological Advancements: Innovations in production technologies, such as bio-based and methanol-based methods, enhance efficiency and reduce environmental impact. For instance, bio-based ethylene glycol production from renewable biomass is gaining traction as a sustainable alternative.

4. Urbanization and Industrialization: Rapid urban growth in Asia-Pacific, with urban populations expected to reach 3.5 billion by 2030, fuels demand for ethylene glycol in construction, textiles, and packaging. Industrial expansion in emerging markets further supports market growth.

5. Sustainability Initiatives: The development of recycling technologies for PET and polyester fibers, coupled with the rise of bio-based ethylene glycol, aligns with global sustainability goals, driving market adoption in eco-conscious industries.

Market Challenges

1. Environmental Concerns: The production and disposal of ethylene glycol, particularly through traditional gas- and naphtha-based methods, raise environmental concerns due to high energy consumption and potential toxicity, posing challenges to market growth.

2. Raw Material Price Volatility: Fluctuations in the prices of feedstocks like ethylene, naphtha, and coal, influenced by geopolitical events such as the Russia-Ukraine war, increase production costs and affect market stability.

3. Stringent Regulatory Frameworks: Strict environmental regulations in regions like Europe and North America, aimed at reducing carbon emissions and chemical waste, may increase compliance costs for ethylene glycol manufacturers.

4. Competition from Alternatives: Substitutes like propylene glycol in certain applications, such as antifreeze and cosmetics, pose a competitive threat, particularly in price-sensitive markets.

5. Supply Chain Disruptions: The lingering effects of the COVID-19 pandemic and geopolitical tensions have disrupted global supply chains, affecting the availability of raw materials and increasing logistics costs for ethylene glycol production.

Key Players

The ethylene glycol market is highly competitive, with major players focusing on innovation, capacity expansions, and sustainability initiatives to maintain their market positions. Key market participants include:

• Saudi Basic Industries Corporation (SABIC)

• Shell plc

• Dow Chemical Company

• BASF SE

• Sinopec Corp

• Reliance Industries Limited

• Mitsubishi Chemical Corporation

• LyondellBasell Industries Holdings B.V.

• Lotte Chemical Corporation

• Huntsman Corporation

Recent Developments (2024-2025)

1. SABIC’s Bio-Based Ethylene Glycol Initiative (March 2024): SABIC launched a pilot project to produce bio-based ethylene glycol using renewable feedstocks, targeting sustainable packaging and textile applications to reduce carbon footprints.

2. Dow Chemical’s Capacity Expansion (June 2024): Dow Chemical expanded its ethylene glycol production facility in Texas by 15%, focusing on meeting rising demand for PET resins in North America’s packaging sector.

3. Shell’s Advanced Recycling Program (October 2024): Shell introduced a recycling initiative for PET waste, converting it back into ethylene glycol for reuse in packaging, supporting circular economy goals.

4. Reliance Industries’ Investment in India (January 2025): Reliance Industries invested USD 200 million in a new ethylene glycol plant in India, targeting the growing textile and packaging markets in Asia-Pacific.

5. BASF’s Low-Carbon Production (February 2025): BASF developed a low-carbon production process for MEG, reducing emissions by 20% through energy-efficient technologies, aligning with Europe’s stringent environmental regulations.

Market Trends

1. Shift Toward Bio-Based Production: The adoption of bio-based ethylene glycol, derived from renewable biomass, is gaining momentum as industries prioritize sustainability and reduced environmental impact.

2. Growth in Packaging Applications: The global demand for PET-based packaging, particularly in food and beverage sectors, is driving ethylene glycol consumption, with plastic bottle production expected to grow by 5% annually through 2030.

3. Expansion in Automotive Sector: The increasing use of ethylene glycol in antifreeze, coolants, and EV battery cooling systems is a key trend, driven by global vehicle production and the rise of electric mobility.

4. Recycling and Circular Economy: Advances in PET recycling technologies are enabling the reuse of ethylene glycol, reducing waste and supporting sustainable practices in the packaging and textile industries.

5. Regional Growth in Asia-Pacific: Rapid industrialization and government support for manufacturing in China and India are driving investments in ethylene glycol production, reinforcing Asia-Pacific’s market dominance.

Conclusion

The global ethylene glycol market is poised for steady growth, driven by its critical applications in polyester fibers, PET resins, and antifreeze, as well as the expansion of end-user industries like packaging, automotive, and textiles. North America leads the market due to its strong industrial base, while Asia-Pacific is the fastest-growing region, fueled by rapid urbanization and industrial growth. Despite challenges such as environmental concerns, raw material price volatility, and regulatory pressures, opportunities in bio-based production and recycling initiatives will drive sustainable growth. As industries increasingly prioritize eco-friendly solutions, ethylene glycol will remain a vital component in supporting global industrial and sustainability objectives.

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