Mono Ethylene Glycol, commonly known as MEG, is a versatile liquid. It has found widespread applications across various industries. This odorless, colorless and thick substance is highly miscible with water and organic solvents. This is why MEG is an invaluable component in many manufacturing processes.
Over the past few years, the global MEG market has witnessed remarkable growth. The textile and plastics industries have played a pivotal role in driving this growth – particularly in the production of polyethylene terephthalate (PET) and polyester fibers. MEG has the ability to serve as a key ingredient in these materials and it has made it an essential component for many consumer products.
These products may range from clothing to packaging materials. Moreover, ongoing research into organic-based PET has paved the way for the development of bio-based MEG – which is great for expanding its potential applications.
Regions such as Europe and North America have also contributed to the market’s growth, with an increasing demand for MEG in the production of PET.
Market Overview
The global Mono Ethylene Glycol (MEG) market is expected to witness steady growth in the coming years. Many studies have shown that the market will rise at a healthy rate of 5.4% annually between 2022 and 2032. By the end of this period, the MEG market is estimated to reach a substantial value of US$ 65 billion, up from US$ 38.4 billion in 2022.
Examining the market dynamics in the fourth quarter of 2023, we can see a varied landscape across different regions. In North America, the MEG market displayed a moderate scenario with supply levels balanced between production processes and inventory levels.
Meanwhile, in the Asia-Pacific (APAC) region during the same period, the supply of MEG ranged from moderate to low, while demand fluctuated from moderate to high. Pricing trends in countries like Taiwan, India, Indonesia and China were influenced by factors such as the depreciation of ethylene feedstock costs, escalating feedstock expenses and anticipated increases in crude oil prices.
Asia-Pacific remains a dominant force in the Mono Ethylene Glycol market, because of the thriving automotive industry. In 2020, the Asia-Pacific region held the largest share of the MEG market, with 43% of the global market. This dominance was because of the increasing demand for packaging materials from the food and beverages industry within the region.
Historical Analysis vs Forecast Outlook (2022 – 2032)
It goes without saying that, like other industries, The COVID-19 pandemic also had a significant impact on the global demand for Mono Ethylene Glycol (MEG).
However, the current market outlook is constantly evolving. There is increased demand for antifreeze, polyethylene terephthalate (PET) resins, and polyester fibers – and all these are driving the market growth of MEG.
One notable aspect of MEG is its biodegradability, meaning it has a reduced impact on aquatic organisms. This environmentally friendly characteristic is a positive side of the MEG industry.
However, there is a drawback. MEG is highly toxic to humans, and its consumption has been shown to have negative effects on the kidneys, heart and central nervous system, which has limited market growth to some extent.
Here’s the good news – looking ahead, the increased demand for non-toxic surfactants and the growing textile and fiber industries are expected to create numerous opportunities for the sector to expand. The use of MEG as a raw ingredient for polyester fiber and polyethylene terephthalate (PET) is anticipated to grow that will boost the overall MEG market size.
In the past, the chemical intermediate segment held the largest share in the mono-ethylene glycol market in 2020 and this will grow at a healthy rate of 6.1% between 2021 and 2026. This growth was driven by the increasing usage of mono-ethylene glycol as a chemical intermediate for manufacturing various products. These products may include polyester fibers, PET products, alkyd resins, and more. MEG is an essential raw material for resins that is used in a wide range of applications, from clothing and textiles to packaging, kitchenware, polyester and fleece fabrics, upholstery, carpets, pillows, and sturdy polyethylene terephthalate drink, food containers, etc.
Additionally, the packaging segment held the largest share in the mono-ethylene glycol market in 2020 and is growing at an impressive rate of 8.7% between 2021 and 2026. The packaging industry is a major consumer of mono-ethylene glycol, where MEG-based PET is used to manufacture water bottles, carbonated drink bottles, food packaging, etc.
In a nutshell, the MEG market is expected to grow at a healthy rate. However, if you are operating a business where you need MEG, you must find a reliable dealer for high-grade Mono Ethylene Glycol.
Bottom Line
Are you involved in the chemical industry as a trader, procurement manager, supply chain manager, sales manager, or logistics manager? Do you need high-quality Mono Ethylene Glycol (MEG) at the best market price?
Look no further than the leading supplier, Chemical Iran.
We offer pure, top-grade MEG packed in 230 kg HDPE drums, steel drums, flexitanks, or IBC tanks for your convenience.
At Chemical Iran, we follow strict standards to produce the purest MEG quality, ensuring customer satisfaction.
Visit our official website to learn more. Or, call us for any queries!
