Monoethylene glycol is elevating as an ideal solution in a wide variety of antifreeze formulations, specifically for automobile radiators. Hence, it is well-known as an active anti-freezing agent. In general, the ethylene glycol products are mainly utilized in coolants, chemical intermediates, heat transfer fluids, polyester resins, and solvents. In addition to this, MEG is also useful in gas dehydration and treating. MEG is an essential raw material, which is highly preferred by the market players mainly for industrial applications such as for making polyester resins, fibers, and films. Many advantages of ethylene glycol are attracting industry players. These advantages are low volatility and low boiling point.
Furthermore, it also acts as a versatile intermediate and TETRA EG that is fully mixable with water and also with organic solvents. These characteristics are increasing its applications in various industries and are proving to be growth-promoting drivers for the mono-ethylene glycol market. MEG also acts as a key ingredient in the manufacturing of paints, paper, textiles, and adhesives. As a result, the rise in demand for these applications is also boosting the growth of the MEG market on a global basis. Therefore, the global Mono-Ethylene Glycol Market size was evaluated at $26.5 billion in 2018 and is estimated to grow with a CAGR of 4.8%, during the forecast period 2019-2025.
Prevalence of MEG in PET Application:
MEG is a primary raw material, which is gaining traction from making polyethylene terephthalate (PET) resin makers, among others which include fibers, films, and antifreeze & coolant industrial players. Owing to its durability and hydrophobic features, this raw material is highly preferred for manufacturing PET films & polyester fibers. Consequently, PET application of mono-ethylene glycol will be growing at the fastest CAGR of 5.6% through to 2025. Additionally, PET is the most important engineering thermoplastic material, and the polymer is widely used in various recycled plastics, such as grocery bags, plastic bottles, gas cylinders, space blankets, and others. Presently, MEG is broadly accepted polyester, particularly in fabric, packaging, engineering, electronics, and biomedical industries. Moreover, mono-ethylene glycol is extensively used in polyethylene terephthalate (PET) resins, especially to make plastic bottles for soft drinks and packaging films. Thus, PET products are preferred as they are energy-saving, cost-efficient, and recyclable.
For instance, in 2017, Braskem, a Brazil-based company, and Haldor Topsoe, a Denmark-based company announced to sign an agreement. It is aimed for the development of MEG from sugar instead of using traditional fossil fuels at a new plant which is located in Denmark. This new solution not only decreases the investment costs but also boosts the productivity level as well. Thus, this approach is getting attention, which is supporting the goal regarding the large-scale renewable MEG production. Furthermore, the MEG plant has become the most important step towards improving the sustainability of PET plastic packaging coupled with reduced carbon emissions. Subsequently, this partnership that targeted for the development of renewable MEG has been reflecting as a significant advancement in competitiveness for Green PET. On the other hand, it is also increasing the MEG market demand in the respective regions.
Flood of Mono-ethylene Glycol Imports in Asia-Pacific:
APAC region has established a leading position in the global mono-ethylene glycol market, with its dominating share of 45% among other regions, as of 2018. The ethylene glycol market in Asia is rising due to increasing demand for PET resins and polyester fibers in packaging and textile industries. According to the International Trade Centre, $14.8 billion value ethylene glycol got imported in 2018, worldwide. China alone holds for a ruling share of 61.2% in the world ethylene glycol imports and has topped with a value of $9 billion among other importers for the year 2018. The increase in the necessity for ethylene glycol in APAC countries, especially in China, Indonesia, Vietnam, Singapore, and Thailand are boosting the APAC mono-ethylene glycol market demand.
Major Players in Monoethylene Glycol Market Include:
Some of the players which are operating in the global mono-ethylene glycol market are Akzo Nobel N.V., BASF SE, Exxon Mobil Corporation, Indorama Corporation, Mitsubishi Chemical Corporation, Mitsui Chemicals, SABIC, Ineos Oxide, Lotte Chemical, and Sibur. These companies have been continuously concentrating on plant expansions and product launches to strengthen their product portfolio and their brand value in respective geographies.
Diverse Strategies in the Monoethylene Glycol Market:
· In May 2019, Shell Chemical LP announced that its plan to invest $1.2 billion as a part of manufacturing expansion in Louisiana. As of now, this project got approval from the Ascension Parish Council and the Ascension Parish School Board under Industrial Tax Exemption Program. Louisiana Economic Development (LED) stated that Royal Dutch Shell is expected to approve the construction of world-scale mono-ethylene glycol plant by 2020. This expansion will impact the growth of mono-ethylene glycol market in the U.S.
· On 9th September 2018, Jiutai Company signed an agreement with Johnson Matthey PLC and Eastman Chemical Company. This agreement briefs that Jiutai uses novel technology proposed by the other two companies for the production of MEG. This technology is helpful in the manufacture of methanol and formaldehyde within an integrated MEG facility, coupled with maximized feedstock conversion and reduced utility consumption. Thus, coal is used to produce MEG in the Jiutai’s 1,000,000 metric tons per year facility for ethylene glycol. Therefore, this new plant production in Inner Mongolia contributes to more growth of MEG market revenue in China to fulfill the customers demand in this country compared to other Asian countries.
· Avatinum N.V. is a leading technology development company. In June 2018, this company started the construction of bio-MEG demonstration plant with a capacity of around 10 tons of plant-based mono-ethylene glycol in the Netherlands. This plant uses renewable sugars to produce bio-based mono-ethylene glycol. Currently, both consumers and leading brand suppliers are interested in adopting this unique single-step process of Mekong technology, as it satisfies the demand in an eco-friendly manner. Avatinum also disclosed that it had invested an amount of €15-20 million in advanced technologies. Henceforth, this plant has aimed to scale up the bio-MEG technology by producing cost-effective bio-MEG. This strategic development is attributing the demand influx of the mono-ethylene glycol market in this region.
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