GLYCOL MARKET ANALYSIS

The global glycol market size was valued at USD 37000.00 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.8% from 2022 to 2030. The increasing use of non-perishable resources is expected to boost the global glycol market during the forecast period. In addition, government initiatives are again expected to boost the usage of bio-based products such as glycol. These are considered to be safe and environment-friendly. Additionally, they are compliant with stringent government regulations. Bio-based glycols are expected to grow in popularity due to their widespread application in the pharmaceutical, food, and cosmetic industries. Another driver factor for the global glycol market is the increasing demand for processed foods. The growing population, modern lifestyle, and growing labor force are all contributing to the growth of processed food consumption. The growth in the transportation and construction industries also drives demand for propylene glycol.

Global Glycol Market: Regional Insights

Regionally, Asia Pacific is projected to dominate the global glycol market over the forecast period owing to the presence of strong economies such as China. High demand for glycol from textile industry. According to the National Bureau of Statistics of China, the textile production volume in China accounted for 12.4 billion meters in the first four months of 2022, compared to 11.8 billion meters during the same period in the previous year. Also, key players in the region are focusing on expanding production capacity of glycol which is further projected to augment regional market growth. For instance, in April 2021, CNOOC Oil & Petrochemicals Co., Ltd (CNOOC) and Shell Nanhai B.V. (Shell) announced the start-up by their 50:50 joint venture, CNOOC, and Shell Petrochemicals Company (CSPC), of new units to supply the essential petrochemicals including ethylene glycol in the Chinese market.

At the same time, North America is also projected to witness fastest growth in the global market over the forecast period owing to the strong presence of automotive industry in the region. As per the National Automobile Dealers Association (NADA), the total value of the car and automobile manufacturing market in the United States was USD 82.6 billion in 2021. Moreover, the association predicts that U.S. new light-vehicle sales are likely to increase by 3.4% to 15.5 million units in 2022.

Figure 1. Global Glycol Market Share (%) in terms of Value, By Region, 2021

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Global Glycol Market Drivers:

Growing demand for polyester films and PU adhesives is primarily fueling growth of the global glycol market. Polyester films are widely used for packaging foods and beverages, especially water, edible oils, soft drinks, alcoholic drinks, and juices. In October 2021, Mitsubishi Chemical Corporation announced its plans to expand its polyester film production capacity at its Wiesbaden, Germany site. Similarly, in September 2021, Dhanuka Group announced that it could be setting up an INR 1,250 crore packaging film factory in West Bengal, India. The plant will manufacture polyester films of Biaxially Oriented PET (BOPET) with a total production capacity of 45,000 tons.

Growing demand for ethylene glycol from textile industry is another major factor propelling growth of the market. For instance, in April 2021, Sinopec Yizheng Chemical Fiber announced plans to expand its PET resin capacity by adding three plants of 500,000 tons per year in Jiangsu. This is likely to increase the demand for glycol from the textile industry.

Global Glycol Market Opportunities:

Growth in the global packaging industry is projected to bring lucrative growth opportunities for market in the near future. According to a report published by PMMI, the Association for Packaging and Processing Technologies, growth in the global packaging industry reached USD 42.2 billion in the year 2021, which increased from USD 36.8 billion in 2016, owing to the increasing population, growing sustainability concerns, more spending power in developing regions, the rising demand for smart packaging, and others.

Ethylene glycol is widely used in various commercial and industrial applications, such as antifreeze and coolant. This chemicals helps to keep a vehicle's engine from freezing in the winter and acts as a coolant to reduce overheating in the summer. This hold lucrative growth opportunity of ethylene glycol in the automotive and transportation industry.

Global Glycol Market Trends:

Propylene glycol is widely used as humectant in cosmetic industry. Expanding cosmetic and personal care industry due to changing fashion trend and increasing disposable income of consumers is acting as a catalyst to the market. According to L'Oréal - Universal Registration Document 2021, the global cosmetics market is worth nearly USD 240 billion. The cosmetics market remains a supply-led market driven by innovation, where consumers always look for quality, performance, and perceived results. 

Growing popularity of bio-based glycols is a rising trend in the market. In order to cater to growing demand key players are focusing on increasing production capacity of bio-based glycol. For instance, in November 2019, Avantium inaugurated its plant-based MEG demonstration facility in the Netherlands.Similarly, in 2020, Braskem and Haldor Topsoe achieved the first production of bio-based MEG using the MOSAIK technology in Lyngby, Denmark.

Global Glycol Market Restraints:

Growth in the global glycol market is constrained by factor such as fluctuating raw material prices. The prices of ethylene and acetaldehyde, two of the main ingredients used in manufacturing ethylene glycol, are subject to volatility. Meanwhile, the prices of raw materials are largely affected by global oil prices.

Toxic nature of Ethylene glycol is another key factor expected to restrict market growth. It has high toxicity when ingested. After ingestion, it is oxidized to glycolic acid, which turns to toxic oxalic acid. Oxalic acid and its byproducts have severe effect on the central nervous system, the heart, and the kidneys.

Figure 2. Global Glycol Market Share (%), By Application, 2021

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Global Glycol Market Segmentation:

The global glycol market report is segmented into type, end-user industry, and geography

Based on type, the market is segmented into Ethylene Glycol, Propylene Glycol, and Other Types. Ethylene Glycol is further classified into Monoethylene Glycol (MEG), Diethylene Glycol (DEG), Triethylne Glycol (TEG), and Polyethylene Glycol (PEG). Out of which, Monoethylene Glycol (MEG) which is sub segment of Ethylene Glycol is expected to dominate the global market over the forecast period and this is attributed to the growing demand from fibers, leather, adhesives, paper, printing inks, and cellophane application. Moreover, it is also used in plastic industry for production of films, polyester fibers, and resins, one of which is polyethylene terephthalate (PET)

Propylene Glycol segment is also expected to witness significant growth in the near future and this is owing to the growing demand from polymers manufacturing industry

Based on end-user industry, the market is segmented into Automotive and Transportation, Packaging, Food and Beverage, Cosmetics, Pharmaceuticals, Textile and Other End-user Industries. Out of which, Packaging is expected to dominate the global market over the forecast period and this is attributed to the growing demand for plastic packaging from wide range of end-user industries. Due to its stiffness, lightweight, high thermal stability, recyclable and usable in microwave radiation properties it is used in packaging applications of carbonated soft drinks and water bottle, and microwave containers.

Food and Beverage segment is also expected to witness significant growth in the near future. It is used as an anti-freeze agent, solvent, thickener, flavor enhancer, emulsifier, and stabilizer in food products such as artificial sweeteners, ice cream, flavorings & essence, icing, and soft drinks, candies, frostings, and baked goods.

Global Glycol Market: Key Developments

In July, 2021, The polyurethanes and construction chemicals business of the company has increased propylene glycol (PG) capacity at its existing facility in Map Ta Phut, Thailand by 80,000 ton per year bringing the total capacity to 250,000 ton per year. This increased propylene glycol capacity optimizes Dow’s existing asset infrastructure to support continued growth in high-value applications. This also helps the company to gain a customer’s attention in fast-growing markets.

In May 2022, The Company has issued an emergency notice due to the accident of a supplier of upstream raw materials, its ability to supply key raw materials to Dow's business was interrupted. Due to this, the propylene glycol supply was declared force majeure, and the recovery time follow-up notice.

In January 2021, the company announced, the Indian Oil Ethylene Glycol Project at Paradip, costs Rs. 5654 crore and consists of a 357 KTA Ethylene Glycol Unit and a 180 KTA Ethylene Recovery Unit, which will produce 332 KTA MEG. The project will help in consolidating the Polyester business of the corporation by way of producing Mono Ethylene Glycol (MEG) which is used to manufacture Polyester fibers, Bottle grade Chips & Polyester film grade chips.

Global Glycol Market: Key Companies Insights

The global glycol market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global glycol market are BASF SE, China Sanjiang Fine Chemical Co. Ltd, Dow, Huntsman International LLC, India Glycols Limited, Indian Oil Corporation Ltd (IOCL), Indorama Ventures, Public Company Limited, INEOS, LOTTE Chemical Corporation, LyondellBasell Industries Holdings BV, MEGlobal International FZE, Mitsubishi Chemical Corporation, Nouryon, Petro Rabigh, PETRONAS Chemicals Group (PCG), Reliance Industries Ltd, SABIC, Shell PLC, and Sinopec Zhenhai Refining & Chemical Company

*Definition: Glycol is a colorless, odorless, viscous liquid that is widely used in plastic manufacturing and antifreeze formulations. Its main uses are in polyester fiber production and antifreeze formulations. It is also used in personal hygiene products. The P-series glycol is used for these applications. Glycol ethers are stable as long as proper storage and handling conditions are employed.