Key Market Overview:
Glycol Market size was valued at USD 36.4 Billion in 2022, accounting for a CAGR growth of 6.4% during the forecast period (2023-2030), and the market is projected to be valued at USD 63.62 Billion by 2030.
Glycol is a term that refers to a group of organic compounds that contain two hydroxyl (OH) groups attached to different carbon atoms. The most common types of glycol are ethylene glycol and propylene glycol. Ethylene glycol is a clear, colorless, odorless, and sweet-tasting liquid that is widely used as an antifreeze and coolant in automotive and HVAC systems. It is also used in the production of polyester fibers and resins. Propylene glycol is a colorless, odorless liquid that is commonly used as a food additive and in cosmetics, pharmaceuticals, and other industrial applications.
Key manufacturers operating in the glycol market are engaged in taking proactive steps to minimize the environmental impact of the production processes of glycol and reduce its carbon footprint. For instance, in September 2022, BASF announced that it is offering neopentyl glycol and propionic acid with a product carbon footprint of zero. This means that the company has taken steps to minimize the environmental impact of its production processes, resulting in the manufacturing of these chemicals without producing any net carbon emissions. Moreover, Asia Pacific is expected to be the fastest-growing region in the glycol market during the forecast period. This is due to the increasing growth of the automotive and construction industries in the region and further use as antifreeze and coolants in vehicles and as materials for insulation and construction adhesives.
Market Dynamics:
Driver:
- The use of glycols is expanding across various industries, such as construction, packaging, pharmaceuticals, and personal care products. The growth of these end-use industries is expected to drive the demand for glycols, particularly for the production of polyester fibers and resins, as well as for use as solvents and coatings.
- The high vehicle production globally is driving the demand for glycols, particularly ethylene glycol. Ethylene glycol is widely used as an antifreeze and coolant in automotive engines and HVAC systems. Hence, as vehicle production continues to grow, the demand for ethylene glycol is increasing.
Restraints:
Ethylene glycol is a toxic chemical and is harmful if ingested or absorbed through the skin. The chemical causes serious health issues, including kidney damage, central nervous system depression, and even death if ingested in large quantities. These potential health hazards associated with ethylene glycol resulted in growing concern about its safety in consumer products such as food and beverage packaging. Hence, the market growth is restricted due to these above-mentioned health concerns.
Opportunities:
With the growing demand for sustainable products, there is an opportunity for glycol manufacturers to diversify their product offerings and offer bio-based glycols alongside their traditional petrochemical-based products. This can help them to expand their customer base and meet the demand for sustainable products. Moreover, the development of bio-based glycols can open up new markets for glycol manufacturers, particularly in industries that prioritize sustainability such as cosmetics, personal care, and food and beverage. By targeting these new markets, glycol manufacturers can expand their customer base and increase their revenue.
Glycol Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 63.62 Billion |
| CAGR (2023-2030) | 6.4% |
| By Product Type | Ethylene Glycol (Monoethylene Glycol, Diethylene Glycol (DEG), and Triethylene Glycol)), Propylene Glycol, and Others |
| By Application | Polyester Fiber, Paints and Coatings, Detergents, Hydraulic Fluids, Heating, Ventilation and Air Conditioning (HVAC), Cosmetics, and Others |
| By End-Use | Textile, Automobiles, Food & Beverage, Animal Feed Industry, Pharma Industry, Personal Care Products, Agriculture Adjuvants, Airlines Industry, and Others. |
| By Geography | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Players | Dow Chemical Company, BASF SE, SABIC, Shell Global, Huntsman International LLC., Eastman Chemical Company, LyondellBasell Industries, MEGlobal International FZE , Mitsubishi Chemical Corporation, INEOS Group |
Market Segmentation:
By Product Type
The product type segment is categorized into ethylene glycol (monoethylene glycol, diethylene glycol (deg), and triethylene glycol), propylene glycol, and others. In 2022, the ethylene glycol segment accounted for the highest market share in the glycol market due to its wide range of applications in various industries such as automotive, textiles, and packaging. Furthermore, ethylene glycol is primarily used in the production of PET (polyethylene terephthalate) resin, which is widely used in the packaging industry for beverages, food, and pharmaceuticals which contributes to the dominance of the segment.
However, propylene glycol is expected to be the fastest-growing segment in the market over the forecast period due to its use as a solvent, antifreeze, and food additive. Propylene glycol is used in a variety of applications, including pharmaceuticals, cosmetics, food and beverages, and industrial fluids. Its lower toxicity and lower freezing point compared to ethylene glycol make it a popular choice among manufacturers. These properties are expected to drive the growth of this segment.
By Application
The application segment is categorized into polyester fiber, paints and coatings, detergents, hydraulic fluids, heating, ventilation and air conditioning (HVAC), cosmetics, and others. In 2022, the polyester fiber segment accounted for the highest market share as they are widely used in the textile industry for the production of clothing, upholstery, carpets, and other fabrics. Ethylene glycol is a key raw material used in the production of polyester fibers, and the growing demand for textiles and fabrics in emerging economies such as China and India is driving the growth of this segment. Additionally, polyester fibers offer several advantages such as durability, ease of care, and affordability, making them a popular choice among consumers.
However, the hydraulic fluids segment is expected to be the fastest-growing application segment in the glycol market due to its increasing demand in various industries such as construction, mining, agriculture, and aviation. Hydraulic fluids are used to transfer power and lubricate hydraulic systems, and the growing demand for these systems further drives the growth of the hydraulic fluids segment.
By End-Use
The end-user segment is categorized into the textile, automobiles, food & beverage, animal feed industry, pharma industry, personal care products, agriculture adjuvants, airlines industry, and others. In 2022, the personal care products segment accounted for the highest market share. This is because, personal care products such as lotions, shampoos, and cosmetics often contain glycols, particularly propylene glycol, as a moisturizing and conditioning agent. With the increasing demand for personal care products globally, the demand for glycols in this segment is also increasing. Additionally, the versatility of glycols in personal care products, as they can be used in a wide range of formulations and products, also contributed to its dominant position in the market.
However, the automobile segment is expected to be the fastest-growing segment during the forecast period. This is due to the increasing use of glycols in automotive cooling systems, as well as the growing demand for lightweight and fuel-efficient vehicles. Furthermore, the increasing production of electric vehicles and the rising demand for advanced automotive materials is also expected to drive the growth of this segment.
By Region
By region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In 2022, Asia Pacific accounted for the highest market share in the glycol market. According to OICA, the vehicle production including cars and commercial vehicles in Asia-Pacific, particularly in China is 26082220, and in India is 4399112. This high vehicle production rate is driving the demand for glycols, particularly ethylene glycol in the region. Ethylene glycol is widely used as an antifreeze and coolant in automotive engines and HVAC systems.
Moreover, the increase in new light-vehicle sales in the U.S., rising for the fifth straight month, suggests a strong demand for automobiles in the country. The rise in sales in January 2023 on a seasonally adjusted basis by 4.2% to 15.74 million units from a year ago is a positive indicator for the automotive industry. The increase in sales is expected to continue in February and March as more inventory becomes available. Hence, North America is expected to be the fastest-growing region in the market during the forecast period.
Glycol Market Competitive Landscape:
The glycol market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include–
- Dow Chemical Company
- BASF SE
- SABIC
- Shell Global
- Huntsman International LLC.
- Eastman Chemical Company
- LyondellBasell Industries
- MEGlobal International FZE
- Mitsubishi Chemical Corporation
- INEOS Group
Recent Development:
- In November 2021, SABIC announced the commencement of initial startup operations at its manufacturing affiliate Jubail United Petrochemical Company (United), for the newly built Ethylene Glycol Plant – 3. The plant has an anticipated annual production capacity of 700,000 metric tons of monoethylene glycol.
- In July 2021, Dow Chemical Company revealed plans to undertake several capacity expansions that will generate high returns on investment. The expansions are aimed at meeting the increasing demand for sustainable solutions in key end-markets that are outpacing the growth of the overall economy.
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