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Global monoethylene glycol (MEG) market, which stood at 24,782.6 kilo tonnes and reported turnover of $ 27.21 billion in 2014, is anticipated to reach $ 40.85 billion in 2023, expanding at a CAGR of 6.1 percent between 2015 and 2023, according to a Transparency Market Research report.
Polyethylene terephthalate (PET), one of the key materials used in packaging sector, is the fastest growing application of the monoethylene glycol market. Increase in usage of polyethylene terephthalate (PET) in the packaging industry is projected to boost the monoethylene glycol market. Rise in production of polyester fibre in Asia Pacific is also likely to propel the demand for MEG in the near future.
Monoethylene glycol is produced from ethylene, a downstream product of crude oil and natural gas. Therefore, prices of MEG fluctuate significantly. This results in unpredictable supply, which hampers manufacturing processes. Hence, fluctuation in prices of raw materials can be a major setback for the monoethylene glycol market. Coal is also used in the production of MEG, especially in Asia Pacific. Synthetic gas (carbon monoxide and hydrogen) is oxidised in the presence of methanol to produce monoethylene. Sustainability issues related to monoethylene glycol are anticipated to hamper the market, especially in developed economies. However, increasing popularity of bio-based MEG is estimated to offer opportunities to the monoethylene glycol market.
“The demand for polyester fibre application was more than 50 percent of the global MEG demand in 2014. However, polyethylene terephthalate (PET) application is anticipated to witness the fastest growth rate during 2015-2023 owing to rising usage of these products as packaging materials in the food and beverage industry. This is ascribed to their low cost and high durability. PET is also projected to be the most attractive application segment of the monoethylene glycol market during the forecast period,” said Transparency Market Research in a press release.
The monoethylene glycol market is highly competitive, with the presence of large oil & mining and chemical companies. High degree of forward integration from raw material manufacturers exists in the MEG market. Some of the leading manufacturers of monoethylene glycol include Saudi Arabia Basic Industries Corporation (SABIC), Royal Dutch Shell, Reliance Industries Limited, Nan Ya Plastics Corporation, and BASF SE.
