LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global mono ethylene glycol (MEG) market to grow at a CAGR of over 6% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global MEG market for 2017-2021. Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The global MEG market is expected to grow at a rapid pace due to its wide use in various applications during the forecast period. The global demand for MEG is increasing as it is a vital ingredient in the production of polyester fibers and PET. Plastic bottles are widely used globally, which are produced by converting PET. MEG is a humectant and is ideal for the manufacturing of paints, fibers, adhesives, and inks. The growing market for MEG is due to its antifreeze applications such as antifreeze coolants, aircraft anti-icers, and deicers.
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Technavio analysts highlight the following three factors that are contributing to the growth of the global MEG market:
- Increasing demand for PET containers
- Growth in automotive industry
- Growing textile industry in India and China
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Increasing demand for PET containers
The rising demand for PET containers from application industries, including packaging, is anticipated to drive the growth of the global MEG market during the forecast period. The increasing scope of application for PET in numerous consumer goods, which includes food containers and bottles, is anticipated to drive demand for MEG.
Ajay Adhikari, a lead specialty chemicals research analyst at Technavio, says, “Applications such bottling have propelled the global demand for bottle production. In 2015, the bottling industry was valued at approximately USD 960 million. A sharp increase in beverage consumption, both alcoholic and non-alcoholic, is providing huge opportunities in the packaging sector. Brazil, Russia, India, China, and South Africa have growing beverage-consuming population, aiding the bottling sector that relies on PET.”
Growth in automotive industry
The rise in the demand from the automotive industry is a major factor contributing to the growth of the MEG market. MEG antifreeze and coolants are used widely in the automotive industry, which is anticipated to drive the MEG market during the forecast period.
“The automotive industry is rising with growing sales of passenger and commercial vehicles worldwide. Approximately 90 million vehicles were sold in 2015, which is anticipated to go up to 108 million by 2020. Major drivers driving the automotive market is the rising per capita income and increasing population across regions,” adds Ajay.
Growing textile industry in India and China
MEG is primarily used in the production of polyester resins. Polyester fabrics are used extensively in the manufacturing of apparels. Approximately 0.345 kilograms of MEG is used to make 1 kilogram of polyester. Polyester resins are the fastest segment in the global MEG market due to the growing textile industry in India and China.
The production of polyester fiber in APAC is anticipated to grow at a CAGR of 6% from 2015 to 2020. APAC had the highest market share of 92.7% in the global production of polyester fiber in 2014, resulting in an upsurge in the region's textile industry. The textile industry in China and India are growing owing to the long-term demand from the rising middle-class population.
Top vendors:
- Akzo Nobel
- BASF
- Huntsman International
- LyondellBasell Industries Holdings
- Royal Dutch Shell
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