|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
USD 2.53 billion
|
|
CAGR (2024-2029)
|
5.00%
|
|
Fastest Growing Segment
|
Polyester Fiber and Yarn
|
|
Largest Market
|
West India
|
Market OverviewIndia Monoethylene Glycol (MEG) Market has reached USD 2.53 billion in
2023 and is anticipated to project robust growth in the forecast period with a
CAGR of 5.00% through 2029. Mono Ethylene Glycol (MEG) is primarily produced
through the oxidation of ethylene in the presence of a silver oxide catalyst at
high temperatures. The resulting ethylene oxide is then hydrated to yield mono
ethylene glycol, accompanied by the production of di and tri ethylene glycols
as co-products. MEG itself is a colorless, odorless, and syrupy liquid with a
sweet taste. It can be stored in stainless steel, aluminum, or lined drums,
tank cars, or tank trucks. With a specific gravity of 1.115 and a flashpoint of
110 °C (closed cup), it is important to note that MEG is unsuitable for
transportation by road, rail, air, or sea due to its harmful nature, particularly
if swallowed. The applications of mono-ethylene glycol are extensive.
Notably, it is a crucial ingredient in the production of polyester
fibers, polyethylene terephthalate (PET) resins, and engine coolants.
Additionally, MEG and its intermediates find utility in resins, solvent
couplers, freezing point depression, solvents, and humectants. Its humectant
properties make it particularly suitable for use in textile fiber treatment,
the paper industry, as well as in adhesives, inks, and cellophane. Furthermore,
it serves as a dehydration agent in natural gas pipelines, effectively
preventing the formation of natural gas clathrates before being collected and
reused.
Beyond these applications, MEG finds wide usage in the manufacturing
processes of food and beverages, medicines, cosmetics, and more. The growing
demand for polyester fiber in the textile sector further drives the market for
MEG. Additionally, the packaging and textile industries contribute to the
upsurge in demand for MEG, as the use of plastics, particularly PET, continues
to grow. The pharmaceutical and food & beverage packaging sectors, in
particular, are notable factors for industry growth, given the extensive use of
PET in the production of various packaging materials such as sheets, films,
bottles, and containers. With these details, it becomes evident that mono
ethylene glycol plays a vital role in various industries, supporting their
production processes and enabling the development of innovative products.
Key Market Drivers
Increasing Demand of Monoethylene Glycol from Packaging Industry
Monoethylene glycol (MEG) is experiencing a remarkable surge in demand,
primarily fueled by its increased utilization in the packaging industry. As the
need for high-quality packaging materials continues to grow, along with the
rising demand for polyester fibers, the monoethylene glycol market in India is
expanding at an unprecedented rate.
The packaging industry plays a pivotal role in driving the demand for
monoethylene glycol in India. MEG serves as a fundamental ingredient in the
production of polyethylene terephthalate (PET), which is widely used in various
packaging applications. The exceptional properties of PET, such as its
strength, transparency, and barrier capabilities, make it an ideal choice for
packaging food and beverages, personal care products, pharmaceuticals, and
more.
With the increasing emphasis on sustainability and environmental
consciousness, PET has gained significant popularity as an eco-friendly
packaging material. This, in turn, has contributed to the growing demand for
monoethylene glycol, as it is an essential component in PET production. India,
with its rapidly expanding consumer base and rising disposable income, presents
a significant growth opportunity for the monoethylene glycol market.
As the packaging industry continues to evolve and meet the ever-changing
needs of consumers, the demand for PET and, consequently, monoethylene glycol
is expected to witness a robust upward trajectory. To meet the escalating
demand for monoethylene glycol from the packaging industry, manufacturers are
focusing on technological advancements and innovative production processes.
These initiatives aim to enhance product quality, increase production
efficiency, and develop cleaner and more sustainable manufacturing practices,
thereby ensuring a steady supply of high-quality monoethylene glycol in the
market.
Growing Demand for Monoethylene Glycol from Textile Industry
The textile industry plays a crucial role in driving the demand for
monoethylene glycol in India. Monoethylene glycol is widely used in the
production of polyester fibers, which find extensive applications in the
textile industry for the manufacturing of clothing, home textiles, and
industrial textiles. Polyester is favored by consumers due to its exceptional
properties such as durability, wrinkle resistance, and color retention. India's
textile industry is experiencing significant growth, fueled by factors such as
population growth, rising disposable income, and evolving fashion trends. With
the increasing demand for textiles, the need for polyester fibers is also on
the rise, thereby further boosting the demand for monoethylene glycol. This
upward trend in demand indicates a promising future for the textile and
monoethylene glycol industries in India.
Growing Demand of Monoethylene Glycol (MEG) in Production of Batteries
The increasing adoption of electric vehicles (EVs) and the global shift
towards renewable energy sources have led to a significant rise in battery
demand. Batteries play a crucial role in powering EVs and storing renewable
energy generated from sources such as solar and wind. Among the various
components of batteries, monoethylene glycol (MEG) is utilized in the
electrolyte solution of lithium-ion batteries, where it helps enhance the
efficiency and performance of the batteries. India, as a nation, is witnessing
rapid growth in the EV market, driven by the government's focus on promoting electric
mobility and reducing carbon emissions. In line with this vision, the country
aims to achieve 30% electrification of vehicles by 2030, setting an ambitious
target that requires significant advancements in battery technology. This,
coupled with the rising demand for energy storage solutions, is driving the
need for MEG in battery production.
MEG stands out as an ideal choice for lithium-ion batteries due to its
unique properties. With a high boiling point, low vapor pressure, and the
ability to dissolve lithium salts, MEG contributes to the overall performance
and stability of the batteries. The utilization of lithium-ion batteries brings
several advantages over traditional lead-acid batteries, including higher
energy density, longer lifespan, and faster charging capabilities. These
factors, combined with ongoing technological advancements in battery
production, are contributing to the increasing demand for MEG in India's
battery manufacturing sector.
As the government continues to promote clean and sustainable energy
alternatives, the demand for lithium-ion batteries is expected to surge. This,
in turn, will fuel the demand for MEG, creating significant opportunities for
the monoethylene glycol market in India to expand further. With its critical
role in battery production, MEG is poised to become an integral component of
the evolving energy landscape, supporting the country's journey towards a
greener future.
Download Free Sample Report
Key Market Challenges
Volatility in Prices of Raw Materials
Crude oil prices have a direct and significant impact on the pricing of
ethylene, a primary raw material extensively used in the production of
monoethylene glycol. Ethylene, which is derived from crude oil or natural gas
liquids, plays a crucial role in determining the cost of production for
monoethylene glycol. Therefore, any fluctuations in the price of crude oil can
have a cascading effect on the overall cost of ethylene, consequently affecting
the pricing of monoethylene glycol.
In the global monoethylene glycol market, the challenge of continuous
fluctuations in raw material prices is a common phenomenon, and India is no
exception. The volatility in crude oil prices can significantly impact the
profitability and operational efficiency of manufacturers in the monoethylene
glycol industry. The instability in raw material prices poses challenges for
both MEG manufacturers and consumers in India.
For manufacturers, the volatile prices make it increasingly challenging
to accurately forecast and plan their production and pricing strategies. The
sudden increases in raw material costs can squeeze profit margins, while
unexpected drops can create inventory management issues. This uncertainty in
raw material prices creates a complex environment that requires manufacturers
to adopt flexible and adaptive approaches to ensure operational stability.
On the other hand, consumers of monoethylene glycol also face the
consequences of fluctuating raw material prices. The fluctuations can disrupt
the overall supply chain, affecting the availability and pricing of products
that heavily rely on monoethylene glycol. This uncertainty can lead to
production schedule disruptions, increased costs, and potential challenges in
maintaining the affordability and availability of products utilizing
monoethylene glycol.
Growth in Environmental Considerations
The Indian government, recognizing the importance of sustainable
development and the need to reduce carbon emissions, has implemented a range of
comprehensive regulations and policies. These measures aim to create a more
environmentally friendly and socially responsible business environment. In the
context of the monoethylene glycol market, these initiatives pose compliance
challenges for companies operating in the sector. To address these challenges,
companies must invest in extensive research and development efforts. By doing
so, they can explore innovative and greener production methods that can
minimize their environmental footprint. This includes finding ways to reduce
energy consumption, optimizing waste management, and adopting environmentally
friendly practices throughout their operations. Furthermore, as consumer
awareness and consciousness regarding environmental issues continue to grow,
there is an increasing demand for sustainable products and solutions.
This shift in consumer behavior further intensifies the challenges faced
by the monoethylene glycol market in India. To meet these changing demands,
companies in the sector must adapt and evolve. They must either develop
eco-friendly alternatives to traditional production methods or modify their
existing manufacturing processes to align with environmental considerations. By
embracing sustainability and proactively addressing compliance challenges,
companies in the monoethylene glycol market can not only contribute to a
greener future but also seize new opportunities for growth and differentiation.
Key Market Trends
Growing Demand of Lightweight Vehicles
Monoethylene glycol (MEG) plays a crucial and indispensable role in the
production of lightweight materials used extensively in the automotive
industry. MEG is prominently known as a key component in the manufacturing of
polyethylene terephthalate (PET), a versatile and widely used polymer that finds
its applications in various vehicle components, including but not limited to
bumpers, interior parts, and fuel systems.
By harnessing the potential of PET and other innovative lightweight
materials, automakers can achieve a significant reduction in vehicle weight
without compromising safety or performance. The utilization of MEG in the
production process facilitates the creation of durable and exceptionally
lightweight materials, thereby contributing to the overarching objective of
efficiently reducing the overall weight of vehicles. This not only enhances
fuel efficiency but also promotes sustainability and environmental
consciousness in the automotive industry.
Segmental Insights
Type Insights
Based on the category of type, the polyester fiber and yarn segment
emerged as the dominant player in the Indian market for Monoethylene Glycol
(MEG) in 2022. Due to its exceptional moisture absorption properties, high
stability, and numerous other outstanding characteristics, this particular
grade is extensively employed in the production of polyethylene terephthalate
(PET), fiber, and polyester resins. Furthermore, owing to its remarkable
hygroscopic properties, it is highly suitable for utilization in synthetic
rubber, conditioning agents, and a wide range of other paper products, making
it an incredibly versatile and valuable material in various industries.
End Use Insights
The textile segment is projected to experience rapid growth during the
forecast period. This is attributed to the diverse applicability of
monoethylene glycol (MEG) in the textile industry. MEG plays a crucial role in
various processes, including dyeing, polyester fiber production, textile
printing, finishing, and textile processing. Its versatile nature makes it an
indispensable raw material in the plastic industry, particularly in the
production of polyester resins.
Additionally, MEG finds wide-ranging applications in plastic processing,
such as injection molding, blow molding, and extrusion. Moreover, MEG offers
additional benefits in the plastic industry. It can be used as a colorant, UV
stabilizer, and flame retardant, further enhancing the quality and properties
of plastic products. As the global demand for plastic products with improved
quality and properties continues to rise, the demand for monoethylene glycol
from the plastic industry is anticipated to bolster over the forecasted period.
This increased demand reflects the importance of MEG in meeting the evolving
needs of the plastic industry.
Monoethylene glycol (MEG) is a versatile compound widely employed in the
packaging industry for the production of polyester resins. These resins, in
turn, serve as the building blocks for various packaging materials, including
bottles, food packaging, and films. Moreover, MEG finds extensive use as a
solvent in the manufacturing of adhesives and coatings, which play a crucial
role in packaging applications. By dissolving adhesive ingredients and
enhancing flow and bonding properties, MEG-based adhesives enable effective
carton sealing, label application, and food packaging. The multifunctional
nature of MEG makes it an indispensable component in the packaging sector,
ensuring the integrity, durability, and quality of diverse packaging materials.
Download Free Sample Report
Regional Insights
West India emerged as the dominant player in the India Monoethylene
Glycol (MEG) Market in 2022, holding the largest market share in terms of both
value and volume. West India, comprising the states of Gujarat and Maharashtra,
is strategically positioned in close proximity to major ports and industrial
hubs. This advantageous geographical location not only facilitates efficient
transportation and logistics but also enables seamless import and export of MEG
and its related products. The region's close proximity to key manufacturing
centers and easy access to robust infrastructure facilities significantly
contribute to West India's dominant position in the MEG market.
Moreover, West India boasts a well-developed industrial infrastructure,
including state-of-the-art petrochemical complexes and advanced manufacturing
facilities. The region is home to a thriving ecosystem of chemical and
petrochemical companies that are actively involved in the production and
processing of MEG. Furthermore, the availability of highly skilled labor,
technical expertise, and supportive government policies further augments the
competitiveness of West India in the MEG market, solidifying its position as a
key player in the industry.
Recent Developments
- In 2022, Braskem S.A. and Sojitz Corp. have signed an agreement to
establish a joint venture (JV) aimed at producing and marketing bioMEG
(monoethylene glycol) and bioMPG (monopropylene glycol), two key components
used in various industries. This strategic partnership brings together
Braskem's extensive expertise in industrial production and sale of chemical and
plastics made from renewable sources with Sojitz's strong presence in Asia, a
region that not only concentrates 80% of the global MEG market but has also
witnessed remarkable growth in its consumption. By combining their strengths,
the joint venture aims to meet the rising demand for sustainable and
eco-friendly solutions in the chemical industry, while capitalizing on the
immense market potential in Asia and beyond.
Key Market Players
- Reliance Industries Limited
- Indian Oil Corporation Limited
- India Glycols Limited
- Arham Petrochem Private Limited
- HELM India Private Limited
|
By Type
|
By End Use
|
By Region
|
- Polyester Fiber and Yarn
- PET Resin
- Polyester Film
- Others
|
- Packaging
- Textile
- Automotive
- Others
|
- North India
- East India
- West India
- South India
|
Report Scope:
In this report, the India Monoethylene Glycol (MEG) Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
- India Monoethylene Glycol (MEG) Market, By Type:
o Polyester Fiber and Yarn
o PET Resin
o Polyester Film
o Others
- India Monoethylene Glycol (MEG) Market,
By End Use:
o Packaging
o Textile
o Automotive
o Others
- India Monoethylene Glycol (MEG) Market,
By Region:
o North India
o East India
o West India
o South India
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the India Monoethylene Glycol (MEG)
Market.
Available Customizations:
India Monoethylene Glycol (MEG) Market report with the given
market data, Tech Sci Research offers customizations according to a company's
specific needs. The following customization options are available for the
report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
India Monoethylene Glycol (MEG) Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]