U.S. Mono-Ethylene Glycol Market Overview
The U.S. mono-ethylene glycol market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 4.0% during the forecast period (2023-2030).
The chemical formula for mono-ethylene glycol is C2H6O2. MEG is a clear, colorless liquid with a slight viscosity, a sweet flavor and almost no odor. It is largely utilized in the industry for the synthesis of polyester fibers and as a component in the creation of antifreeze, coolants, aircraft anti-icers and de-icers since it is miscible with water, alcohol and many other organic compounds. MEG is crucial in producing polyethylene terephthalate resins, polyester fibers and film and engine coolants.
MEG can be used for various products, including garments and other fabrics, packaging, kitchenware, engine coolants and antifreeze. Ethylene glycol is the source of polyester and fleece textiles, furniture, carpets and pillows and the lightweight and durable polyethylene terephthalate drink and food containers.
Source: DataM Intelligence Analysis (2022)
U.S. Mono-Ethylene Glycol Market Dynamics
The extensive demand for PET is a major market driver for U.S. mono-ethylene glycol market. However, high toxicity and governmental regulations associated with the disposal could be a major market restraint.
The extensive demand for PET
Mono-ethylene glycol is a primary raw material that is gaining traction in producing polyethylene terephthalate (PET) resin, a durable and hydrophobic polymer. PET products are widely preferred as these products offer elusive properties such as recyclability, energy conservation and cost-efficiency. Furthermore, PET is the most common engineering thermoplastic material and the polymer is extensively utilized in a variety of packaging products, including shopping bags, plastic bottles and packaging films, among others, that are directly associated with the packaging as well as food & beverages industries, two of the fastest-growing billion-dollar industries in U.S.
For instance, as per Chemanalyst, a leading provider of chemical commodity prices, despite most Texas manufacturing plants being down due to winter storms, demand for PET in the region increased month after month. Strong demand for PET from packaging, container and bottle producers and limited supplies caused prices to skyrocket throughout the session. For example, Ohio and Texas jumped 5.46 percent and 5.38 percent, respectively, to USD 1410 per MT and USD 1565 per MT.
In order to profit from the experienced unbalance in supply and demand of PET, the manufacturers of PET are expected to increase production many folds, which indirectly increases the consumption of mono-ethylene glycol, the primary raw material used for the manufacture of PET. As a result, it can be conclusively said that the extensive and exhaustive demand for PET could be considered a significant driver for U.S. mono-ethylene glycol market.
High toxicity and governmental regulations associated with the disposal
The effect of mono-ethylene glycol on the environment, particularly on marine and aquatic organisms such as fathead minnow, frogs, among others, is disastrous, as per the survey conducted by the World Health Organization. As a result of the drastic impact on humans and the environment, specific rules are set effectively in U.S. to regulate the manufacture of mono-ethylene glycol. For instance, as per the Toxic Substances Control Act (TSCA), the manufacture of seven ethylene glycol, including mono-ethylene glycol, require the manufacturers to notify the Environmental Protection Agency of U.S. 90 days before the manufacture so that the agency can analyze the safety of the product, associated production process and facility.
Many small and big-scale manufacturers avoid entering the relevant market because regulations like the TSCA compel the manufacturers to invest significant funds and time in ensuring proper good manufacturing practices. A primary market restraint that limits the expansion of U.S. mono-ethylene glycol market is the high toxicity of mono-ethylene glycol, which compels the government to apply rules that limit the market players' ability to operate.
COVID-19 Impact Analysis
The outbreak of COVID-19 has positive and negative impacts on the MEG market. Before the outbreak of COVID-19, growing technological advancements have escalated the overall market share for the product in U.S. However, during COVID-19, the market has seen various challenges, such as reduced demand from the end-user and supply chain disruption. The MEG market is highly focused on sourcing chemicals from different sites, as crude oil is one of the primary raw materials in MEG manufacturing. Thus, U.S. companies outsource crude oil from other countries to produce MEG. Although the outbreak has completely shut down major transportation mediums for MEG in U.S. for a limited period, hampering the market's growth during 2019-2020. Shut down of various end-user industries for the product or partially opening manufacturing units in U.S. has reduced the overall demand for the product in the region.
Nonetheless, the medical textile is the backbone of the healthcare sector, reducing contamination and further transmission of infectious diseases such as COVID-19. The pandemic has severely hampered U.S. healthcare system and resulted in a massive spike in demand for nonwoven face masks to prevent the virus from spreading. As a result, demand for nonwoven fabrics has increased exponentially in U.S. Since mono-ethylene glycol is employed enormously in manufacturing these products, demand for the respective market witnessed a major surge during and after the pandemic, despite the aforementioned challenges and restrictions.
U.S. Mono-Ethylene Glycol Market Segment Analysis
The U.S. mono-ethylene glycol market is classified based on material, end-user and region.
The growing usage of MEG in the production of PET and polyester fibers
Ethylene Glycol (EG) or Mono-ethylene Glycol (MEG) helps humans meet all essential requirements. MEG is a flexible chemical used with water and various organic compounds. Polyester and Polyethylene Terephthalate (PET) polymers use it as a raw ingredient and growing market share for polyester. PET is the prime factor triggering U.S. mono-ethylene glycol market in the textile industry.
U.S. textile and apparel industry accounts for nearly US$70 billion when measured by the value of industry shipments. It is still one of the most important areas of the manufacturing business and it is one of the world's top export markets, with a value of US$23 billion in 2018. Furthermore, in recent years, companies have concentrated on reorienting their businesses, developing more efficient work processes, investing in niche products and markets, reducing costs through new technology and reshoring/nearshoring production, thus creating opportunities for the textile industry to grow in the forecast period.
For instance, The Department of Defense announced a US$ 75 million commitment to a Revolutionary Fibers and Textiles Manufacturing Innovation Institute competition on March 18, 2015. (MFT-MII). The Advanced Functional Fabrics of America Institute (AFFOA), located at MIT in Cambridge, Massachusetts, was awarded a grant in March 2016 to build a coalition of over 50 companies and universities to form a new manufacturing hub focused on innovative fibers and textiles technology. Thus growing investments and improving U.S. textile industry are escalating the market share for MEG, making the textile industry the fastest-growing market segment.
MEG is an odorless, colorless, syrupy liquid utilized in household, apparel, technical and medical textiles. Cotton is the most widely manufactured fiber in the world, with 20 million tons produced each year. Polyester fiber stands second, with approximately 18 million tons produced every year. Furthermore, Due to the usage of MEG in the production of PET and polyester fibers, fiber is the most common application of MEG. Polyester fiber accounts for roughly half of all worldwide fiber usage. It's commonly utilized in the textile and clothing industry, garment production, home furnishings, carpets and rugs, fiberfill and nonwoven materials. Apart from this, the growing market share for technical textiles, such as nonwoven fabrics in U.S., adds value to the country's growing textile industry.
Furthermore, Non-wovens have become increasingly popular in recent years in U.S. as the material is now used in over 40 automotive parts, ranging from trunk liners and carpets to air and fuel filters. Non-wovens help reduces automobile weight, improve comfort and aesthetics and provide enhanced insulation, fire retardancy and resistance to water, fuels, extremes of temperature and abrasion by incorporating the fundamental attributes required for good performance and safety. Thus growing U.S. regulation toward making automobiles safer, more appealing, long-lasting, cost-effective and environmentally friendly has improved the demand for nonwoven fabric in the country.
Thus growing nonwoven fabric market in U.S. is creating immense demand for MEG to grow in the textile industry of U.S. In addition, the presence of top manufacturers such as Berry Global, DuPont, Lydall, Glatfelter and others for nonwoven fabric in U.S. has boosted the market share for the product for many years. It is expected to contribute to the growth in the forecast period.
U.S. Mono-Ethylene Glycol Market Competitive Landscape
In terms of producer numbers and strengths, U.S. mono-ethylene glycol market is extremely competitive due to the presence of major players such as Exxon Mobil Corporation, BASF SE, MEGlobal, LyondellBasell Industries Holdings B.V., Dow, SABIC, NAN YA PLASTICS CORPORATION, Shell, Reliance Industries Limited, LOTTE Chemical Corporation, Indorama Ventures Public Company Limited, Eastman Chemical Company and Sasol. The market is fragmented, and pivotal stakeholders use tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition in their respective markets.
For instance, in November 2020, Braskem, a growing petrochemical company in the Americas and Denmark-based Haldor Topsoe, achieved its first bio-based, renewable mono-ethylene glycol (MEG) plastic raw material from sugar. It is the first time Mosaik-MEG has been produced and it demonstrates Braskem's commitment to the Circular Economy through renewable chemicals. This invention has the potential to transform the PET industry completely.
Similarly, in January 2021, Eastman Chemical Company announced an investment of U$ 250 million for building a new methanolysis facility in Kingsport, Tennessee. The facility would manufacture mono–ethylene glycol and dimethyl terephthalate from hard-to-recycle polyester plastic. The new facility will be 150,000 – 200,000 tons/year.
BASF SE
Overview: BASF SE is a global chemical company that produces chemicals for many industries. It is one of the world's largest publicly listed companies, with over 700,000 investors. Transportation, chemicals, construction, electronics & electric, energy & resources, furniture & wood, home care and cleaning, agricultural and other industries are supplied by the company's items, classified into 13 categories. More than 30 BASF SE Group companies are headquartered in Ludwigshafen. BASF SE operates 6 global locations and 241 additional industrial sites in over 90 countries.
Product Portfolio:
• Mono–ethylene Glycol: The company manufactures mono–ethylene glycol for functional sports, casual clothing and polyester resin production.
Key Development:
• In September 2021, BASF SE invested around US$ 582 million to increase the production capacity of its Antwerp and Ludwigshafen facilities, which had a total capacity of 845,000 metric tons per year. The respective production facility focuses on the manufacture of ethylene oxide and its derivative, such as mono–ethylene glycols
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• To visualize U.S. mono-ethylene glycol market segmentation based on the production process, application and end-user, as well as understand key commercial assets and players.
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• Excel data sheet with numerous data points of mono-ethylene glycol market-level with four segments.
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The U.S. mono-ethylene glycol market report would provide approximately 48 tables, 38 figures and almost 140 pages.
End-User Audience 2023
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