Ethylene Glycol MEG Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Ethylene Glycol MEG

• Global demand is expected to grow at 3.9 percent CAGR through 2016–2022
• PET applications in packaging, polyester application in textiles, MEG applications as anti-freeze and coolant in automobiles are likely to remain the key growth drivers
• Capacity expansions in North America and the Middle East are expected to cater to the growing demand
• Asia and Europe would continue to be import dependent during the forecast period

Demand Market Outlook

The global MEG market is likely to be well supplied post 2018, due to growing capacity expansions in North America and the Middle East.Packaging and textile segments would continue to drive the MEG market across all the three regions(North America,EU and Asia)

Global Market Size: MEG

• The global MEG market is forecast to grow at a CAGR of percent to reach $35.1 million by 2022
• Asia and Europe would continue to witness a supply deficit and depend on imports from North America and the Middle East during the forecast period
• Global capacity is estimated to be around 29.4 MMT/year and the demand is estimated to be around 30.05 MMT/year in 2016
• Capacity expansions in downstream PET markets in Asia, Eastern Europe, Middle East, and North America, post 2016, are expected to contribute to the growth in MEG demand

Global Capacity–Demand Analysis

• Global demand is expected to increase at a CAGR of 3.8 percent, in line with demand growth in Asia
• The Middle East would continue to be a major source of MEG and would contribute to a significant portion of the export market

Market Outlook 

• The global MEG market is observed to be slightly under supplied
• The scenario would improve with the growing expansions in North America and the Middle East
• Major exporters, North America and Middle East, are expected to add 2.85 and 2.1 MMT to their current capacity, respectively
• Asian coal-based MEG capacity expansions are expected to slowdown during the forecast period
• Global average operating rates are expected to remain in the range of 84–87 percent during the forecast period
• Global demand stood at 30.05 MMT as of 2016 and major consumers, like China and India, will continue to be the growth drivers in Asia