Glycol Ethers Capacity Snapshot

  • The global capacity of both e-series and p-series is sufficient to meet the current global demand 
  • Regional capacity of p-series glycol ethers in North America and e-series in Asia are currently unable to meet the respective regional demand, and these regions are dependent on imports 
  • Sadara (Dow and Saudi Aramco JV) is the only company adding 200,000 MTPA butyl glycol ethers (e-series) in Jubail, Saudi Arabia 
  • This new plant is expected to bridge the e-series supply–demand gap and cater to the rising demand in Asia and the Middle East


Demand Market Outlook 

Until 2022, the global glycol ethers market is expected to grow at 4.1 percent. APAC will be the major demand-driving region for glycol ethers, due to high growth rates in paints and coatings sector, household cleaning products 
Glycol ether growth rates in Europe and North America will be low, due to mature downstream markets

Impact on FMCG 

  • The FMCG industry accounts for a very small share of the downstream demand
  • FMCG buyers are low-volume buyers for glycol ether manufacturers compared with paints and coatings, chemical intermediate buyers. As a result, FMCG buyers have less leverage during contract negotiations and have to contend with higher prices and supply unavailability during tight supply situations

Industry Best Practices 

  •  Large volume buyers usually prefer buying through contract across all the three major regions. Among the small-volume buyers, FMCG players opt for contracts, due to the need for high quality glycol ethers, while non-FMCG small-volume buyers can buy in the spot market 
  •  Regional sourcing is preferred in Europe, owing to REACH regulation on glycol ethers, while both global and regional sourcing is followed in North America and Europe

  Global Market Size: Glycol Ethers

  •  In 2015, the e-series glycol ether occupies 68 percent share of the total glycol ethers market 
  •  p-series is expected to grow at a higher rate of 4.7 percent compared to e-series glycol ethers. This will result in p-series glycol ethers increasing its share of the overall glycol ethers market, in terms of revenue by 2022 
  •  Until 2022, the Asian region would be generating maximum revenue, due to higher GDP growth rates