U.S. Mono-Ethylene Glycol Market Size, Share, 2032
U.S. Mono-Ethylene Glycol Market Size and Forecast (2025 - 2032), By Grade (Fiber Grade, Industrial Grade, Antifreeze Grade), By Application (Polyester Fibers, PET Resins, Antifreeze & Coolants, Others), By End-User Industry (Textile, Packaging, Automotive, Chemical, Others), Country.
Market Overview:
“The U.S. The Mono-Ethylene Glycol (MEG) Market is expected to reach a high CAGR of 3.5% over the Forecast Period 2025-2032, reaching a value of USD 4.8 billion by 2032.”
The Midwest area dominates the market, accounting for YY% of the U.S. share. Key metrics include a yearly production capacity of 5.2 million tonnes in 2024 and an average selling price of USD 750 per tonne.
The MEG market in the United States is steadily rising, owing to increased demand from the polyester and PET resin industries, automotive sector growth, and expanded uses in antifreeze and coolants. Technological developments in production techniques, as well as the transition to biobased MEG, are driving market growth.
U.S. Mono-Ethylene Glycol Market Dynamics:
Market Trend: Shift towards biobased MEG production gains momentum, driven by sustainability concerns.
The US mono-ethylene glycol market is seeing a substantial shift towards the development and implementation of bio-based MEG manufacturing technologies. This trend is being driven principally by rising environmental concerns, stricter regulations on petrochemical-based products, and growing consumer demand for sustainable materials.
In 2023, bio-based MEG accounted for over 10% of total MEG output in the United States, up 3% from 2021. Major chemical corporations' efforts in bio-based technology have fuelled this expansion. For example, a major US chemical producer announced a $200 million investment in a new bio-MEG production facility that will open in 2025 with an annual capacity of 100,000 metric tonnes.
Bio-based MEG is particularly popular in the packaging business, where sustainability is a top priority. Several large beverage firms have promised to use 100% plant-based bottles, including bio-MEG, by 2030. This dedication has resulted in a strong demand draw for bio-based MEG, with the market sector expanding at a 15% CAGR over the last three years.
Technological breakthroughs in bio-MEG manufacturing are increasing efficiency while decreasing costs. New catalytic techniques have been devised that can convert plant-based feedstocks to MEG with yields approaching 90%, a substantial increase over previous methods. These advancements are reducing the cost difference between bio-based and conventional MEG, making the sustainable option more economically viable.
Furthermore, the incorporation of bio-MEG synthesis into current biorefinery models is gaining popularity. This strategy optimises the utilisation of biomass resources and generates new revenue streams, improving the overall economics of bio-based chemical manufacturing.
Market Driver: Robust growth in PET packaging and polyester fiber industries fuels demand for MEG.
The polyethylene terephthalate (PET) packaging and polyester fibre sectors are driving the expansion of the mono-ethylene glycol industry in the United States. MEG is an important raw ingredient in the production of these products, and the growing use and consumption of PET and polyester is immediately translating into greater demand for MEG.
The PET packaging market in the United States has been rapidly expanding, primarily to the beverage sector and an increased preference for recyclable and lightweight packaging materials. In 2023, PET resin usage in the United States reached 3.5 million metric tonnes, up 4% from the previous year. The bottled water sector, in particular, has contributed significantly to this rise, with consumption increasing by 6% each year over the last five years.
The textile industry's move to polyester fibers is another major source of MEG demand. Polyester's durability, wrinkle resistance, and inexpensive manufacturing costs have made it more popular in both garments and home textiles. In 2023, the capacity for polyester fiber production in the United States expanded by 8%, with numerous new plants coming online to satisfy expanding demand.
Furthermore, the automotive industry's post-pandemic recovery and the shift to electric vehicles (EVs) are increasing MEG use. MEG is an important component in automotive antifreeze and coolants, and the expanding EV industry necessitates improved cooling systems, increasing demand. In 2023, U.S. car output climbed by 5%, with EV production expanding at twice the rate.
The expansion of MEG applications in other industries, including natural gas dehydration and industrial heat transfer fluids, is also helping to drive market growth. These broad end-use applications provide a buffer against fluctuations in any single industry, maintaining consistent demand growth for MEG.
Market Restraint: Volatility in raw material prices and competition from alternative glycols challenge market growth
The US Mono-Ethylene Glycol (MEG) market is facing major problems due to raw material price volatility, particularly for ethylene, the primary feedstock for MEG synthesis. Recent changes in ethylene pricing, influenced by crude oil prices, natural gas availability, and worldwide supply-demand dynamics, have been significant, with a 20% swing in 2023. This fluctuation challenges MEG manufacturers' cost management and profitability, influencing their pricing strategies and contract stability.
Competition from other glycols, particularly propylene glycol (PG) and other polyols, is growing. Enhanced PG production processes have made it a viable option in MEG-dominated areas such as antifreeze and coolants. PG's lower toxicity and improved environmental profile make it the preferred choice in environmentally sensitive applications, which represent around 15% of MEG use.
Furthermore, new materials and technologies in end-use sectors pose long-term concerns to MEG demand. For example, biodegradable polymers and attempts to limit plastic use in packaging may have an impact on future PET consumption, thereby affecting MEG demand. The cyclical nature of the petrochemical sector contributes to market instability, with periods of oversupply, such as the 2023 scenario, resulting in lower operating rates and profit margins for MEG manufacturers.
Segment Overview:
The PET Resins segment dominates the U.S. Mono-Ethylene Glycol Market, accounting for YY% of the market share in 2023.
The PET Resins segment dominates the U.S. mono-ethylene glycol market due to the widespread usage of PET in packaging applications, particularly in the beverage industry. The expanding consumer appetite for easy, lightweight, and recyclable packaging solutions has been a major driver of PET resin demand, resulting in increased MEG use.
PET resin manufacturing in the United States will reach 3.8 million metric tonnes in 2023, with beverage bottles accounting for over YY% of that total. The bottled water sector has been a particularly significant growth engine, with consumption rising by 5% per year over the last five years. This trend has immediately translated into increased demand for MEG, which is a significant raw element in PET synthesis, accounting for around 30% of the total weight of PET.
The food packaging industry has also contributed significantly to PET resin demand. The transition from glass and metal containers to PET in a variety of food applications, prompted by considerations like higher shelf appeal, lower transportation costs, and increased safety, has strengthened PET's market position. In 2023, food packaging applications accounted for 20% of PET resin usage in the United States, expanding at a 4% annual pace.
Recent advances in PET resin manufacturing have focused on increasing recyclability and adding recycled content, in line with environmental objectives. Several large beverage firms have pledged to use 100 percent recycled or renewable PET in their packaging by 2030. This shift towards circular economy principles in PET consumption is projected to support long-term demand for MEG, as recycled PET still requires virgin material input to maintain quality requirements.
The development of new PET grades with improved qualities, such as improved barrier characteristics and heat resistance, is creating new applications for PET resins. For example, the usage of PET in hot-fill applications and as a substitute for more expensive packaging materials in personal care items is increasing. These growing uses are likely to drive increased MEG demand from the PET resin sector.
Regional Outlook:
The Midwest region leads the U.S. Mono-Ethylene Glycol Market, holding a YY% market share in 2023.
The Midwest's dominance in the US mono-ethylene glycol market is due to its strong petrochemical industrial base, strategic position for raw material procurement, and closeness to important end-use industries. States like Illinois, Ohio, and Michigan contribute significantly to the region's MEG production and consumption.
The region's large automotive industry is a major source of MEG demand, notably for antifreeze and coolant applications. With large automakers and suppliers centered in the Midwest, there is a consistent local need for MEG-based products. In 2023, the automobile industry represented roughly 20% of MEG consumption in the Midwest.
In September 2024, a large chemical company announced intentions to increase its MEG manufacturing capacity in Illinois by 200,000 metric tonnes per year, citing rising demand in the PET and automobile industries. This expansion is projected to be operational by 2026, substantially boosting the Midwest's position in the MEG market.
The Midwest MEG production capacity reached 1.8 million metric tonnes in 2023, up 5% from the previous year. MEG usage in the region increased by 3.5%, mostly due to higher demand from the packaging and automotive sectors.
Competitive Intelligence:
The US monoethylene glycol market is characterized by the presence of both multinational chemical corporations and specialized petrochemical companies. Dow Inc., ExxonMobil Chemical, Shell Chemical LP, and Eastman Chemical Company are key market leaders, accounting for approximately 70% of the U.S. market. These corporations have maintained their positions by making strategic investments in production capacity, technological innovation, and vertical integration.
Mergers and acquisitions have become a popular strategy in recent years as businesses look to consolidate their market positions and achieve economies of scale. For example, in 2023, a major petrochemical corporation in the United States acquired a specialized glycol maker to broaden its product portfolio and boost its position in high-purity MEG applications.
Product differentiation and a focus on speciality grades have become critical competitive strategies. Companies are investing in high-purity MEG grades for specialized applications, including electronic compounds and medicinal intermediates. These speciality grades provide higher margins and let enterprises broaden their product ranges beyond commodity MEG.
Sustainability initiatives and investments in bio-based MEG manufacturing are gaining popularity as market differentiators. Several businesses have declared ambitions to commercialize bio-MEG production technology, hoping to capitalise on the growing demand for environmentally friendly chemical goods. Partnerships with technology providers and feedstock suppliers are critical to success in this expanding industry.
In the future, the industry will place a greater emphasis on circular economy principles, with attempts to improve MEG recycling and develop closed-loop technologies for PET manufacture. Companies that can successfully integrate recycling capabilities and produce products containing recycled content are likely to acquire a competitive advantage in the changing market scenario.
Analyst Opinion:
The mono-ethylene glycol industry in the United States is at a critical juncture, balancing traditional petrochemical-based production with the rising trend towards sustainable, bio-based alternatives. The interaction of technical innovation, regulatory restrictions, and altering customer preferences will most likely influence the market's future trajectory.
An emerging trend worth noting is MEG's potential significance in the hydrogen economy. Recent research has shown encouraging results in employing MEG as a hydrogen transporter, which could lead to new uses in energy storage and transportation. While still in its early stages, this breakthrough could open up a substantial new growth opportunity for the MEG industry, especially as the United States strives towards decarbonisation targets.
Major Players:
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Dow Inc.
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ExxonMobil Chemical
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Shell Chemical LP
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Eastman Chemical Company
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LyondellBasell Industries N.V.
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SABIC
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Huntsman Corporation
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Indorama Ventures Public Company Limited
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MEGlobal (a subsidiary of EQUATE Petrochemical Company)
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Nan Ya Plastics Corporation
Key Developments:
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November 2024: Dow Inc. announced the successful start-up of its new bio-MEG production facility in Louisiana, with an annual capacity of 150,000 tonnes, marking a significant step forward in the company's sustainability activities.
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October 2024: ExxonMobil Chemical introduced a new catalytic technique for MEG production that saves 20% more energy than traditional methods, with the goal of improving the sustainability profile of its MEG products.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Dow Inc.
5.2. ExxonMobil Chemical
5.3. Shell Chemical LP
5.4. Eastman Chemical Company
5.5. LyondellBasell Industries N.V.
5.6. SABIC
5.7. Huntsman Corporation
5.8. Indorama Ventures Public Company Limited
5.9. MEGlobal (a subsidiary of EQUATE Petrochemical Company)
5.10. Nan Ya Plastics Corporatio
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Shift towards bio-based MEG production
6.1.2. Integration of MEG in hydrogen economy applications
6.1.3. Focus on circular economy principles in MEG production and use
6.2. Market Drivers
6.2.1. Robust growth in PET packaging and polyester fiber industries
6.2.2. Expanding applications in automotive and industrial sectors
6.2.3. Technological advancements in MEG production processes
6.3. Market Restraints
6.3.1. Volatility in raw material prices
6.3.2. Competition from alternative glycols
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY GRADE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
7.1. Fiber Grade
7.2. Industrial Grade
7.3. Antifreeze Grade
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
8.1. Polyester Fibers
8.2. PET Resins
8.3. Antifreeze & Coolants
8.4. Others
9. BY END-USE INDUSTRY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
9.1. Textile
9.2. Packaging
9.3. Automotive
9.4. Chemical
9.5. Others
By Grade:
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Fiber Grade
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Industrial Grade
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Antifreeze Grade
By Application:
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Polyester Fibers
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PET Resins
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Antifreeze & Coolants
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Others
By End-User Industry:
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Textile
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Packaging
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Automotive
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Chemical
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Others
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