Direct oxidation of ethylene at room temperature produces ethylene oxide, which is the fundamental raw material for the production of ethylene glycol. As per the Earth Day Network, 50 billion water bottles are purchased by Americans each year and 2016 recorded a sale of 480 billion plastic bottles globally, an upsurge by 300 billion from the prior decade.[1] Plastic being an inevitable associate of the flexible packaging industry has disrupted the global ethylene oxide market and ethylene glycol market as ethylene oxide is the principal element employed in the manufacturing of ethylene glycol via thermal hydration, which again is significantly used in the production of polyethylene terephthalate (PET) resin. With opportunities growing on a day to day to basis from downstream sectors such as flexible packaging and F&B packaging, textiles, healthcare and automotive, ethylene oxide market and ethylene glycol market size is estimated to be $28 billion as of 2018.
Global Ethylene Oxide and Ethylene Glycol Market Outlook:
Apart from being intensely exploited by PET bottles manufacturers, ethylene oxide is employed by the flourishing textile arcade for the production of polyester fiber, an effective substitute of the strictly available cotton and also by the automotive sector for ethylene glycol antifreeze products. Abundant potential amalgamated with the influx of opportunities have been driving the global ethylene oxide and ethylene glycol market to be progressing at a global CAGR of 4.50% during the forecast period of 2019-2025.
PET bottles, textiles and automotive are a global phenomenon, but after scrutinizing the market with a regional view point, APAC is reckoned to be leading terrain. This terrain with global manufacturing-industry nucleus such as China and India grips 40% of the global ethylene oxide and ethylene glycol market demand.
China – Knitting the Future:
According to the China Energy Group, China is the global leader pertaining to textile exports accounting for 40% of the global textile and clothing exports.[2] The second spot is secured by India, National Investment Promotion and Facilitation Agency foresees Indian textile & garments industry to reach $ 223 billion by 2021 with a healthy CAGR of 10% with 2% share in nation’s GDP and 15% share in overall exports.[3] With flourishing textile sector and global production of polyester fiber lead by India and China, APAC rightly dominates the global ethylene oxide and ethylene glycol market.
Leveraging over Beverage:
As per the findings by the India Brand Equity Foundation (IBEF), India is estimated to be Coca-Cola’s top three market in volumes by 2021. It occupies the sixth spot as of 2018 and is targeted to be fifth by the end of 2019.[4] Leveraging the stride of beverages packaging market flourishing impeccably in APAC, polyethylene terephthalate (PET) resin manufacturers are heavily employing ethylene oxide and ethylene glycol for the production of PET bottles for beverages packaging. Similarly, flexible packaging is a major trend disrupting the beverages packaging segment and PET bottles are pivotal segment of the flourishing flexible packaging market. Now APAC dominating both the beverages and flexible packaging industry is inevitably a lucrative spot for PET bottle resins production, thus subsequently a leading source of demand for the global ethylene oxide and ethylene glycol market.
Thus, polyester fibers applied in the textiles and PET resin heavily employed by beverages packaging sector are the leading application segments of the market, progressing with an application CAGR of 4.80% going through 2025.
Global Ethylene Oxide Market and Ethylene Glycol Market Trends and Growth Drivers:
Approaching trends including the broad custom usage of ethylene oxide sterilization in medicinal decontamination are estimated to aid the market towards exponential growth. Hospital-acquired infections (HAI) is a major challenge to be addressed immediately by the healthcare amenities globally. Since ethylene oxide is low-temperature disinfectant and has effective sporicidal and bactericidal activity, it is applied broadly to sterilize medical devices and healthcare products such as bandages and ointments.
Monoethylene Glycol (MEG) is manufactured by hydration of ethylene oxide. Bio-bases MEG produced from sugar is a major trend creating additional demands in the fiber and textile industry for ethylene oxide since it is biodegradable.
Consumers has started opting for a better packaged food and beverage products. The increase in the usage of PET bottles is a driver for the increase in global ethylene oxide and ethylene glycol market demand. The increase in the sales of vehicles is also a driver for the ethylene oxide market as it finds its applications in the seat belts.
One of the major challenge hampering the global ethylene oxide and ethylene glycol market growth is its high toxic content which has led certain federal bodies to restrict it applications in PET resins and polyester fibers as its harmful chemical can degrade human health and cause ethylene glycol poisoning. However, with no economical substitute of PET bottles and restricted availability of cotton for the textiles industry, the market surely can leapfrog such turmoil and exploit its end-users.
Global Ethylene Oxide and Ethylene Glycol Market Players Perspective:
Some of the key companies identified in the report that are currently holding majority shares in the automotive coatings market are Akzonobel N.V., Basf SE, China Petroleum & Chemical Corporation, Clariant AG, ExxonMobil Corporation, Formosa Plastics Group, INEOS, Huntsman Corporation, LyondellBasell, Shell International, and DowDuPont.
Global Ethylene Oxide and Ethylene Glycol Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the global ethylene oxide and ethylene glycol market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the various end-users in global ethylene oxide and ethylene glycol market, and their specific advantages.
