Ethanolamines Market

Ethanolamine Market (2025 to 2035)

The global ethanolamines market will be valued at USD 3.60 billion by 2025, as per Fact.MR analysis, the industry will grow at a CAGR of 4.1% and reach USD 5.33 billion by 2035.

In 2024, the industry registered moderate but strategically important development due to changing dynamics in industrial demand and regional trade streams. Production costs consolidated after turbulent fluctuations in previous years, primarily because of more balanced pricing of crude oil derivatives, directly influencing ethylene oxide supply chains, the primary feedstock in production.

Demand for monoethanolamine (MEA) increased progressively throughout 2024, notably from agrochemical formulations and natural gas sweetening in North America and the Middle East, despite growing regulatory pressures in Europe to limit volatile organic compound (VOC) emissions.

China continued to be a hub of activity with indigenous producers boosting production to service surfactants and cement grinding aid industries. However, export margins came under pressure from freight cost normalization. At the same time, capacity buildup in India and Southeast Asia started to shift the global supply base.

Looking ahead to 2025 and beyond, the industry will be driven by clean-labeling developments in cleaning products, substitution initiatives in agribusiness, and gas treatment innovation. Clean production and regulatory pressures will be driving forces, compelling firms to switch to cleaner production techniques and reformulate downstream products. All in all, the industry is slated for steady but value-rich growth to 2035, underpinning diversified industrial adoption and sustainability pressures.

Key Metrics

Metrics	Values
Industry Size (2025E)	USD 3.60 billion
Industry Value (2035F)	USD 5.33 billion
Value-based CAGR (2025 to 2035)	4.1%

Fact.MR Survey on Ethanolamines Industry

Fact.MR Survey Results: Dynamics Based on Stakeholder Perspectives

(Surveyed Q4 2024, n = 480 participants balanced between manufacturers, downstream processors, regulatory specialists, and end-users in the USA, Western Europe, Japan, South Korea, and China)

Priorities of Stakeholders

• Product Purity & Performance Standards: 79% rated keeping high purity levels (≥99%) as important, particularly for agrochemical and personal care formulations.
• Regulatory Readiness: 74% emphasized REACH, TSCA, and K-REACH compliance as pivotal to industry sustainability.

Regional Variance:

• USA: 66% mentioned the supply security of ethylene oxide as a prime concern owing to local production constraints.
• Western Europe: 83% highlighted environmental adherence (biodegradability and labeling in the EU Green Deal).
• Japan/South Korea: 61% favored low-odor formulations for personal care and cosmetic intermediates.
• China: 72% concentrated on capacity usage and price competitiveness in the face of regional oversupply.

Technology Adoption & Process Optimization

Advanced Production Systems:

• USA: 55% of producers adopted closed-loop recovery systems to enhance yield and minimize waste.
• Western Europe: 47% invested in enzymatic catalysis or hybrid technologies in order to achieve green chemistry goals.
• China: 64% used the conventional batch process, citing cost-effectiveness over innovation.
• Japan: 29% investigated membrane separation for the purification of monoethanolamine, though at pilot scale only.

Difference in ROI Perception:

• USA & EU: 68% trusted process modernization provided high returns in 3-5 years.
• Asia (excluding China): Just 26% experienced up-front ROI; most favored sequential process enhancements.

Material Usage Preferences

Ethanolamine Type Preferences:

• Monoethanolamine (MEA): Preferred by 67% for its suitability across cleaning solutions, agrochemical neutralizers, and sweetening gases.
• Diethanolamine (DEA): 21% utilization, but with 44% of EU constituents raising concerns with classification as a possible carcinogen.
• Triethanolamine (TEA): 12%, primarily in the cosmetics and cement grinding industries.

Regionally Driven Trends:

• Western Europe: 58% decreased DEA usage because of increasingly stringent safety legislation.
• South Korea: 46% preferred TEA in emulsifiers because of growing cosmetic exports.

Price Sensitivity & Sourcing Challenges

Cost Pressures:

• 91% mentioned fluctuations in ethylene oxide prices and transportation costs as significant price drivers.

Regional Willingness to Pay:

• USA/EU: 59% would pay a 10-15% premium for "green" products (e.g., bio-based or made through carbon-neutral processes).
• China: 73% wanted price-competitive synthetic products from domestic sources.
• Japan/South Korea: 64% were interested in regional supply to minimize lead times at a higher cost.

Value Chain Pain Points

Manufacturers:

• USA: 52% were challenged by antiquated infrastructure constraining scalability.
• China: 61% indicated feedstock disruptions as petrochemical policies changed.
• Western Europe: 49% identified new ESG audits causing export delays.

Downstream Users:

• South Korea: 57% cited lack of localized technical support for complex formulations.
• Japan: 62% noted compatibility problems when transitioning between regional sources of supply.
• USA: 46% underscored inconsistent quality of imported products, particularly from new players.

Investment Prospect

Global Synergy:

• 72% of global manufacturers intend to invest in green products, particularly bio-based MEA and TEA.

Regional Hotspots:

• USA: 63% to invest in integrated ethylene oxide-ethanolamine facilities for cost predictability.
• Western Europe: 60% intend to focus on low-carbon production and VOC-free formulations.
• Japan/South Korea: 49% to concentrate on high-purity niche grades for cosmetics and electronic-grade solvents.
• China: 68% intend to increase bulk capacity for exports in the event of favorable policy incentives.

Regulatory Impact

• USA: 66% believed tightening TSCA guidelines made operations more complex and costly.
• Western Europe: 85% viewed REACH restrictions and eco-labeling requirements as growth drivers for sustainable products.
• China: 59% cited enhancing local regulations on VOCs and hazardous waste disposal as impacting plant upgrades.
• Japan/South Korea: 38% recognized indirect regulatory force via consumer demand for clean-label and skin-friendly formulations.

Conclusion: Diverging Strategies, Converging Pressures

• Unshakeable Consensus: Regulatory compliance, cost volatility, and demand for high-purity products are universal issues.

Significant Differences:

• USA: Shove towards supply chain control and domestic production resilience.
• Western Europe: Global leader in green innovation and regulatory-driven product reformulation.
• Asia: A divergence between China's price-first scale-up model and Japan/South Korea's quality-led niches.

Strategic Takeaway:

Tailored regional strategies for green innovation in the EU, high-purity niche industries in Japan/Korea, and scalable pricing in China will be the drivers of realizing full industry potential in the next decade.

Government Regulations on Ethanolamines Industry

Country	Policy & Regulatory Impact
USA	TSCA (Toxic Substances Control Act) requires pre-manufacture notifications for new ethanolamine derivatives. (Source: EPA) California's Prop 65 lists Diethanolamine (DEA) as a probable carcinogen, limiting its use in personal care. EPA mandates strict VOC limits for ethanolamine-based cleaning agents. Certification: TSCA Compliance, EPA SARA Title III reporting.
Canada	Ethanolamines fall under CEPA (Canadian Environmental Protection Act); must comply with domestic substances list (DSL) regulations. DEA flagged under toxic substance evaluations, limiting cosmetic applications. Certification: CEPA DSL Compliance.
European Union	REACH regulation classifies DEA as a Category 2 carcinogen, leading to reduced usage. EU Green Deal and Circular Economy Plan promote bio-based and low-VOC alternatives. CLP (Classification, Labelling and Packaging) mandates hazard labeling for all products. Certification: REACH Registration, CLP Compliance, EcoLabel for consumer products.
Germany	Strong enforcement of REACH and national Hazardous Substances Ordinance (GefStoffV). Incentives for switching to green solvents in line with BAFA funding for clean chemical production. Certification: REACH, BAFA program adherence.
France	Strict enforcement under EU REACH and French Code de l’Environnement. Product compositions must be disclosed for any ethanolamine use in cosmetics or cleaning agents. Certification: ANSM (cosmetics), REACH, INCI ingredient listing.
China	They regulated under MEE Order No. 12 (China’s new chemical registration system). Environmental Impact Assessments (EIA) required for new plant setup. Focus on domestic capacity and export regulation under MOFCOM guidelines. Certification: China REACH (MEE), EIA approval.
Japan	Regulated under the Chemical Substances Control Law (CSCL) and the Industrial Safety and Health Law (ISHL). Emphasis on low-odor and non-irritant formulations for consumer industries. Certification: CSCL Notification, SDS compliance under JIS standards.
South Korea	Governed by K-REACH, which mirrors EU REACH but with a domestic focus. Pre-registration is required for products >1 ton/year. DEA is considered a substance of concern; cosmetic use is tightly regulated. Certification: K-REACH Registration, MoE Hazard Labeling

Market Analysis

The industry is expected to grow steadily over the next decade to 2035, with increasing demand for surfactants, gas treatment, and agrochemicals. Increased regulatory pressure over toxicity, particularly of DEA, will spur the move toward safer, bio-based solutions. Ethanolamine producers with diversified product lines and robust regulatory compliance processes will gain the most, whereas smaller companies dependent on legacy formulations might find it challenging to make the transition.

Top 3 Strategic Imperatives for Stakeholders

Speed Up Portfolio Diversification into Safer & Bio-Based Ethanolamine Derivatives

Management teams must invest more in R&D in low-toxicity substitutes, including ethoxylated bioamines or plant-based monoethanolamines, particularly for uses in personal care, home care, and agrochemicals. With growing regulatory restrictions on diethanolamine (DEA) and triethanolamine (TEA), businesses will need to reformulate or phase out high-risk product lines so that they are still allowed to sell these products in the EU, USA, and South Korea.

Synchronize Product Development with Sustainability and VOC-Reduction Requirements

End-users, stakeholders, and manufacturers should co-develop products together for the detergent, gas treatment, and textile industries to address impending VOC limits, carbon-neutral sourcing requirements, and EU Green Deal objectives. Joint innovation with low-VOC, biodegradable formulations and closed-loop recovery systems for amine scrubbing units will be pivotal for sustained growth and regulatory acceptance.

Grow Global Presence via Regional Manufacturing, M&A, and Channel Partnerships

To reduce logistics risk and tariffs, stakeholders must consider regional manufacturing centers in Southeast Asia, Eastern Europe, and the USA Gulf Coast. Strategic mergers with specialty amines players and collaborations with distributors in high-growth areas such as India and Southeast Asia can enhance downstream access and facilitate end-use application innovation. Investment in modular, scalable capacity is essential to preserve flexibility in an uncertain regulatory environment.

Top 3 Risks Stakeholders Should Monitor

Risk	Probability/Impact
Regulatory Bans on Diethanolamine (DEA) in Personal Care & Cosmetics: DEA is already restricted in the EU and parts of the USA. Expanded bans or reclassification as a confirmed carcinogen would severely impact legacy product lines.	High
Volatility in Ethylene and Ammonia Feedstock Prices: Feedstock cost spikes due to energy industry shocks or supply chain disruptions could compress margins, especially for small-to-mid manufacturers.	Medium
Trade Barriers and Localization Mandates in Key Growth: Growing import substitution policies in India, China, and Brazil may force foreign players to invest locally or risk losing access to high-growth segments.	Medium

Executive Watchlist

Priority	Immediate Action
Portfolio Repositioning for DEA Phase-Down	Conduct feasibility and compliance audit on substituting DEA with safer monoethanolamine blends in regulated industries.
Customer-Centric Formulation Alignment	Initiate targeted feedback loops with OEMs and B2B clients in home care, coatings, and agrochemicals to co-develop VOC-compliant, eco-labeled solutions.
Route-to-Market Agility	Launch channel partner incentive pilot in Southeast Asia and South America to accelerate downstream penetration post-regulatory delays.

For the Boardroom

In order to stay ahead of the curve in the shifting products environment, the client has to expedite its shift from risky DEA forms and rechart the product plan based on regulation-insensitive, bio-based, and VOC-free substitutes. This insight heralds a turning point: regulatory stressors are not local annoyances but worldwide value-chain upstarts.

Strategic capital can now be invested in agile formulation laboratories, Asian and European downstream collaboration hubs, and M&A hunting for specialty amine innovation leaders. Through the infusion of sustainability both into product and production, the firm can preempt margin obsolescence, lock in premium partnerships, and unleash first-mover opportunities in compliant markets.

Segment-wise Analysis

By End-User Industry

The agriculture segment is expected to register a 24.0% share in 2025. Agriculture is expected to be the largest-growing end-use application for ethanolamines, underpinned by increasing demand for agrochemicals, particularly in fast-growing areas such as India, Brazil, and Southeast Asia.

Ethanolamines, particularly DEA, are primary raw materials in herbicide formulations-predominantly glyphosate-based. With food security and maximization of yields at the forefront across the world, it will remain a key contributor to high-level agricultural productivity.

Additionally, MEA and TEA-based products are growing in popularity in biopesticides and greener formulations, as per trends in green agriculture. Ongoing population growth and demand for sustainable agriculture inputs provide the segment with substantial upside potential.

By Product Type

The monoethanolamine segment is expected to register a 47.0% share in 2025. Monoethanolamine is the strongest product segment in the industry, and this is mainly because of its versatility in both industrial and consumer applications. Its demand is driven by its extensive application in the production of surfactants for shampoos, soaps, detergents, and emulsifiers in cosmetics.

Moreover, MEA is a key component in carbon capture and storage (CCS) processes. The international drive toward decarbonization in fossil-fuel-intensive industries has raised MEA demand as it facilitates efficient CO₂ scrubbing from flue gases.

Also, it acts as an acid gas removal chemical in natural gas treatment and refineries. Novelties in bio-based product developments and refinery upgrade expansions in Asia-Pacific and the Middle East add further strength to MEA's growth path.

Country-wise Analysis

Countries	CAGR
USA	4.8%
UK	5.0%
France	4.7%
Germany	4.9%
Italy	4.6%
South Korea	5.3%
Japan	4.5%
China	6.0%

USA

The industry in the USA is projected to grow at a CAGR of 4.8% from 2025 to 2035. Growth is fueled by strong demand from major industries including personal care, detergents, and agrochemicals. The nation's developed chemical manufacturing base coupled with an established innovation ecosystem supports ongoing industry growth. Trends for regulations continue to drive the industry toward environmentally acceptable formulations, fueling investment in low-VOC and biodegradable products.

Demand for gas treatment, corrosion inhibitor products, and cleaning agents remains strongest within the industrial and oil & gas markets. Demand driven by greater consumer demand for environmentally friendly, high-performance personal care products also drives demand.

UK

The industry in the UK is projected to grow at 5.0% CAGR between 2025 and 2035. The growth driver is the increasing demand for ethanolamine-based surfactants in home and personal care goods, in line with the UK's robust cosmetics and FMCG industries. The agrochemical industry is also turning to new chemical inputs for yield improvement, further fueling demand for herbicide products.

As the UK progresses towards its sustainability agenda, manufacturers are spending money on bio-based technologies and new chemical safety solutions. Lively R&D and well-controlled chemicals provide additional robustness to the industry. Complications in trade due to Brexit and changes to REACH-like UK regulation can impact raw material availability and price.

France

French sales will expand at a CAGR of 4.7% from 2025 to 2035. The high-performing personal care and agrochemicals industries in France are key hotspots of demand for products, particularly monoethanolamine in hair and skin care products. Efforts towards agricultural modernization are also driving the use of herbicides and adjuvants produced from ethanolamine.

Chemical admixtures and cement construction work also utilize products as time-setting regulators. Regulatory pressure to shift towards reduced-emission chemicals and bio-based products is impacting industry practice. France's environment regulators are demanding, though, and manufacturers have potentially higher compliance costs.

Germany

Germany's sales are likely to register a CAGR of 4.9% during 2025 to 2035. With its strong economy in Europe, robust chemical and industrial production base, and profound manufacturing industry base, Germany makes extensive use of products in a broad scope of applications ranging from personal care surfactants and emulsifiers to cement additives used in the building industry.

Metal industries and metallurgy also add significantly as the products are utilized as corrosion inhibitors and lubricant additives. The nation's mass commitment to green manufacturing is leading the way towards sustainable ethanolamine derivatives, leading to R&D spending.

Italy

The industry in Italy is expected to achieve a CAGR of 4.6% from 2025 to 2035. Italy's dynamic cosmetics industry and expanding applications from the construction and textiles industries are key drivers for this. Product application in surfactants, adhesives, and emulsifiers is widespread across Italian manufacturing. Demand for agrochemicals is also escalating due to expanding pressures on food production and crop protection, again driving momentum.

However, Italy's economic volatility and tough EU chemical regulation standards could slow down aggressive expansion. Nevertheless, targeted investments in green formulations and specialty chemical R&D will keep Italian players competitive in the new scenario.

South Korea

The industry in South Korea is expected to expand at a CAGR of 5.3% from 2025 to 2035. South Korea is among the world's biggest leaders in cosmetics and personal care, industries that have a high reliance on products while manufacturing surfactants and emulsifiers.

Strong growth in Korea's high-tech manufacturing sectors, including electronics and specialty chemicals, also fuels demand. The sector is also seeing adoption in CO₂ capture technologies, where monoethanolamine plays a central role. Government support for carbon neutrality and advanced chemical research is fueling a strong pipeline of innovation.

Japan

Japan's sales is expected to post a CAGR of 4.5% over the forecast period of 2025 to 2035. Japan's history of proficiency in specialty chemicals and high-value manufacturing guarantees consistent demand for products in personal care, industrial lubricants, and textile processing.

They are also employed in metalworking fluids and as coating and adhesive neutralizers, which fit Japan's manufacturing and construction operations. Regulatory pressure to decrease VOC emissions is compelling companies to utilize more efficient and environmentally friendly chemicals.

China

The industry in China is poised to take the lead with a CAGR of 6.0% from 2025 to 2035. Industrialization is at a rapid pace in China, and dominance in the fields of textiles, construction, and agrochemicals is the key driver. Extensive application of products in cement additives, corrosion inhibitors, detergents, and herbicides is a characteristic feature of China's manufacturing industry.

Furthermore, growing emphasis on CO₂ capture and emission reductions under China's carbon neutrality strategy is driving monoethanolamine demand. Nonetheless, environmental crackdowns and energy efficiency requirements might impact unregulated producers. Nevertheless, growth in domestic demand, capacity investment, and industrial supportive policies render China a global leader in the business.

Market Share Analysis

Huntsman Corporation

Holds around 11% market share in the global industry. It possesses a diversified product line with a major focus on diethanolamine and triethanolamine. Huntsman's strength is based on catering to end-use industries such as personal care, agriculture, and metalworking, where customization and sustainability are becoming increasingly important. Huntsman has also created customized solutions and sustainable products to meet the global consumer and regulatory trends.

INEOS Oxide

Has an estimated share of 9%. Having the bulk of its businesses in Europe, INEOS has been building its product business in Asia. It supplies a vast range of alkanolamines and has achieved compliance with evolving EU legislation such as REACH. Its strategic focus on reliability, cost competitiveness, and environmental performance has given it a base in mature and emerging industries.

SABIC

Has a 7% world share. As a Middle Eastern behemoth, SABIC benefits from low-cost and guaranteed access to ethylene, which is a dominant feedstock in the production of ethanolamine. SABIC's operations are expanding in Asia-Pacific, particularly in rapidly developing regions like India and Southeast Asia. SABIC's vertically integrated operations and location close to raw materials give it a cost advantage while it continues to invest in export-oriented plans and added-value applications.

Mitsubishi Chemical Corporation

Occupies around 6% of the global industry. Its strong presence in Japan and the neighboring East Asian countries is dedicated to specialty-grade ethanolamines, mainly for high-tech industries, such as applications in coatings, electronics, and advanced surfactants. Through product differentiation and consistent quality, Mitsubishi can penetrate niche and premium industries, thus making it a notable player, even though the company has a smaller footprint than the Western leaders.

Nouryon (AkzoNobel Specialty Chemicals)

Has seized around 5% of the worldwide share. With a central location in Europe, Nouryon is also picking up traction by investing in bio-based chemicals and specialty ethanolamine derivatives. It is additionally enhancing its associations to enter newer geographies. The organization ensures sustainability and innovation, aligns its product pipeline with green chemistry principles, and ensures compliance with authorities.

LyondellBasell Industries

Has an approximate 4% share. It takes advantage of its integration with ethylene oxide and amines manufacturing to supply predominantly North American and targeted European customers. Not as expansionist as its competitors, LyondellBasell retains a firm foundation in industrial and agrarian uses, guaranteeing steady revenues from long-time supply contracts and consistent operational implementation.

Other Key Players

• BASF SE
• DOW
• Indorama Ventures Limited
• Jiaxing Jinyan Chemical Co., Ltd.
• LyondellBasell Industries N.V.
• OUCC
• Penta Manufacturer
• Sintez OKA Group of Companies

Segmentation

By End-Users Industry:

• Agriculture
• Construction
• Personal Care
• Oil and Gas
• Metallurgy and Metalworking
• Textile
• Other End-user Industries (Chemicals, Detergents)

By Product Type:

• Monoethanolamine (MEA)
• Diethanolamine (DEA)
• Triethanolamine (TEA)

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)