Monoethylene Glycol Market

Monoethylene Glycol Market Outlook (2025 to 2035)

According to Fact.MR analysis, the monoethylene glycol market is estimated to reach USD 44.0 billion in 2025.MR analysis, the industry will expand with a CAGR of 5.4% and will reach USD 74.14 billion by 2035.

The monoethylene glycol industry in 2024 experienced modest but consistent growth as the automotive, textile, and packaging sectors recovered from the pandemic. Rising demand for polyethylene terephthalate (PET) in drink containers, which underpinned MEG production, was a key driver. Demand for lighter materials from the automotive industry also led to greater consumption of MEG in antifreeze and coolants.

Technological advancements in the manufacture of MEG, including advances in more efficient technology, also served to rationalize the supply chain. In defiance of price volatility for raw materials, the industry remained robust owing to solid demand from developing economies, whose infrastructure development kept expanding.

Forward to 2025 and beyond, the industry will expand at a consistent rate with a projected 5.4% CAGR. Rising demand for MEG in green PET manufacturing and automotive and textile applications will drive the industry's growth. Continued growth in emerging industries, headed by Asia-Pacific, and advancements in MEG manufacturing technologies are likely to maintain momentum until 2035.

Key Metrics

Metric	Value
Industry Size (2025E)	USD 44.0 Billion
Industry Value (2035F)	USD 74.14 Billion
CAGR (2025 to 2035)	5.4%

Fact.MR Survey Results on Monoethylene Glycol Industry Dynamics Based on Stakeholder Perspectives

A recent web-based survey was conducted by Fact.MR in Q4 2024 and surveyed 500 stakeholders across the U.S., Western Europe, Japan, and South Korea, evenly divided among manufacturers, distributors, and end-users. The survey tried to gauge the evolving dynamics of the monoethylene glycol (MEG) industry.

Stakeholders from all regions expressed their basic priorities, with the most pressing being the stability of supply chains (79%) and access to raw materials (72%). For the United States, concerns in the area of energy-efficient operations during production (63%) and advances in recycling MEG for cost minimization were emphasized. Environmental protection laws in Western Europe (85%) and following sustainability guidelines (77%) were among the major driving forces, with others promoting cleaner methods of production.

In Japan and South Korea, cost savings were most prominent, with the stakeholders advocating for cheaper production avenues (71%) and the use of new recycling technologies for enhanced MEG production. The Japanese stakeholders were not too enthusiastic about adopting high-tech methods, with only 28% of them exploring high-tech production technologies since they feared a return on investment.

Material sourcing (69%) and labor shortages (64%) were also global hotspots. As the United States and Europe are investing in profuse spending on sustainable technology and lean production methods, Asia is focusing on cutting costs in operations and streamlining supply chain efficiencies.

Government Regulations

Countries	Government Policies and Regulations Impacting the MEG Industry
United States	Strict environmental policies on emissions: As per FDA, MEG producers have to follow the Clean Air Act for emissions control. Energy-efficient production as a means of meeting sustainability objectives.
India	Regulatory pressure for cleaner chemicals in industrial processes, with an emphasis on carbon emission reduction in manufacturing industries. As per the Government of India, there are no mandatory certifications for MEG, but adherence to national pollution control boards is necessary.
China	Environmental regulations promote sustainable practices, especially energy-efficient technologies. As per China's State Environmental Protection Administration, the government encourages reductions in industrial emissions, impacting MEG production methods.
United Kingdom	Strategic regulations on the production of chemicals with emphasis on sustainability, more so on packaging and waste. As per the government of the U.K., chemical manufacturers have to be certified by REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals).
Germany	As per European Chemicals Agency, strong compliance with the EU's REACH regulations; mandatory certification of MEG producers in order to adhere to chemical safety standards. Promote environmentally friendly production processes.
South Korea	Environmental compliance and sustainability with minimizing industrial emissions. As per Ministry of Environment, Republic of Korea, businesses are required to act according to Green Growth policies, with a focus on sustainable manufacturing.
Japan	Environmental and sustainability rules compliance, with an eco-friendly production focus. As per Japan Ministry of Environment, businesses must comply with Japan's Industrial Safety and Health Law and with ISO 14001 certifications.
France	As per French Ministry of Ecological Transition, tough environmental laws, focusing on CO₂ emissions reduction from industrial processes. MEG producers are subject to EU REACH regulations.
Italy	As per Italian Ministry for the Environment, tough environmental policies in line with the EU, especially chemical production and emission control. Compliance with EU standards, including REACH certification, is mandatory.
Australia-New Zealand	Stricter environmental regulations that emphasize emissions management and waste minimization. The Australian Industrial Chemicals Introduction Scheme (AICIS) regulates the production of MEG.

Industry Analysis

The monoethylene glycol (MEG) industry is destined to grow steadily due to mounting demand from the automobile, textile, and packaging sectors, especially for eco-friendly PET manufacturing. Firms that emphasize energy-efficient manufacturing practices and green technologies will gain the most, whereas firms with problems associated with high raw materials costs or delayed compliance with environmental laws may suffer. Strict environmental regulations and innovations in recycling technology will influence the industry trend.

Top Strategic Imperatives, Risk Assessment, and Watchlist for Stakeholders

Monoethylene glycol (MEG) industry stakeholders should focus on being sustainable and upholding stricter environmental regulations. Emphasis will be placed on energy-efficient technology and recycling advancements to achieve the world's sustainability goals and maintain lower operational expenditure.

Growth, especially in emerging industries in the Asia-Pacific, will be forthcoming as infrastructure is developed and continues to increase the industrialization drive. Stakeholders should also examine partnerships or mergers to add technological strength and improve long-term competitiveness.

Volatility in raw material prices is one of the biggest risks for MEG producers, as such fluctuations can create a huge impact on profit margins. Shortage of labor and inefficiencies in supply chains, particularly in the U.S. and Europe, can also disrupt production timelines.

Regulatory risk on changing environmental norms, particularly in the EU and the U.S., can cause discomfort to companies if they are unable to switch over quickly. On the watchlist, stakeholders need to track progress in recycling technologies, the transition to low-emission production practices, and geopolitical events that could interfere with global supply chains. Those who lag behind these trends risk losing industry share to more nimble competitors.

For the Boardroom

To stay ahead, companies must concentrate on investment in cleaner production technology and upper-level recycling to meet regulatory demands as well as growing consumers' expectations for cleaner products. As stricter environmental regulation tightens everywhere globally, companies must respond by simplifying the supply chain and implementing power-efficient production to reduce costs and increase profitability.

Expansion in emerging industries driven by the Asia-Pacific region will be paramount to long-term growth, but companies must be versatile in their capacity to confront regional variations in laboratory regulations. By strategically building partnerships and leading technological innovation, companies can establish a competitive edge and ensure sustained industry leadership.

Segment-Wise Analysis

By Application

Between 2025 and 2035, polyester fiber will be the most profitable application segment, fueled by the growing demand for lightweight and sustainable materials in industries like textiles and automotive. Based on these factors, the polyester fiber segment is expected to grow at a rate of about 6.1% CAGR, outpacing the overall industry growth rate of 5.4%.

Growing consumer demand for environmentally friendly clothing and the increasing application of recycled polyester fibers are the major drivers of this trend. The versatility, affordability, and functionality in a host of applications make polyester the go-to option for fabric production. The increasing application of polyester in automobile interiors, because of its longevity and cost savings, is also driving growth.

By End-user Industry

Between 2025 and 2035, textiles will be the most profitable end-user segment, fueled by the rising need for synthetic fibers in clothing and interior textiles. Consequently, the textile segment is likely to grow at a CAGR of around 5.8%, marginally ahead of the total industry growth of 5.4%. Polyester's leadership in fast fashion and eco-textile manufacturing is fueling the growth.

In addition, advances in environmentally friendly manufacturing techniques and the rising movement toward circular economy principles are strengthening polyester as the material of choice. The textile industry's constant evolution with respect to emerging trends, such as sustainable textile manufacturing, will continue to fuel the growth of this segment.

Country-Wise Analysis

United States

Fact.MR anticipates sales in the U.S. to grow strongly at a CAGR of 5.2% during the forecast period 2025 to 2035, which is backed by the rising need for new applications and eco-friendly manufacturing technologies. Demand drivers are green solutions and recycling technology improvements, which are increasing traction across industries. The U.S. remains the hub of innovation with new technologies, particularly in the automobile and apparel sectors, which consume significant amounts of polyester.

Further, rising consumer demand for green products and government policy to limit carbon emissions will also favor industry growth. Nevertheless, raw material prices and logistics inefficiencies will moderate some of the anticipated growth, particularly if dislocation in global supply chains persists. With an immense emphasis on sustainability and next-generation materials, the US industry is going to perform well in the projection period.

India

Fact.MR estimates the industry in India will develop steadily at a CAGR of 6.2% between 2025 and 2035, due to the nation's growing textile and vehicle industries. India is becoming a strong contender in the polyester industry with the growing domestic use of low-cost, eco-friendly products, especially in the textile industry. Encouragement from the government, through initiatives such as "Make in India," will propel the growth curve.

The low cost of production in India and growing industrialization are also going to establish India as an important center for the production of polyester. With increasing demand for green products, India will also benefit from the global shift toward green transport and fashion. However, in the short run, the availability of infrastructure and raw materials as bottlenecks could act as a hindrance to manufacturers meeting global standards.

China

The industry in China is expected to register high growth at a CAGR of 5.6% over the forecast period on the back of its giant base of production, according to Fact. MR. Being the largest producer of polyester fibers globally, China's industry is expanding with a strong focus on sustainability and innovation. The transformation of the policy environment, green manufacturing, and reduction of carbon emissions in China are driving innovation in polyester manufacturing.

China's indigenous demand, especially in the packaging and textile industries, is also driving a sustained rise in manufacturing capacity. China continues to be the globe's leading producer of polyester despite facing challenges like rising labor costs and green legislation, owing to its mass-production infrastructure and technological capabilities. China will continue to solidify its position as a leading supplier to foreign industries, despite irreversible changes in global trade relations.

United Kingdom

Fact.MR anticipates that the UK industry will expand at a CAGR of 4.8% from 2025 to 2035, which will be led by the shift towards sustainable materials and improved quality manufacturing processes. Sustainability is increasingly emerging as a national priority area with an emphasis on the application of recyclable and green materials across industries, from textiles to packaging. As the UK moves toward a circular economy, the cost-effectiveness and recyclability of polyester become more appealing to consumers and businesses.

Regulatory pressure, especially from the government's environmental policy, will drive innovation in polyester production technology. Despite robust demand, the UK faces challenges such as high energy prices and supply chain interruptions, particularly post-Brexit, which may hinder short-term industry growth. However, the long-term prospects are favorable with government intervention and trends toward sustainable green technology.

Germany

Fact.MR projects that the industry in Germany will grow at a CAGR of 5.4% between 2025 and 2035, based mainly on the first preference for green technology and sustainability in production in the country. As one of the foremost industrialized nations in Europe, Germany has been at the forefront of adopting eco-friendly methods in most industries, such as textiles and the automobile industry. There is growing demand for eco-polyester products as a result of regulatory policies and consumer activism for green products.

Germany's dedication to the European Green Deal and its efforts to minimize carbon footprints will certainly drive more use of recycled polyester. It is still faced with challenges like the costly nature of manufacturing and the complexity of meeting stringent environmental requirements, but these are countered by the nation's research and development resources and position as a European hub of sustainable material innovation.

South Korea

Fact.MR predicts that sales in South Korea will rise at a CAGR of 5.1% during the forecast period, which will be boosted by the country's technology prowess and focus on quality manufacturing. The high level of production of electronics and automobiles by South Korea generates the demand for next-generation materials like polyester, which are employed in automobile upholstery and consumer devices.

The government's emphasis on promoting sustainable manufacturing and carbon footprint reduction will likewise fuel growth. South Korea's strong infrastructure base and high technology capability also propel it to a global leader status in the production of polyester. Higher manufacturing costs and regulation problems can, however, pose a threat to local manufacturers, particularly as they transition to comply with environmental standards.

Japan

Fact.MR predicts that the industry in Japan will register a 4.9% CAGR over the forecast period 2025 to 2035, primarily driven by its emphasis on cutting-edge manufacturing processes and high-performance products. The auto and textile industries are two of the main drivers for growth, especially with Japan adopting eco-friendly solutions in response to global environmental changes.

Japan's advanced research facilities position it as the leader in the development of next-generation polyester fibers, which are finding applications in high-performance uses like intelligent fabrics and auto interiors. Even as Japan's industry for environmentally friendly products is expanding, manufacturers are facing challenges related to out-of-control production costs and shortages of domestic raw materials.

France

Fact.MR analysis estimates that the sector in France will grow at a rate of 5.3% CAGR during 2025 to 2035, driven by a mix of regulatory necessity and consumer preference for eco-friendly products. France heads the European league of environmental sustainability with an aggressive endeavor to reduce carbon emissions and recycle. The government's green manufacturing initiatives and proactive engagement in the European Union's environmental agenda are bound to accelerate the adoption of green polyester applications.

Strategic sectors such as the automotive and textile sectors will see the weight of circular economy principles being given by France, promoting demand for recycled polyester. Regulatory hurdles and competitive pressures from other European countries might create short-term challenges, but the long-term prospects are promising in light of France's leadership on sustainability.

Italy

Fact.MR projects that the sales in Italy will expand at 5.0% CAGR from 2025 to 2035 with the nation's established textiles industry and a focus on sustainable production. Fashion is a major industry in Italy, as it is the style capital of the world, and consumers are quickly adapting to using sustainable and biodegradable materials. The textile and automotive sectors in Italy are among the most significant beneficiaries of the shift towards sustainability, with Italian manufacturers leading in recycled polyester fiber application.

Additionally, Italy's focus on waste avoidance and resource productivity has helped match international sustainability objectives and support the momentum for industry growth. Issues like increasing energy prices and regulations will have to be taken care of, but Italy's innovative activity in material and textile production positions it well for growth in the coming years.

Australia-New Zealand

Fact.MR expects the landscape in Australia and New Zealand to grow by a 4.7% annual rise between 2025 and 2035, with increased use of green materials in the textiles and packaging sectors. Both nations have adopted sustainability as the fundamental element of their production policies, especially in the textile sector, with green material gaining extremely high popularity.

The infrastructure of the region is well developed, and the emphasis on green manufacturing processes is driving the expansion of polyester production. Even though industries such as automotive and packaging are broadening their applications, the industry is facing issues like increased production costs and dependence on international supply chains.

Competitive Landscape of the Monoethylene Glycol (MEG) Industry

The monoethylene glycol (MEG) industry is moderately concentrated, with a combination of international petrochemical majors and domestic producers controlling the supply chain. Although major players command large industry shares owing to vertically integrated manufacturing facilities and economies of scale, local manufacturers remain a factor in pricing and availability, especially in Asia-Pacific and the Middle East.

Leading firms are emphasizing cost optimization, environmentally friendly production techniques, and capacity additions to enhance their competitive positioning. Some of the strategic moves include vertical integration using ethylene feedstock, capital expenditures in bio-based MEG, and strategic alliances for ensuring supply chains. Price competitiveness, supply security, and environmental regulatory compliance continue to be strategic differentiators.

SABIC expanded its Saudi Arabian MEG production capacity in 2024, taking advantage of low-cost ethylene feedstock to enhance its export position. Sinopec stepped up its conversion to coal-based MEG manufacturing in China to decrease reliance on crude oil derivatives. Dow Chemical joined hands with a European biorefinery to establish bio-based MEG, meeting the increasing need for sustainable polyester fibers.

Reliance Industries made investments in cutting-edge catalytic technologies to improve MEG yield efficiency at its plant in Jamnagar to gain more of the Asian industry. Formosa Plastics invested in enhancing its U.S.-based MEG storage and logistics facilities to enhance supply chain resilience with changing demand in the packaging and textile industries.

Competition Analysis of the Monoethylene Glycol (MEG) Industry

In 2025, SABIC (20-25% industry share) will remain the world MEG industry leader on the strength of its vertically integrated petrochemical complex, low-cost ethylene feedstock, and strong Middle Eastern and Asian export prowess. Its focus on capacity expansion as well as sustainability measures will further cement its leadership position.

Sinopec (15-20%) will also be an industry-leading firm owing to its coal-based MEG production to supply domestic polyester and textile producers. Its switch to coal-to-MEG technology lessens its dependency on crude, enhancing the firm's cost leadership in APAC.

Dow Chemical (10-15%) will boost its position in the bio-based MEG industry, addressing the increased demand for environmentally friendly fibers and packaging in Europe and North America. Its alignment with biorefineries and a green chemistry approach will make it an industry leader in green MEG solutions.

Reliance Industries (8-12%) will expand its industry share in Asia, supported by advanced catalytic technologies that improve the efficiency of MEG yield at its Jamnagar complex. The company's focus on supply chain optimization and export development will enhance competitiveness in price-sensitive industries.

Formosa Plastics (7-10%) will reinforce its dominance in the Americas and Southeast Asia by investing in warehouses and storage terminals to ensure supply chain flexibility. Its diversified usage of MEG in PET packaging and antifreeze will maintain demand across numerous industries.

Shell Chemicals (5-8%), however, will focus on high-purity MEG for specialty applications, like pharmaceuticals and industrial fluids, leveraging its strong R&D capability and strategic partnerships to pursue niche but high-margin niches.

Other Key Players

• Nouryon
• BASF SE
• Dow
• India Glycols Limited
• LACC
• LyondellBasell Industries Holdings BV
• Mitsubishi Chemical Corporation
• Nan Ya Plastics Corporation
• Reliance Industries Limited
• Royal Dutch Shell PLC
• SABIC
• Solventis
• Indorama Ventures Public Company Limited
• Toray Industries, Inc.
• Eslon Chemical Co., Ltd.
• Shandong Haili Chemical Industry Co., Ltd.
• LG Chem Ltd.
• Kraton Polymers
• Dupont de Nemours, Inc.
• Honeywell International Inc.
• Zhejiang Hengyi Petrochemical Co., Ltd.
• Jiangsu Sanfangxiang Group Co., Ltd.
• Uflex Limited

Segmentation

• By Application :

  • Polyester Fiber
  • PET Bottle
  • PET Film
  • Antifreeze
  • Industrial

• By End-user Industry :

  • Textile
  • Packaging
  • Plastic
  • Automotive and Transportation
  • Other End-user Industries

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa