Diethylene Glycol Market Outlook - 2021-2030
The global diethylene glycol market was valued at $2.4 billion in 2020, and is projected to reach $3.8 billion by 2030, growing at a CAGR of 4.8% from 2021 to 2030.
Diethylene glycol (also known as DEG, 2,2-oxydiethanol and glycol ether ether diglycol) is a clear, colorless, odorless liquid with the formula C4H10O3. It is soluble both in water and in many organic compounds. It has hygroscopic properties, which make it a useful industrial chemical. It is widely used in the plastic industry as raw material for the production of plasticizers for paper, cork, and synthetic sponges. In addition, it is also used in the tobacco industry, owing to its hygroscopic properties and used as humectant in tobacco production. Furthermore, it is also utilized as dehydrant in the natural gas industry where it removes water from gas pipelines.
The global diethylene glycol market is primarily driven by surge in demand from plastic, cement, automotive, paints & coatings, and oil & gas industries. Rapid industrialization and urbanization across developing economies, such as China and India, led to surge in demand for new homes for accommodation of growing population in both urban and rural areas. As a result, the building & construction industry has been grown significantly in recent years, which led to surge in demand and production of cement across these countries. DEG is widely used in the cement industry as grinding aid to achieve higher cement fineness and smooth mill operation, increase throughput, and also reduce energy consumption. Attributed to surge in demand and production of cement, the demand for DEG is expected to surge from cement manufacturers during the forecast period. In addition, apart from the growing construction industry, automotive and furniture industries across developing countries, such as Brazil, China, and India, led to surge in demand for paints & coatings. DEG is used as a modifier in the manufacture of alkyd resins used in formulating paints. Surge in disposable income of individuals across these countries led to high demand for automobiles and furniture. As a result, the demand for paints & coatings from automobile and manufacturers led to surge in production of paints & coatings, which eventually will escalate the demand for DEG in future.
However, toxic nature of diethylene glycol and shutdown of industrial activities due to unfavorable conditions arising due to the COVID-19 outbreak are expected to hamper the growth of the diethylene glycol market during the forecast period. Furthermore, increasing patent registrations regarding the manufacturing of diethylene glycol, its derivatives, and their usage is expected to provide growth opportunities for DEG market participants during the forecast period.
The global diethylene glycol market size is segmented on the basis of application, end-use industry, and region. By the application, it is segmented into plasticizer, solvent (printing inks, paint pigments, and dye formation), polyester resin, chemical intermediate (unsaturated resin, thermoplastic polyurethanes, polyester polyols, PEG, TriEG, TetraEG, emulsifiers, and morpholine), freezing point depressant (antifreeze coolant and heat transfer fluids), lubricant (glass cement grinding, polishes, and mold release agents), dehydrant, brake fluids, cosmetic & personal care, and others. By end-use industry, it is divided into plastic industry, paints and coatings, automotive, agrochemical, oil and gas, cement, textiles, cosmetic and personal care, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major key players operating in the global diethylene glycol market include Reliance Industries, GC Glycol Company, BASF SE, Royal Dutch Shell PLC, Huntsman International LLC, SABIC, India Glycol Limited, Lyondell Basell Industries, Indian Oil Corporation, and Mitsubishi Chemical Corporation. Other players operating in this market include Acuro Organics Limited, Solventis, NAN YA Plastics, Sibur, and Indorama LLC.
Global diethylene glycol market, by region
Asia-Pacific accounted for the major market share in 2020, owing to surge in government spending on infrastructure development and rapid industrialization in countries such as China and India. This led to increasing demand for diethylene glycol in the region. The Asia-Pacific diethylene glycol market is driven by rise in need for products, such as polyester resins and polyurethanes, in various end-user industries, including construction and building, consumer goods, and automotive as diethylene glycol acts as a chemical intermediate for their production. In addition, the booming construction industry across the region, owing to government-initiated housing projects, such as “Housing for All” for poor people living and urban and rural areas and the “Smart City Project” to provide smart homes with modern amenities, is expected to create high demand for cement, which is anticipated to surge the demand for diethylene glycol from cement manufacturers, and propel the growth of the diethylene glycol market in Asia-Pacific.
By Region
Asia-Pacific would exhibit an CAGR of 5.2% during 2021-2030
Global diethylene glycol market, by application
The plasticizer segment accounted for the major share in the diethylene glycol market in 2020. DEG is widely used in the plastic industry as raw material in producing plasticizer for paper, cork, synthetic sponges, and flexible PVC. Flexible PVC majorly finds applications in pipe, flooring, wall covering, napkins, adhesive films, pool liners, extruded wires, automotive, synthetic leather coated textiles, and medical devices. Rising demand for lightweight PVC materials in various end-use industries and increased lifetime in comparison to conventional PVC surge the demand for flexible PVC. Moreover, the growing population and rising standard of living are also increasing the demand for flexible PVC materials in various construction and automotive applications. Therefore, increasing consumption of flexible PVC has surged the demand for plasticizers, which eventually will increase the demand for DEG from the plastic industry during the forecast period.
By Application
Plasticizer is projected as the most lucrative segment.
Global diethylene glycol market, by end-use industry
The plastic industry accounted for the major diethylene glycol market share in 2020, owing to surge in use of diethylene glycol as a raw material for producing plasticizers for paper, cork, and synthetic sponges. In addition, diethylene glycol is widely used in the plastic industry for producing plastic materials such as polyurethane. Rise in demand for polyurethane for insulation from building & construction and refrigeration industries and for coating and sealant from the automotive industry is expected to surge the demand for diethylene glycol across the plastic industry in future.
By End-use Industry
Plastic Industry is projected as the most lucrative segment.
COVID-19 analysis:
According to the International Monetary Fund (IMF), due to the outbreak of novel coronavirus (COVID-19), the global economy was expected to shrink by 3.0% in 2020. Many countries are under strict lockdowns, which have forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of diethylene glycol.
According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across developing economies, such as India, has been worst affected due to COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for diethylene glycol from various end-use industries such as paints & coatings and plastic industries. In addition, in the second half of 2020, some countries started to lift restrictions and gradually start business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the diethylene glycol market growth in the coming years.
According to the UNIDO, 30.0%–70.0% of pre-COVID-19 workforce of various manufacturing industries, such as cement, plastic, and paints & coatings, have migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect the production activities of these industries, thereby resulting in decline in demand for raw material such as DEG. This is expected to decline the growth of the market during the forecast period.
The automotive industry accounts for 15.0% share in terms of consumption of DEG globally. The automotive industry has been affected badly amid the lockdown imposed due to the COVID-19 outbreak and recorded decline in production of vehicles (passenger & commercial) by 20.0% in 2020. Automotive manufacturers have halted their production activities due to disrupted supply chains of automotive components and decline in demand for passenger vehicles across the globe. The decline in production of passenger and commercial vehicles and downfall in number of newly registered vehicles are expected to decrease the demand and production for antifreeze coolant and heat transfer fluids (HTF), which eventually will decline the demand for DEG from antifreeze coolants and HTF manufacturers during the forecast period.
The paints & coatings industry accounts for 18.0% share in terms of consumption of DEG globally. Attributed to the COVID-19 pandemic, the paints & coatings manufacturing units across various countries have been shut down amid lockdown imposed by many governments. As a result, the demand of DEG as raw material for the formulation of the paints has declined significantly, which eventually will decline the growth of the market during the forecast period.
The cement industry accounts for 8.0% share in terms of consumption of DEG globally. Attributed to the outbreak of COVID-19 pandemic, the construction of various residential, commercial, and industrial projects has been halted amid lockdown. As a result, the demand for cement has been declined, which led to the downfall of its production. In addition, amid lockdown, various cement plants and production activities were shut down, which resulted in decline in demand for grinding aid cement.
The plastic industry accounts for 25.0% share in terms of consumption of DEG globally. DEG is widely used in the plastic industry as a raw material for the production of plasticizer for paper, cork, synthetic sponges, and flexible PVC. The plastic industry has been affected badly amid the lockdown imposed due to the COVID-19 outbreak, resulting in shutdown of production activities. As a result, the demand for DEG has been declined significantly, and this trend is expected to continue till the imposed lockdown continues across various countries in the world.
Key benefits for stakeholders
- The global diethylene glycol market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global diethylene glycol market forecast for the period 2021–2030.
- The report outlines the current global diethylene glycol market trends and future scenario of the global diethylene glycol market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets.
- Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global diethylene glycol market study.
Key market segments
By Application
- Plasticizer
- Solvent
- Printing Inks
- Paint Pigments
- Dye Formation
- Polyester Resin
- Chemical Intermediate
- Unsaturated Resin
- Thermoplastic Polyurethanes
- Polyester Polyols
- PEG, TriEG, TetraEG
- Emulsifiers
- Morpholine
- Freezing Point Depressant
- Antifreeze Coolant
- Heat Transfer Fluids
- Lubricant
- Glass Cement Grinding
- Polishes
- Mold Release Agents
- Dehydrant
- Brake Fluids
- Cosmetics & Personal Care
- Others
By End-Use Industry
- Plastic Industry
- Paints and Coatings
- Automotive
- Agrochemical
- Oil and Gas
- Cement Industry
- Textiles
- Cosmetic and Personal Care
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Diethylene Glycol (DEG) Market Report Highlights
| Aspects | Details |
 By Application |
|
 By End-Use Industry |
|
 By Region |
|
 Key Market Players | GC GLYCOL COMPANY LIMITED, ROYAL DUTCH SHELL PLC, RELIANCE INDUSTRIES, SABIC, LYONDELL BASELL INDUSTRIES, BASF SE, HUNTSMAN INTERNATIONAL LLC, INDIA GLYCOL LIMITED, MITSUBISHI CHEMICAL CORPORATION, INDIAN OIL CORPORATION |
Analyst Review
The global diethylene glycol (DEG) market is anticipated to witness growth over the forecast period, driven by rising demand for plasticizers, polyurethanes, and unsaturated polyester resins. The plastic market is growing globally at a very fast pace, and thus is one of the drivers for the diethylene glycol market. In addition, increasing demand for paint & coatings in automotive and rising construction industry in emerging economies of Brazil, India, and China are expected to augment the diethylene glycol market growth during the forecast period. Paints & coatings application is expected to witness the fastest growth due to increasing diethylene glycol use in water-based coatings as a substitute to high VOC emitting solvent-based coatings. Furthermore, DEG is also used as humectants for tobacco, which is a rapidly growing industry. Therefore, the demand for this compound is also expected to grow at a fast rate.
However, toxic nature of diethylene glycol and shutdown of industrial activities due to unfavorable conditions arising, owing to the COVID-19 outbreak are expected to hamper the growth of the market during the forecast period. Furthermore, increasing patent registrations regarding the manufacturing of diethylene glycol, its derivatives, and their usage are expected to provide growth opportunities for DEG market participants during the forecast period.
The global diethylene glycol market is primarily driven by surge in demand from plastic, cement, automotive, and paints and coatings industries. Growing demand of diethylene glycol from plastic industry as raw material for producing plasticizers, and surge in its demand from cement industry as grinding aid in order to achieve higher cement fineness and smooth mill operation are the key factors boosting the diethylene glycol market growth.
The global diethylene glycol (DEG) market was valued at $2.4 billion in 2020, and is projected to reach $3.8 billion by 2030, growing at a CAGR of 4.8% from 2021 to 2030.
Reliance Industries, GC Glycol Company, BASF SE, Royal Dutch Shell PLC, Huntsman International LLC, SABIC, India Glycol Limited, Lyondell Basell Industries, Indian Oil Corporation, and Mitsubishi Chemical Corporation are the most established players of the global diethylene glycol market.
Plastic and paints & coatings industry are projected to increase the demand for diethylene glycol market.
Application and end-use Industry are the segments covered in diethylene glycol market report.
Rise in demand of diethylene glycol in cement industry and growing demand of diethylene glycol in paints and coatings industry are the main driver of diethylene glycol market.
Plasticizers and chemical intermediates are the applications that are expected to drive the adoption of diethylene glycol.
Diethylene glycol is widely used as raw material for the manufacturing of final prodduct across various industries such as cement, plastic, paints & coatings and so on. Due to outbreak of Covid-19 government of various countries have imposed the lockdown to contain the effect the spread corona virus. Owing to this industries such cement, plastic, paints & coatings have halted their production activities which resulted in downfall in demand for diethylene glycol. This trend is likely to continue in coming few years owing to the lockdowns to be imposed by the governments at specific time interval due to emerging Covid-19 waves.
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