Diethylene Glycol (DEG) Market is Expected to Reach $3.8 Billion by 2030

According to a new report published by Allied Market Research, titled, “Diethylene Glycol Market: Opportunity Analysis and Industry Forecast, 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 (DEG) is a colorless, low volatility, low viscosity, hygroscopic (picks up water from the air) liquid. It is completely miscible with water and many organic liquids. It is almost entirely used for industrial and commercial applications. The largest use of diethylene glycol as an intermediate is in the production of unsaturated polyester resins, polyols, and polyurethanes. Other applications for diethylene glycol include its use as an intermediate for the manufacture of triethylene glycol and tetraethylene glycol, as an ingredient in antifreeze and heat transfer fluids, and as a solvent for inks and cleaning filters.

The growing use of DEG as a plasticizer in the plastics industry is expected to fuel its demand during the forecast period. Excellent hygroscopicity and low volatility of the product are expected to surge its demand in gas drying applications. In addition, DEG is used as a chemical intermediate for products, such as polyurethanes and polyester resins, which is anticipated to drive the growth of the market in future. DEG is also used in the cosmetics and personal care industry in lotions, skin creams, deodorants, and toothpastes. In addition, surge in demand for polyurethane (PU) and other plastic products in major end-use industries, such as building & construction and automotive, is expected to drive the growth of the DEG market during the forecast period. However, the toxic nature of DEG is expected to hamper the growth of diethylene glycol market in the coming years.

By application, the global diethylene glycol market size is studies across 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. The plasticizer segment accounted for the largest market share in 2020, owing to surge in demand for DEG as raw material for the production of plasticizer for paper, cork, synthetic sponges, and flexible PVC. Plasticizer dominated the global diethylene glycol market with more than one-fourth of the total market share in 2020.

By end-use industry, the global diethylene glycol market is studies across plastic industry, paints and coatings, automotive, agrochemical, oil and gas, cement, textiles, cosmetic and personal care, and others. the plastic industry segment emerged as the leader in 2020, owing to surge in use of diethylene glycol as a raw material for producing plasticizers for paper, cork, and synthetic sponges. The plastic industry dominated the global market with nearly one-fourth of the total market share in 2020.

Region-wise, the global diethylene glycol market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for the major global diethylene glycol market share in 2020, and dominated the global market with more than one-third of the total market share in 2020.

The major players studied and profiled in the global diethylene glycol market are 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.

COVID-19 analysis:

• According to the International Monetary Fund (IMF), due to the outbreak of the novel coronavirus (COVID-19), the global economy was expected to shrink by 3.0% in 2020. Many countries are under strict lockdowns, which 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. 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, 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 materials 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 has 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, paints and coatings manufacturing units across various countries have been shut down amid lockdown imposed by governments. As a result, the demand of DEG as raw material for the formulation of the paints has been 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. In addition, amid lockdown, various cement plants have shut down their production activities, resulting in declined 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 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 findings of the study

• In 2020, Asia-Pacific dominated the global diethylene glycol market with around 37.0% of the share in terms of revenue.
• The plasticizer segment dominated the global diethylene glycol market with around 26.6% of the share in terms of revenue.
• The plastic industry segment dominated the global diethylene glycol market with around 24.3% of the share in terms of revenue.
• Asia-Pacific is projected to grow at a highest CAGR of 5.2% in terms of value.
• The chemical intermediate segment is projected to grow at the highest CAGR of 6.2% in terms of revenue
• The paints & coatings segment is projected to grow at the highest CAGR of 5.7% in terms of revenue.