Monoethylene Glycol Market Growth Drivers and Challenges:
Growth Drivers
- Food and beverage sector’s increasing demand for MEG packaging materials: Monoethylene glycol is finding wide applications in packaging materials, particularly bottles, and containers. The increasing demand for innovative materials in the food and beverage sector is anticipated to boost the consumption of monoethylene glycol. The growth in the food service market and the rising popularity of online food ordering applications are likely to propel the sales of monoethylene glycol-based bottles and containers in the coming years.
- Growing use in pharma and cosmetic solutions: MEG being a carrier of active ingredients and moisture retainer is exhibiting increasing demand in pharmaceuticals and cosmetic product manufacturing, respectively. The fueling demand for cosmetics, personal care products, and pharmaceuticals in both developing and developed countries is expected to generate high-earning opportunities for monoethylene glycol manufacturers. For instance, the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) states that the biopharmaceutical market offers employment to over 5.5 million people, globally. The global pharmaceutical market is poised to cross USD 1.2 trillion in 2025. The Research Nester report states that the global beauty and personal care market is likely to surpass USD 1.5 trillion by 2035.
Challenges
- Price and demand create challenges at times: The pricing of monoethylene glycol depending on their adequacy and scarcity potentially influences the overall trade activities. Higher volumes of MEG lead to low profitability owing to the low selling prices and on the other hand, loud prices limit sales. For instance, Shell, Plc one of the leading market players states that the current presence of huge volumes of monoethylene glycols is leading to a downturn in prices relative to demand. This challenges the ethylene oxide, ethylene glycol, and monoethylene glycol manufacturers’ revenue growth.
- Strict environmental regulations barrier to sales: The monoethylene glycol is produced from fossil fuel feedstocks such as natural gas, petroleum, and naphtha, which has a negative influence on the environment. The strict implementation of emission and disposal regulations is expected to affect the production of monoethylene glycol to some extent. Furthermore, the governments’ increasing focus on climatic commitments is driving a high demand for bio-based alternatives, challenging the sales of monoethylene glycol.
Monoethylene Glycol Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
3.4% |
|
Base Year Market Size (2025) |
USD 27.22 billion |
|
Forecast Year Market Size (2035) |
USD 38.03 billion |
|
Regional Scope |
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Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of monoethylene glycol is estimated at USD 28.05 billion.
The global monoethylene glycol market size crossed USD 27.22 billion in 2025 and is likely to expand at a CAGR of more than 3.4%, surpassing USD 38.03 billion revenue by 2035.
Asia Pacific monoethylene glycol market will dominate more than 59.50% share by 2035, driven by a swiftly expanding chemical sector and FDI inflows.
Key players in the market include SABIC, The Dow Chemical Company, Royal Dutch Shell PLC, Reliance Industries Limited, Mitsubishi Chemical Corporation, Lotte Chemical Corporation, LyondellBasell Industries N.V., ExxonMobil Corporation, Sinopec, INEOS Group.
