The global monoethylene glycol (MEG) market, valued at US$ 44.0 billion in 2025, is projected to reach US$ 74.14 billion by 2035, growing at a CAGR of 5.4%. Driven by rising demand for polyester fiber and PET in textiles, packaging, and automotive sectors, the market benefits from post-pandemic recovery and sustainable manufacturing trends. The polyester fiber segment leads with a 6.1% CAGR, fueled by eco-friendly textile demand, while the textile industry grows at 5.8% CAGR. Challenges include raw material price volatility and supply chain disruptions, but innovations in recycling and bio-based MEG production are shaping a resilient market, particularly in Asia-Pacific.

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Market Analysis

The MEG market is driven by robust demand from textiles, packaging, and automotive industries, particularly for sustainable PET and polyester fiber applications. In 2024, recovery in these sectors, coupled with infrastructure growth in emerging economies, sustained market momentum. A Fact.MR survey of 500 stakeholders highlights supply chain stability (79%) and raw material access (72%) as key priorities, with Europe emphasizing sustainability (85%) and Asia focusing on cost-efficient production (71%). Advances in recycling and energy-efficient technologies enhance supply chain resilience, despite challenges like labor shortages (64%) and volatile raw material costs. Regulatory pressures, such as EU’s REACH and U.S. Clean Air Act, push for greener production, while Asia-Pacific’s industrialization drives significant growth.

Segment Analysis

The market is segmented by application, end-user industry, and region. Polyester fiber, growing at 6.1% CAGR, dominates due to demand for sustainable textiles in fast fashion and automotive interiors. PET bottle and antifreeze applications also contribute significantly, driven by packaging and automotive sectors. The textile industry, with a 5.8% CAGR, leads end-user segments, propelled by eco-friendly polyester and circular economy trends. Asia-Pacific is the fastest-growing region, with China and India leveraging low-cost production and infrastructure development. Europe and North America focus on sustainable MEG production, with Germany and the U.S. prioritizing regulatory compliance. Innovations like bio-based MEG and advanced catalytic technologies enhance market competitiveness.

Country-wise Insights

The U.S. market, growing at 5.2% CAGR, is driven by demand for eco-friendly polyester in automotive and textile applications, supported by Clean Air Act compliance and recycling innovations. China, with a 5.6% CAGR, leads globally due to its massive polyester production and Clean Heating Plan, despite rising labor costs. India (6.2% CAGR) benefits from the “Make in India” initiative and low-cost production, positioning it as a textile hub. Germany (5.4% CAGR) and France (5.3% CAGR) align with EU Green Deal goals, emphasizing recycled polyester. The UK (4.8% CAGR) faces post-Brexit supply chain challenges but grows through sustainable packaging demand. Japan (4.9% CAGR) and South Korea (5.1% CAGR) focus on high-performance polyester, while Australia-New Zealand (4.7% CAGR) sees growth in green textiles.

Key Players

• SABIC
• Sinopec
• Dow Chemical
• Reliance Industries
• Formosa Plastics
• Shell Chemicals
• Nouryon
• BASF SE
• India Glycols Limited
• LyondellBasell Industries Holdings BV
• Mitsubishi Chemical Corporation
• Nan Ya Plastics Corporation
• Indorama Ventures Public Company Limited
• Toray Industries, Inc.

Strategic Outlook and Industry Trends

The MEG market is evolving with a focus on sustainability, driven by innovations in bio-based MEG and recycling technologies. Companies like SABIC and Sinopec are expanding capacities, with SABIC leveraging low-cost ethylene in Saudi Arabia and Sinopec adopting coal-based production. Dow’s biorefinery partnerships and Reliance’s catalytic advancements enhance competitiveness. Challenges include raw material price volatility and regulatory compliance, particularly in Europe and the U.S. Strategic alliances and vertical integration are key to securing supply chains. Asia-Pacific’s rapid industrialization offers growth opportunities, while stakeholders invest in R&D for eco-friendly production to meet global sustainability demands, ensuring steady market expansion through 2035.

Segmentation of Monoethylene Glycol Market

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

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