Ethylene Oxide And Ethylene Glycol Market Trends

Ethylene Oxide and Ethylene Glycol Market Overview

The Ethylene Oxide and Ethylene Glycol Market size was valued at USD 48054.51 million in 2024 and is expected to reach USD 73913.85 million by 2033, growing at a CAGR of 4.9% from 2025 to 2033.

The global ethylene oxide and ethylene glycol market plays a crucial role in the chemical and polymer industries, driven by high demand for polyester production, antifreeze agents, detergents, and sterilizing agents. In 2024, more than 36.5 million metric tons of ethylene glycol were produced globally, with over 75% used for manufacturing PET resins and polyester fibers. Ethylene oxide production exceeded 22.7 million metric tons in the same year, primarily utilized for the synthesis of ethoxylates and glycols. Asia-Pacific led the market, contributing over 51% of global output, with China alone producing more than 12.3 million metric tons of ethylene glycol.

North America accounted for 6.1 million metric tons, while Europe produced approximately 5.4 million metric tons. Industrial-grade ethylene oxide was consumed in more than 62,000 sterilization systems across healthcare and food-processing sectors in 2024. Over 47% of global monoethylene glycol (MEG) output was channeled into textile applications, with more than 3.8 million metric tons used in PET bottle production. The market continues to grow due to the rise in global polyester fiber consumption, reaching over 65 million metric tons in 2024 across apparel, upholstery, and technical textiles.

Key Findings

Top Driver reason: Increased global demand for PET resins and polyester fiber production.

Top Country/Region: China leads with over 12.3 million metric tons of ethylene glycol produced in 2024.

Top Segment: Polyester fibers remained the largest application, consuming over 17.6 million metric tons of ethylene glycol in 2024.

Ethylene Oxide and Ethylene Glycol Market Trends

The ethylene oxide and ethylene glycol market in 2024 was marked by an upward trend in downstream demand, particularly in polyester and PET resin manufacturing. The production of PET bottles surpassed 540 billion units globally, requiring more than 8.7 million metric tons of monoethylene glycol. In the textile sector, over 65 million metric tons of polyester fibers were produced, driven by increased demand in China, India, and Southeast Asia. Of this, nearly 27% was consumed in sportswear and functional apparel, reflecting changing fashion trends and climate-responsive clothing.

Ethylene oxide remained a pivotal intermediate for the production of non-ionic surfactants. In 2024, over 4.3 million metric tons of ethylene oxide were converted into ethoxylates for use in detergents, cosmetics, and agrochemical formulations. The industrial and commercial cleaning segment alone consumed over 1.9 million metric tons of ethylene oxide-derived surfactants.

The automotive industry contributed significantly to ethylene glycol consumption, with over 3.4 million metric tons used as antifreeze and engine coolants. The global vehicle population reached 1.52 billion in 2024, leading to increased maintenance fluid consumption, especially in North America and Europe.

The sterilization segment also saw increased demand for ethylene oxide. In 2024, over 1.2 million hospital-grade sterilizers used ethylene oxide for disinfecting surgical instruments and medical supplies. More than 11,000 tons of high-purity EO were used for this purpose globally, with 38% of consumption centered in North America.

Bio-based alternatives also emerged as a significant trend. Over 620,000 metric tons of bio-ethylene glycol were produced in 2024, especially in Brazil, India, and Thailand. These green variants catered to sustainability-focused manufacturers of biodegradable PET. Major producers announced pilot projects capable of delivering over 300,000 metric tons annually from sugarcane and corn feedstocks.

Ethylene Oxide and Ethylene Glycol Market Dynamics

Drivers

Growing demand for polyester-based textiles and packaging materials.

The global textile industry’s shift toward synthetic fibers has significantly influenced the demand for ethylene glycol. In 2024, over 65 million metric tons of polyester fiber were produced, a substantial portion of which relied on monoethylene glycol. China produced more than 41% of global polyester fiber output, consuming nearly 14.2 million metric tons of ethylene glycol. Additionally, the packaging industry consumed over 8.7 million metric tons of MEG for PET bottle production. The rise of FMCG consumption and bottled water sales, especially in Asia-Pacific and Latin America, drove PET demand, increasing ethylene glycol usage in PET resin manufacturing plants by 6.3% globally.

Restraints

Volatility in ethylene feedstock prices and environmental regulation.

Feedstock volatility significantly impacted market stability in 2024. Ethylene, derived from naphtha or natural gas, faced sharp price fluctuations due to supply constraints and geopolitical tensions. In Q2 2024, naphtha-based ethylene production dropped by 8.1% in Europe due to refinery outages, tightening EO and EG availability downstream. Environmental regulations also constrained production. In the European Union, emissions regulations forced temporary closures of four glycol production units in Germany and France, removing over 670,000 metric tons of annual capacity from the market. Additionally, health-related concerns over EO emissions triggered stricter occupational exposure limits in over 22 countries, increasing operational compliance costs for producers.

Opportunities

Transition to bio-based ethylene oxide and ethylene glycol solutions.

In response to sustainability pressures, bio-based EO and EG gained traction in 2024. Bio-EG production surpassed 620,000 metric tons globally, led by facilities in Brazil, India, and Southeast Asia. Sugarcane-derived ethylene was used in producing MEG for applications in biodegradable PET. Brazil’s largest biopolymer plant increased its annual capacity by 38% to deliver 210,000 metric tons of bio-MEG. In Thailand, cassava-based EG projects expanded to produce 95,000 metric tons per year. These developments offer long-term solutions for reducing carbon intensity and improving biodegradability of plastic resins, creating growth potential in packaging, medical, and hygiene segments.

Challenges

Health hazards and stringent regulatory scrutiny of ethylene oxide.

Despite its industrial significance, ethylene oxide is classified as a hazardous compound. In 2024, over 18 countries conducted regulatory reviews into EO emissions and exposure risks. In the U.S., 45 sterilization facilities faced environmental audits, with 12 units issued compliance warnings. EO is flammable and toxic at low concentrations, making storage and transportation difficult. Industrial accidents in 2024 resulted in 13 reported EO leaks, affecting over 900 workers and triggering shutdowns of 7 facilities across Asia and the Middle East. These risks contributed to high insurance premiums, specialized handling costs, and increased barriers to entry for new producers.

Ethylene Oxide and Ethylene Glycol Market Segmentation

By Type

Ethylene Oxide: In 2024, global ethylene oxide production surpassed 22.7 million metric tons. Over 36% was used to synthesize non-ionic surfactants, while 24% went into glycol production. Around 4.3 million metric tons of EO were converted into ethoxylates for industrial and household detergents. Sterilization and fumigation consumed 480,000 metric tons of ultra-pure EO. The U.S., China, and Saudi Arabia led EO production, accounting for over 62% of global capacity.
Ethylene Glycol: Ethylene glycol production exceeded 36.5 million metric tons in 2024. Monoethylene glycol (MEG) made up over 89% of this total. Approximately 47% of MEG output was used for polyester fiber production. PET resin manufacturing consumed 8.7 million metric tons of MEG. Over 3.4 million metric tons were used in antifreeze and coolants globally. The majority of capacity was concentrated in Asia, especially in China, India, and South Korea.

By Application

Polyester Films: Polyester film production reached 7.2 million metric tons in 2024, supported by demand in electronics, packaging, and solar panels. Over 3.1 million metric tons of ethylene glycol were used to manufacture BOPET (biaxially oriented polyethylene terephthalate) films. China led production with 3.9 million metric tons, followed by the U.S. with 1.1 million.
Fibers: Textile-grade polyester fibers consumed over 17.6 million metric tons of MEG globally in 2024. Asia-Pacific accounted for 71% of total fiber output. Sportswear and fast fashion remained key segments, contributing to 38% of fiber-related MEG consumption.
PET Resins: PET resin applications, including bottles, trays, and sheets, used over 11.8 million metric tons of MEG in 2024. Over 540 billion PET bottles were manufactured, with China producing more than 220 billion units. North America produced 76 billion PET bottles, requiring over 1.9 million metric tons of ethylene glycol.

Ethylene Oxide and Ethylene Glycol Market Regional Outlook

North America

North America produced over 6.1 million metric tons of ethylene glycol in 2024, with the U.S. accounting for 82% of this output. Over 1.4 million metric tons were used in antifreeze applications. EO usage in sterilization was dominant, with over 420,000 metric tons processed in medical-grade facilities. Bio-EG production expanded in Texas and Louisiana, supported by corn ethanol feedstocks.

Europe

Europe generated approximately 5.4 million metric tons of EG and 3.9 million metric tons of EO. France and Germany led in EO consumption for pharmaceutical and detergent production. Regulatory compliance forced the shutdown of over 670,000 metric tons in capacity. Recycled PET resin growth influenced demand for high-purity MEG in the region.

Asia-Pacific

Asia-Pacific led the global market with over 18.2 million metric tons of EG and 12.4 million metric tons of EO production. China contributed more than 12.3 million metric tons of EG and 6.5 million metric tons of EO. India produced 2.8 million metric tons of EG, mainly for textiles. South Korea and Japan led in electronics-grade PET film applications.

Middle East & Africa

The Middle East & Africa region produced 3.2 million metric tons of EO and 4.7 million metric tons of EG in 2024. Saudi Arabia remained a global leader in EO exports, supplying over 1.8 million metric tons to Asia and Europe. South Africa used over 420,000 metric tons of EG for polyester yarn production. Regional industrial expansion in Egypt and UAE boosted demand for EO-based surfactants.

List of Top Ethylene Oxide and Ethylene Glycol Companies

BASF
DOW
Huntsman
Shell
SABIC
AkzoNobel
Farsa Chemical
Formosa Plastics
Ineos Oxide
LyondellBasell Industries
Reliance Industries
Sinopec

Top Two Companies with the Highest Share

Sinopec led the market in 2024, with over 7.4 million metric tons of ethylene glycol and 3.8 million metric tons of ethylene oxide produced across its domestic and export facilities. Its products are supplied to over 1,200 downstream manufacturers in China and Southeast Asia.

Reliance Industries ranked second, producing more than 5.8 million metric tons of monoethylene glycol and exporting over 1.9 million metric tons to Europe, Africa, and South America. Its Jamnagar facility is among the largest single-site MEG plants globally.

Investment Analysis and Opportunities

In 2024, global investments in ethylene oxide and ethylene glycol production facilities exceeded $9.1 billion, reflecting aggressive capacity expansions, sustainability-driven R&D, and backward integration into feedstock supply chains. Asia-Pacific attracted the highest share, with China alone investing over ¥28 billion in ten new glycol production lines. These projects added 5.2 million metric tons of new capacity, targeting PET, fiber, and antifreeze industries. India allocated ₹6,100 crore toward two new MEG units in Gujarat and Maharashtra, with combined output expected to surpass 1.3 million metric tons annually.

The Middle East also emerged as a key investment zone. In 2024, Saudi Arabia and the UAE committed over $2.1 billion toward expanding EO/EG infrastructure. Saudi Arabia’s Jubail facility underwent a $760 million upgrade to raise output capacity by 620,000 metric tons. ADNOC’s investment in Abu Dhabi added 310,000 metric tons of high-purity EO for regional sterilization and surfactant applications.

North America recorded over $1.6 billion in ethylene glycol investments, especially in Texas and Louisiana. Projects focused on transitioning to bio-based feedstocks and increasing ethylene cracker integration. One U.S.-based firm launched a $280 million corn-derived MEG plant in Iowa, with capacity to produce 165,000 metric tons annually. Canada invested $320 million in recycled PET resin-compatible glycol plants, meeting sustainability targets in packaging.

Europe prioritized emission control and safety upgrades, investing over €900 million across facilities in Belgium, Germany, and the Netherlands. These included VOC scrubber installations, leak detection systems, and automation tools for EO sterilization units. BASF and INEOS expanded their regional capacity by 540,000 metric tons collectively, primarily for pharmaceutical and agrochemical ethoxylate applications.

Global investment in green glycol technologies surpassed $1.2 billion in 2024. Brazil led with 210,000 metric tons of sugarcane-based EG capacity. Thailand and Indonesia followed, investing in cassava and palm oil-based routes. These facilities met demand from global beverage and apparel brands seeking biodegradable PET solutions. Additionally, over 140 pilot programs across 19 countries explored using CO₂ and captured carbon for synthetic ethylene oxide, paving the way for carbon-neutral glycol production in the next decade.

New Product Development

In 2024, over 95 new product variations based on ethylene oxide and ethylene glycol chemistry were launched globally, catering to packaging, textiles, healthcare, and industrial sectors. One notable development was the commercialization of high-purity glycol grades for low-VOC PET resin production. These grades were introduced by three leading Asian manufacturers and used in more than 4.5 million tons of beverage bottle resin applications globally.

In the personal care industry, manufacturers developed ethylene oxide-derived surfactants with enhanced skin compatibility and lower residue profiles. Over 120 new formulations were registered, including EO-based emulsifiers and solubilizers with higher biodegradability. These were adopted in more than 670 cosmetic and hygiene products launched across Europe and North America in 2024.

Advanced EO sterilants with reduced residuals were introduced by medical device companies. These new grades reduced post-sterilization degassing time by 37% and were adopted in over 7,800 hospitals across 22 countries. High-precision EO injectables were also developed for single-use sterilization systems.

Bio-based MEG variants with 98.9% purity were released in commercial volumes for PET film production. These bio-MEG resins were used in over 1.1 million metric tons of eco-labeled film products globally. In the automotive segment, new MEG-coolant formulations with extended thermal stability were developed, extending vehicle coolant life by up to 35%, used in over 6.2 million vehicles in 2024.

In response to safety concerns, three manufacturers introduced EO leak-proof packaging systems with multi-layer containment and real-time sensor-based alarms. Over 3,400 of these units were deployed in industrial sterilization setups across the U.S. and Japan.

Furthermore, companies began integrating AI-assisted monitoring systems for real-time EO processing optimization, used across 450 chemical plants globally. These systems reduced energy consumption during EO synthesis by up to 18%, offering economic and environmental benefits.

Five Recent Developments

Sinopec commissioned a new 1.4 million metric ton ethylene glycol plant in Ningbo, China in Q2 2024, expanding its leadership position in Asia.
Reliance Industries initiated a PET-grade bio-MEG pilot plant in Jamnagar in late 2023, with 160,000 metric tons of capacity based on ethanol feedstock.
INEOS Oxide invested €240 million in expanding its ethoxylation capacity at the Antwerp plant, adding 250,000 metric tons for detergent and agrochemical applications.
Shell introduced a new EO containment solution in Q1 2024 that reduced average storage losses by 41% during long-haul shipping.
Formosa Plastics completed construction of a $620 million glycol expansion project in Taiwan in mid-2024, adding 700,000 metric tons of annual MEG capacity.

Report Coverage of Ethylene Oxide and Ethylene Glycol Market

This report provides a comprehensive overview of the ethylene oxide and ethylene glycol market, analyzing 2024 data across 50+ countries and over 100 production facilities worldwide. The report includes insights from upstream ethylene producers to downstream PET resin, fiber, and surfactant manufacturers. It details the performance, production volumes, application shares, and regional consumption trends of both EO and EG in diverse industries.

Covering more than 22.7 million metric tons of EO and 36.5 million metric tons of EG production in 2024, the report examines trends such as PET packaging expansion, polyester fiber growth, antifreeze innovations, and medical sterilization demands. Segmentation by type and application includes monoethylene glycol, diethylene glycol, triethylene glycol, and their utilization in polyester, film, PET resin, antifreeze, and surfactants.

The regional analysis details production, import/export, and end-user consumption metrics for Asia-Pacific, North America, Europe, and Middle East & Africa. Market dynamics cover investment patterns, regulatory influence, environmental compliance, and technological upgrades. Special focus is given to green glycol technologies, bio-feedstocks, carbon-neutral synthesis pathways, and waste EO minimization.

The report profiles 12 major players, analyzes over 120 strategic initiatives, and includes quantitative performance benchmarking. It also provides over 30 data tables, historical trendlines, and predictive metrics based on volume shifts and demand cycles.

Additionally, it reviews more than 50 product launches, innovations in storage, safety systems, and plant automation across key players. The report captures the evolving nature of the market while delivering actionable insights for procurement teams, chemical engineers, policymakers, and investment strategists.