Diethylene Glycol Market

Industry Insights-

• The Global Diethylene Glycol Market was valued at USD 2501.4 Million in 2021
• It is anticipated to reach USD 3426.9 Million by 2028
• A CAGR of 4.6% is anticipated over the forecast period

Overview-

Diethylene glycol is a clear, colorless, odorless liquid with the formula C4H10O3. It is a colorless, practically odorless, and hygroscopic liquid with a sweet taste. It is a four-carbon dimer of ethylene glycol. It is miscible with water, alcohol, ether, acetone, and ethylene glycol. DEG is a widely used solvent. This led to numerous epidemics in the early 20th century. Due to this, the governments of various countries have imposed strict regulations on its use. It finds application in various fields like leather processing, printing ink, paper and pulp industry, tobacco manufacturing, and many more. Moreover, it is used as a raw material for thermoplastic polyurethane, plasticizers, and polyester resins.

Covid-19 Impact-

The Covid-19 pandemic has also affected the growth of the global diethylene glycol market. Many government-imposed lockdowns due to the Covid-19 pandemic which had shut down paints and coatings manufacturing units in various countries. As a result, the demand for diethylene glycol (DEG) as a raw material for manufacturing paints has decreased significantly, which affected the market growth during the forecast period.

Key Players-

Some of the key players for global Diethylene Glycol Market are-

• GC Glycol Company
• BASF SE
• Royal Dutch Shell PLC
• Huntsman International LLC
• SABIC
• India Glycol Limited
• Indian Oil Corporation
• Mitsubishi Chemical Corporation
• Lyondell Basell Industries
• Reliance Industries
• Dow Chemical Company
• Nippon Shokubai Co. Ltd.
• NAN YA Plastic Corporation
• others

Segmentation Analysis-

By Applications

• Lubricant
• Plasticizers
• Chemical Intermediates
• Personal Care
• Others   

The global diethylene glycol market is segmented on the applications, end-use, and region & country level. By applications, the global diethylene glycol market is segmented into lubricants, plasticizers, chemical intermediates, personal care, and others. The chemical intermediates segment is the fastest growing due to the increasing demand for thermoplastic polyurethane in the automotive industry. This is driven by rising per capita disposable income, rapid urbanization, and global economic growth.

Thermoplastic polyurethane is used as an alternative to metal in automobiles to enhance fuel efficiency and reduce weight. Its properties such as toughness, abrasion resistance, and FST compliance make it suitable for manufacturing various aircraft components and interior components like electronic housings, armrests, seat covers, and high touch surfaces. The growing demand and production of thermoplastic polyurethanes is expected to further fuel the demand for diethylene glycol from polyurethane manufacturers.

By End-Use

• Paints & Coatings
• Cosmetic & Personal Care  
• Plastics 
• Agrochemicals  
• Others 

By end-use, the global diethylene glycol market is segmented into paints & coatings, cosmetic & personal care, plastics, agrochemicals, and others. The plastic industry is the leading contributor to the market, driven by the increasing demand for lightweight and flexible PVC materials across numerous end-use sectors. The primary industries where flexible PVC is used include pipes, flooring, wall coverings, napkins, adhesive films, pool liners, extruded wires, automotive, synthetic leather-coated fabrics, and medical equipment. With the increasing population and standard of living, there is a heightened demand for flexible PVC materials in various automotive and construction applications, which leads to an increased need for plasticizers and DEG. This trend is expected to continue throughout the forecast period.

The expanding building and construction industry in developing countries such as China and India has spurred a sharp increase in the demand for paints and coatings. This has led to a greater need for solvents from paints and coatings manufacturers, which in turn has resulted in a rise in demand for DEG in recent years. This trend is expected to continue into the future, as the paints & coatings industry remains one of the fastest growing sectors.

By Region Analysis

• North America

  • U.S.
  • Canada

• Europe

  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Netherland
  • Turkey
  • Switzerland
  • Belgium
  • Rest of Europe

• Asia-Pacific

  • China
  • South Korea
  • Japan
  • India
  • Australia
  • Philippines
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

• Latin America

  • Brazil
  • Mexico
  • Colombia
  • Argentina
  • Peru
  • Rest of South America

• Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Geographically, North America is expected to dominate the global diethylene glycol market within the forecast period due to the increasing demand for diethylene glycol from the tobacco industries, rising construction activities, and government spending on infrastructure development in this region. Increasing demand for diethylene glycol from the tobacco industries is driving the growth of the market. Diethylene glycol (DEG) is used in cigarette tobacco mixtures to help create aerosols and thereby “lighten” cigarette smoke. For instance; as per the news published, on March 22nd, 2022; about 40 million US adults still smoke cigarettes, and an estimated 2.55 million middle and high school students use at least one tobacco product, including e-cigarettes. In addition, the rising number of construction activities is also supplementing the market growth in this region.

The Asia Pacific is the fastest-growing region in the global diethylene glycol market due to increasing demand for diethylene glycol from the tobacco industries, rising lack of strict policies on diethylene glycol, and the presence of key players in this region. For instance; according to tobacco-free kids, on September 14th, 2021; there are nearly 267 million tobacco users in India.

Market Drivers-

Increasing demand for diethylene glycol in the cement industry

One of the major factors driving the growth of the diethylene glycol market is the increasing demand for diethylene glycol (DEG) in the cement industry. The building and construction industry has grown tremendously in recent years, increasing both the demand and production of cement in these nations. DEG is used in the cement industry as a grinding aid to increase the fineness of cement, ensure smooth mill operation, boost throughput and reduce energy consumption. Demand for DEG from cement manufacturers is expected to increase throughout the forecast period due to an increase in cement demand and production. For instance; according to Industrial Analytics Platform UNIDO, on May 17th, 2022; approximately 3 metric tons of cement are used annually for every person in the world. 

Rising demand from the paints & coatings industry

In addition, the rising demand from the paints & coatings industry is also fostering the growth of the diethylene glycol market. Demand for paints and coatings is increased due to the expansion of the building, cork, automotive, and furniture sectors in developing nations such as Brazil, China, and India. Alkyd resins used in the manufacture of paints are manufactured using diethylene glycol as a modifier. As the disposable wealth of people in these nations increased, the demand for furniture and cars is also increased. Automobile and manufacturing industries have increased the production of paints and coatings, which will increase the demand for diethylene glycol in the future. 

Growing demand in the plastic industry

Moreover, the growing demand in the plastic industry is also supplementing the market growth. With the increasing use of diethylene glycol as a raw material in the production of plasticizers for paper, cork, and synthetic sponges, the demand for diethylene glycol in the plastics industry is increasing. Diethylene glycol is also used in the manufacture of plastic materials such as polyurethane, which is used for the insulation of refrigerators and freezers, and as a coating and sealant material in the automobile industry. 

However, the toxic nature of diethylene glycol with diethylene glycol may hinder the growth of the global diethylene glycol market. Despite that, increasing patent registrations regarding the manufacturing of diethylene glycol may create more opportunities for the further growth of the global diethylene glycol market.

Market Opportunities-

Increasing numbers of patents for the manufacture and application of diethylene glycol and its derivatives to create opportunities

From 2016 to 2020, the registration of patents related to diethylene glycol saw a marked increase of nearly 1.4 times compared to the period of 2011-2015, according to the World Intellectual Property Organization (WIPO). China was the leader in registering most number of patents, accounting for 82.1% of all patents in the period. This was primarily due to the extensive use of diethylene glycol in the plastic industry, paints and coatings, automotive, agrochemical, oil and gas, cement, textiles, and cosmetics and personal care. Japan was the second largest contributor with 4.0% of the total patents filed. The increasing number of patent registrations for the manufacture and use of diethylene glycol and its derivatives is expected to propel the growth of the market in the near future.

Recent Developments-

• In March 2022, Toyota Tsusho Corporation and Mitsubishi Chemical Corporation started exploring the possibility of producing and marketing ethylene, propylene, and their derivatives using bioethanol as a raw material, with the goal of beginning operations in 2025.
• In Feb 2022, Mitsubishi Chemical Corporation announced that it will be transferring all of its group's shares in Lucite International Japan Co., Ltd. to Midorikawa Chemical Industry Co., Ltd.

Report Analysis	Details
Historical data	2016 - 2021
Forecast Period	2022 - 2029
Market Size in 2021:	USD 2501.4 Million
Base year considered	2021
Forecast Period CAGR %:	4.6%
Market Size Expected in 2028:	USD 3426.9 Million
Tables, Charts & Figures:	175
Pages	300
Diethylene Glycol key Players	GC Glycol Company, BASF SE, Royal Dutch Shell PLC, Huntsman International LLC, SABIC, India Glycol Limited, Indian Oil Corporation, Mitsubishi Chemical Corporation, Lyondell Basell Industries, Reliance Industries,Dow Chemical Company, Nippon Shokubai Co., Ltd., NAN YA Plastic Corporation, and others.
Segments Covered	By Application, By End-User
Regional Analysis	North America, U.S., Mexico, Canada, Europe, UK, France, Germany, Italy, Asia Pacific, China, Japan, India, Southeast Asia, South America, Brazil, Argentina, Columbia, The Middle East and Africa, GCC, Africa, Rest of the Middle East and Africa