|Study Period:||2016 - 2026|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The ethylene oxide market size was estimated at over 30 million ton in 2020, and the market is projected to register a CAGR of over 3% during the forecast period (2021-2026).
The market was negatively impacted by COVID-19 in 2020. The global beauty and personal care industry has been significantly affected by the COVID-19 pandemic. Though the industry has restructured itself to engage in the production of hand sanitizers and cleaning agents, the drop in sales has been significant. In China, the beauty and personal care industry’s February 2020 sales decreased by around 80% compared with 2019. In March, the year-on-year decline was down to approximately 20 percent.
- Over the short term, one of the major factors driving the market is the growing usage of PET in the food and beverage industry. However, the declining automotive industry across the world is hindering the growth of the market studied.
- Increasing demand for household and personal care products in developing countries is another major driver for the market studied.
- The Asia-Pacific region is expected to witness the highest market share and fastest growth during the forecast period.
Scope of the Report
Ethylene oxide is produced from ethylene, majorly by direct oxidation. Ethylene is primarily produced from petrochemical-based raw materials, such as naptha, ethane, and propane, which are obtained from the distillation of crude oil. The market is segmented on the basis of derivatives, end-user industry, and geography. By derivatives, the market is segmented into ethylene glycols, ethoxylates, ethanolamines, glycol ethers, polyethylene glycol, and other derivatives. By end-user industry, the market is segmented into automotive, agrochemicals, food and beverage, textile, personal care, pharmaceuticals, detergents, and other end-user industries. The report also covers the market size and forecasts for the ethylene oxide market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).
|Food and Beverage|
|Other End-user Industries|
Key Market Trends
Increasing Demand from the Textile Industry
- The textile industry is a major end-user industry for ethylene oxide as the derivatives are used for the treatment of a wide variety of natural and synthetic fibers, as precursors for certain compounds providing durable press, light stabilization of spandex fibers, shrink proofing wool, static prevention, and mothproofing, among others.
- The Asia-Pacific region dominated the textile market, with growing facilities in the textile industry and investments in the countries such as China and India.
- India, China, and United States represent major textile manufacturing countries in the world.
- In India, rising per capita income, favorable demographics, and a shift in preference to branded products boost the demand for the textile industry, thus boosting the ethylene oxide market.
- The United States is the second-largest individual country in exports of textile-related products. In 2019, US fiber, textiles, and apparel exports combined accounted for USD 29.1 billion as per the report published by the National Council of Textile Organizations.
- Globally, the lockdown has led to the disruption of many business activities and affected the supply chain. Although some countries are slowly starting activities again, factories are still closed or not operating at normal capacity yet.
- The global textile and apparel industry is hugely dependent on China as a manufacturing base, where the novel coronavirus (COVID-19) first struck and the subsequent spread of the virus to other countries. This has led to store closures and dwindling demand for textiles which had an overall impact on the industry. The capacity of other countries to benefit from this situation, too, is limited.
- Thus, all the above-mentioned factors are expected to show a significant impact on the market growth during the forecast period.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominates the global ethylene oxide market currently. China accounts for the major consumption of ethylene oxide and its derivatives in the Asia-Pacific region.
- China’s textile industry is one of the major industries, and the country is the largest clothing exporter across the world. However, the industry makers are going through a painful industrial restructuring. While the country is still the world’s largest clothing exporter with enormous production capacity, oversupply at home, high labor costs, and rising global protectionism have all eroded its competitiveness.
- According to the IBEF, the textile industry in India is estimated to reach about USD 220 billion by 2025. Indian readymade apparel/ garments industry is one of the largest segments in the Indian Textile and Apparel Industry and holds approximately 50% of the total industry. Changing fashion trends, growing consumer and service class, and the booming retail penetration and e-commerce industry have boosted the Indian textile industry.
- The food and beverage industry in South Korea is one of the largest in the region, supported by the surge in organic food processing. It is expected to increase by 2025 and reach USD 14,072 million, at a 12.62% growth rate during the forecast period.
- Asia-Pacific has become the largest consumer, as well as producer of surfactants. The production has reached very high levels, becoming a major hub for the exporting of cosmetics and personal care products to developed nations, like the United States.
- Hence, owing to the above-mentioned factors, Asia-Pacific is likely to witness the highest market share during the forecast period.
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The ethylene oxide market is partially consolidated in nature. Some of the key players in the market include Royal Dutch Shell PLC, China Petrochemical Corporation (Sinopec), Dow, SABIC, and BASF SE.
- In January 2020, Indorama Ventures acquired Huntsman's Integrated EO & PO Assets for USD 2 billion that includes a large flagship site on the US Gulf Coast (USGC) at Port Neches, as well as Chocolate Bayou and Dayton in Texas, Ankleshwar in India, and Botany in Australia.
- In January 2019, INEOS Oxide announced that it completed the acquisition of the ethoxylation plant of Wilmar in Lavéra, France.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Usage of PET in the Food and Beverage Industry
4.1.2 Increasing Demand for Household and Personal Care Products in the Developing Countries
4.1.3 Growing Demand for Antifreeze Agents
4.2.1 Declining Automotive Industry
4.2.2 Impact of the COVID-19 Pandemic
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.1 Ethylene Glycols
188.8.131.52 Monoethylene Glycol (MEG)
184.108.40.206 Diethylene Glycol (DEG)
220.127.116.11 Triethylene Glycol (TEG)
5.1.4 Glycol Ethers
5.1.5 Polyethylene Glycol
5.1.6 Other Derivatives
5.2 End-user Industry
5.2.3 Food and Beverage
5.2.5 Personal Care
5.2.8 Other End-user Industries
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.3.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.3.4 South America
220.127.116.11 Rest of South America
5.3.5 Middle-East and Africa
18.104.22.168 Saudi Arabia
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 China Petrochemical Corporation (Sinopec)
6.4.5 India Glycols Limited
6.4.6 Indorama Ventures Public Company Limited
6.4.8 LOTTE Chemical CORPORATION
6.4.9 LyondellBasell Industries Holdings BV
6.4.10 NIPPON SHOKUBAI CO. LTD
6.4.11 Reliance Industries Limited
6.4.12 Royal Dutch Shell PLC
6.4.15 Tomoe Shokai Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Usage of Bio-derived Ethylene over Petro-based Ethylene for Production
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Frequently Asked Questions
What is the study period of this market?
The Ethylene Oxide Market market is studied from 2016 - 2026.
What is the growth rate of Ethylene Oxide Market?
The Ethylene Oxide Market is growing at a CAGR of >3% over the next 5 years.
Which region has highest growth rate in Ethylene Oxide Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Ethylene Oxide Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Ethylene Oxide Market?
Royal Dutch Shell plc, BASF SE, China Petrochemical Corporation (Sinopec), SABIC are the major companies operating in Ethylene Oxide Market.