Ethylene Oxide market size is estimated to depict a positive trajectory from 2023 to 2032, given its increasing application in ethylene glycol and ethoxylates. Ethylene glycol is significantly used for manufacturing polyethene terephthalate (PET) resin and polyester fiber, implying that the rising demand for such resins and fiber would add to the market expansion in the coming years.
Ethylene oxide is a gaseous, flammable alkylating agent used in hospitals, dentistry, and surgery, for disinfecting and sterilizing medical instruments. Further, it is also utilized for producing various consumer goods and non-consumer chemicals. These consumer goods comprise thickeners, detergents, plastics, and solvents, whereas non-consumer chemicals include organic chemicals like ethylene glycol. Thus, the product’s wide range of applications and desirable properties are expected to contribute to the market growth.
The inflationary pressure is projected to have a negative impact on the ethylene oxide market, given high labor costs, increase in raw material prices, and disruptions in chemical supply chains worldwide.
Growing demand for PET bottles from packaging industries would further drive the ethylene oxide market value. Notably, half of the global ethylene oxide production is used for manufacturing PET bottles. A shift in consumer preferences toward packaged food and beverage products is accelerating the growth of the packaging industry. Rising consciousness among consumers regarding healthier and premium beverage brands is increasing the demand for PET bottles, which is further contributing to the market demand over the forecasted timeframe.
Ethylene oxide is further used for manufacturing polyester fiber, which has wide applications in seat belts, conveyor belt fabrics, and coated fabrics. The rapidly growing automotive and industrial market vendors will emphasize expanding ethylene oxide production capacity. The shift in consumer preferences toward a better lifestyle in emerging economies of Asia Pacific, especially in China and India, is augmenting the demand for polyester fiber which in turn is driving the ethylene oxide market.
Asia Pacific ethylene oxide market is predicted to hold a considerable share by 2032. Rising demand for polyester fibers in the region due to the thriving textile industries and increasing consumer spending will positively favor the global ethylene oxide industry progression over the forecast period. Moreover, the rising travel and tourism industry in the region is pushing the demand for packaged beverage products, propelling the market scenario.
The global ethylene oxide industry key players include Dow Chemical, Eastern Petrochemical Company, Formosa Plastics, Yansab (SABIC), Shell, Sinopec, Reliance, BASF SE, PAMA Manufacturing and Sterilization, Indorama Ventures, Huntsman, and others. These market vendors are seeking expanding their global presence and diversifying their product categories to gain a competitive advantage.
For instance, In January 2023, PAMA improvised the process efficiency by using less EO gas, significantly reducing its harmful environmental effects. With this, the sterilizing cycle will use 50% less EO gas. In addition, to prevent the immediate release of EO into the environment, the closed system collects any consumed EO. It sends it to an in-house scrubber for the removal of hazardous substances.