Polyethylene Glycol Market Size

Polyethylene Glycol Market Size

Polyethylene glycol market size was USD 4.06 billion in 2020 and will grow at a CAGR of 9.6% from 2021 to 2027. Rapidly growing product demand from the automotive and chemical industries and increasing penetration of Polyethylene Glycol (PEG) in the aerospace industry will augment product demand during the forecast period.

PEG is a polyether compound produced from petroleum and can be used in various end-user industries such as chemical, automotive, pharmaceutical, personal care, and plastics. Growing product demand from the pharma & medical industry will augment polyethylene glycol market.

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Non-toxicity, solubility, and wear-resistance in organic solvents are the various properties exhibited by polyethylene glycol. The global coatings, paints & ink industry is witnessing significant growth on account of the rising automotive and building & construction industries. Furthermore, the product can be utilized in the paper & ceramic industries as a color stabilizer. The rising product popularity as a lubricating solution in various industries and the growing paper & ceramic industry in Asia Pacific will fuel product demand.

Medical & pharmaceutical is the largest application segment and will continue to be at the top during the forecast period. The medical & pharmaceutical industry is witnessing rapid growth amid the pandemic. Medical expenditure across the globe has risen dramatically since the pandemic started. Many countries around the world have increased their healthcare spending, which will boost the medical & pharma industry in the foreseeable future. PEG can be used as a dispersing agent, delivery liquid, solvent, filler & ointment, and in laxatives. Growing usage of the product in various applications will fuel the polyethylene glycol market growth.

PEG is an excellent surface-active agent and specialty solvent, which is widely used in personal care products such as soaps, lipsticks, bath oils, detergents, shampoos, lotions, toothpaste, etc. The increasing demand for personal care products due to rising awareness of personal hygiene, disposable incomes, and population. Personal care is a major end-user industry with diverse opportunities for product applications. Major drivers in the personal care industry include rising disposable income in emerging economies such as Asia Pacific and Africa.

Rising demand for water-based coatings & paints in the automotive industry will augment product demand. Paints & coatings manufactured using PEG have very little Volatile Organic Compound (VOC) content and such products are preferred by the end-user industries. Rising automobile production in China, India, the U.S., Germany, etc. will drive the polyethylene glycol market in automobile industry. The automobile industry is witnessing challenges owing to the COVID-19 pandemic. In the future, automobile sales will increase in emerging economies, such as India, due to rising per capita income.

The aerospace industry will witness strong growth in the next 10 years due to rising air traffic around the world. The valuation of aerospace industry stood at USD 838 billion in 2018 and is expected to grow significantly by 2030. The fast-track replacement cycle of outdated aircraft with next-generation fuel-efficient aircraft along with rising aircraft demand from regional airlines will augment the polyethylene glycol market share. Growing passenger travel demand, middle-class population & production of aircraft and decreasing fares across the airline industry are other factors driving the business.

The COVID-19 pandemic has affected the operations and profitability of the polyethylene glycol market. Many countries around the world imposed some form of lockdown to curb the spread of coronavirus. This affected the logistics and distribution of the product and raw materials across the value chain. Furthermore, the economic downturn caused by the pandemic has forced end-user industries to lower their operating rates. The credit crunch, lockdowns, and travel restrictions around the world have affected production and major end-user markets. The introduction of vaccines and rapid vaccination programs around the world will keep the spread of infections at a minimum level, thus aiding economic growth.

The polyethylene glycol market has presence of a significant number of established and multinational organizations including Ineos, The Dow Chemical Company, Huangma Chemical, and Croda International.