The Global Ethylene Oxide Market is expected to grow at a CAGR of 4.0% during the forecast period 2024-2029. The market value was at USD 32 million in 2023, and the value is expected to reach USD 42 million by the end of 2029.
Market Overview:
The textile industry is one of the main end-use industries for ethylene oxide, as the derivatives are used to process a wide variety of natural and synthetic fibers, as precursors of certain compounds that provide pressing durable, and light-stabilizing spandex fibers, heat-shrinkable wool, antistatic protection, and anti-moths, among others. The Asia-Pacific region has dominated the textile market, with growing facilities in the textile industry and investments in countries like China and India. India, China, and the United States are the world's main textile manufacturing countries. The United States is the second-largest exporting country for textile products. A key trend that is noticeable in the market is the digitization of various business segments and the opportunities that technological advancements bring to the customer.
Market Drivers:
In the short term, one of the main drivers of the market is the increasing use of PET in the food and beverage industry. Another important factor for the studied market is the growing demand for household and personal care products in developing countries. The Asia-Pacific region is expected to experience the highest market share and the fastest-growing during the forecast period. Driver understands the growing demand for antifreeze in the automotive industry; Antifreeze is used to lower the freezing point of water-based liquid in vehicles. Consumers have started to opt for better-packaged food and drink products. The increase in the use of PET bottles is a factor behind the rise in ethylene oxide. The increased use of polyester resins and fibers is also driving the ethylene oxide market. The other big driver is the high demand for homes and cosmetics.
Market Restraints:
The declining automotive industry in the world hinders the growth of the studied market. The constraints that limit the growth of ethylene oxide in the world market are fluctuations in the prices of crude oil in the market, which is a very important raw material for ethylene oxide, and also governance issues. The high content of toxic ethylene oxide is expected to hamper market growth. In addition, any exposure or contact with the skin can cause chemical burns, which limits its application in various industries such as textiles and healthcare.
Market Opportunities:
The demand for nonionic surfactants is becoming an opportunity to increase the demand for ethylene oxides in the world. Rapid industrialization and infrastructure development in economies such as China, India, and Thailand and the use of bio-based ethylene instead of petroleum-based ethylene for production are opportunities that can boost market growth.
Market Challenges:
One of the biggest challenges is the emission of carbon dioxide into the environment due to the ongoing oxidation process. The other challenge is the residue left on the instrument when it undergoes the sterilization process. Sterilization chemicals are very toxic because they attack the protein cells of microorganisms. Ethylene Oxide is a flammable gas, and care should be taken when using it in the sterilization process.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023-2029 |
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Base Year |
2023 |
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Forecast Period |
2024-2029 |
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CAGR |
4.0% |
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Segments Covered |
By Derivative, End-user Industry, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa. |
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Market Leaders Profiled |
Dow Chemicals Company, Exxon Mobil, Shell, SINOPEC Corp., Ineos Oxide, Royal Dutch Shell, Saudi Basics Industries Corporation, LyondellBasell Industries, Honam Petrochemical Corporation, Formosa Plastic Group, Clariant AG, BASF AG, China Petroleum & Chemical Corporation, Huntsman Corporation, AkzoNobel, and Others. |
Ethylene oxide Market Segmentation as per the research report until 2029.
Ethylene oxide is holding with the dominant share of the market. It sees a sharp increase in demand in its end-user applications, particularly ethylene glycol and ethoxylates, while the end-user applications of ethylene glycol, which are experiencing significant growth, are polyester fibers and PET resin, which are experiencing strong growth in most countries.
The automotive segment is ruling with the largest share of the ethylene oxide market owing to the growing demand for home and personal care products in developing countries.
The Ethylene oxide market Report includes the segmentation of Regions:
The Asia-Pacific region currently dominates the global ethylene oxide market. Although the country remains the world's largest garment exporter with huge production capacity, oversupply in the country, high labour costs, and growing global protectionism have eroded its competitiveness. According to the IBEF, it is estimated that the textile industry in India will reach approximately USD 222 billion by 2026. The Indian garment/garment industry is one of the largest segments of the Indian textile and clothing industry. Clothing represents about 50% of the total industry. Changing fashion trends, and growth in consumer and service classes, coupled with increasing penetration of the retail and e-commerce industry have boosted the Indian textile industry. Asia-Pacific has become the largest consumer and producer of surfactants. The production has reached very high levels, becoming a major centre for the export of cosmetics and personal care products to developed countries, such as the United States. Hence, owing to the above-mentioned factors, the Asia-Pacific region is expected to register the highest market share during the forecast period.
North America and Western Europe are mature markets and are expected to experience slow growth. However, Asia-Pacific, Eastern and Central Europe, Middle East, and South America are expected to drive demand for ethylene oxide over the next decade, as end applications such as polyester fibers and PET resin are still in development and expect strong growth.
The European market is also expected to grow due to the expansion of the packaging industry with the increasing demand for packaged food and drink. In addition, the growing healthcare sector, along with increasing healthcare expenditure and expanding geriatric population, enhances the growth of the market.
The Latin American market is expected to experience tremendous growth due to the growth of the cosmetics and personal care industry, especially in Brazil and Mexico, due to the increasing demand for men's cosmetics.
The Middle East and Africa market is expected to show considerable growth during the review period owing to the rapid growth of the industrial base in the region.
The market was affected by COVID-19 in 2020. The global beauty and personal care industry has been notably affected by the COVID-19 pandemic. Although the industry has been restructured to focus on the production of hand sanitisers and cleaning agents, the decline in sales has been significant. In China, in February 2020, sales in the beauty and personal care industry were down about 80% from 2019. In March, the year-over-year decline was reduced to about 20%.
Ethylene Oxide Market Key Players:
Market Recent Developments:
In January 2020, Indorama Ventures acquired Huntsman's integrated EO & PO assets for $ 2 billion, including a large US Gulf Coast flagship site (USGC) in Port Neches, as well as Chocolate Bayou and Dayton.
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