Ethylene Oxide (EO) Market Size, Share, Growth, and Industry Analysis, By Type (SD-Oxidation, Shell-Oxidation, Dow-Oxidation and Others), By Application (Ethylene Glycol, Surfactant, Ethanolamine and Others) and Regional Forecast to 2032

Updated On: 29 April 2024

ETHYLENE OXIDE (EO) MARKET REPORT OVERVIEW

The global ethylene oxide (EO) market size was USD 28.77 billion in 2019 and the market is projected to touch USD 36.77 billion by 2026, exhibiting a CAGR of 3.5% during the forecast period.

Ethylene oxide (EO), also known as oxirane according to IUPAC nomenclature, is a crucial organic compound with the chemical formula C2H4O. It exists as a colourless gas at room temperature, condensing into a colourless liquid below 51°F (10.7°C). EO serves as a fundamental ingredient in various industries, contributing to the production of solvents, antifreeze, textiles, detergents, adhesives, polyurethane foam, and pharmaceuticals. Additionally, it finds application in smaller quantities as a fumigant and sterilant for spices, cosmetics, and medical equipment in healthcare facilities. The versatility of EO highlights its importance in modern industrial processes, despite the need for careful handling and regulation due to health and environmental concerns.

However, despite its widespread use, EO poses significant health and environmental risks due to its highly reactive nature. Prolonged exposure to EO has been linked to increased risks of specific cancers, such as lymphocytic leukaemia and breast cancer. Its reactivity necessitates meticulous handling and disposal procedures, especially in occupational and healthcare settings where strict regulations govern its usage. Moreover, EO's tendency to be absorbed by various materials requires thorough aeration to remove residual gas after sterilization processes. Thus, while EO remains invaluable in numerous industrial applications, stringent safety measures and regulatory oversight are crucial for mitigating potential risks to human health and the environment.

COVID-19 Impact: Market is restrained due to the supply chain being affected by the pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The pandemic has significantly impacted the Ethylene Oxide (EO) supply chain in various ways. Disruptions arising from the pandemic have led to price volatility and shortages of essential raw materials, posing challenges across the supply chain. Additionally, the surge in demand for EO, especially in sterilizing medical and dental equipment and manufacturing personal and healthcare products, has further exacerbated these challenges. The strain on the supply chain is evident, with increased pressure to meet heightened requirements amid ongoing disruptions. Overall, the pandemic has highlighted vulnerabilities within the EO supply chain, emphasizing the need for adaptability and resilience to navigate these unprecedented challenges.

LATEST TRENDS

"Usage of bio-derived ethylene over petro-based ethylene is driving the market"

Utilizing bio-derived ethylene instead of petro-based ethylene as a production source is gaining traction. This shift towards bio-derived ethylene is driven by a variety of factors. Primarily, it aligns with the growing emphasis on sustainability and reducing reliance on fossil fuels in industrial processes. Bio-derived ethylene, sourced from renewable biomass sources such as plants or waste materials, offers a more environmentally friendly alternative to traditional petro-based ethylene. Additionally, advancements in biotechnology and biochemical processes have made the production of bio-derived ethylene more feasible and economically viable. This transition holds promise for reducing carbon emissions and mitigating environmental impacts associated with conventional petrochemical production. Moreover, it opens up opportunities for creating a more circular economy by repurposing organic waste materials into valuable chemical feedstocks, thus promoting resource efficiency and sustainability in the production chain.

ETHYLENE OXIDE (EO) MARKET SEGMENTATION

• By Type

Based on type the global market can be categorized into SD-Oxidation, Shell-Oxidation, Dow-Oxidation and Others.

SD-Oxidation: SD-Oxidation is a significant process for producing EO, involving the direct oxidation of ethylene with oxygen over a silver-based catalyst. This method is known for its high selectivity and is widely used in the industry for EO production.

Shell-Oxidation: Shell-Oxidation is another prominent method for EO production, which utilizes a silver-based catalyst. This process is recognized for its efficiency and has been a key technology in the EO industry for several decades. It is known for its high EO yield and has contributed to the growth of the EO market.

Dow-Oxidation: Dow-Oxidation is a well-established EO production method that has been employed by major industry players. This process is known for its reliability and has played a significant role in meeting the global demand for EO. The Dow-Oxidation method has been a key driver of growth in the EO market.

Others: Apart from the aforementioned methods, there are various other processes for EO production, including direct and indirect oxidation methods. These diverse methods contribute to the overall EO market, catering to different industry needs and requirements. These different types of EO production methods play a crucial role in meeting the demand for EO, with each method offering unique advantages and contributing to the overall growth and stability of the EO market.

• By Application

Based on application the global market can be categorized into Ethylene Glycol, Surfactant, Ethanolamine and Others.

Ethylene Glycol: Ethylene Glycol is a major application of EO, accounting for a significant share of the market. EO is used in the production of ethylene glycol, which is used in the manufacture of polyester fibres, antifreeze, and other products.

Surfactant: Surfactants are another significant application of EO, used in the production of detergents, shampoos, and other personal care products. The demand for surfactants is expected to grow due to the increasing demand for personal care products.

Ethanolamine: Ethanolamines are a key application of EO, used in the production of detergents, herbicides, and other products. The demand for ethanolamines is expected to grow due to the increasing demand for herbicides and other agrochemicals.

Others: Apart from the aforementioned applications, EO is used in various other applications, including polyols, automotive, food and beverages, textiles, and pharmaceuticals. These diverse applications contribute to the overall EO market, catering to different industry needs and requirements.

DRIVING FACTORS

"Growing usage of PET in the food and beverage industry is set to boost the market"

The ethylene oxide (EO) market is experiencing an uptick in demand due to the increasing utilization of Polyethylene Terephthalate (PET) in the food and beverage sector. This surge in demand is driven by the versatility of PET, which is widely employed for packaging various food and beverage products. The adoption of PET as a packaging material has gained traction due to its favourable properties such as transparency, durability, and lightweight nature. This trend reflects a growing preference for PET over traditional packaging materials in the food and beverage industry, leading to an expanded market for EO. As a crucial component in the production process of PET, EO plays a pivotal role in meeting the escalating demand for PET-based packaging solutions. Consequently, the global ethylene oxide (EO) market growth is propelled by the flourishing utilization of PET in the food and beverage sector.

"Increasing demand for household and personal care products in developing countries is set to expand the market"

With the rising need for household and personal care items in developing nations, the surge in demand is driven by various factors, including population growth, rising disposable incomes, and changing consumer lifestyles. As people in these regions attain higher living standards, there is a corresponding increase in the desire for better hygiene and grooming products. Additionally, urbanization and greater awareness of health and wellness contribute to the growing demand for household and personal care items. These products encompass a wide range of goods such as cleaning agents, toiletries, cosmetics, and skincare products. The expanding market in developing countries presents significant opportunities for manufacturers and retailers of household and personal care products to meet the evolving needs and preferences of consumers. Consequently, there is a notable uptick in production and distribution efforts to cater to the escalating demand in these regions.

RESTRAINING FACTORS

"Health and environmental effects due to high exposure are hindering the market"

The impact of high exposure to Ethylene Oxide (EO) on health and the environment is hindering the EO market. Elevated levels of exposure to EO have been linked to adverse health effects, including respiratory issues, skin irritation, and potential carcinogenicity. Furthermore, EO emissions contribute to air pollution and may contaminate soil and water sources, posing risks to ecosystems and human health. Consequently, there is growing scrutiny and regulation surrounding EO usage to mitigate these health and environmental hazards. Stakeholders within the EO market are increasingly prioritizing sustainable practices and seeking alternatives to minimize EO emissions and associated risks. Addressing these concerns requires collaborative efforts among industry players, regulators, and communities to promote safer handling and disposal practices, as well as the development of innovative technologies to reduce EO's environmental footprint while ensuring human health and safety.

ETHYLENE OXIDE (EO) MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Asia Pacific region dominates the market due to the increasing demand for textiles and consumer goods"

The Asia Pacific region, renowned as a worldwide centre for textile and apparel production, plays a pivotal role in propelling the global ethylene oxide (EO) market share. This prominence stems from the escalating demand for textiles and consumer goods incorporating EO or its derivatives. The region's status as a hub for manufacturing underscores its significant influence on the EO market dynamics. The burgeoning textile industry, fueled by consumer preferences and fashion trends, drives the demand for EO-based products. Moreover, the widespread adoption of EO and its derivatives in various manufacturing processes further solidifies the region's position as a key driver of market growth. As a result, the Asia Pacific region stands as a crucial contributor to the EO market, leveraging its robust industrial infrastructure and consumer base to sustain market momentum and meet the evolving needs of consumers.

KEY INDUSTRY PLAYERS

"Key players in the market are engaging in strategic partnerships and collaborations for market expansion"

Key industry players are actively pursuing strategic partnerships and collaborations with healthcare facilities, regulatory authorities, and academic institutions to glean valuable insights, enrich product portfolios, and broaden their market reach. These alliances facilitate the exchange of knowledge and resources, enabling companies to stay abreast of evolving market trends and regulatory requirements. By joining forces with healthcare facilities, companies can better understand end-user needs and tailor their solutions accordingly. Collaborations with regulatory bodies ensure compliance with industry standards and regulations, enhancing product quality and safety. Furthermore, partnerships with research institutions foster innovation and the development of advanced technologies, driving product differentiation and competitive advantage. Overall, these strategic alliances enable key players to leverage complementary expertise, optimize resources, and capitalize on emerging opportunities in the market landscape.

List of Market Players Profiled

• Reliance (India)
• Indian Oil (India)
• India Glycol Limited (India)
• Sinopec (China)
• CNPC (China)
• Nippon Shokubai (Japan)
• Formosa (Taiwan)
• Oriental Union Chemical (Taiwan)
• Indorama Ventures (Thailand)
• PTT Global Chemical (Thailand)
• Sharq (Saudi Arabia)
• Yansab (Saudi Arabia)
• Al Jubail Petrochemical Company (Saudi Arabia)
• BASF (Germany)
• Ineos (U.K.)
• Shell (U.K.)
• Huntsman (U.S.)
• Eastman (U.S.)
• LyondellBasell (U.S.)
• Dow Chemical (U.S.)
• Sibur (Russia)
• Kazanorgsintez (Russia)
• Sasol (South Africa)

INDUSTRIAL DEVELOPMENT

October 2023: BASF has expanded its ethylene oxide complex in Antwerp with a €500 million investment, boosting production capacity by 400,000 metric tons annually. The expansion includes a new ethylene oxide plant and increased capacities for EO derivatives, aiming to meet growing customer demand. This investment underscores BASF's commitment to supporting customer growth and enhancing its market position in Europe.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.