Published December 2023
Glycol ethers combine the solubility characteristics of both ethers and alcohols (or esters) as both functional groups (ether and hydroxyl [or carboxyl]) are present in the molecule. Over half of all glycol ether consumption (including Eseries and P-series) is for use as a solvent in various formulations, such as paints, inks and cleaning fluids. Nonsolvent uses for glycol ethers include hydraulic and brake fluids, anti-icing agents and chemical intermediates.
After a rebound in global demand during through part of 2022, preliminary estimates indicate that demand growth will remain flat through 2023 and will recover to pre-pandemic levels only after 2025. The market is currently amply supplied, although average global utilization rates are low.
The following pie chart shows world consumption of E-series glycol ethers:
The start-up of the new E-series glycol ether capacity in Saudi Arabia operated by Sadara, coupled with the slowdown in demand that started in 2019, has led to an oversupplied market. However, as only minor new capacity additions have been announced so far, the market is expected to recover in the next few years and reach a better balance by 2025. Future growth will be driven mainly by architectural and industrial coatings, as well as in brake fluids applications.
The following pie chart shows world consumption of P-series glycol ethers:
Consumption of E-series glycol ethers is dominated by mainland China, closely followed by Western Europe, other Asia- Pacific and the United States. In the P-series glycol ethers market, mainland China and Western Europe own the largest share. The world market is expected to recover in the next few years and reach a better balance by 2025. Future growth will be driven mainly by architectural and industrial coatings, as well as in brake fluids applications.
Overall consumption of glycol ethers is expected to grow at an average annual rate of about 3.0% through 2028, with Pseries growing at a slight faster pace than E-series glycol ethers. Toxicological and environmental concerns could,albeit to a limited extent, promote a shift toward P-series glycol ethers. Future growth in consumption will be driven by the development of the electronics and paint and coating markets in Northeast Asia and by paint and coating for the automotive market in India. About 260,000 metric tons of new additional capacity, mainly P-series glycol ethers, have been announced to come onstream in mainland China by 2024. Some older and higher-cost assets will likely close, but overcapacity will remain an issue for the next five years.
For more detailed information, see the table of contents, shown below.
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