Diethylene Glycol Monoethyl Ether Market Size, Share & Trends Analysis Report By Application (Paints, Coatings, & Inks, Chemical Intermediate, Pharmaceutical & Personal Care), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global diethylene glycol monoethyl ether market size was estimated at USD 374.9 million in 2018 and is expected to witness a CAGR of 5.3% from 2019 to 2025. The consumption of DEGEE is dominated by its application in floor polish and paints, coatings, and inks owing to its superior properties as a solvent.

The rising adoption of diethylene glycol monoethyl ether as a coalescing agent in the production of water-based coatings is a major factor driving the industry. There is an ascending demand for waterborne coatings in architectural and industrial sectors owing to their environment-friendly nature, which is expected to positively influence the demand for DEGEE market.

Over the past few years, there has been a shift in preference toward coatings with low volatile organic compound (VOC) emissions and non-hazardous nature in the automotive, packaging, and construction industries. This has facilitated the utilization of waterborne coatings in numerous end-use industries. This factor is anticipated to benefit the demand for DEGEE as a solvent in water-based coatings.

Ethylene oxide is an important intermediate product for manufacturing solvents, plastic, and surfactants. In addition, it is a raw material used for the chemical production of DEGEE. Suppliers of ethylene oxide are major petrochemical companies such as Royal Dutch Shell, Huntsman International LLC, Reliance Industries Limited, and China National Petroleum Corporation. Given their strong capital investment capacity, these companies are focusing on forwarding integration across the market value chain by developing new production technologies for glycol ethers.

DEGEE market has gained acceptance by major regulatory bodies such as the U.S. Food and Drug Association (FDA) and the European Commission for its usage as an additive in topical products. Aczone (dapsone) gel is one of the products containing DEGEE and is commonly prescribed by dermatologists for acne treatment. Furthermore, the product is highly water-soluble and is likely to gain wider acceptance in the production of poorly water-soluble drugs. In the pharmaceutical industry, it is suitable for the production of oral, topical, transdermal, and injectable products.

Application Insights

Floor polish application dominated the diethylene glycol monoethyl ether market in 2018 and accounted for over 30% of the global volume. DEGEE is known for its multifunctional properties to clean stains and add a glossy finish, especially on wooden flooring, which has resulted in a strong demand for the product.

Paints, coatings, and inks are the second-largest application for the product and the segment is anticipated to exhibit a CAGR of 5.5%, in terms of revenue. This growth can be attributed to the biodegradable property of DEGEE-based paints and coatings. They are highly miscible in water and do not have any adverse effects on human health as well as the environment, which is expected to aid the product demand over the coming years.

The product is used as a solvent in the manufacturing of industrial chemicals. It has gained preference as a chemical intermediate due to its compatibility with other chemicals. In the pharmaceutical and personal care sector, DEGEE is commonly termed Transcutol. It is majorly used in skin treatment formulations in the form of topical creams or gels. The product is considered to be a safe and tolerable pharmaceutical-grade glycol ether when used at 99.9% purity.

Diethylene glycol monoethyl ether is used in the formulation of various cosmeceutical products as it has skin treatment properties. It is particularly gaining importance in antimicrobial soaps, antiperspirants, nail polish removers, fragrances, hair dyes, and in products for treating acne, marks, and scars owing to its super solubilizing and efficacy boosting properties. Significantly ascending demand for anti-acne products can be attributed to various factors such as the prevalence of hormone-related diseases and unhealthy lifestyles and inappropriate eating habits of consumers. Furthermore, the product is used in sunscreens and BB creams to enhance the properties of protective ingredients.

Regional Insights

Asia Pacific held a dominant share in terms of consumption in 2018 and is expected to expand at the fastest CAGR of 5.9% in terms of revenue from 2019 to 2025. This is attributed to growing investments in the residential and commercial construction sectors in the region. China and India are likely to witness significant growth owing to the increasing adoption of low VOC paints.

Europe has witnessed a rise in demand for the solvent, majorly due to the establishment of stringent regulatory policies regarding the use of hazardous and toxic chemicals. Countries such as Germany, the U.K., and the Netherlands are anticipated to drive the regional market for diethylene glycol monoethyl ether.

Europe is anticipated to witness a considerable increase in the production of oil and gas with major companies such as Total SA, PKN Orlen SA, and ExxonMobil Refining and Supply Co., planning expansions of their production facilities in the region. This is expected to largely benefit the petrochemical industry of the region. The major raw material used in the production of DEGEE is ethylene oxide, which is largely dependent on the petrochemical industry. Therefore, the growth of the petroleum refining sector in Europe is expected to benefit the production of DEGEE, which in turn, is driving the market.

Latin America, on the other hand, is anticipated to witness a slow growth rate over the forecast period, due to the high dependency of the region on chemical imports. However, the presence of major paints and coatings manufacturers such as BASF SE, PPG, Axalta, and Valspar are anticipated to benefit the market penetration of glycol ethers.

The Middle East and Africa market is anticipated to witness a growth rate of 3.4% in terms of revenue over the forecast period. However, the availability of crude oil reserves is anticipated to attract global manufacturers to set up their production facilities in the region. In addition, the lifting of economic sanctions in Iran and economic diversification among the oil-exporting countries of the Gulf Cooperation Council are expected to contribute to the production of ethylene oxide raw material, and hence it is anticipated to positively impact the growth of DEGEE manufacturing in MEA.

Diethylene Glycol Monoethyl Ether Market Share Insights

North America is home to major paints and coatings manufacturers including PPG; Sherwin Williams Co.; RPM International, Inc.; and Axalta Coating Systems. These companies are constantly developing new environment-friendly products using different solvents and ingredients. The presence of multinational paints and coatings manufacturers in the region is anticipated to benefit the demand for DEGEE in this application segment.

Manufacturers of diethylene glycol monoethyl ether are required to comply with particular regulations in regards to the exposure limits of workers in certain countries. For instance, there are no specific requirements in Mexico, Australia, and some parts of Canada such as Alberta and British Columbia. However, in Ontario, the exposure limit for the product is 30 ppm TWA and 165 mg/m3 TWA.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global diethylene glycol monoethyl ether market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Paints, Coatings & Inks

  • Chemical intermediate

  • Floor Polish

  • Pharmaceutical & Personal Care

  • Other Applications

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia