ETHANOLAMINES MARKET ANALYSIS

The ethanolamines Market size is valued at US$ 3.71 Bn in 2024 and is expected to reach US$ 5.54 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031. Ethanolamines are colorless, viscous organic compound with molecular formula HOCH2CH2NH2. These are used as a feedstock in the manufacture of Monoethanolamines (MEA), Diethanolamines (DEA) and Triethanolamines (TEA), which finds wide application in the production of emulsifiers, detergents, polishes, chemical intermediates, corrosion inhibitors and pharmaceuticals. On the basis of application, the global ethanolamine market can be segmented as surfactants, herbicides, chemicals intermediates, textiles, gas treatments, gas treatment and metal treatment. Herbicides segment is expected to witness highest growth rate during the forecast period, followed by textile and surfactants. Other major applications of ethanolamine are in the field of corrosion inhibitors for metal protection and construction chemicals.

Market Regional Insights:

• Asia Pacific held the largest share of over 40.0% in 2023. The significant growth of gas treatment processes, along with swiftly rising demand from the cleaning products industry, is the key factor boosting market growth in the region. The competitive business is bringing more opportunities owing to hot melt adhesives vast application, which helps propel the product demand.
• North America is estimated to register a CAGR of 5.0 %, in terms of revenue from 2024 to 2031. The manufacturing sector in the region is anticipated to be the key factor for the market growth owing to the presence of some of the largest ethanolamines manufacturers, including Huntsman Corporation.
• Europe is predicted to witness steady growth across the forecast period. Increasing usage in personal care products across developed countries in Western Europe, including Italy, the U.K., Germany, France, and Spain, will positively influence market growth in the region.

Figure 1. Global Ethanolamines Market Share (%), By Region, 2024

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Analyst’s Views:

The global ethanolamines market is expected to see steady growth over the next five years. Rising demand from several end-use industries, such as cleaning products, gas treatment, and cement, will drive demand for ethanolamines. Increasing natural gas transportation and the growing personal care industry are also positive drivers for the market. However, the availability of substitutes may limit the market expansion to some extent. Stringent environmental regulations regarding Volatile organic compounds (VOC) emissions can hamper the market as well.

Asia Pacific dominated the global market share last year due to strong demand from China, India, and other developing nations. Rapid industrialization, rising disposable incomes, and an increasing population are fueling growth of end-use industries in the region. North America and Western Europe are relatively mature markets but still hold significant shares. Meanwhile, Central and South America and the Middle East and Africa offer lucrative prospects, and their shares are forecast to increase steadily. Key players may find opportunities through capacity expansion, product innovation, strategic partnerships, and by focusing on high growth regions. The development of bio-based ethanolamine products can also boost prospects. However, fluctuating raw material prices remain a challenge. Overall, the global ethanolamines market is expected to grow stably, driven by rising demand from end-use industries worldwide, with Asia Pacific leading the way.

Market Drivers:

Increasing demand from cleaning products industry: The cleaning products industry has seen significant growth in recent years, driven by rising consumer demand for effective and environmentally friendly household and industrial cleaning solutions. Ethanolamines are largely used as pH adjusters and corrosion inhibitors in various cleaning formulations, such as dish washing liquids, laundry detergents, hard surface cleaners, and many industrial degreasing agents. According to the UN COMTRADE database, the global trade of cleaning preparations increased by over 12% from 2019 to 2020, with further growth projected. As cleaning product manufacturers aim to reduce harsh chemicals in their products and replace them with bio-based and recyclable components, the need for multi-functional ingredients like ethanolamines is growing.

Various types of ethanolamines, like monoethanolamines (MEA), diethanolamines (DEA) and triethanolamine (TEA), are well-suited to fulfill the stringent formulation requirements of modern sustainable cleaners. MEA and DEA allow precise control of pH for effective stain removal. TEA also has moisturizing properties that are beneficial for hand dishwashing liquids and laundry products. Furthermore, ethanolamines are inexpensive and readily biodegradable, meeting the environmental standards of Europe, North America, and other major markets. Their adaptability across powder, liquid, and gel formulations is another advantage. With rising health awareness and regulations restricting toxic chemicals, the cleaning industry's shift towards green chemistry helps drive consistent demand for multi-use alkanolamines.

Increasing usage in personal care products: The global ethanolamines market is being propelled by rising demand from the personal care industry. Ethanolamines such as monoethanolamines (MEA) and triethanolamine (TEA) are increasingly being used in the formulation of various personal care products like soaps, detergents, hair conditioners, and skin creams. As consumer spending on personal grooming and hygiene rises around the world, the incorporation of these solvents and emulsifiers in cosmetic formulations is expected to surge. Their effectiveness in regulating the pH of products, improving their texture and appearance, and adding a pleasant smell makes ethanolamines suitable for use across a wide range of skin and hair care items.

Current trends point towards a growing emphasis on natural and organic personal care worldwide. This presents a massive opportunity for ethanolamines, which are plant-derived and enable manufacturers to label their goods as containing 'natural ingredients'. Ethanolamines are well-suited to fill the function of synthetic preservatives and emulsifiers that are now being avoided due to health and environmental concerns. Their non-irritating nature and ability to solubilize oil and water mixtures make them compatible with formulating natural cosmetics. As consumers increasingly prefer greener alternatives, natural personal care brands utilizing ethanolamines in their recipes are expected to capture more market share in the coming years.

Rising demand from gas treatment processes: The demand for ethanolamines is growing significantly owing to their extensive use in gas treatment processes across various industries. Ethanolamines such as monoethanolamines (MEA) and diglycolamine (DGA) play a vital role in removing acid gases like carbon dioxide and hydrogen sulfide from natural gas and refinery gas streams. With rapidly expanding natural gas production and refining activities worldwide, the requirement for acid gas removal processes is on the rise. According to the International Energy Agency (IEA), global natural gas production increased by over 4% year on year in 2021. This upward trend is projected to continue in the coming years as well, thereby generating strong demand for ethanolamines from the oil and gas industry.

Besides acid gas scrubbing, ethanolamines also find wide applications as corrosion inhibitors, lubricant additives, cleaning agents, and personal care products. The growing significance of ethanolamines as an eco-friendly alternative to methanol in gas treatment is another factor stimulating the market. Various field studies conducted by the IEA have demonstrated ethanolamines' effectiveness in attaining the emissions standards for greenhouse gases and other air pollutants from natural gas, making their adoption more desirable. Furthermore, the rising emphasis on carbon capture and storage (CCS) technologies for curbing industrial emissions will augment the consumption of ethanolamines, which are critical enablers in these advanced processes. With pioneering CCS projects underway in regions like Europe and China, the future outlook for ethanolamine demand remains positive.

Market Opportunities:

• Development of bio-based ethanolamines: The development of bio-based ethanolamines produced from renewable feedstocks such as corn, sugar beet, and sugarcane has the potential to provide significant opportunities for growth in the global ethanolamines market. As environmental sustainability becomes an increasingly important factor for many industries and consumers, the ability to offer "green" bio-based products allows companies to capitalize on demand for more eco-friendly alternatives. The transition to more sustainable bio-based raw materials could also help reduce market dependency on petroleum-derived feedstock over time. Some early research is already being carried out on technologies to produce ethanolamines through biological routes such as fermentation. For example, studies conducted by the National Renewable Energy Laboratory in the U.S. have shown promising preliminary results for producing monoethanolamines through the fermentation of sustainable sugars (NREL, 2020). Further refining these emerging bio-based production methods and demonstrating commercial viability would open up a whole new segment of ethanolamines derived from non-fossil fuel sources. This development would parallel similar ongoing advances in bio-based versions of other bulk chemicals.
• Growth in emerging markets: Growth in emerging markets is poised to provide significant opportunities for the global ethanolamines market. Countries such as China, India, Brazil, and other Southeast Asian nations are undergoing rapid industrialization and infrastructure development. This development leads to increased demand for personal care products, detergents, gas treatment, cement additives, metalworking fluids, and other applications where ethanolamines are used.
• For instance, the growing middle class in India and China is driving increased consumption of personal care and home cleaning products. As disposable incomes rise, more people are able to afford premium personal care items containing ethanolamines. The expanding cement and construction industries in these nations also spur demand for cement additives. As people move to cities, infrastructure projects proliferate to provide housing, roads, bridges, etc., creating opportunities for ethanolamine consumption.
• Increased R&D activities: Increased research and development activities in the ethanolamines market provide a huge opportunity for growth and innovation. Ethanolamines have wide industrial applications in chemical neutralization processes, electroplating baths, surfactants, herbicides, and fungicides. With growing investments in research, new product variants and applications can be identified, which helps drive greater demand.
• As environmental regulations around the world become more stringent, R&D focusing on developing bio-based and sustainable ethanolamine derivatives will gain more importance. Researchers are working on extracting ethanolamines from renewable feedstocks such as plant cellulose instead of traditional petroleum sources. This can provide environmental benefits. According to a 2021 report by the United Nations Environment Programmed, bio-based chemical production needs to increase five-fold by 2030 to reduce dependency on fossil fuels and lower carbon footprint of chemical industries. Increased governmental and private investments in renewable chemistry encourage more research in this direction.

Market Trends:

Shift towards water-based production technologies: The shift towards water-based production technologies is having a notable influence on the global ethanolamines market. Many companies are transitioning their manufacturing processes for ethanolamines to utilize water-based technologies instead of traditional oil-based or petrochemical-based methods. This trend is being driven by both environmental regulations as well as economic incentives to reduce production costs.

Water provides a more sustainable solvent for these reaction processes compared to petroleum derivatives. The use of water helps to lower air pollution and greenhouse gas emissions throughout the ethanolamines life cycle from production to end use. It also enables manufacturers to minimize their dependence on crude oil price fluctuations. Several leading companies have successfully commercialized water-based technologies for ethanolamines over the past 5 years and are seeing efficiencies such as reduced energy usage in their plants.

This transition is encouraging the expansion of water-based capacity worldwide. For example, the largest global producer of ethanolamines recently reported investing over US$1 billion to increase their water-based capacity for monoethanolamines (MEA) by 60% by 2023, citing rising customer preference for more sustainable options

Consolidation activities by leading players: The market has been witnessing significant consolidation activities by leading players in recent times. Many major companies have adopted strategies like mergers and acquisitions to strengthen their product portfolios and expand their global production footprint. For instance, in 2021, Dow acquired the Brazilian ethanolamines assets of Grupo Idesa to enhance its integrated value chain in Latin America. This deal allowed Dow to gain access to competitively advantaged flexible assets with capacity of 135kta of ethanolamines in Mexico.

Though not directly related to ethanolamines, this US$1.6 billion deal made BASF a global leader in high-performance plastics and demonstrated the company's focus on specialty chemicals through M&A. Such consolidation moves aim to achieve economies of scale, better leverage manufacturing assets, and improve competitiveness. They particularly benefit the acquiring companies by increasing market share and diversifying revenues across different geographies.

Market Restraints:

Stringent regulations regarding emissions: Stringent government regulations regarding emissions from industries that use ethanolamines are proving to be a challenge for the growth of the market. Many countries and regional blocs have implemented strict norms around the permissible limits of greenhouse gases that can be emitted from manufacturing facilities. This is greatly impacting the demand for ethanolamines, which are widely used as chemical intermediates and neutralizing agents in various industrial processes.

The emission norms laid down by regulatory bodies like the European Union (EU) and the US Environmental Protection Agency (EPA) have become a lot more stringent in the last 5 years. As per the data published by the EU in 2021, the permissible limits for emissions of gases like carbon dioxide, methane etc.

Counter Balance: Implementing and investing in advanced emission control technologies such as catalytic incineration, absorption, or adsorption to reduce the release of volatile organic compounds (VOCs) and other emissions during the production of ethanolamines. And optimizing production processes to minimize waste and emissions, for example, by improving reaction efficiency and recycling unreacted materials.

Health hazards associated with ethanolamines: Health hazards associated with ethanolamines are a major concern, restraining the growth of the market. Ethanolamines such as monoethanolamines (MEA), diethanolamines (DEA) and triethanolamine (TEA) are corrosive in nature and can severely damage eyes and skin upon contact. Prolonged or repeated exposure to these substances can potentially lead to serious health issues like blindness, burns, and even cancer.

According to a report published by the National Cancer Institute in 2021, occupational exposure to DEA is associated with an increased risk of various cancers, including esophageal and lung cancer. The report cited a study conducted on Chinese workers, which found that those with high DEA exposure levels had 3.6 times higher risk of esophageal cancer as compared to low exposure workers. Another study referenced in the report linked DEA exposure to liver, esophageal, and lung tumors in laboratory animals. Such compelling evidence from research reaffirms the carcinogenic properties of DEA.

Counterbalance: Implementing and enforcing strict safety protocols in the handling and processing of ethanolamines to minimize the risk of exposure to workers and the surrounding environment. And providing and mandating the use of personal protective equipment (PPE) for workers, as well as investing in advanced ventilation and containment systems to reduce exposure levels.

Figure 2. Global Ethanolamines Market Share (%), By Product Type, 2024

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Recent Developments:

• In September 2021, Huntsman announced several capacity expansion projects. The company revealed plans to increase manufacturing capacity at its facility in Petfurdo, Hungary, to meet the growing demand for polyurethane catalysts and specialty amines. Huntsman Corporation is an American multinational manufacturer and marketer of chemical products for consumers and industrial customers.
• In 2020, Dow Chemical Company announced that it had entered into an agreement to sell its Acetone Derivatives business to ALTIVIA Ketones & Additives, LLC. The business included the production of ethanolamines, and the move was aimed at optimizing Dow's portfolio and focusing on its core businesses.

Top Companies in this Market

• The Dow Chemical Company,
• INEOS Group Ltd.,
• SABIC,
• LyondellBasell Industries N.V.,
• Huntsman Corporation,
• China Chemical & Petroleum Corporation,
• BASF-YPC Company Ltd.,
• Sintez OKA LLC,
• Daicel Chemical industries Ltd.,
• Celanese Corporation.

Definition: Ethanolamines are organic chemical compounds used in various industries. Specifically, ethanolamine, also known as 2-aminoethanol, monoethanolamines, or MEA, is a colorless, viscous liquid with an odor reminiscent of ammonia. It is commonly used as a solvent in the synthesis of detergents, in gas purification, and in the manufacture of antibiotics. Ethanolamines are also utilized in a wide range of applications, including cosmetics and personal care products. Diethanolamines (DEA) and triethanolamine (TEA) are other examples of ethanolamines, which are used as emulsifiers, fragrances, pH adjusters, and emulsifying agents in various products.