Diethylene Glycol Market in Saudi Arabia

Diethylene Glycol in Saudi Arabia Trends and Forecast

The future of the diethylene glycol market in Saudi Arabia looks promising with opportunities in the polymer, coating, paint, chemical, plastic, and building & construction markets. The global diethylene glycol market is expected to reach an estimated $3.0 billion by 2031 with a CAGR of 4.6% from 2025 to 2031. The diethylene glycol market in Saudi Arabia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are growing urbanization and industrialization in emerging economies, increasing usage of DEG in the manufacturing of solvents, dyes, and adhesives, as well as rising interest in lightweight cars with the goal of improving fuel economy.

• Lucintel forecasts that, within the application category, personal care is expected to witness the highest growth over the forecast period.
• Within the end use category, paints will remain the largest segment due to increasing ethylene glycol use in water-based coatings as a substitute for high-VOC-emitting solvent-based coatings.

Emerging Trends in the Diethylene Glycol Market in Saudi Arabia

Saudi Arabia diethylene glycol market expands in 2025, anchored by SABICs petrochemical dominance and Vision 2030 diversification. DEG fuels polyester resins, antifreeze, and plasticizers amid construction booms and automotive growth. Sustainability mandates and export surges to MENA markets drive eco-innovations, countering oil volatility. Infrastructure megaprojects and regulatory pushes for low-toxicity variants enhance resilience, positioning Saudi Arabia as a regional leader in high-value chemicals with balanced industrial and green growth.

• Trend in Infrastructure-Driven Demand: Vision 2030 megaprojects spike DEG use in construction resins and plasticizers, projecting 16% growth. Urban expansions in Riyadh demand durable materials. Impacts include job creation in Jubail hubs, supply chain localization, and GDP boosts via resilient builds, elevating Saudi Arabia role in sustainable development.
• Trend in Petrochemical Export Surge: Enhanced refining capacities target MENA exports, yielding a 15% volume rise. Trade pacts facilitate flows. This diversifies revenues beyond oil, mitigates import risks, and strengthens SABICs global footprint, fostering economic stability.
• Trend in Automotive Sector Localization: Local assembly lines integrate DEG antifreeze for vehicles, aligning with giga-projects like NEOM. This drives 14% segment expansion. Benefits encompass emission reductions, tech transfers from partners, and export gains, advancing Saudi Arabia mobility ecosystem.
• Trend in Sustainability Regulation Push: Low-toxicity DEG variants meet environmental standards, targeting 12% adoption in coatings. Derived from cleaner processes, they cut hazards. Implications involve compliance incentives, waste minimization, and premium market access, greening Saudi Arabia chemical profile.
• Trend in Pharmaceutical Application Growth: Biotech investments utilize DEG solvents for intermediates, projecting 13% demand. Regulatory approvals ensure purity. This accelerates drug production, supports health diversification, and enhances regional med-tech contributions.

These trends fuel 4.0% annual DEG market growth in Saudi Arabia by 2030, embedding diversification and sustainability. They leverage Vision 2030, boost exports, and mitigate risks, transforming the market into a resilient, innovation-led powerhouse.

Recent Developments in the Diethylene Glycol Market in Saudi Arabia

Saudi Arabia diethylene glycol market in 2025 advances via capacity boosts and policy alignments. Developments in production and applications harness Jubail complexes, amplifying DEG in resins and coolants. Amid export growth, these drive competitiveness and green shifts.

• Development in Production Capacity Expansion: SABIC raised DEG output by 20% in 2024 via Jubail upgrades, stabilizing amid demand surges. Tech enhancements improve yields. Impacts include 15% export growth to the UAE, cost efficiencies, and supply resilience, supporting Vision 2030 self-sufficiency.
• Development in Price Momentum Shift: Q2 2024 prices hit 730 USD/MT, up from supply constraints and infrastructure pulls. Vision projects sustained demand. This offsets volatility, aids profitability, and attracts FDI, bolstering market confidence.
• Development in Export Volume Rise: 2024 shipments grew 51% to MENA, led by SABIC. Trade optimizations cut logistics. Effects encompass revenue diversification, regional dominance, and 12% market uplift, reducing oil dependency.
• Development in Green Formulation Pilots: 2024 initiatives produced low-emission DEG for paints, aligning with sustainability goals. Pilots in Yanbu cut hazards 25%. This spurs R and D, ensures regulatory compliance, and drives 11% adoption in construction.
• Development in Automotive Integration Projects: Partnerships integrated DEG coolants in local EVs by mid-2024, projecting 14% demand. Enhances efficiency. Impacts include performance gains, job growth, and sector exports, fostering industrial localization.

These developments propel 3.9% DEG market growth in Saudi Arabia by 2030, integrating innovation and trade. They counter disruptions, advance green agendas, and amplify economic value, solidifying regional leadership.

Strategic Growth Opportunities for Diethylene Glycol Market in Saudi Arabia

The diethylene glycol (DEG) market in Saudi Arabia is witnessing substantial growth across various applications, driven by the country’s industrial expansion, increased consumer demand, and government initiatives under Vision 2030. As the demand for DEG increases across sectors such as textiles, automotive, cosmetics, construction, and chemicals, there are significant opportunities for both local and international players to grow their presence. This expansion is supported by technological advancements and policy incentives aimed at industrial diversification, positioning DEG as a critical enabler in Saudi Arabia’s evolving economy.

• Textile Industry Expansion: The textile industry in Saudi Arabia is growing rapidly, driving the demand for Diethylene Glycol as a key component in the production of polyester fibers and fabrics. DEG plays a crucial role in improving the quality, durability, and efficiency of textile products. With the Saudi Vision 2030 initiative focusing on industrial diversification, the textile sector is expected to receive more investment, further increasing the need for DEG. This offers manufacturers opportunities for innovation and product development to cater to both local and international markets.
• Automotive Sector Development: Saudi Arabia’s growing automotive sector presents an opportunity for Diethylene Glycol to be used in the production of antifreeze solutions and coolants. As the demand for vehicles rises, particularly with the increasing presence of electric vehicles, the need for high-performance coolants and heat transfer fluids grows as well. DEG is essential in these applications due to its thermal stability and non-corrosive properties, providing an avenue for DEG suppliers to meet new demands in a rapidly expanding market.
• Cosmetics and Personal Care: Diethylene Glycol is used in the formulation of personal care products such as moisturizers, shampoos, and lotions. With the increasing demand for high-quality personal care products in Saudi Arabia, driven by a growing population and higher disposable incomes, there is significant growth potential. DEG’s ability to function as a solvent and emollient enhances product formulations, positioning it as a key ingredient in the expanding beauty and skincare market, offering further prospects for DEG manufacturers.
• Construction and Paints: The ongoing construction boom in Saudi Arabia, particularly in line with the Vision 2030 goals, is creating new demand for construction chemicals and coatings. Diethylene Glycol is used in the formulation of paints, coatings, and sealants due to its ability to improve film formation and enhance the stability of the products. As the demand for sustainable and high-performance materials increases, DEG’s role in the construction sector is expected to grow, providing opportunities for producers to supply these specialized applications.
• Chemical Manufacturing and Industrial Processes: The growing demand for industrial chemicals in Saudi Arabia provides an opportunity for DEG to be utilized in a range of chemical manufacturing processes. DEG is used as a feedstock in the production of solvents, resins, and other chemical products. With Saudi Arabia’s focus on diversifying its economy and strengthening its chemical manufacturing sector, DEG’s role in facilitating the production of a wide range of chemical products positions it as a key enabler of industrial growth.

The diethylene glycol market in Saudi Arabia is set for significant growth, driven by the expanding demand across key industries like textiles, automotive, cosmetics, construction, and chemicals. These opportunities align with the nation’s long-term economic plans under Vision 2030. As DEG continues to support industrial development and innovation, its role as a crucial ingredient across various applications will solidify its place as a key market driver.

Diethylene Glycol Market in Saudi Arabia Driver and Challenges

The diethylene glycol (DEG) market in Saudi Arabia is shaped by several key drivers and challenges, including technological advancements, economic policies, and regulatory factors. As the country diversifies its economy and increases industrial output, understanding these drivers and challenges is essential for navigating the DEG market. While these factors promote growth, they also present obstacles that require adaptive strategies by market participants.

The factors responsible for driving the diethylene glycol market in Saudi Arabia include:
• Technological Advancements: Technological innovations in DEG production, such as more efficient and sustainable manufacturing processes, have contributed to reducing production costs and enhancing the product’s quality. These advancements allow manufacturers to increase capacity and meet growing market demand while maintaining competitiveness. Additionally, the rise of digitalization and automation in production facilities in Saudi Arabia is expected to boost the overall efficiency of DEG production, further propelling market growth.
• Economic Diversification Initiatives: Saudi Arabia’s Vision 2030 focuses on diversifying the economy and reducing dependence on oil exports. As industries such as chemicals, construction, and automotive expand, DEG is increasingly in demand. The government’s push for industrialization and increased investment in various sectors drives the need for chemical inputs like DEG, making it a crucial component of the country’s broader economic transformation.
• Rising Demand for Consumer Products: With increasing consumer spending in Saudi Arabia, there is a growing demand for high-quality textiles, personal care products, and other consumer goods that utilize DEG. This shift towards higher consumption of such products, especially among the younger population, supports the sustained demand for DEG. It also encourages manufacturers to innovate and tailor their products to local market preferences, further boosting DEG sales.
• Supportive Regulatory Environment: The government has implemented policies that support industrial growth, including subsidies and investment incentives for manufacturing sectors. These initiatives encourage foreign and local investments in DEG production and distribution. The availability of favorable policies provides a stable environment for DEG suppliers, allowing them to expand operations and meet market demand more effectively, thereby benefiting from the overall growth in industrial sectors.
• Infrastructure Development: Ongoing and large-scale infrastructure projects in Saudi Arabia, driven by both private and public investments, create new opportunities for DEG in construction-related applications. The development of sustainable and eco-friendly construction materials and coatings that require DEG enhances the potential for market growth. With more urbanization and new developments, the demand for high-performance construction chemicals, including DEG-based products, is expected to rise significantly.

Challenges in the diethylene glycol market in Saudi Arabia are:
• Regulatory Challenges: Stringent regulations around chemical manufacturing and environmental safety could present challenges for DEG producers. Compliance with environmental standards related to emissions, waste disposal, and raw material sourcing may lead to increased operational costs. Failure to meet these standards could result in penalties or restricted market access. Producers must adapt to these regulations by investing in cleaner technologies and ensuring compliance, which may increase production costs and affect profitability.
• Supply Chain Issues: Saudi Arabia’s dependence on imports for raw materials in DEG production creates potential risks related to supply chain disruptions. Geopolitical factors, trade barriers, or logistical challenges could disrupt the steady supply of essential raw materials, impacting DEG production. Manufacturers may need to establish more resilient supply chains or diversify their raw material sources to mitigate these risks and ensure consistent production.
• Market Saturation in Some Sectors: Certain sectors, particularly in chemicals and textiles, may experience market saturation, limiting the growth opportunities for DEG in those applications. As competition increases and product differentiation becomes more challenging, DEG manufacturers may need to explore niche markets or innovate to stay competitive. Market saturation could result in slower growth and price pressures, making it necessary for producers to focus on cost-efficiency and innovation to sustain profitability.

The diethylene glycol market in Saudi Arabia is impacted by various drivers such as technological advancements, economic diversification, and regulatory support, which promote growth across multiple sectors. However, challenges like regulatory compliance, supply chain vulnerabilities, and market saturation could hinder the full potential of DEG. Stakeholders will need to adapt to these dynamics by leveraging opportunities for innovation, improving efficiency, and ensuring regulatory compliance, to maximize DEG’s role in Saudi Arabia’s evolving industrial landscape.

List of Diethylene Glycol Market in Saudi Arabia Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, diethylene glycol companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the diethylene glycol companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7

Diethylene Glycol Market in Saudi Arabia by Segment

The study includes a forecast for the diethylene glycol market in Saudi Arabia by application and end use.

Diethylene Glycol Market in Saudi Arabia by Application [Shipment Analysis by Value from 2019 to 2031]:

• Personal Care
• Chemical Intermediate
• Polyester Resin
• Solvent
• Plasticizer
• Others

Diethylene Glycol Market in Saudi Arabia by End Use [Shipment Analysis by Value from 2019 to 2031]:

• Polymers
• Coatings
• Paints
• Chemicals
• Plastics
• Building & Construction
• Others

Features of the Diethylene Glycol Market in Saudi Arabia

Market Size Estimates: Diethylene glycol in Saudi Arabia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Diethylene glycol in Saudi Arabia market size by application and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different application and end use for the diethylene glycol in Saudi Arabia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the diethylene glycol in Saudi Arabia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the diethylene glycol market in Saudi Arabia?
Answer: The major drivers for this market are growing urbanization and industrialization in emerging economies, increasing usage of DEG in the manufacturing of solvents, dyes, and adhesives, as well as, rising interest in lightweight cars with the goal of improving fuel economy.
Q2. What are the major segments for diethylene glycol market in Saudi Arabia?
Answer: The future of the diethylene glycol market in Saudi Arabia looks promising with opportunities in the polymer, coating, paint, chemical, plastic, and building & construction markets.
Q3. Which diethylene glycol market segment in Saudi Arabia will be the largest in future?
Answer: Lucintel forecasts that personal care is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the diethylene glycol market by application (personal care, chemical intermediate, polyester resin, solvent, plasticizer, and others),

Q.1. What are some of the most promising, high-growth opportunities for the diethylene glycol market in Saudi Arabia by application (personal care, chemical intermediate, polyester resin, solvent, plasticizer, and others), and end use (polymers, coatings, paints, chemicals, plastics, building & construction, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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