Ethylene Glycol Diacetate (EGDA) Market

Ethylene Glycol Diacetate (EGDA) Market Analysis

The Ethylene Glycol Diacetate Market size is estimated at 66.67 kilotons in 2025, and is expected to reach 82.28 kilotons by 2030, at a CAGR of 4.30% during the forecast period (2025-2030).

The COVID-19 pandemic had a significant impact on the ethylene glycol diacetate (EGDA) market. During the pandemic, disruptions in supply chains, reduced industrial activities, and decreased demand for solvents in various applications led to a decline in the market. However, the market has shown signs of recovery post-pandemic. As industries resumed operations and global trade normalized, the demand for EGDA began to rebound.

• Rising demand from the paints and coatings industry and increasing demand from the foundry industry drive the ethylene glycol diacetate market.
• Environmental concerns, regulatory limits, and volatile raw material prices are expected to hinder the ethylene glycol diacetate market.
• EGDA, leading the charge in the chemical industry's sustainable transformation and pioneering sustainable solutions in diverse industries would offer opportunities during the forecast period.
• Asia Pacific dominates the ethylene glycol diacetate market due to increasing consumption from countries such as China, India, and Japan.

Ethylene Glycol Diacetate (EGDA) Market Trends

Resin Segment to Dominate the Market

• EGDA, or Ethylene Glycol Diacetate, serves as a pivotal binder in resin formulations for crafting cores and molds in foundries. This binding property is essential for creating robust structures capable of withstanding the high temperatures of molten metal during casting.
• Besides its binding role, EGDA functions as a solvent within foundry resins. It aids in dissolving resin components and additives, ensuring their even dispersion.
• Foundries increasingly favor EGDA resin formulations due to their eco-friendly profile and lower toxicity compared to alternative binders.
• EGDA plays a crucial role in organic resin formulations by serving as a cross-linking agent and solvent and enhancing flexibility, underlining its multifaceted importance.
• China, India, the United States, Russia, Germany, Japan, Mexico, and Brazil are key players in the global foundry market. Recent investments in this sector are pointing toward a growing demand for EGDA.
• In April 2024, India's Gautam Casting Group responded to rising domestic demand by setting up a new foundry equipment plant. This plant, currently under construction, is tailored for a Sand mixing capacity of 40 tones per hour, aiming for a productivity of 60 molds per hour.
• Manufacturers are increasingly focusing on curbing foundry emissions. Given that low-emission binders can significantly cut down on harmful pollutants during casting, the eco-friendly profile of EGDA positions it favorably for heightened demand in the foundry sector soon.
• Moreover, growing research and innovations in producing organic resins are also expected to contribute to the demand for EGDA in the coming years.

Asia-Pacific to Dominate the Market

• Countries like China and India have robust chemical manufacturing industries, which contribute significantly to the production and supply of EGDA.
• According to the China National Coatings Industry Association, the paints and coatings industry has been registering a growth of 7% in recent years with the presence of over 10,000 coating manufacturers in China, including global companies like Nippon Paint, Akzo Nobel NV, among others. Paints and coatings companies have been increasingly investing in China. For instance,
• In April 2024, Nipsea Group, the parent company of Nippon Paint China, intends to bring a new coatings plant online in Tianjin in June with an investment of CNY 960 million (~USD 133 million).
• In July 2024, Akzo Nobel NV announced that it would double coating production capacity in its Suzhou site in China by 2025. In addition, the company announced that it had invested in a new production line for water-based texture paints at its Songjiang site in Shanghai, China, boosting capacity for supplying more sustainable products. The new 2,500-square-meter facility is expected to produce Dulux products for various markets, such as interior decoration, architecture, and leisure.
• The Chinese adhesives market is estimated to witness healthy growth over the coming years, with growth in end-user segments such as packaging, automotive, construction, and electronic industries.
• According to statistics from the China Adhesive and Adhesive Tape Industry Association, the production of adhesives is expected to reach 8.55 million metric tons in 2025. Various manufacturers have been investing in the adhesives industry in the country through a production capacity expansion strategy, owing to the growth potential in the market. This, in turn, might affect the demand for EGDA in the coming years. For Instance,
• In June 2023, Henkel AG & Co. KGaA opened a new Adhesive Technologies business unit manufacturing facility within the Yantai Chemical Industry Park in Shandong Province, China. An investment of approximately RMB 870 million (USD 120.08 million) is expected to enhance Henkel’s production capacity of high-impact adhesive products in China.
• In India, according to European Coatings, several manufacturers are investing in new plants or expanding the capacity of their existing facilities, which is expected to support the demand for paints and coatings, thereby augmenting the demand for the market studied. For instance,
• In February 2024, Grasim Industries, part of Aditya Birla Group, entered the paint business with the launch of its brand, Birla Opus. In FY 23, Grasim doubled its planned investment to INR 10,000 crore (~USD 1,194 million) to establish its paint industry presence. The company aims for a total capacity of 1,332 million liters per annum (MLPA) with its site in Haryana.
• India is a huge adhesive market, as it has various developing sectors. In April 2024, TOYO INK INDIA unveiled intentions to increase its production capacity for solvent-based adhesives at its Gujarat, India facility. The plant's operations are slated to commence in April 2026, with projections indicating a 3.5-fold surge in the site's adhesive capacity.
• The Ethylene Glycol Diacetate (EGDA) market is affected by the expansion of the paints and coatings, adhesives, cosmetics, and pharmaceutical sectors. These industries' substantial investments and capacity expansions are expected to impact the demand for EGDA.

Ethylene Glycol Diacetate (EGDA) Industry Overview

The ethylene glycol diacetate (EGDA) market is partially consolidated in nature. The major players in the market (not in any particular order) include Eastman Chemical Company, Seqens, Shandong Lianchuang Fine Chemicals Co. Ltd, Somu Group of Companies, and Jiangsu Ruijia Food Ingredient Co. Ltd, among others.

Ethylene Glycol Diacetate (EGDA) Market Leaders

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