Diethylene Glycol Monobutyl Ether Market | CAGR of 4.6%

Overview

New York, NY – May 27, 2025 – The Global Diethylene Glycol Monobutyl Ether (DGBE) Market is set for steady growth, projected to reach USD 575.9 million by 2034, up from USD 367.3 million in 2024, expanding at a CAGR of 4.6% from 2025 to 2034.

Water-Based formulations lead the Diethylene Glycol Monobutyl Ether market, holding a 46.8% share in 2024. Their popularity stems from low toxicity and eco-friendly properties, making them ideal for paints, coatings, and cleaning agents. The solvent segment commands a 38.6% share in the Diethylene Glycol Monobutyl Ether market in 2024, driven by strong demand in industrial and commercial cleaning.

US Tariff Impact on Diethylene Glycol Monobutyl Ether Market

The EIA forecasts US ethane exports to rise from 492,000 b/d in 2024 to 540,000 b/d in 2025 and 640,000 b/d in 2026, driven by China’s waiver of a 125% tariff on US ethane. US ethane production is expected to increase from 2.8 million b/d in 2024 to 2.9 million b/d in 2025 and 3.1 million b/d in 2026, fueled by global petrochemical demand, cost-competitive ethane, and an expanding tanker fleet. USGC ethane exports averaged 380,600 b/d over the past year, with China importing 253,000 b/d.

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Exports dipped to 322,700 b/d for the week ending May 10 (136,000 b/d to China) but rebounded to 382,600 b/d the following week after the tariff waiver, with all volumes going to China. Ethane prices stayed stable, with Mont Belvieu Enterprise ethane at 26.375 cents/gal on May 9, up from 24.375 cents/gal on May 5. Unlike ethane, US propane and butane face a 10% tariff, and crude oil and LNG face higher duties, highlighting ethane’s key role in China’s petrochemical industry.

Key Takeaways

• The Global Diethylene Glycol Monobutyl Ether Market is expected to be worth around USD 575.9 million by 2034, up from USD 367.3 million in 2024, and grow at a CAGR of 4.6% from 2025 to 2034.
• In 2024, water-based formulations dominated the Diethylene Glycol Monobutyl Ether market, capturing 46.8%.
• Solvent applications held a significant market share, accounting for 38.6% in 2024 globally.
• The market in North America generated USD 176.1 million in 2024, showcasing significant demand.

Report Scope

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Key Market Segments

By Formulation Type Analysis

• Water-Based formulations lead the Diethylene Glycol Monobutyl Ether market, holding a 46.8% share in 2024. Their popularity stems from low toxicity and eco-friendly properties, making them ideal for paints, coatings, and cleaning agents. Offering excellent viscosity control and stability, water-based formulations are favored in industrial cleaning and surface coatings. Stricter environmental regulations promoting low-VOC products further boost their demand, ensuring continued market dominance.

By Application Analysis

• The solvent segment commands a 38.6% share in the Diethylene Glycol Monobutyl Ether market in 2024, driven by strong demand in industrial and commercial cleaning. Its exceptional solvency power effectively tackles grease and oil, making it essential in the automotive, textile, and coating industries. As a key component in cleaning agents and degreasers, and a coupling agent in paints, the solvent segment is set to maintain its lead as industrial activities grow.

Regional Analysis

• North America led the Diethylene Glycol Monobutyl Ether market, holding a 47.9% share and generating USD 176.1 million in revenue, driven by its robust industrial and commercial sectors using the chemical in cleaning agents, solvents, and surface treatments. Europe trails closely, with rising use in paints and coatings for industrial purposes.
• The Asia Pacific region is experiencing growing demand due to expanding manufacturing and construction activities. The Middle East & Africa and Latin America show steady growth, supported by industrialization and increased use of chemical solvents in cleaning and degreasing. North America continues to dominate, fueled by strong industrial demand and versatile applications. Market trends are expected to shift as regulations increasingly prioritize low-VOC and eco-friendly solvent formulations.

Top Use Cases

• Cleaning Agents: Diethylene Glycol Monobutyl Ether is widely used in household and industrial cleaners. Its ability to dissolve both water-soluble and water-insoluble substances makes it ideal for degreasers, hard surface cleaners, and paint removers, ensuring effective removal of grease, oils, and dirt for a spotless finish.
• Paints and Coatings: This chemical acts as a solvent and coalescing agent in water-based paints and coatings. It improves flow, gloss, and drying time, making it popular in architectural and automotive coatings, enhancing durability and appearance while meeting low-VOC requirements.
• Textile Industry: In textiles, it serves as a solvent and wetting agent for dyeing processes. It ensures uniform dye penetration, improving fabric color quality and finish, which is crucial for high-quality textile production in both fashion and industrial applications.
• Printing Inks: Diethylene Glycol Monobutyl Ether is used in printing inks to control drying times and enhance gloss. Its solvent properties help dissolve pigments, ensuring smooth application and vibrant results in flexographic and gravure printing processes.
• Industrial Solvents: As a versatile solvent, it’s used in manufacturing to dissolve resins, oils, and polymers. Its low toxicity and high solvency make it a go-to choice for formulating eco-friendly industrial solvents for various applications.

Recent Developments

1. Kraton Corporation

• Kraton Corporation has been focusing on expanding its glycol ether product line, including DGBE, to meet growing demand in coatings and industrial applications. The company emphasizes sustainable production methods and has introduced bio-based alternatives. Kraton’s recent investments in R&D aim to enhance the performance of DGBE in water-based formulations.

2. Bharat Petroleum Corporation Limited (BPCL)

• BPCL has been strengthening its petrochemical portfolio, including glycol ethers like DGBE, used in paints, cleaners, and pharmaceuticals. The company is investing in refinery expansions to increase production capacity and meet domestic and export demand. BPCL is also exploring green chemistry initiatives for eco-friendly DGBE production.

3. BASF

• BASF has been innovating in glycol ether technologies, with DGBE playing a key role in high-performance coatings and cleaning agents. The company recently launched low-VOC formulations to comply with stricter environmental regulations. BASF’s global production network ensures a stable DGBE supply chain.

4. LyondellBasell Industries

• LyondellBasell has been optimizing its glycol ether production, including DGBE, for industrial and consumer applications. The company is leveraging advanced catalyst technologies to improve efficiency and reduce emissions. Recent expansions in Asia aim to strengthen its market presence.

5. Herdillia Chemicals (Univa Chemicals Ltd.)

• Herdillia (now part of Univa Chemicals) has been scaling up DGBE production for agrochemicals and coatings. The company focuses on cost-effective manufacturing and sustainable practices. Recent collaborations aim to enhance distribution networks in emerging markets.

Conclusion

The Diethylene Glycol Monobutyl Ether market is poised for steady growth, driven by its versatile applications in cleaning, paints, textiles, and automotive sectors. North America leads due to strong industrial demand, while Asia Pacific shows rapid expansion from manufacturing and construction. With increasing focus on low-VOC and eco-friendly formulations, the market is set to evolve, offering opportunities for innovation and sustainable solutions.

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