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Diethylene glycol (DEG) also known as ethylene diglycol is an organic compound. The compound is colorless, almost odorless, poisonous and a hygroscopic liquid with a sweetish taste. It is soluble in water, alcohol, ether, acetone and ethylene glycol. This compound is largely used as a solvent. DEG is chemically produced by the partial hydrolysis of ethylene oxide.  Demand for the derivatives of the primary product ethylene glycol will drive the market for Diethylene glycol. The compound is normally found to be a contaminant in a variety of consumer products that has resulted in a number of epidemics of poisoning for a long period. DEG is a poisonous compound is toxic to the environment as well. Hence, the governments of various countries have imposed various regulations against its use.

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The areas of application are in the production of unsaturated polyester resins, polyurethanes and plasticizers. The compound acts as a solvent for nitrocellulose, resins, dyes, oils and a few other organic compounds. The compound is also used as humectants for tobacco, cork, printing ink and glue. DEC is used as a raw material in the manufacture of brake fluid, lubricants, wallpaper strippers, artificial fog solutions and heating or cooking fuel. The compound can be used as a coolant if diluted. However, ethylene glycol, which is used in the manufacture of DEC, is more commonly used as a coolant. Generally DEC is used as a raw material in the manufacture of many other chemicals but due to its toxicity ethylene glycol which ia much safer as compared to ethylene glycol is preferred.

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The market for DEG has been growing for the past few year especially due to its use in the manufacture of plasticizers. Its use as a coolant also drives the market as it is usually used in water-based paints, dry wall compounds, glass cleaners, dyes, waxes and adhesives as a freezing point depressor in order to avoid damage low-temperature extremes. It acts as a raw material to a number of other chemicals; this is what has been fueling the market for the compound. Owing to the toxicity of the product, the compound is being replaced by ethylene glycol, which is used in the manufacture of DEG. The plastic market is growing globally at a very fast pace and hence is one of the drivers for this market. Since it is also used as humectants for tobacco, which is a rapidly growing industry, the demand for this compound will also grow at a fast rate. Its harmful effects to people and the environment is are few factors that may restrain the market for this compound.

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The key segments considered for this market include North America, Europe, Asia Pacific and Rest of the World. the market for DEG in North America and Europe was high due to the number of plastic industries and tobacco industries that are present in those regions. However, the market for DEG in expected to slow down there owing to the stringent regulations by the respective governments against its use. Ethylene glycol is replacing it DEG as a coolant due to its safer use. The market demand for the product in Asia Pacific countries is still high as these governments do not have very stringent policies against its use and the tobacco and the plastic industries are growing largely in the Asia Pacific region. The manufacture of this compound in China is maximum among the others Asia Pacific countries.

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The key players that manufacture this compound include Dow Chemicals, BASF SE, Askema AS, BP place, Arch Chemicals, Celanese Corporation among others

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