The global purified terephthalic acid market was worth USD 54.8 billion in 2021, and it is further projected to reach USD 78.1 billion by 2028, at a CAGR of 5.6% during 2022-2028 (forecast period). The growth of the purified terephthalic acid market can be primarily attributed to the soaring demand for polyester fibers coupled with escalating demand for polyethylene terephthalate (PET) from the packaging and bottling industry. Moreover, for the last few years, the polyester industry has been accounting for the prime share of the textile industry. Such factors promise bright prospects for the growth of the global terephthalic acid market during the forecast period.
Growth Drivers
Rising Demand For Polyester Fibres By Textile Industry Likely To Drive the Growth of the Purified Terephthalic Acid Market
Although PTA finds a wide range of applications across different industries, the textile industry occupies a special position in this list. The PTA is principally used to manufacture polyester fibers and yarn. Along with it, it is also used to produce plasticizers, polybutylene terephthalate, and liquid crystal polymers. Polyester fibers are artificial fibers that are being progressively adopted by the textile industry on a large scale. This can be attributed to their versatility and recyclability, coupled with their affordability in comparison with other natural fibers. Moreover, this heavy demand for polyester fibers by the textile industry is also responsible for pulling up the market growth rate of the global terephthalic acid market.
Burgeoning Demand from The Paints and Coatings Industry To Spike The Market Growth
One of the major factors driving the growth of the terephthalic acid market is the rising demand for purified terephthalic acid (PTA) in the paints & coating industry. The manufacturing process of the paint and coating resins utilizes purified terephthalic acid (PTA) as the chief raw material. Moreover, the escalating demand for purified terephthalic acid (PTA) in the food & beverages and pharmaceutical packaging industries is also anticipated to be a significant driver of the purified terephthalic acid (PTA) market during the forecast period 2022-2028.
Restraints
Instability In Crude oil prices Impeding The Purified Terephthalic Acid Market Growth
The volatility in prices of crude oil is projected to hinder the Purified Terephthalic Acid (PTA) market in the close future. This is due to the fact that paraxylene, which is the chief raw material for the production of terephthalic acid is formed as an end-product of the crude oil refining process. Moreover, the enactment of rigorous government regulations on Purified Terephthalic Acid (PTA) due to ecological concerns is projected to lift the demand for bio-based Polyethylene Terephthalate (PET). Furthermore, PTA being poisonous in nature is known to cause skin and eye irritation on contact. Consequently, the demand for the Purified Terephthalic Acid (PTA) market may decline during the forecast period.
Impact of COVID-19 on the Global Purified Terephthalic Acid Market
The Purified Terephthalic Acid market was negatively impacted due to COVID-19 in 2020 in different ways. Such transportation limitations implemented across the world in response to the pandemic resulted in the disruption of the supply chain of major raw materials required for Purified Terephthalic Acid production. It slowed down Purified Terephthalic Acid production in several countries, thus also slowing down the operations of several end-user industries of the market, which has resulted in compact demand for Purified Terephthalic Acid during the COVID-19 period. Purified Terephthalic Acid (PTA) is a prominent raw material used for the production of polyester fabrics with China as a major exporter. The spread of coronavirus in China led to initial disruptions in the supply chain which impeded the purified terephthalic acid market. But, the situation recovered in 2021 with the lifting of the lockdown. Moreover, PTA found immense application in the production of personal protection (PPE) kits amidst the pandemic that was mandatory for the health care front line workers while treating patients in order to safeguard themselves from infection thus offering attractive prospects for PTA producers.
Global Purified Terephthalic Acid Market – By Application
Based on the application, the global purified terephthalic acid market has been segmented into polyester, polybutylene terephthalate (PBT), plasticizers, and others. The polyester is further sub-segmented into fiber & yarn grade, polyethylene terephthalate (PET) grade, and film grade. Amidst the segmentation, the polyester segment accounted for the largest market share throughout 2021 owing to the large and progressively increasing demand for polyester fibers and yarns by several industries including textile industries, food, and beverage packing industries, pharmaceuticals packaging industries, etc. Moreover, this segment is anticipated to grow with the highest CAGR during the forecast period due to factors like growing consumption of products of these industries, rising urbanization, and others.
Global Purified Terephthalic Acid Market- By End-Use Industry
On the basis of the end-use industry, the global purified terephthalic acid market is segmented into textile, PET bottles, packaging, and others. Amidst the segmentation, the packaging industry generates the largest revenue and holds major shares in the purified terephthalic acid market. This can be attributed to the surging expenditure on food and beverage packaging during the forecast period. Also, there have been instances of replacing glass alcohol bottles with PET bottles, further driving the demand for PTA. Moreover, the current upsurge in the home furnishing industry has caused the global PTA market to grow at a substantial rate.
Global Purified Terephthalic Acid Market- Regional Insights
In terms of the regional analysis, the global Purified Terephthalic Acid (PTA) market can be segmented into Middle East & Africa, Latin America, Asia Pacific, Europe, and North America. Amidst the segmentation, the Asia Pacific region is expected to dominate the purified terephthalic acid (PTA) market during the forecast period on account of the growing food & beverages, construction, home furnishing, and packaging and sectors in the region. The Asia-Pacific region is followed by North America in terms of demand. This can be attributed to the extension of the polyethylene terephthalate (PET) bottle industry in North America.
Competitive Landscape
The global purified terephthalic acid market is characterized by the presence of many local, regional, and global vendors. The key players operating in the global purified terephthalic acid market are British Petroleum, Reliance Industries, Sinopec, Indorama Ventures Public Company, SABIC, Eastman Chemical, India Oil, Lotte Chemical, Mitsubishi Chemical, Petkim Petrokimya Holding, JBF Petrochemicals, MCPI, Jiaxing Petrochemical, China Prosperity (Jiangyin), Petrochemical, Hanwha General Chemical, Hengli Petrochemical, DuPont, Formosa Plastics Chemicals, and other prominent players. The players maintain their dominance in the market by investing in research and development activities, integrating the latest and advanced technologies into their products, and launching improved products for the customers. Different strategies are adopted like engaging in strategic alliances, agreements, mergers, and collaborations.
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