Terephthalic Acid Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Terephthalic Acid Market is Segmented by Derivative (Polyethylene Terephthalate, Polybutylene Terephthalate, Polytrimethylene Terephthalate, Dimethyl Terephthalate), Application (Packaging, Fibers, Paints and Coatings, Adhesives, and Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts for the market studied in volume (kiloton) for the abovementioned segments.

Market Snapshot

terephthalic acid market size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: >5.5 %
terephthalic acid market key players

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Market Overview

The terephthalic acid market is expected to register a CAGR higher than 5.5% during the forecast period.

The COVID-19 pandemic moderately impacted the market in 2020. Purified terephthalic acid is used to manufacture polyester coating resins for use in the formulation of automotive coatings. The declining automotive industry and the temporary shutdown of automotive manufacturing have negatively impacted the market. However, the use of face shields, clear masks, food, and e-commerce packaging has increased, thus, enhancing the demand for purified terephthalate acid, dimethyl terephthalate, and polyethylene terephthalate, which in turn, are stimulating demand for the market studied.

· Rising demand for polyethylene terephthalate (PET) from the packaging sector is the main factor driving the market.

· The toxic effects of terephthalic acid are expected to hinder the market’s growth.

· Advancement in production technology is likely to act as an opportunity in the future.

· Asia-Pacific dominated the global market, with the highest consumption from countries, such as China and India.

Scope of the Report

The terephthalic acid market is segmented by derivatives, applications, and geography. By derivative, the market is segmented into polyethylene terephthalate (PET), polybutylene terephthalate (PBT), polytrimethylene terephthalate (PTT), and dimethyl terephthalate. By application, the market is segmented into packaging, fibers, paints and coatings, adhesives, and other applications. The report also covers the size and forecasts for the terephthalic acid market in 15 countries across major regions. The report offers market size and forecasts for the terephthalic acid market in volume (kilotons) for the abovementioned segments.

Derivative
Polyethylene Terephthalate (PET)
Polybutylene Terephthalate (PBT)
Polytrimethylene Terephthalate (PTT)
Dimethyl Terephthalate
Application
Packaging
Fibers
Paints and Coatings
Adhesives
Other Applications (Pharmaceuticals, Chemical Intermediates)
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Demand from Polyester Fibers

· Purified Terephthalic Acid (PTA) is used to manufacture polyester powder coating resins for use in the formulation of general metal, appliance, automotive, industrial maintenance, and coil coatings.

· Polyester fibers made up of PTA blend with natural and other synthetic fibers. Polyester fibers are used for various applications such as to make fabrics for apparel and home furnishings such as bedsheets, bedspreads, curtains, and draperies.

· In Asia, the growth in terephthalic acid consumption has been driven due to strong demand for polyester fiber, which is the largest segment and accounts for nearly two-thirds of global polyester demand.

· According to the IBEF, in India, exports of textiles and apparel, including handicrafts, totaled USD 29.8 billion from April to December 2021, up from USD 21.2 billion in the same period last year, registering a robust 41% increase over the previous year. Furthermore, favorable demographics and a shift in preference to branded products boost demand for the textile sector, thus boosting the terephthalic acid market.

· The US is among the largest individual countries in exports of textile-related products. In 2020, US fiber, textiles, and apparel exports together accounted for USD 25.4 billion and the value of shipments for textiles and apparel was USD 64.4 billion as per a report published by the National Council of Textile Organizations.

· Such growth in polyester fibers is expected to drive the terephthalic acid market during the forecast period.

terephthalic acid market analysis

Asia-Pacific to Dominate the Market

· Asia-Pacific accounted for the highest share, accounting for over 40%, in the terephthalic acid market. The growth of various sectors, such as food and beverage, packaging, and textile manufacturing, in China and India are likely to fuel the market growth during the forecast period.

· Petrochemical companies in China are massively increasing their PTA capacity. China's Yisheng Petrochemical will operate the two new PTA lines with an annual capacity of 3.3 million ton each. One unit started in July, while the other was expected to be completed by the end of 2021.

· In India, according to the Chemical and Petrochemicals Manufacturers Association, for FY2020-21, the annual capacity of PTA stood at 6,420 KT with production amounting to almost 5,072 KT, indicating strong demand from end users.

· China is a major producer of PET resins with the PetroChina Group and Jiangsu Sangfangxiang among the globally largest manufacturers in terms of volume, with capacities of more than 2 million ton. Thus, the rising demand for PET production will drive the demand for terephthalic acid.

· China’s textile sector grew steadily during the first nine months of 2021 with collective profits worth CNY 171.1 billion (approximately USD 26.80 billion), a 31.7% year-on-year (YoY) increase, according to the Ministry of Industry and Information Technology (MIIT).

· Thus, owing to the aforementioned factors, the demand for terephthalic acid is increasing in this region.

terephthalic acid market forecast

Competitive Landscape

The terephthalic acid market is partly fragmented and dominated by very few players. Some of these major players (not in any particular order) include SABIC, Sinopec Corp., Eastman Chemical Company, Arkema, and INEOS, among others.

Recent Developments

· In May 2021, Indo Rama Synthetics (India) Limited (IRSL), a subsidiary of petrochemical producer Indorama Ventures Ltd, announced plans to invest up to INR 6 billion for capacity expansion of PET resin, with an additional 700 ton capacity per day and equipment upgrading program at its manufacturing facility in Nagpur, India.

· In April 2021, Tecnimont Private Limited was awarded an EPCC contract by Indian Oil Corporation Limited (IOCL) to set up an integrated paraxylene (PX) and PTA plant in Paradip of Odisha with USD 450 million, which will be integrated with its Odisha-based Jagatsinghpur refinery facility. The petrochemicals complex will be commissioned by 2024 with an annual capacity of 800 kiloton of PX, which would be the feedstock for the manufacturing of PTA.

· In January 2021, INEOS acquired BP’s global aromatics and acetyls business with a valuable consideration of USD 5 billion for further enhancing its product portfolio.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Significant Demand from the Textile Sector in Asia-Pacific

      2. 4.1.2 Increasing Consumption of Packaging Material

    2. 4.2 Restraints

      1. 4.2.1 Toxic Effects of Terephthalic Acid

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Technological Snapshot

    6. 4.6 Trade Analysis

    7. 4.7 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Derivative

      1. 5.1.1 Polyethylene Terephthalate (PET)

      2. 5.1.2 Polybutylene Terephthalate (PBT)

      3. 5.1.3 Polytrimethylene Terephthalate (PTT)

      4. 5.1.4 Dimethyl Terephthalate

    2. 5.2 Application

      1. 5.2.1 Packaging

      2. 5.2.2 Fibers

      3. 5.2.3 Paints and Coatings

      4. 5.2.4 Adhesives

      5. 5.2.5 Other Applications (Pharmaceuticals, Chemical Intermediates)

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 US

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 UK

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Arkema

      2. 6.4.2 INEOS

      3. 6.4.3 China Petroleum & Chemical Corporation

      4. 6.4.4 Eastman Chemical Company

      5. 6.4.5 Formosa Petrochemical Co.

      6. 6.4.6 Indian Oil Corporation Ltd

      7. 6.4.7 Indorama Ventures Public Company Limited

      8. 6.4.8 Lotte Chemical Corporation

      9. 6.4.9 Mitsubishi Chemical Corporation

      10. 6.4.10 Mitsui Chemicals Europe GmbH

      11. 6.4.11 PetroChina Company Limited

      12. 6.4.12 Reliance Industries Limited

      13. 6.4.13 SABIC

      14. 6.4.14 Samyang Holdings Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Terephthalic Acid Market market is studied from 2017 - 2027.

The Terephthalic Acid Market is growing at a CAGR of >5.5% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

SABIC, Sinopec Corp., Eastman Chemical Company, INEOS, Reliance Industries Limited are the major companies operating in Terephthalic Acid Market.

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