Market Size of Terephthalic Acid Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 5.50 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Terephthalic Acid Market Analysis
, The Global Terephthalic Acid Market is projected to register a CAGR of over 5.5% during the forecasted period.
The sporadic outbreak of the COVID-19 pandemic in 2020 and the first half of 2021 drastically curtailed the demand for terephthalic acid in its major application sectors, i.e., packaging, fibers for textile, and paint and coatings, due to imposed government bans and restrictions, thereby limiting the growth of the market. The downstream packaging industry exhibited lackluster sales due to closed commercial places and tourist movements. The increased e-commerce food and retail service during lockdowns could not compensate for the declining sales in large-scale food and beverage sectors. Furthermore, the demand for textiles dropped drastically as people were confined to staying in their houses. Meanwhile, terephthalic acid production and distribution activities were paralyzed owing to scarce raw material supply, limited working hours/labor strength, and constrained financials. However, the industries have been on track for recovery since the pandemic's retraction in mid-2021. The demand from downstream sectors rebounded in 2022, reinstating terephthalic acid contracts, which kick-started the market growth.
- Over the medium term, the rising consumption of the downstream product polyethylene terephthalate (PET) from the packaging sector and the high demand for polyester fibers in the textile industries of Asia Pacific are the major driving factors augmenting the growth of the market studied.
- On the flip side, the toxic effects of terephthalic acid on health and the environment are anticipated to restrain the growth of the target industry over the forecast period.
- Nevertheless, the growing advancement in production techniques employed in manufacturing terephthalic acid will likely create lucrative growth opportunities for the global market.
- Asia-Pacific emerged as the largest market for textile chemicals and is expected to witness the highest CAGR during the forecast period. This dominance of Asia-Pacific is attributed to the bullish demand for packaging, fibers, and coating applications in growing economies like China and India.
