Purified Terephthalic Acid Market

Purified Terephthalic Acid Market Size (2023-2028):

The Purified terephthalic acid market was valued at $ 49.17 billion in 2022. It is expected to register a CAGR of around 6.4% to reach a value of $ 71.21 billion by the end of 2028.

Purified terephthalic acid (PTA) is an organic compound manufactured by the oxidation of paraxylene with oxygen in the air. It takes the physical form of a white crystalline powder and is inert. PTA is an aromatic acid that is primarily used in the production of polyester fibers and films. Purified terephthalic acid (PTA) is a crucial component in the manufacture of synthetic fibers. About 75-85% of polyester products consist of purified terephthalic acid. In addition, PTA finds application in the healthcare sector for the treatment of peptic ulcers, reflux esophagitis, and gastroesophageal reflux disease (GERD). Market players are exploring the growth potential in the marine, construction, and transportation, and wind power sectors.

The increasing use of polyester fibers due to their ability to blend with other natural and synthetic fibers is expected to increase their demand during the forecast period. The high consumption of polyester films in photographic films, data storage tapes, and laminate material due to its toughness and dimensional stability properties is expected to increase the size of the purified terephthalic industry. In addition, the increasing use of PTA-based polyester fibers due to their high strength, quick drying, and high resistance to chemicals and wrinkles is likely to drive the call for the product during the forecast period. The growing demand for the paint and coatings industry due to its high efficiency is estimated to drive the market boom over the conjecture period. In addition, increased government spending coupled with booming coatings, textiles, and packaging industries in China, India, Mexico, and Saudi Arabia is anticipated to fuel the market boom. The growth of food and beverage and pharmaceutical packaging will drive the development of the industry in the coming years. The increased use of unsaturated polyester resin (UPR) in various industries including construction, marine, transportation, wind, and electric power due to its high performance, cost efficiency, and environmental characteristics will boost the growth.

Purified Terephthalic Acid Market Drivers:

The key driver of the global purified terephthalic acid market consists of its extensive utilization as a raw material in the manufacture of polyethylene terephthalate (PET) resins. It is used as a raw material for its properties such as excellent weather resistance, chemical resistance, hardness, and flexibility, as well as efficient powder flow and fluidization characteristics. Strong demand for PET resins in food and beverage packaging is driving demand for PTA. It is utilized in the packaging of salad dressings, cooking oil, peanut butter, shampoo, liquid hand soap, mouthwash, and other personal care items. The growing demand for PET is attributed to properties such as hygiene, durability, lightness, shatterproof, and freshness, as well as recycling and durability. The production of PTA is expected to increase in the coming years due to its use in the manufacture of polybutylene terephthalate (PBT), which has higher impact strength and moldability than PET and is used in electronic components and automobiles, and food preparation.

Purified Terephthalic Acid Market Restraints

However, fluctuations in the price of paraxylene are expected to constrain the growth of the market during the period considered. A major challenge facing PTA manufacturers is the recycling of PET, which is driven by factors such as the use of recycled PET in closed-loop textile manufacturing, as well as the approval of the Panel on Materials, enzymes, and processing aids in contact with food for use in food and drink.

PURIFIED TEREPHTHALIC ACID MARKET REPORT COVERAGE:

MARKET SEGMENTATION

Purified Terephthalic Acid Market - By End User:

• Textile

• PET Bottles

• Packaging

The bottling and packaging segment is expected to experience significant volume growth with a CAGR of 8.3% between 2021 and 2026 due to the increasing demand for soft drinks and bottles. The packaging provides protection, enhances aesthetic value, and increases the shelf life of the packaged product. The growing demand for personal care products due to the introduction of sophisticated products and the development of formulas for specific consumer groups is supposed to create new market avenues for the packaging market. The demand for PET packaging and packaging is expected to increase during the foreseen period due to the relatively low unit cost, availability of various sizes and shapes, flexibility, and convenience of on-the-go consumption.

Purified Terephthalic Acid Market - By Application:

• Polyester

• Polybutylene terephthalate (PET)

• Polybutylene Terephthalate (PBT)

• Plasticizers

• Others

PET resins will experience a significant increase in volume at a CAGR of 7.8% from 2022 - 2027 as it will give a clear appearance which will increase the market demand during the forecast period. The increasing demand for PET resins in water bottles and carbonated drink bottles is expected to drive market growth during the forecast period. The increased consumption of PET resins in fresh and prepared food packaging will increase the size of the market. In addition, superior properties such as strength and water resistance have led to its increasing use in the food and cosmetic industry. Growing demand for bottled water is expected to continue to be a key driver for the growth of the purified terephthalic acid market. PET bottles are easier to handle, lighter, shatterproof, and can be resealed.

Purified Terephthalic Acid Market - By Region:

• North America

• Latin America

• Europe

• Asia Pacific

• Middle East & Africa

The Asia-Pacific region is determined to show a significant increase in volume with a CAGR of 8.4% from 2022 - 2027 due to the strong manufacturing base of the food and beverage, textile and construction sectors in India, Singapore, and China. Ongoing industrialization, population growth, and increased foreign investment in the packaging and paint and coatings sectors will drive the expansion of the industry during the forecast period.

MEA accounted for 7.2% of total volume in 2019 and is likely to experience strong growth given increased funding for urban and infrastructure developments in countries such as Saudi Arabia, Oman, Qatar, and Egypt. The development of infrastructure in these countries has increased the demand for textiles and fabrics in commercial and residential applications. Several factors, including positive demographics, favorable macroeconomics, and increased tourism activity, will support construction growth. Qatar's construction sector is expected to experience significant growth due to huge government investments coupled with the rapid urbanization of the country, which in turn is expected to spur the expansion of the industry.

Leading Company:

In view of the significant growth expected in the home care sector, SABIC announced the long-term acquisition of Aramco. This strategy has helped the company improve its position in the Asian market. This business expansion will help strategically strengthen SABIC's focus and capabilities in high-margin, high-growth business operations and will also help increase food impressions globally. This development helps provide customers with a broader portfolio of products that help increase revenues in the near future.

Major Key Players:

BP p.l.c., Jiangyin Chengxing Industrial Group Co., Ltd., PennWell Corporation, JBF Industries Ltd., Yatirim24.com, China Petrochemical Corporation., Indorama Ventures Public Company Limited., SABIC, Alpek S.A.B. de C.V, Indian Oil Corporation Ltd., LOTTE Chemical CORPORATION, Energi Mega Persada Tbk, Shahid Tondgooyan Petrochemical Co., Oriental Petrochemical (Taiwan) Co., Ltd., Petkim Petrokimya Holding A.Ş., MCPI Private Limited, Taekwaang Industrial Co., Ltd., Zhejiang Hengyi Group Co., and among others and global players.

Recent Developments:

• In August 2021, Indian Oil Corporation Ltd (IOCL) invested over ₹ 13,805 Crore to start a factory in Paradip, Odisha to develop raw materials that are used in the textile sector.

COVID-19 Impact On the Purified Terephthalic Acid Market:

The global economy is experiencing the deepest recession after World War II due to the COVID-19 pandemic, and its effect is also evident in the global market for purified terephthalic acid. Due to the paralysis of exports and imports from several countries, demand for textiles has been reduced and manufacturers are forced to cut back on production or close their production units. According to Just Style, around 85% of the textile industries in Africa experienced a decline during the pandemic. In addition, most of the market players depend on China for raw materials.

As the country grapples with the second wave of the pandemic, the reinstatement of lockdowns at major manufacturing hubs is severely hampering the supply chain disruption of the purified terephthalic acid market. On the other hand, PTA finds immense utility in manufacturing personal protective equipment (PPE) in the midst of the pandemic. PPE kits have become a necessity for frontline health workers to protect them from the coronavirus when treating patients. As such, the growing demand for PPE equipment from various industries offers lucrative prospects for PTA manufacturers. With 3,700 manufacturing units, around Rs. 2.5 lakhs of personal protective equipment (PPE) is produced in India alone.