Purified Terephthalic Acid Market Forecast to Reach $70.5 Billion by 2025

Purified Terephthalic Acid Market is forecast to reach $70.5 billion by 2025, after growing at a CAGR of 5.3% during 2020-2025. Purified Terephthalic Acid (PTA) is derived from crude oil, through chemical synthesis. Purified Terephthalic Acid (PTA) is majorly used in the production of polyester resin, which is used in the manufacture of polyester film, polyethylene terephthalate (PET) resin, and polyester fiber. Globally, development of efficient and advance technology, rising demand for polyester resin and Polyethylene Terephthalate (PET), growing textile, coating and packaging industries, and rising per capita consumption and the growing disposable income are the prime growth drivers of purified terephthalic acid market. In addition, increase in adoption of purified terephthalic acid for application in newer industrial verticals, and emerging economies such as China, India and others, will create new opportunities for purified terephthalic acid market. However, volatile prices of crude oil and availability of raw materials, presence of substitute compounds, complex manufacturing process, stringent government regulations, and outbreak of COVID-19 are the key restraints for purified terephthalic acid market.

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Purified Terephthalic Acid Market Segment Analysis - By Application

Polyester hold the largest share of more than 30% in the Purified Terephthalic Acid market in 2019. The growing uses of Polyester based Terephthalic Acid solution to produce PET resins, polyester fibers, and packaging films is driving the growth of the Purified Terephthalic Acid market. Furthermore, the high strength, lightweight, improved clarity, long-term durability, and improved design plasticity properties of Polyester based products further replaces the traditional packaging materials like glass, paper, metal, and aluminum, which augment the market growth.

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Purified Terephthalic Acid Market Segment Analysis - By End-Use

Textile segment hold the largest share of more than 30% in the Purified Terephthalic Acid market in 2019. The increasing demand for polyester fiber & yarn from the textile industry in developing country like India, China, and Malaysia drive the growth of this market. Whereas, the growing fashion trend coupled with the growing population drive the growth of this market. Whereas, the high tenacity and durability of PTA makes suitable to use in textile industry. Thus, the growth of textile industry further drives the growth of this market.

Purified Terephthalic Acid Market Segment Analysis - By Geography

Asia Pacific hold the largest share of more than 45% in the Purified Terephthalic Acid market in 2019 owing to the large consumer base, presence of emerging countries, rapid industrialization & urbanization, rising per capita income of the individuals, and the availability of low-cost labor. Asia-Pacific is also projected to have fastest growth, owing to rapidly developing infrastructure as a result of growing industry base as a shifting of global manufacturing base in the region and, government initiatives in developing nations such as China, and India in this region.

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Purified Terephthalic Acid Market Drivers

Growing Textile Industry due to fashion industry and changing life style

Purified Terephthalic Acid is primarily used to produce polyester fibers and yarn. Polyester fibers are man-made fibers and are increasingly adopted by the textile industry, due to their recyclability and versatility, as well as their affordability as compared to other fibers. Increasing disposable income and adoption of western culture in emerging nations has boosted the growth of fashion industry. Additionally, surging demand of rayon fiber for clothing and home-ware, such as blankets, sheets and curtains are augmenting the growth of rayon fibers market. According to Trade Map, global spending on import of apparels and clothing accessories increased by 9% accounting for $ 4,741,531 in 2018. Huge spending of youth on apparels fashion products is augmenting the market. Also, according to the China Luxury Report, Chinese consumers at home and abroad spent 115 billion on luxury fashion items in 2018 which equivalents to a third of the global spend. Over the past few years, the polyester industry has been accounting for the largest share of the textile industry.

Purified Terephthalic Acid Market Challenges

The fluctuating raw material cost and Stringent Environment Regulations

Price and availability of raw materials are major factors that affect the price of the end products. The major challenge for the global PTA market is the oscillating price trends of raw materials, which are fluctuating due to volatile energy prices, as most of the raw materials are petroleum-based. According to BP statistics, in 2018, average crude oil price increased to $71/ bbl from $54/bbl in 2017. Fluctuations in crude oil prices impact the cost of raw materials used in the production of PTA. Therefore, the fluctuation in raw materials prices is affecting PTA which is limiting its market growth. Several organizations such as the United States Environmental Protection Agency, the California Air Resources Board, and others have set various regulations and policies to reduce carbon footprint and VOC emissions from coatings. In January 2018, the EU published the German version of DIN EN 16516, a test standard that uniformly regulates the emission measurement of construction products including coatings. Thus, growing environmental concern is resulting in more stringent regulations limiting VOC emission from coatings, which is may hinder market growth.

Emergence of COVID-19

The outbreak of COVID-19 globally further acts as a challenging factor to the market growth. The corona pandemic has disrupted the global supply chain, shutdown of various end-use industry production, lack of manpower, the global lockdown, and declined demand from consumers further restraining the market growth. In addition, decrease in purchasing capital impacted the growth of oil & gas and Textile industries further affecting the growth of the Purified Terephthalic Acid market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Purified Terephthalic Acid market report. Major players in the Purified Terephthalic Acid market are BP PLC, Indorama Ventures Public Company Limited, Indian Oil Corporation Ltd., SABIC, China Petroleum & Chemical Corporation, Reliance Industries Limited, Alpek S.A.B. de C.V., Eastman Chemical Company, MCPI, SAMYANG HOLDINGS CORPORATION, LOTTE Chemical CORPORATION, and Petkim Petrokimya Holding A.Ş., among others.

Acquisitions/Technology Launches

In April 2015, Reliance Industries Limited (RIL) stated commissioning of new purified terephthalic acid (PTA) plant with a capacity of 1,150 kilo-tons (KT) per annum at Gujarat (India), in order to meet the surging demand for the PTA.

Key Takeaways

Rise in Oil and Gas activities along with decline prices in the country like the USA, Middle East, and Russia raises the demand for Purified Terephthalic Acid.

Increasing penetration and preference of recycled PET in developed and developing economies further drive the market growth.

South America will witness a significant growth owing to the increased demand for PTA from the PET grade resin producers in the country.

Decline in manufacturing activities and disruption of supply chain due to the outbreak of coronavirus has hampered the growth of the Purified Terephthalic Acid market.

Related Reports :

A. Polyester Staple Fiber Market
https://www.industryarc.com/Report/16100/polyester-staple-fiber-market.html

B. Plasticizers Market
https://www.industryarc.com/Report/11717/plasticizers-market-analysis.html

For more Chemicals and Materials Market Reports @ https://www.industryarc.com/Domain/4/chemicals-materials-market-research.html

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