Terephthalic Acid Market Size
| 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 |
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.
Terephthalic Acid Market Trends
This section covers the major market trends shaping the Terephthalic Acid Market according to our research experts:
Increasing Demand from Polyester Fibers
- A significant share of the total globally produced terephthalic acid is used for manufacturing polyester fiber, a long-chain polymer with the ester functional group in each repeating unit.
- Polyester fibers carry attributes such as high strength, resilience, and durability. They exhibit quick drying ability, washability, and resistance to shrinkage, stretching, abrasion, and various chemicals. Polyester fibers are recognized as durable synthetic fabric/textiles that find application in apparel, home furnishing (floor coverings, curtains, etc.), upholstery, automotive textiles, and industrial (shale gas cracking, geotextiles, filtration, membranes for roofing) applications.
- Polyester fibers have become a fabric of choice for outdoor, specialty, and protective clothing because they can resist moisture and remain stain resistant. Polyester fabrics are widely used in home furnishing and upholstery fabrics due to being lightweight and presenting the ease of dyeing to form an array of colors and patterns.
- Clothing is a crucial export commodity in several countries. The United States boasts a thriving fashion and clothing industry. The country has strengthened its clothing trade over the years, closing the year 2021 with USD 85,007 million export value (revealed by the US Department of Commerce and OTEXA), up by 21.07% from the apparel export value obtained in 2020.
- Furthermore, as per the International Labour Organization, more than 60% of the world's clothing exports are manufactured in developing countries, with Asia-Pacific accounting for 32% of the share. China, the biggest apparel market in the Asia-Pacific region, registered a 17.35% hike in garment export shipments valued at USD 189.35 billion in the first seven months of 2022, as per the General Administration of Customs China.
- Polyester fibers are widely preferred material for designing automobile seat covers because of their high strength and modulus, good shape retention, and firm performance against UV radiation, heat, and abrasion. Apart from seat covers, polyester fibers are used in airbags, seat belts, side panels, headliners, etc. According to the OICA, in 2021, automobile production reached 80.14 million units, increasing by 3% from the same period in 2020. This is expected to augment the demand for the market studied.
- The growing market trends in the textile, automobile production, and other application sectors are expected to surge the consumption of polyester fibers, thereby increasing the demand for terephthalic acid in the forecast period.
Asia-Pacific to Dominate the Market
- The Asia-Pacific region dominates the global terephthalic acid market owing to the presence of matured downstream packaging, textile manufacturing, and food and beverage industries in countries like China and India. The availability of cheap labor and low production cost back the growth of the downstream industries in these countries.
- China leads the world in terms of both production and demand for terephthalic acid. Moreover, to bolster its position in the downstream markets China is undergoing a massive capacity expansion of terephthalic acid. For instance, in 2021, the country witnessed the commissioning of Yisheng Petrochemical's two new purified terephthalic acid (PTA) production lines, each having a capacity of 3.3 million tons per year. Jiangsu Jiatong Energy Nantong City is also planning to expand its PTA line with the addition of 2.5 million tons per annum capacity.
- On the other hand, China owns the world's largest textile industry where PTA-derived polyester fibers are in high demand. China's textile industry continued steady expansion in the first nine months of 2022, according to data from the country's Ministry of Industry and Information Technology. The combined operating revenue of major textile enterprises in China rose by 3.1% y-o-y reaching CNY 3.86 trillion (USD 570 billion) in that period.
- According to IBEF, the Indian textile and apparel industry is estimated to reach USD 190 billion by 2025-2026. India has a 4% share of the global trade in textiles and apparel. In FY 2022, India's textile and apparel exports amounted to USD 44.4 billion, registering a whopping 41% y-o-y increase.
- Polyethylene terephthalate (PET) derived from terephthalic acid is a crucial plastic material used for packaging applications. According to the Packaging Industry Association of India (PIAI), the sector has grown at a CAGR of over 20% in the past five years. The Indian packaging industry has made a mark with its exports and imports, thus driving technology and innovation growth in the country and adding value to the various manufacturing sectors.
- Thus, the rising investments in PTA production and growing demand for PTA in various end-user industries are projected to propel the growth of the market studied in the Asia-Pacific region.
Terephthalic Acid Industry Overview
The terephthalic acid market is partly fragmented in nature. Some of these major players (not in any particular order) include SABIC, Sinopec Corp., Arkema, INEOS, and BP p.l.c. among others.
Terephthalic Acid Market Leaders
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SABIC
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Sinopec Corp.
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INEOS
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Reliance Industries Limited
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BP p.l.c.
*Disclaimer: Major Players sorted in no particular order
Terephthalic Acid Market News
- August 2022: The Indian multinational conglomerate company, Reliance Industries Ltd., revealed its plan to invest in expanding the capacity of the polyester value chain in the next five years. As a part of this strategy, the company will build the world's largest single-train PTA (purified terephthalic acid) plant of 3 MMTPA capacity at Dahej, Gujarat.
- March 2022: Ineos Aromatics completed upgrading its PTA plant in Merak, Indonesia, by installing a large oxygen reactor and reconfiguring the heat recovery system to reduce carbon emissions from the site operations. As a part of the upgrading, the company also increased the PTA capacity from 500,000 tons to 575,000 tons per annum.
Terephthalic Acid Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Growing Consumption for Polyethylene Terephthalate in the Packaging Sector
- 4.1.2 Significant Demand of Polyester Fibers from the Textile Sector in Asia Pacific
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4.2 Restraints
- 4.2.1 Toxic Effects of Terephthalic Acid
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 Derivative
- 5.1.1 Polyethylene Terephthalate (PET)
- 5.1.2 Polybutylene Terephthalate (PBT)
- 5.1.3 Polytrimethylene Terephthalate (PTT)
- 5.1.4 Dimethyl Terephthalate
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5.2 Application
- 5.2.1 Packaging
- 5.2.2 Fibers
- 5.2.3 Paints and Coatings
- 5.2.4 Adhesives
- 5.2.5 Other Applications (Pharmaceuticals, Chemical Intermediates)
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Canada
- 5.3.2.3 Mexico
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Rest of South America
- 5.3.5 Middle-East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/ Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Arkema
- 6.4.2 BP p.l.c.
- 6.4.3 INEOS
- 6.4.4 China Petroleum & Chemical Corporation
- 6.4.5 Eastman Chemical Company
- 6.4.6 Formosa Petrochemical Co.
- 6.4.7 Indian Oil Corporation Ltd
- 6.4.8 Indorama Ventures Public Company Limited
- 6.4.9 Lotte Chemical Corporation
- 6.4.10 Mitsubishi Chemical Corporation
- 6.4.11 PetroChina Company Limited
- 6.4.12 Reliance Industries Limited
- 6.4.13 SABIC
- 6.4.14 Samyang Holdings Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Advancement in Production Technology
Terephthalic Acid Industry Segmentation
Terephthalic Acid, chemically known as Benzene-1,4-dicarboxylic acid, is a condensation polymer and an essential industrial aromatic precursor for polyethylene terephthalate (PET). These other petrochemical derivatives find usage in diverse industries such as packaging, textile, etc. Crude terephthalic acid obtained from the oxidation reaction of p-xylene contains impurities such as 4-carboxy benzaldehyde and several colored polyaromatics. Hence, terephthalic acid is first subjected to purification before exploiting it as an intermediate in the petrochemical industry. The terephthalic acid market is segmented by derivative, application, 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. For each segment, the market sizing and forecasts have been done based on volume (kilo tons).
| 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 | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle-East and Africa | Saudi Arabia |
| South Africa | ||
| Rest of Middle-East and Africa |
Terephthalic Acid Market Research FAQs
What is the current Terephthalic Acid Market size?
The Terephthalic Acid Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Terephthalic Acid Market?
SABIC, Sinopec Corp., INEOS, Reliance Industries Limited and BP p.l.c. are the major companies operating in the Terephthalic Acid Market.
Which is the fastest growing region in Terephthalic Acid Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Terephthalic Acid Market?
In 2024, the Asia-Pacific accounts for the largest market share in Terephthalic Acid Market.
What years does this Terephthalic Acid Market cover?
The report covers the Terephthalic Acid Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Terephthalic Acid Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Terephthalic Acid Industry Report
Statistics for the 2024 Terephthalic Acid market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Terephthalic Acid analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
