Terephthalic Acid Market Overview
The terephthalic
acid market size is estimated to reach US$72.3 billion by 2027 after growing at a
CAGR of around 5.8% from 2022 to 2027. Terephthalic acid is an organic compound
soluble in polar solvents and water. It is one of the isomers of
benzenedicarboxylic acid, others being isophthalic acids and phthalic acid. It
is used in producing polyester fibers, including plastics, PET, and other
derivatives. Terephthalic acid is majorly used in the manufacturing of
plasticizers, liquid crystal polymers, terephthaloyl chloride, and others. The
terephthalic acid industry is expected to hold a major growth due to rising
applications such as packaging, coatings, fibers, adhesives, bottles, and
others. Moreover, the increasing consumption dominance for packaged food and
beverage across the world, and the high demand for polyethylene terephthalate
derivative fibers for textile and home applications are driving the
terephthalic acid market during the forecast period.
COVID-19 Impact
The
COVID-19 outbreak led to massive disruptions and massive production halts
across the globe. The terephthalic acid market was majorly affected by the
pandemic. Terephthalic acid has major applications in the food and beverage,
automotive, electronics, and construction sectors. The demand for the terephthalic
acid industry faced decline due to disrupted supply chains, production halt,
and movement restrictions across the world. The automotive industry was
impacted by the pandemic. The production shutdown of automotive, decreasing
sales, and disruption in assembling, and logistics led to declining demand in
the automotive industry during the covid-19 outbreak. According to the Society
of Indian Automobile Manufacturers (SIAM), the production for passenger and
commercial vehicles showed a decline by 14.74% in April-March 2020. Thus, with
decreasing automotive productions and falling demand, the coatings applications
of terephthalic acid were also affected, leading to declining demand for the terephthalic
acid market. Moreover, the food and beverage industry was also affected and
showed dual impacts. The lockdown restrictions and disrupted food chains in hotels,
restaurants, grocery stores, and other outlets led to a fall in demand for the offline
food delivery segment, thereby negatively affecting the packaging used in the offline
food sector. However, the online food delivery systems saw preference in a later
phase of pandemic, as people were not stepping out for purchasing food items.
According to the Department of Agriculture (USDA), the Indian online grocery
market saw an increase by almost 80% with an estimated USD 2.65 billion in the year
2020. The rising trend of online food delivery channels boosted the demand for
terephthalic acid for food and beverage packages, as the use of PET plastics
increased for delivering the food online. Furthermore, food and beverage packaging is expected to hold a major
share in the terephthalic acid industry post-pandemic.
Report Coverage
The
terephthalic acid market report: “Terephthalic Acid Market Report – Forecast
(2022-2027)” by IndustryARC covers an in-depth analysis of the following
segments of the terephthalic acid industry.
By
Derivative: Polybutylene
Terephthalate, Polyethylene Terephthalate, Polytrimethylene Terephthalate,
Dimethyl Terephthalate
By Application: Packaging, Paints, Polyester Coatings,
Adhesives, Polyester Fibers, Bottles, and Others
By
End-Use Industry: Automotive Industry
(Passenger Vehicles and Commercial Vehicles), Electronics (Electric Systems,
Consumer Electronics, Wearable Electronics, and Others), Food and Beverage
Industry (Food Packaging, and Beverage Packaging), Textile, Construction
(Residential and Non-Residential), Pharmaceuticals, and Others
By
Geography: North America (USA, Canada, and Mexico),
Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and
Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and
New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America
(Brazil, Argentina, Colombia, Chile, and Rest of South America), Middle East
(Saudi Arabia, UAE, Israel, Rest of the Middle East) and Africa (South Africa,
Nigeria, Rest of Africa)
Key Takeaways
- The rising demand for packaging in the food and beverage industry across the world will lead to the growing usage of PET, which is a derivative of terephthalic acid, thereby boosting the demand for the terephthalic acid market during the forecast period.
- The Asia Pacific holds the largest growth share and will dominate the terephthalic acid market due to rising consumption for packaged food items such as ready-to-eat items, frozen foods, and others, along with high purified terephthalic acid (PTA) productions, majorly in China.
- The rising demand for polyester fibers in the apparel and textile sector is driving the terephthalic acid market due to its excellent features such as high durability, wrinkle resistance, blending with other fibers, and shape retention.
Figure: Asia Pacific Terephthalic Acid Market Revenue, 2021-2027 (US$ Billion)
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Terephthalic acid Market Segment Analysis – By Derivative
By
derivative, the polyethylene terephthalate (PET) is expected to have the
largest share of over 30% in the terephthalic acid market share and will dominate
the terephthalic acid market in the coming years. The polyethylene
terephthalate is made from ethylene glycol and monomers terephthalic acid. It
offers excellent properties such as resistance to stretching, high tensile
strength, aroma barrier, and durability, thereby used as a preferred packaging
material option. The rising growth of polyethylene terephthalate in packaging applications
for various end-use industries and polyester fiber for textiles and apparel is
driving its demand in the terephthalic acid market. According to World Trade
Organization (WTO), the United States holds the position of fourth-largest exporter
in textiles, with USD 19.3 textile and apparel exported in the year 2020.
Moreover, PET is also employed in bottles such as drinking water bottles, soft
drinks, and others. According to China Chain Store & Franchise Association,
the food and beverage sector in China reached around USD 595 billion in 2019.
Furthermore, with the wide range of packaging applications in food and
beverage, polyester fibers for textiles, consumer goods, and others, the
polyethylene terephthalate derivative will experience a major drive in the
coming years.
Terephthalic Acid Market Segment Analysis – By Application
By application, the packaging held the largest growth share
with 38% in 2021 and is expected to increase the terephthalic acid market size
in the coming years. The growing demand for packaging in various end-use
industries, majorly food and beverage are influencing growth in the
terephthalic acid industry. The derivatives of terephthalic acid such as polyethylene
terephthalate are used in making polyester films and packaging sheets. It is
used in producing various packaging products such as bottles, sheets, films,
and others. Moreover, the food sector is majorly using terephthalic acid for
food and beverage packaging, owing to its excellent properties such as
durability, lightweight, transportation and handling efficiency, and high
strength. According to the Associated Chambers of Commerce and Industry of
India, the organized packaged food segment in India is expected to reach around
780 million in 2020. Moreover, the packaging segment will grow due to the rise
in demand for packaged food items, soft drinks, baked food items, and others. Thus,
with major packaging applications in various end-use industries, majorly food
and beverage, the terephthalic acid market will experience high demand during
the forecast period.
Terephthalic Acid Market Segment Analysis- By End-Use Industry
By end-use industry, the food and beverage segment is expected to have the largest share of more than 35% in 2021 and is expected to dominate the terephthalic acid market in the forecast period. The rising consumption of packaged foods in grocery stores, hotels, food outlets, supermarkets, and others is driving the demand for terephthalic acid in the food and beverage sector. The polyethylene terephthalate, which is a derivative of terephthalic acid, offers a major contribution to the packaging of beverages, ready-to-eat food, bakery, and others. Furthermore, the rising trend of online food delivery systems led to growth in sustainable and innovative PET packaging in the food and beverage industry. According to the Ministry of Food Processing Industries (MOFPI), the food services and food grocery segment is growing at a CAGR of 15% and 25% respectively. The polyethylene terephthalate offers the best flexible and rigid packaging in the food sector and provides freshness, non-reactivity, and hygiene to the food item. Thus, with the increase in packaging for food items and beverages, the demand for the terephthalic acid market will rise in the forecast period.
Terephthalic Acid Market Segment Analysis – By Geography
By geographical analysis, the Asia Pacific held the largest share of more than 43% in the terephthalic acid market for the year 2021. The growing packaging in the food and beverage segment and rising demand for the textile sector in major nations such as India and China have influenced the growth in this region. Moreover, the rising consumption of terephthalic acid is influenced by the demand for polyester fibers in Asia due to its excellent features such as wrinkle resistance, shape retention, high elasticity, and others. The increase in sales volume for clothing and apparel is driving the market in this region. According to the China Apparel Association, the total sales of apparel or clothing in 2018 reached around 3.09 trillion, showing an increase of 7.30% year-on-year in China. Moreover, the rise in the automotive sector will also contribute to the rising demand for terephthalic acid and its derivatives such as polybutylene terephthalate, polyethylene terephthalate, and others. Thus, the growing terephthalic acid applications in major end-use industries will offer high growth to the terephthalic acid industry in the Asia Pacific region during the forecast period.
Terephthalic Acid Market Drivers
Rising Demand from Textile and Home Furnishing Sector
The growth in the textile sector is anticipating the demand for the terephthalic
acid market. Polyester fibers, which are made from terephthalic acid and other
derivatives are gaining high popularity. The increasing demand for polyester
yarns and fibers in textiles, apparel, and home furnishing is driving the
market of terephthalic acid. Polyester fibers offer excellent compatibility
with natural and synthetic fibers, thereby majorly used by textile exporters
across the world. Moreover, these fibers have major applications such as
apparel fabrics, clothing, home furnishing, curtain, draperies, and others. According
to the National Bureau of Statistics, the apparel sector in China completed
around 23 billion pieces for the year 2018. Thus, owing to properties such as
wrinkle-resistant, stain resistance, high abrasion, and less shrinkage, the
demand for polyester fiber in the textile sector is increasing, thereby
offering a major growth share and clear terephthalic acid industry outlook in
coming years.
Increasing Demand from Automotive Sector
Terephthalic
acid has major applications in the automotive sector. The polybutylene
terephthalate offers high usage in automotive such as auto-components (fuel
system, connectors, and motor components), coatings, airbags, seatbelts,
subsystems, and others. The rising automotive production is creating a major
drive in the terephthalic acid market. According to the International
Organization of Motor Vehicle Manufacturers (OICA), 57.26 million vehicles were
produced for the year 2021. With the rise in automotive, the demand for polybutylene
terephthalate, which is a derivative of terephthalic acid, will rise. The
growth in PBT applications in automotive and electronic systems is influenced
by the demand for lightweight and durable plastics in the automotive industry.
Thus, the market for terephthalic acid will see major growth in the coming
years.
Terephthalic Acid Market Challenges
Threat from Substitution can be a Challenge to the Terephthalic Acid Market
The regulations for shifting to biodegradable and renewable materials are
imposed across the world. The terephthalic acid faces a substitution from
2,5-Furandicarboxylic acid. It can replace polyester such as polyethylene
terephthalate (PET). Moreover, the new age thermoplastics are replacing
conventional plastics, which include various derivatives of terephthalic acid.
Various polymers such as PEF, polyhydroxyalkanoate, and others offer similar
properties, along with renewability and biodegradability. Furthermore, the polyethylene terephthalate has a renewable
alternative, known as bio-based PET, which is dominating the food packaging
segment as it provides a better gas permeation barrier, compared to the PET.
This will hinder the growth of terephthalic acid and create major hindrances in
the market.
Terephthalic Acid Industry Outlook
Technology launches, acquisitions, and
R&D activities are key strategies that are adopted by the dominant players
in the terephthalic acid market. The major terephthalic acid top 10 companies
include:
1. China
Petroleum & Chemical
2. Eastman
Chemical
3. Sinopec
Corp.
4. Arkema
5. Indorama Ventures
6. Lotte
Chemical
7. MCPI
8. Mitsubishi
Chemical
9. Mitsui
Chemicals
10. Reliance
Industries
Recent Developments
- In February 2019, Indorama Ventures worked on the manufacturing of polyethylene terephthalate and purified terephthalic acid on its facility. This facility was purchased from Atlanta PTA, Portugal, and EIPET in Egypt.
- In May 2019, Ester Industries, a leading polyester films manufacturer, agreed with a chemical leader for supplying innovative polybutylene terephthalate.
Relevant Reports
Crystalline Polyethylene Terephthalate Market – Forecast (2022 - 2027)
Report Code: CMR 0313
Paraxylene Market – Forecast (2022 - 2027)
Report Code: CMR 0438
LIST OF TABLES
1.Global MARKET SEGMENTATION Market 2023-2030 ($M)1.1 Derivative Market 2023-2030 ($M) - Global Industry Research
1.1.1 Polyethylene Terephthalate Market 2023-2030 ($M)
1.1.2 Polybutylene Terephthalate Market 2023-2030 ($M)
1.1.3 Polytrimethylene Terephthalate Market 2023-2030 ($M)
1.1.4 Dimethyl Terephthalate Market 2023-2030 ($M)
1.1.6 Packaging Market 2023-2030 ($M)
1.1.7 Fibers Market 2023-2030 ($M)
1.1.8 Paints and Coatings Market 2023-2030 ($M)
1.1.9 Adhesives Market 2023-2030 ($M)
2.Global COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
2.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 ($M) - Global Industry Research
3.Global MARKET SEGMENTATION Market 2023-2030 (Volume/Units)
3.1 Derivative Market 2023-2030 (Volume/Units) - Global Industry Research
3.1.1 Polyethylene Terephthalate Market 2023-2030 (Volume/Units)
3.1.2 Polybutylene Terephthalate Market 2023-2030 (Volume/Units)
3.1.3 Polytrimethylene Terephthalate Market 2023-2030 (Volume/Units)
3.1.4 Dimethyl Terephthalate Market 2023-2030 (Volume/Units)
3.1.6 Packaging Market 2023-2030 (Volume/Units)
3.1.7 Fibers Market 2023-2030 (Volume/Units)
3.1.8 Paints and Coatings Market 2023-2030 (Volume/Units)
3.1.9 Adhesives Market 2023-2030 (Volume/Units)
4.Global COMPETITIVE LANDSCAPE Market 2023-2030 (Volume/Units)
4.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 (Volume/Units) - Global Industry Research
5.North America MARKET SEGMENTATION Market 2023-2030 ($M)
5.1 Derivative Market 2023-2030 ($M) - Regional Industry Research
5.1.1 Polyethylene Terephthalate Market 2023-2030 ($M)
5.1.2 Polybutylene Terephthalate Market 2023-2030 ($M)
5.1.3 Polytrimethylene Terephthalate Market 2023-2030 ($M)
5.1.4 Dimethyl Terephthalate Market 2023-2030 ($M)
5.1.6 Packaging Market 2023-2030 ($M)
5.1.7 Fibers Market 2023-2030 ($M)
5.1.8 Paints and Coatings Market 2023-2030 ($M)
5.1.9 Adhesives Market 2023-2030 ($M)
6.North America COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 ($M) - Regional Industry Research
7.South America MARKET SEGMENTATION Market 2023-2030 ($M)
7.1 Derivative Market 2023-2030 ($M) - Regional Industry Research
7.1.1 Polyethylene Terephthalate Market 2023-2030 ($M)
7.1.2 Polybutylene Terephthalate Market 2023-2030 ($M)
7.1.3 Polytrimethylene Terephthalate Market 2023-2030 ($M)
7.1.4 Dimethyl Terephthalate Market 2023-2030 ($M)
7.1.6 Packaging Market 2023-2030 ($M)
7.1.7 Fibers Market 2023-2030 ($M)
7.1.8 Paints and Coatings Market 2023-2030 ($M)
7.1.9 Adhesives Market 2023-2030 ($M)
8.South America COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
8.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 ($M) - Regional Industry Research
9.Europe MARKET SEGMENTATION Market 2023-2030 ($M)
9.1 Derivative Market 2023-2030 ($M) - Regional Industry Research
9.1.1 Polyethylene Terephthalate Market 2023-2030 ($M)
9.1.2 Polybutylene Terephthalate Market 2023-2030 ($M)
9.1.3 Polytrimethylene Terephthalate Market 2023-2030 ($M)
9.1.4 Dimethyl Terephthalate Market 2023-2030 ($M)
9.1.6 Packaging Market 2023-2030 ($M)
9.1.7 Fibers Market 2023-2030 ($M)
9.1.8 Paints and Coatings Market 2023-2030 ($M)
9.1.9 Adhesives Market 2023-2030 ($M)
10.Europe COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
10.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 ($M) - Regional Industry Research
11.APAC MARKET SEGMENTATION Market 2023-2030 ($M)
11.1 Derivative Market 2023-2030 ($M) - Regional Industry Research
11.1.1 Polyethylene Terephthalate Market 2023-2030 ($M)
11.1.2 Polybutylene Terephthalate Market 2023-2030 ($M)
11.1.3 Polytrimethylene Terephthalate Market 2023-2030 ($M)
11.1.4 Dimethyl Terephthalate Market 2023-2030 ($M)
11.1.6 Packaging Market 2023-2030 ($M)
11.1.7 Fibers Market 2023-2030 ($M)
11.1.8 Paints and Coatings Market 2023-2030 ($M)
11.1.9 Adhesives Market 2023-2030 ($M)
12.APAC COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
12.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 ($M) - Regional Industry Research
13.MENA MARKET SEGMENTATION Market 2023-2030 ($M)
13.1 Derivative Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Polyethylene Terephthalate Market 2023-2030 ($M)
13.1.2 Polybutylene Terephthalate Market 2023-2030 ($M)
13.1.3 Polytrimethylene Terephthalate Market 2023-2030 ($M)
13.1.4 Dimethyl Terephthalate Market 2023-2030 ($M)
13.1.6 Packaging Market 2023-2030 ($M)
13.1.7 Fibers Market 2023-2030 ($M)
13.1.8 Paints and Coatings Market 2023-2030 ($M)
13.1.9 Adhesives Market 2023-2030 ($M)
14.MENA COMPETITIVE LANDSCAPE Market 2023-2030 ($M)
14.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Terephthalic Acid Market Revenue, 2023-2030 ($M)2.Canada Terephthalic Acid Market Revenue, 2023-2030 ($M)
3.Mexico Terephthalic Acid Market Revenue, 2023-2030 ($M)
4.Brazil Terephthalic Acid Market Revenue, 2023-2030 ($M)
5.Argentina Terephthalic Acid Market Revenue, 2023-2030 ($M)
6.Peru Terephthalic Acid Market Revenue, 2023-2030 ($M)
7.Colombia Terephthalic Acid Market Revenue, 2023-2030 ($M)
8.Chile Terephthalic Acid Market Revenue, 2023-2030 ($M)
9.Rest of South America Terephthalic Acid Market Revenue, 2023-2030 ($M)
10.UK Terephthalic Acid Market Revenue, 2023-2030 ($M)
11.Germany Terephthalic Acid Market Revenue, 2023-2030 ($M)
12.France Terephthalic Acid Market Revenue, 2023-2030 ($M)
13.Italy Terephthalic Acid Market Revenue, 2023-2030 ($M)
14.Spain Terephthalic Acid Market Revenue, 2023-2030 ($M)
15.Rest of Europe Terephthalic Acid Market Revenue, 2023-2030 ($M)
16.China Terephthalic Acid Market Revenue, 2023-2030 ($M)
17.India Terephthalic Acid Market Revenue, 2023-2030 ($M)
18.Japan Terephthalic Acid Market Revenue, 2023-2030 ($M)
19.South Korea Terephthalic Acid Market Revenue, 2023-2030 ($M)
20.South Africa Terephthalic Acid Market Revenue, 2023-2030 ($M)
21.North America Terephthalic Acid By Application
22.South America Terephthalic Acid By Application
23.Europe Terephthalic Acid By Application
24.APAC Terephthalic Acid By Application
25.MENA Terephthalic Acid By Application