The global market was valued at $ 36.1 billion in 2016, and it is expected to see a CAGR of 6% and reach 41 billion in the paraxylene market forecast 2021-2030.
Paraxylene Market overview:
The global market was valued at $ 36.1 billion in 2016, and it is expected to see a CAGR of 6% and reach 41 billion in the paraxylene market forecast for 2021-2030. Paraxylene, known as PX and is an automatic hydrocarbon compound and is produced from benzene. Paraxylene is colorless, sweet-smelling, highly flammable, and a toxic chemical. Paraxylene can be found in petroleum and coal tar naturally. Paraxylene has a wide range of applications in large-scale manufacturing, and the production of paraxylene is one of the most complicated processes. Demand for polyester manufacturers is one of the major driving factors for the paraxylene market. Paraxylene is majorly used in the manufacturing of dimethyl Terephthalate and purified terephthalic acid. And these products are used in the manufacturing of polyester. Polyester has a huge range of applications, and it is mainly used in fibers, films, PET resin, and other plastic applications. This is expected to see huge growth in demand due to its application of construction materials, packaging, and textiles.
The growing demand for plastic around the world is the key factor for driving the paraxylene market growth. Paraxylene is heavily used to produce plastic products, and as a result, it is utilized for manufacturing Polyethylene Terephthalate bottles commonly, containers for water, soda, and other beverages. Paraxylene is also used in the production of different household products such as cosmetic containers, clothing, curtain fabrics, and other materials. The development of bio-based paraxylene is one of the key contributing Factors in the paraxylene market demand. Increasing environmental awareness about eco-friendly products has increased the demand in the consumers. Bioplastics which are made from paraxylene, are a component used in many industries as an alternative to conventional plastic.
According to the paraxylene market analysis, the global paraxylene market will see moderate growth in the paraxylene market forecast period. Rising concern about non-disposable plastic is creating demand for the paraxylene market. As a result, this is pushing manufacturers to develop bio-based plastic. As a result, the paraxylene market is rising. Major users of plastic are now adopting paraxylene to manufacture eco-friendly plastic products. Growing polyester fiber demand in many regions such as India, Bangladesh, Brazil has provided great opportunities for the paraxylene market demand to grow rapidly. And the paraxylene market tends all set to increase in the forecast period.
Many markets suffered due to the covid-19 pandemic, and the economy was down. Many businesses, including private and government sectors, saw a decline in demand amidst of covid-19 pandemic. Purified terephthalic acid and paraxylene products are used to manufacture polyester coatings that are used in automotive sectors. Due to the imposition of lockdown and social distancing guidelines, the automotive sectors were shut down temporarily; as a result, the production work was at a halt, and it has decreased the paraxylene market demand. Also, the food and packaging sectors contribute highly to the paraxylene market. And the decline in the production of food & beverages along with e-commerce packaging had a negative impact on the paraxylene market growth. But the key players of the paraxylene market helped the market to maintain the demand. According to the paraxylene outlook, the market will see moderate growth in demand after the post-covid-19 situation.
The major players in the market are:
BP p.l.c (UK),
Chevron Phillips Chemical Company (US),
Exxon Mobil Corporation (US),
Reliance Industries Limited (India),
China National Petroleum Corporation (China),
S-OIL Corporation (South Korea),
Kuwait Aromatics Co (Kuwait),
MITSUBISHI GAS CHEMICAL COMPANY, INC (Japan)
Some of the factors in the market are influencing the growth of the paraxylene market size. Those factors that are helping the paraxylene market size to grow are called market drivers, and the factors that have a negative impact on the market are called market restraints.
There are many drivers in the paraxylene market owing to the increasing application of paraxylene in various Industries. One of the major drivers in the market is the increasing demand for plastic products in the packaging industry. Paraxylene is utilized in manufacturing polyethylene terephthalate (PET) bottles and commonly used for soda, water, and beverages bottles. The increasing use of paraxylene in the packaging sector is a major driver of the market. Paraxylene is also used in the production of various household appliances, and cosmetics, and clothing. Due to the wide variety of applications, the paraxylene market trends is growing rapidly. Another major driver of the market is bio-based paraxylene. The adoption of eco-friendly products has increased over the past few years, and it is contributing to market growth. Due to the adoption of eco-friendly options, the paraxylene market trends are rising because paraxylene is used in the making of bioplastics. The usage of paraxylene in the automotive sector is another driver in the market. Government initiatives to use more eco-friendly products are fueling the paraxylene industry.
Increasing concern about the dangerous properties of non-disposable plastic has increased the demand for eco-friendly products. Paraxylene is safer, and it is used to make bio-based plastic. Environmental awareness has increased the demand for paraxylene to make safer products. Plastic made from paraxylene is a better alternative to conventionally used plastic, and it is generating more opportunities for the market. The use of better packaging material is also creating opportunities for the paraxylene market.
The lack of availability of raw materials used for paraxylene is one of the biggest restraints for the paraxylene industry. Also, there are many regions that are still using other types of plastic. The presence of alternative paraxylene is another restraint in the market, and it is hampering the growth of the paraxylene industry. The health effects associated with the inhalation of paraxylene are also one of the restraining factors in the market.
There are many challenges faced by the paraxylene industry, just like other markets. One of the major restraints in the market is the lack of knowledge about bio-based products. There are some underdeveloped areas that are not used to the idea of eco-friendly products; as a result, it has become a challenge for the market. Apart from that, high investment is involved in the manufacturing of paraxylene, and it is another challenge for the market.
Cumulative growth analysis
According to the market analysis, the global paraxylene market will see moderate growth in the forecast period.
The global market was valued at $ 36.1 billion in 2016, and it is expected to see a CAGR of 6% and reach 68 billion in the paraxylene market forecast period. High adoption of paraxylene to make better and eco-friendly products will raise the demand of the market in the coming years.
The paraxylene market is segmented on the basis of type, application, and region.
By type- The type segment of the market includes phthalic acid, Dimethyl Terephthalate, and purified terephthalic acid.
By application- On the basis of application segment, the market is divided into textiles, food packaging, electronics, beverage bottling, construction, and others.
Region- On the basis of regions, the market is segmented into North America, Europe, Asia Pacific, and others.
The major regions in the paraxylene market are North America, Europe, Asia Pacific, and the rest of the world. The Asia Pacific holds the highest paraxylene market share owing to the increasing demand for paraxylene. In 2016 the Asia Pacific had a paraxylene market share of 79%. Rising demand for polyester in packaging and textile applications and rapid Industrialization is boosting the market demand in this region. China is one of the biggest production regions in the world and the largest manufacturer and consumer of paraxylene, and the growing demand for PET in China is one of the major driving factors of the market in the Asia Pacific region.
North America holds the second-highest paraxylene market share. It was responsible for 11% of the market share in 2016. The use of paraxylene in automotive industries, electronics, healthcare, and construction is driving the growth of the market in this region. The European region will also see rapid growth in demand of the market owing to the emerging economies and Industrialization in this region in the forecast period.
Recent developmentApril 2021 - Maire Tecnimont, an Italian firm, announced an association of its subsidiaries Tecnimont and Tecnimont SpA had received an engineering, procurement, construction, and commissioning (EPCC) contract from Indian Oil Corporation (IOCL) worth USD 450 million to set up a Paraxylene plant in Paradip, Odisha. The scope of work needs EPCC activities up to performance guarantees test run. Once commenced, the latest PX facility will be capable of producing 8,00,000 tpa. The mechanical completion of the plant is anticipated to be finished in 33 months from the award date. The Para-Xylene manufactured will be utilized in the Purified Terephthalic Acid (PTA) unit close to it. January 2021 – Ineos, a leading petrochemical company, announced the completion of the purchase of global Aromatics and Acetyls businesses from BP for approximately USD5 Billion. The transaction was first revealed in late June 2020. The company states the acquisition will expand its geographic reach and portfolio. The businesses by Ineos will be named Ineos Aromatics and Ineos Acetyls. Ineos Aromatics is a prominent player in PX (paraxylene) technology and PTA (purified terephthalic acid) with six sites. It provides the global polyester sector that includes PET, film, and fiber packaging. Ineos Acetyls is a producer of acetic acid and various derivatives from nine sites, providing a variety of downstream industries such as packaging, adhesives, paints, pharmaceuticals, and food. In January 2021, INEOS acquired BP’s global aromatics and acetyls business.In August 2020, Indian Oil Corporation Limited planned to invest INR 13,805 crore in purified terephthalic acid (PTA) plant in Paradip of Odisha to manufacture raw materials for the textile sector.
|Market Size||USD 41 billion|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||by Product Type, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Braskem (Brazil), BP p.l.c (UK), Chevron Phillips Chemical Company (US), Exxon Mobil Corporation (US), Reliance Industries Limited (India), China National Petroleum Corporation (China), JXTG Holdings, Inc (Japan), S-OIL Corporation (South Korea), Kuwait Aromatics Co (Kuwait), and MITSUBISHI GAS CHEMICAL COMPANY, INC (Japan).|
|Key Market Opportunities||The technological advancements such as Plant PET Technology Collaborative (PTC) to produce 100% bio-based PET by Virent, Inc in 2015, which produces paraxylene using beet sugar instead of fossil fuels is an opportunity for the players in this market.|
|Key Market Drivers||The growth of these industries across the globe is driving the demand for PET, which drives the demand for TPA, PTA, and DMT, thus fueling the production of paraxylene.|
China National Petroleum Corporation (China), JXTG Holdings, Inc (Japan), S-OIL Corporation (South Korea), Braskem (Brazil), BP p.l.c (UK), Chevron Phillips Chemical Company (US), Exxon Mobil Corporation (US), Reliance Industries Limited (India), Kuwait Aromatics Co (Kuwait), and MITSUBISHI GAS CHEMICAL COMPANY, INC (Japan) are the major key players in the market.
The Asia Pacific is responsible for the highest share in the paraxylene market.
The paraxylene market segments are by type, application, and region.