Purified Terephthalic Acid (PTA) Market Overview
Purified Terephthalic Acid (PTA) can be recognized as an organic compound that is used through commercial means by undergoing the process of oxidation of substances like paraxylene with the help of the oxygen levels present in the air. This is available in a white and physical form, somewhat like a crystalline powder, and is known to be inert. This can be understood as an aromatic acid that has a major and widespread in the use of production of things like polyester fiber, and films. These are organic compounds and are also known to help in the development of PET material bottles, polyester resigns, and yarn amongst other commodities. This also acts as an intermediate when it comes to manufacturing liquid crystal polymers, and plasticizers amongst others. Textiles and packaging industries also make use of PTA on a large scale to cater to the demand and produce the requirements on a large scale and thus, helping the market expand its operations and grow as per the prediction for the assessment period.
Owing to these trends and global demand, the market is expecting significant growth by the end of the forecast period in 2030. The market is expecting to grow at a 5% CAGR rate and thus, gain a global market valuation worth USD 69 billion in the ongoing forecast period.
COVID 19 Analysis
The arrival of the novel coronavirus in the form of a deadly pandemic has been reflected in the purified terephthalic acid market size. The production and manufacturing of the different industries have stopped which has had an impact on the global market also. The result is adverse and the market has faced many restrictions naturally, as a series of events since the arrival of the pandemic in late 2019 and early 2020. To curb the spread of the pandemic, the government has imposed lockdowns of permanent and temporary kinds, depending on the situation in various locations across the globe. Also, during the unlock period, the functional restrictions are stopping the market functions to perform as per their maximum potential. Hence, the market is having a hard time reviving during the post-covid period.
To help the key purified terephthalic acid market players implement their growth strategies, beneficially, the governments of various global locations are extending a helping hand in the form of regulations, schemes, and enhanced budgets to increase the investment quantum. This will help the players take steps that will act as a major factor in post-covid recovery and also, emerge as global leaders by the end of the forecast period in 2030.
The demand for PET resins is increasing as an ingredient in beverage bottling, and food packaging. Also, this acts as a major ingredient in cooking and salad dressing, peanut butter, cooking oils, liquid handwash, and other personal use items like mouthwash. The main reason for the rising PET demand is that it has various kinds of properties like its hygiene value. Also, these are lightweight and waterproof. Also, they help in maintaining freshness and help the environment by being recyclable and sustainable. Owing to this, the demand will rise and this will drive the global purified terephthalic acid market growth.
However, the purified terephthalic acid market has some restraints that need to be dissolved for the market to grow as per the predictions. Paraxylene has fluctuating prices in the market and hence, the review period is facing this restraint on the path of its growth.
The production of PTA standards will be rising in the coming years due to its wide use in the manufacturing of polybutylene terephthalate (PBT). It is known to have a wider impact and stronger mobility and is also being used in various industry verticles like electronics and electricals, food processing, and automotive. Manufacturing of various products that use this as an ingredient will demand the huge demand for PTA as an intermediate product. Polyester films are also being used for different things like photographic films, sheet materials, storage tapes for data owing to their reliable features like dimensional stability and toughness will drive various opportunities that will drive the global purified terephthalic acid market growth.
Owing to the interest of the investors in the market that will help them make better decisions and understanding the revenue models, it is important to have an idea about the market segments and their functioning. The market has been segmented based on the following:
Based on application
The application segment of the purified terephthalic acid market has segregations like PET resin, polyester fiber, polybutylene terephthalate, films, and intermediates amongst others.
Based on industry end-users
The market has its end-users in the form of the food and beverage packaging industry, construction business, textiles, electrical, electronic business, painting, and coats, and furniture amongst others.
Based on regions
The purified terephthalic acid market value is rise owing to the functions of the market in regions namely the North American regions, Europe, the APAC region, Latin America, the Middle East, and Africa.
Owing to the segmentation in 5 major regions across the globe, the APAC region is likely to emerge as the fastest-growing region. The reason behind the significant growth of the region is the huge demand for PTA in the process of PET manufacturing alongside the vibrant use of this in major industries like construction businesses and the automotive industry. The growth of the industries is due to the increase of the disposable income of people and people investing this money to lead a luxurious life and enhance their standard of living. Also, people are preferring recycled PET across various industry verticles in the developed economies like North America, and European nations.
The prominent purified terephthalic acid market players are:
The global report discusses the overview of the market and its dynamics and the impact on these since the arrival of the pandemic in 2019-2020. Through the report, the investors can get major market insights that will have an impact on their decisions. The report also discusses the market segmentation, their functioning in major markets of the world, the prominent players of the market, and the recent developments undertaken by them during the assessment period.
|Market Size||69 billion|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Application and End-Use Industry|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Reliance Industries Limited (India), Alpek S.A.B. de C.V. (Mexico), Eastman Chemical Company (US), BP PLC (UK), Indorama Ventures Public Company Limited (Thailand), Indian Oil Corporation Ltd (India), SABIC (Saudi Arabia), China Petroleum & Chemical Corporation (China), MCPI (India), SAMYANG HOLDINGS CORPORATION (South Korea), LOTTE Chemical CORPORATION (South Korea), and Petkim Petrokimya Holding A.Ş. (Turkey)|
|Key Market Opportunities||The rapid adoption of PET bottles instead of glass bottles in beer and alcohol bottling.|
|Key Market Drivers||
The global purified terephthalic acid market was valued at USD 46 billion in 2017 and is expected to rise to a valuation of USD 69 billion by 2025.
In 2016, the global purified terephthalic acid market was tallied at USD 61.2 million tons, with a total production capacity of 80 million.
The global purified terephthalic acid market is expected to exhibit a solid 5% CAGR over the forecast period from 2018 to 2025.
The global purified terephthalic acid market is mainly driven by the growing demand for polyethylene terephthalate resin for the production of PET bottles.
The major regional market for purified terephthalic acid is Asia Pacific.