Purified Terephthalic Acid (PTA) Market Size & Share, by Type (Ortho-xylene-based, Para-xylene-based), End User (Textile, Packaging, Automotive) - Global Supply & Demand Analysis & Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5588
  • Published Date: Jan 31, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Purified Terephthalic Acid Market size is anticipated to reach USD 31 Billion by the end of 2036, growing at a CAGR of 9% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of purified terephthalic acid was over USD 18 Billion. The market is experiencing substantial growth, primarily propelled by the heightened demand for polyethylene terephthalate resin in the packaging industry. PET resin, derived from PTA, is renowned for its versatility and widespread application in the production of plastic bottles, containers, and packaging materials. The packaging industry's unyielding demand for PET resin is driven by several factors, with one of the key contributors being the global shift towards lightweight and durable packaging solutions. As consumer preferences evolve and environmental concerns intensify, industries seek sustainable packaging alternatives, where PET resin stands out as an optimal choice. Its inherent properties, such as recyclability, clarity, and resistance to impact, make it a preferred material for manufacturers aiming to meet both consumer demands and regulatory sustainability standards. According to a recent report, the global PET resin industry is expected to reach USD 51 billion by 2028.

The growth of e-commerce, in particular, has surged in recent years, further amplifying the need for efficient and reliable packaging solutions. PET resin's exceptional performance characteristics make it an ideal material for packaging beverages, personal care products, and various consumables. Moreover, the burgeoning middle-class population in emerging economies has spurred the demand for packaged goods, driving the need for PET resin and consequently boosting the purified terephthalic acid market.


Purified Terephthalic Acid Market
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Purified Terephthalic Acid (PTA) Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~9%

Base Year Market Size (2023)

~ USD 18 Billion

Forecast Year Market Size (2036)

~ USD 31 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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Purified Terephthalic Acid Market: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Increased Demand for PET Resin in Packaging Industry: The global PET resin consumption for packaging applications was approximately 17.8 million metric tons in the year 2020, reflecting a steady year-on-year increase. The surge in online retail and changing consumer lifestyles has led to a substantial rise in the demand for PET resin-based packaging materials. PET resin, derived from purified terephthalic acid (PTA), is favored for its lightweight nature, transparency, and recyclability. The shift towards sustainable and convenient packaging solutions has driven the packaging industry's reliance on purified terephthalic acid, making it a pivotal growth driver for the purified terephthalic acid market.
  • Growing Construction Activities and Infrastructure Development: The construction industry's reliance on polyester-based materials for applications like geotextiles, roofing membranes, and insulation has driven the demand for PTA. Polyester materials offer excellent tensile strength, weather resistance, and durability, making them suitable for various construction purposes. With ongoing infrastructure development projects worldwide, the construction sector is expected to be a key contributor to the growing demand for purified terephthalic acid.
  • Emergence of Sustainable Textile Practices: The increasing awareness of environmental sustainability has led to a shift in consumer preferences towards eco-friendly and recycled textile products. Purified terephthalic acid plays a crucial role in the production of recycled PET fibers, supporting the trend of sustainable textile practices. As textile manufacturers and brands continue to embrace sustainability initiatives, the demand for purified terephthalic acid in the production of recycled polyester fibers is expected to grow, contributing to the overall expansion of the purified terephthalic acid market.

Challenges

  • Fluctuating Raw Material Prices: The PTA production process involves the use of raw materials such as paraxylene, which is derived from crude oil. Fluctuations in crude oil prices can significantly impact the production costs of PTA, leading to challenges in pricing and profit margins. The PTA industry, like many chemical manufacturing sectors, faces increasing scrutiny regarding its environmental impact. The production of PTA generates by-products, and concerns related to emissions, waste disposal, and energy consumption pose challenges. Adhering to stringent environmental regulations and adopting sustainable practices is essential.
  • Environmental Concerns and Sustainability
  • Overcapacity Issues


Purified Terephthalic Acid Segmentation

Type (Ortho-xylene-based, Para-xylene-based)

The para-xylene-based segment in the PTA market is estimated to gain the largest revenue share of 60% in the year 2036. Ongoing technological advancements have played a crucial role in enhancing the efficiency of para-xylene-based PTA production. Improved production processes lead to cost efficiencies and increased output, making para-xylene-based PTA manufacturers more competitive in the global purified terephthalic acid market. Technological advancements are a key growth driver, enabling producers to meet the rising demand for para-xylene-based PTA in various applications. Investments in technology have led to a 12% improvement in the para-xylene-based PTA production process efficiency globally, resulting in increased annual production capacities. The dynamic growth of the para-xylene-based PTA market is prominently observed in the Asia-Pacific region. The region's increasing population, urbanization, and industrialization have led to a surge in demand for polyester-based products, particularly in China and other emerging economies.

End User (Textile, Packaging, Automotive)

Purified terephthalic acid market from the automotive segment is expected to garner a significant share in the year 2036. Purified terephthalic acid -derived materials, known for their high performance and durability, align with consumer expectations for quality in automotive interiors. As consumer preferences lean towards vehicles with robust and long-lasting interior components, the automotive industry continues to demand purified terephthalic acid -based materials for applications such as seat fabrics and carpets. It is observed that 78% of consumers consider performance features, such as durability and quality, when making decisions about vehicle purchases. Advancements in automotive interior design, including innovative fabrics and materials derived from PTA, contribute to a more comfortable and aesthetically pleasing driving experience. PTA-based materials, known for their durability and flexibility, align with the automotive industry's focus on providing enhanced interior features, driving their adoption in the manufacturing of automotive textiles.

Our in-depth analysis of the global PTA market includes the following segments:

           Type

  • Ortho-xylene-based
  • Para-xylene-based

 

           End User

  • Textile
  • Packaging
  • Automotive

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Purified Terephthalic Acid Industry - Regional Synopsis

APAC Market Forecast

The purified terephthalic acid market in the Asia Pacific region is projected to hold the largest revenue share of 40% by the end of 2036. The region's burgeoning population, combined with urbanization trends, contributes to increased consumption of textiles, packaging materials, and automobiles - all of which are major consumers of purified terephthalic acid. The growing urban population drives the demand for purified terephthalic acid -based products, making the Asia Pacific region a key growth driver for the market. Asia Pacific has more than half of the world's population, and the urban population in the region is expected to reach 54% by 2030. The Asia Pacific purified terephthalic acid market is further buoyed by the thriving textile and packaging industries, robust automotive production, investments in petrochemical infrastructure, the shift towards eco-friendly products, and the demographic dynamics of a growing population and urbanization. The heightened awareness of environmental sustainability is influencing consumer choices, leading to an increased demand for eco-friendly materials. Purified terephthalic acid manufacturers in the Asia Pacific region are responding to this trend by focusing on sustainable production practices and offering recycled purified terephthalic acid.

North American Market Statistics

The purified terephthalic acid market in the North America region is projected to hold the second largest share during the forecast period. Textile recycling initiatives are gaining momentum in North America as part of broader sustainability efforts. PTA is used in the production of recycled polyester fibers, contributing to the circular economy. The growing emphasis on textile recycling and the adoption of sustainable practices in the region drive the demand for PTA in the production of recycled polyester. North America recycled over 2.5 million tons of textiles in 2020. The automotive sector in North America is a key consumer of PTA-derived materials for applications such as seat fabrics and interior components. The industry's focus on light weighting for improved fuel efficiency and reduced emissions propels the demand for PTA. As automakers continue to invest in lightweight materials, the demand for PTA in the automotive sector is poised for growth.  

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Purified Terephthalic Acid Market Size
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Companies Dominating the Purified Terephthalic Acid (PTA) Market

top-features-companies
    • Reliance Industries Limited
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Sinopec Group
    • Indorama Ventures Public Company Limited
    • China National Petroleum Corporation
    • Mitsubishi Chemical Corporation
    • Eastman Chemical Company
    • Jiangsu Sanfangxiang Group Co., Ltd.
    • Formosa Plastics Corporation
    • SABIC (Saudi Basic Industries Corporation)
    • DakAmericas, LLC

In-the-news

In The News

  • Sinopec Group, through its subsidiary Sinopec International (China) Petroleum Services Company Ltd., acquired a 35% stake in Zhenhua Oil, a leading Chinese oilfield services provider. This acquisition strengthens Sinopec's upstream operations and expands its presence in the oilfield services market.
  • Sinopec and Saudi Aramco established a joint venture to develop, own, and operate fuel storage and distribution facilities in China. This partnership leverages Sinopec's extensive domestic network with Aramco's global expertise, aiming to enhance fuel security and supply in China.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 5588
  • Published Date: Jan 31, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for automotive sector is the major factor driving the market growth.

The market size of purified terephthalic acid is anticipated to attain a CAGR of 9% over the forecast period, i.e., 2024-2036.

The major players in the market Reliance Industries Limited, Sinopec Group, Indorama Ventures Public Company Limited, China National Petroleum Corporation (CNPC), Mitsubishi Chemical Corporation, and others.

The automotive segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Purified Terephthalic Acid Market Report Scope
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