Purified terephthalic acid market expected to reach $ 70.5 billion by 2025 Wall Street Call
Purified Terephthalic Acid Market is expected to reach $ 70.5 billion by 2025, after increasing at a CAGR of 5.3% between 2020 and 2025. Purified terephthalic acid (PTA) is derived from crude oil, by chemical synthesis. Purified terephthalic acid (PTA) is mainly used in the production of polyester resin, which is used in the production of polyester film, polyethylene terephthalate (PET) resin, and polyester fiber. Globally, the development of efficient and advanced technologies, the increasing demand for polyester resin and polyethylene terephthalate (PET), the growth of the textile, coating and packaging industries, as well as the increasing consumption by inhabitant and growing disposable income are the major growth drivers of the purified terephthalic acid market. In addition, increasing adoption of purified terephthalic acid for application in new industrial verticals and emerging economies such as China, India and others, will create new opportunities for the market. purified terephthalic acid. However, the volatility of crude oil prices and the availability of raw materials, the presence of substitute compounds, the complex manufacturing process, strict government regulations, and the COVID-19 outbreak are the major constraints in the market for the oil. purified terephthalic acid.
Purified Terephthalic Acid Market Segment Analysis – By Application
Polyester holds the largest share of over 30% in the purified terephthalic acid market in 2019. The increasing uses of polyester-based terephthalic acid solution to produce PET resins, polyester fibers and packaging films are driving the growth of the purified terephthalic acid market. In addition, the high strength, light weight, improved clarity, long-term durability and improved design plasticity properties of polyester-based products are more of a substitute for traditional packaging materials such as glass, paper, metal and aluminum, which increase the growth of the market.
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Purified Terephthalic Acid Market Segment Analysis – By End Use
The textile segment holds the largest share of over 30% in the purified terephthalic acid market in 2019. The growing demand for polyester fibers and yarns from the textile industry in developing countries like India, China and Malaysia are driving the growth of this market. While the growing fashion trend coupled with the growing population is driving the growth of this market. While the high toughness and durability of PTA make it suitable for use in the textile industry. Thus, the growth of the textile industry further stimulates the growth of this market.
Purified Terephthalic Acid Market Segment Analysis – By Geography
Asia-Pacific holds the largest share of over 45% of the purified terephthalic acid market in 2019 due to the large consumer base, presence of emerging countries, industrialization and l rapid urbanization, rising per capita income of individuals and the availability of labor costs. Asia-Pacific is also expected to experience the fastest growth, owing to the rapid development of infrastructure owing to the growth of the industrial base due to the shift of the global manufacturing base to the region and government initiatives in developing countries. development such as China and India in this region.
Purified Terephthalic Acid Market Drivers
Growing textile industry due to fashion industry and changing lifestyle
Purified terephthalic acid is mainly used to produce polyester fibers and yarns. Polyester fibers are man-made fibers and are increasingly adopted by the textile industry, due to their recyclability and versatility, as well as their affordability compared to other fibers. The increase in disposable income and the adoption of Western culture in emerging countries has spurred the growth of the fashion industry. In addition, the increasing demand for rayon fibers for clothing and household items such as blankets, sheets and curtains is increasing the growth of the rayon fibers market. According to Trade Map, global import spending on clothing and clothing accessories increased 9% to $ 4,741,531 in 2018. Huge spending by young people on fashion clothing products is increasing the market. In addition, according to the China Luxury Report, Chinese consumers at home and abroad spent 115 billion on luxury fashion items in 2018, which is equivalent to one-third of global spending. In recent years, the polyester industry has accounted for the largest share of the textile industry.
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Purified Terephthalic Acid Market Challenges
The fluctuating cost of raw materials and strict environmental regulations
The price and availability of raw materials are major factors that affect the price of finished products. The main challenge for the global PTA market is the oscillating trends in commodity prices, which fluctuate due to the volatility of energy prices, as most of the commodities are petroleum based. According to BP statistics, in 2018, the average price of crude oil increased to $ 71 / bbl, from $ 54 / bbl in 2017. Fluctuations in crude oil prices impact the cost of raw materials used in the production. production of PTA. Therefore, fluctuating commodity prices affects PTA, which limits the growth of its market. Several organizations such as the United States Environmental Protection Agency, California Air Resources Board and others have established various regulations and policies to reduce the carbon footprint and VOC emissions of coatings. In January 2018, the EU published the German version of DIN EN 16516, a test standard that uniformly regulates the measurement of emissions from construction products, including coatings. Thus, growing environmental concerns translate into stricter regulations limiting VOC emissions from coatings, which may hamper the growth of the market.
Emergence of COVID-19
The global COVID-19 epidemic is further acting as a challenge factor for the market growth. The corona pandemic has disrupted the global supply chain, shutting down production of various end-use industries, labor shortages, global foreclosure, and declining consumer demand, resulting in further hampered market growth. In addition, the decrease in purchasing capital has impacted the growth of the oil and gas and textile industries, further affecting the growth of the purified terephthalic acid market.
Technological launches, acquisitions, and R&D activities are key strategies adopted by players in the Purified Terephthalic Acid Market report. In 2019, the purified terephthalic acid market was consolidated by the top 10 companies accounting for xx% of the share. The major players in the purified terephthalic acid market are BP PLC, Indorama Ventures Public Company Limited, Indian Oil Corporation Ltd., SABIC, China Petroleum & Chemical Corporation, Reliance Industries Limited, Alpek SAB de CV, Eastman Chemical Company, MCPI, SAMYANG HOLDINGS CORPORATION, LOTTE Chemical CORPORATION and Petkim Petrokimya Holding A.?., Among others.
Technology acquisitions / launches
In April 2015, Reliance Industries Limited (RIL) announced the commissioning of a new Purified Terephthalic Acid (PTA) plant with a capacity of 1150 kilotons (KT) per year in Gujarat (India), in order to meet to the growing demand for PTA. .
Key points to remember
Rising oil and gas activities along with falling prices in countries like the United States, the Middle East and Russia are increasing the demand for purified terephthalic acid.
The increasing penetration and preference of recycled PET in developed and developing economies further drives the growth of the market.
South America will experience significant growth due to increased demand for PTA from the country’s PET grade resin producers.
The decline in manufacturing activities and the disruption of the supply chain due to the coronavirus outbreak have hampered the growth of the purified terephthalic acid market.
A. Market for polyester staple fibers
B. Plasticizers market
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