English Extended Distribution PR-Wirein Press Release Reportedtimes Research Newswire

Terephthalic Acid Market Size Forecast To Reach US$72.3 billion by 2027

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.

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.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=509336
Report Price: $ 5900 (Single User License)

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.

Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=509336

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.

Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=509336

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.

Relevant Reports

A. Crystalline Polyethylene Terephthalate Market – Forecast (2022 – 2027)
https://www.industryarc.com/Report/15542/crystalline-polyethylene-terephthalate-market.html

B. Paraxylene Market – Forecast (2022 – 2027)
https://www.industryarc.com/Report/15972/paraxylene-market.html

For more Chemicals and Materials Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.

Tags: , , , , , ,

See Campaign: https://www.industryarc.com/Research/Terephthalic-Acid-Market-Research-509336

Contact Information:

Venkat Reddy Sales Director Email: venkat@industryarc.com Website: https://www.industryarc.com Phone: (+1) 970-236-3677


Tags:
PR-Wirein, Reportedtimes, Extended Distribution, Research Newswire, English

Contact Information:

Venkat Reddy
Sales Director
Email: venkat@industryarc.com
Website: https://www.industryarc.com
Phone: (+1) 970-236-3677

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *