Terephthalic Acid Market - Growth, Trends, and Forecast (2022 - 2030)

Market Overview

The market for terephthalic acid is expected to grow at a CAGR of around 5% during the forecast period of 2019 – 2024. Rising demand for polyethylene terephthalate (PET) from the packaging industry is the main factor which is driving the market. Toxic effects of terephthalic acid is expected to hinder the growth of the market.

- Polyethylene Terephthalate (PET) segment dominated the market in 2018 and is expected to grow during the forecast period owing to the increasing usage in the packaging industry.
- Advancement in production technology is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China and India.

Key Market Trends

Increasing Demand from Polybutylene Terephthalate (PBT)

- Polybutylene Terephthalate (PBT) is a semi-crystalline, white or off-white thermoplastic polyester, similar in both composition and properties to polyethylene terephthalate (PET). When compared to PET, PBT has higher impact strength, better electrical resistance, and similar chemical resistance.
- As PBT crystallizes more rapidly and is easy to mold than PET; it is preferred for industrial scale molding over PET. PBT is majorly used in various applications, such as electrical & electronics, automotive, fiber optics, communications, and consumer goods, among others.
- The automotive end-user industry accounts for the largest share of the market, and it is also expected to hold its position during the forecast period. Electrical & electronics is the fastest growing end-user segment. PBT can be used in both interior and exterior applications, especially in electrical systems in the automotive segment. Most common applications include windshield wiper covers, mirror housings, cowl vents, handles, fans, fuel system components, connectors, sensor housings, fuse boxes, actuator cases, power relays, switches, motor components, and ignition system components.
- While in electronics, different grades of PBT find applications in both signal and power uses, such as connectors, sensor housings, chip sockets, terminal boards, coil bobbins, transformer insulation, switches, circuit breakers, power sockets for modular building panels, motor end caps, rush holders , stator insulation, cable liners, and fiber optic buffer tubes.
- Asia-Pacific holds the largest share of the market, and it is also expected to be the fastest growing market. China is the leading player and is followed by Japan. This is mainly due to the growing automotive and electronics sectors in the region.

Asia-Pacific to Dominate the Market

- With a share of over 40%, Asia-Pacific accounted for the highest market share for terephthalic acid. The establishment of various food & beverage, packaging, and textile manufacturing industries in China and India is likely to fuel up the market during the forecast period.
- Increasing sales volume of apparel goods and clothing, through e-commerce portals in Asia-Pacific countries, is also expected to create an immense industry potential. Additionally, Asia Pacific is also the largest consumer of yarn & fiber.
- The rise in demand for yarn & from the textile industry and increased consumption of PET bottles are anticipated to influence the growth of the terephthalic acid market in the region. China is the largest manufacturer of terephthalic acid in the region.
- Rapid urbanization and increasing penetration of the packaged food industry are driving the growth in the country. Thus for all these reasons, the demand for terephthalic acid is growing in this region.

Competitive Landscape

The terephthalic acid market is partly fragmented and is dominated by very few players. Some of these major players include SABIC, BP PLC, Sinopec Corp., Technology Ltd, and Arkema SA

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