Enjoy complimentary customisation on priority with our Enterprise License!
The purified terephthalic acid (PTA) market size is estimated to grow by USD 16.88 billion at a CAGR of 5% between 2023 and 2028. The increase in demand for packaging material, driven by the growth of e-commerce and the need for sustainable packaging solutions, is driving market growth. The increase in demand for PTA (purified terephthalic acid) from the textile industry, driven by the growth of the textile and apparel sectors, is also boosting market expansion. Additionally, the emergence of bioplastics, which are derived from renewable sources and offer environmental benefits over traditional plastics, is driving demand for sustainable packaging solutions and driving market growth. Overall, these factors are driving the accelerated growth of the market and driving innovations in the packaging and textile industries.
For More Highlights About this Report, Download Free Sample in a Minute
The report offers extensive research analysis on the market with a categorization based on Application, including polyester fiber, PET resins, films, and others. It further segments the market by End-user, encompassing textile, PET bottles, and packaging. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
The polyester fibre segment is estimated to witness significant growth during the forecast period. In 2023, polyester fibres held the largest share in the downstream product segment. Unlike natural fibres (e.g., cotton), polyester fibres are not subject to pestilence, poor crop yields, or weather events, which restrict the availability and affect the costs of natural fibres.
Get a glance at the market contribution of various segments Download the PDF Sample
The polyester fibre segment was the largest and was valued at USD 34.31 billion in 2018. The growing demand for polyester fibres can be ascribed to its expanding use in the textile sector, as well as the growing need to reduce reliance on natural fabrics such as cotton and wool. Demand for polyester fibre has also been stimulated by rising customer knowledge of several advantages of PET fabrics, such as their resilience to heat, stretching, abrasion, and wrinkles. Furthermore, the necessity for recycling PET materials has been fueled by the growing environmental concerns about reducing carbon emissions as a result of rising plastic waste. Thus, owing to the rising demand for polyester fibres, the global PTA market growth will expand during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 59% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is a dominating region in the purified terephthalic acid market, with China, India, Japan, and South Korea as leading revenue-generating countries. In 2023, China was the largest consumer of PTA due to the growth in sectors such as the renewable sector, the consumer electronics sector, and the expanding organized retail sector that is driving the packaging industry. Another key factor driving the demand for PTA as a flexible packaging solution in APAC is the rapid growth in the retail and e-commerce industry in the region. The e-commerce industry in Asian countries such as China and India has grown multifold over the past decade.
For instance, in India, the entry of e-retailers and online stores such as Amazon.com and Flipkart and the surge in mobile and Internet connectivity have pushed the consumption of goods and shifted preference toward online shopping. These factors are increasing the demand for PTA for flexible packaging in the region. Such factors are expected to drive the regional market during the forecast period.
The market is a crucial component of various industries, including polyester fiber manufacturing, the apparel industry, home furnishing, and automotive textiles. PTA is also widely used in industrial applications such as packaging. Government bans and restrictions, as well as international labor regulations from organizations like the International Labour Organization, can significantly impact the market. The durability, quick-drying ability, and washability of PTA-based products make them highly desirable in various sectors. However, there are concerns about the toxic effects of terephthalic acid on health and the environment, driving the need for sustainable production techniques and alternatives in the textile and chemical industries. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in demand for PTA from the textile industry is notably driving the market growth. PET fibers are indeed popular for manufacturing textiles due to their durability, quick drying ability, and washability. They are resistant to stretching and moisture, making them suitable for various applications. Textile chemicals and production techniques play crucial roles in enhancing these properties and ensuring the quality of synthetic fabrics/textiles. PET is used in various products, including seat belts, conveyors, automobile tire yarns, and disposable medical garments. The textile sector has experienced rapid growth due to increased disposable income and consumerism.
For example, India, one of the largest textile producers globally, is expected to grow at a CAGR of approximately 10%. The demand for textiles indeed drives the demand for PET fibers in the textile industry, which positively impacts the growth of the purified terephthalic acid market. This is particularly evident in downstream sectors such as e-commerce food and retail services, where the use of PET fibers in textiles is prevalent. Additionally, recovery efforts and terephthalic acid contracts play significant roles in shaping the market for polyethylene terephthalate (PET) and its related products. Therefore, the rising demand for PET fibers in the textile industry is propelling the global PTA market's growth during the forecast period.
Growing beverage consumption in Brazil, Russia, India, and China (BRIC) markets is an emerging trend shaping the market growth. BRIC is estimated to have a combined population of 3.22 billion people in 2021, accounting for more than 40% of the global population. They are leading the economic growth charts in the world. It is estimated that these nations will maintain their GDP growth at approximately 26% more than the world's GDP growth. These nations are distinguished by their large and fast-growing economies that are supported by the expansion of the beverage industry.
For instance, the India Brand Equity Foundation (IBEF) reports that the country's market demand for plastic bottles is continuing to grow, with plastic exports totaling USD 7.045 billion from April 2019 to January 2020. Several products and industries, including the beverage, food and beverage, pharmaceutical, and domestic sectors, are expected to see an increase in plastics such as PET during the forecast period.
Environmental hazards of PET production and application are a significant challenge hindering the market growth. The growing concern over the effect of PET on the environment will be a major challenge for the market during the forecast period. Most of the nations in the world, including the US, Japan, and the European Union nations, have already banned or limited the use of plastics and their derivatives for various purposes. Several government regulations on the use of plastic bags are already in place in these nations. With other nations expected to follow suit, the ecological concerns regarding PET are expected to be a major hindrance to the growth of the global PTA market.
In addition, spray PET, commonly used in building insulation, is made using two chemical mixtures. These cause lung irritation, visual problems, burns to internal organs, vomiting, and convulsions. Dust and shavings from improperly mixed foams release unreacted chemicals into the environment, which contaminate waterways, harming aquatic life and organisms that restrict the market growth. These above-mentioned factors will restrict the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alfa Corporativo S.A. de C.V. - The company offers purified terephthalic acid used in consumer goods and goods packaging and is found in everything from plastic water bottles and food containers to clothing, home furnishings, and automotive production.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is driven by the demand for fibers for textiles, especially polyester fibers, which are widely used in the textile industry. PTA, a key raw material in polyester production, is essential for various applications, including automobile production for seat covers, airbags, side panels, and headliners. The market is also influenced by factors such as working hours and labor strength, which impact production efficiency and costs. Financials play a crucial role in determining market trends, along with considerations for health and the environment due to the chemical nature of PTA production. The market is further driven by its moisture resistance, stain resistance, and lightweight properties, making it a preferred choice in the clothing industry, home furnishing industry, and packaging sector. Additionally, its UV radiation, heat resistance, and abrasion resistance properties make it suitable for various applications in the paint and coatings sector, food and beverage sector, and beyond.
The market is closely tied to the production and demand for PET (polyethylene terephthalate), a versatile polymer used in various applications. PTA is a key precursor in PET production, driving its demand in the downstream packaging industry for bottles, containers, and packaging materials. The market is influenced by factors such as working hours and labor strength affecting production efficiency and costs. PTA is essential in the production of synthetic fabrics/textiles and upholstery, offering properties like durability and ease of dyeing. It plays a significant role in the automobile industry, particularly in manufacturing automobile seat covers. The market's growth is also driven by its applications in garment export shipments, reflecting its importance in the textile and apparel sectors. Additionally, the market's dynamics are influenced by factors such as modulus (stiffness), consumption of polyester fibers, and raw material supply for PTA production, indicating its critical role in various industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-12022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5% |
Market Growth 2024-2028 |
USD 16.88 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.8 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 59% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alfa Chemistry, Alfa Corporativo S.A. de C.V., Arkema Group, BP Plc, China Petrochemical Corp., Colossustex, Eastman Chemical Co., Indian Oil Corp. Ltd., Indorama Ventures Public Co. Ltd., INEOS Group Holdings SA, Jamorin International, Johnson Matthey Plc, Lotte Chemical Corp., MCPI, Mitsubishi Chemical Group Corp., Petkim Petrokimya Holding AS, Reliance Industries Ltd., Saudi Basic Industries Corp., Sundyne LLC, and Taekwang Group |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.