Purified Terephthalic Acid Market Size, Share and Trends 2024 to 2034

Purified Terephthalic Acid Market Size and Forecast 2024 to 2034

The global purified terephthalic acid market size is projected to be worth around USD 80.05 billion by 2034 from USD 49 billion in 2024, at a CAGR of 5.03% from 2024 to 2034. The increasing demand for polyester fibers from the automotive industry has driven the growth of the purified terephthalic acid market.

Purified Terephthalic Acid Market Key Takeaways

• Asia Pacific led the purified terephthalic acid market with the highest share of 44% in 2023.
• North America is expected to grow at the fastest rate during the forecast period.
• By application, the PET resin segment held the largest share of the market in 2023.
• By application, the polyester fiber segment is expected to grow at a significant rate during the forecast period.
• By end-user industry, the textile segment dominated the market in 2023.

Asia Pacific Purified Terephthalic Acid Market Size and Growth 2024 to 2034

The Asia Pacific purified terephthalic acid market size was exhibited at USD 20.53 billion in 2023 and is projected to be worth around USD 35.62 billion by 2034, poised to grow at a CAGR of 5.13% from 2024 to 2034.

Asia Pacific held the largest share of the purified terephthalic acid market. The growing development in the chemical sector in countries such as China, India, Japan, South Korea, and others drives market growth. Also, the growing demand for polyester resins in the clothing industry has shaped the industry in a positive way. The rising development in the electronics and electrical industry, especially in China, Japan, and South Korea, has further increased the demand for PTA. Additionally, the growing investment by the governments of several countries in developing the textile industry in this region is driving industrial growth.

• The Japanese government announced the launch of New Design 2030. This initiative aims to redevelop the overall landscape of the textile industry across the country.

Asia-Pacific consists of various local companies related to purified terephthalic acid, such as Reliance Industries Limited, Zhejiang Yisheng New Material, Indorama Ventures, BP Chemicals, Mitsubishi Chemical Group, Yisheng Petrochemical, Hengli Petrochemical and some others are constantly developing high-grade purified terephthalic acid to maintain the demand-supply chain in Asia Pacific region which in turn is expected to drive the growth of the purified terephthalic acid market.

• In January 2023, Zhejiang Yisheng New Material announced that it would restart its PTA manufacturing facility in Ningbo, China, to meet the rising demand for PTA in the automotive and textiles industries.

North America is expected to be the fastest-growing region during the forecast period. The rising development in the automotive industry, along with several companies such as Ford, Rivian, Cadillac, Tesla, and Chevrolet, has increased the demand for PTA to perform several operations, thereby driving market growth. The food & beverage industry in the U.S. and Canada is highly developed, which increases the demand for PET-based packaging, which in turn drives the market growth. Also, the rising demand for purified terephthalic acid from the coatings and the construction sector is likely to boost the purified terephthalic acid market growth.

• In March 2024, Coca‑Cola launched lightweight PET bottles in the U.S. and Canada. This bottle is manufactured using 100% recycled plastic bottles to maintain eco-friendliness and sustainability in the North American region.

This region consists of local market players of purified terephthalic acid (PTA) such as Eastman Chemical Company, DuPont, Dow, ExxonMobil Olin Corporation, and some others that are constantly engaged in manufacturing superior grade PTA use in different industries and adopting several strategies such as partnerships, acquisitions, collaborations, launches, and business expansions, which in turn drives the growth of the purified terephthalic acid market in this region.

• In February 2024, ExxonMobil announced to reopen paraxylene production facility in Beaumont, Texas. This manufacturing facility produces around 315 thousand tons of paraxylene every year, which contributes about 12% of the total paraxylene manufacturing in the U.S.

Market Overview

The purified terephthalic acid market is an important industry in the chemical sector. This market deals in the manufacturing and distribution of purified terephthalic acid (PTA) for numerous industries. This acid is mainly derived from crude terephthalic acid (CTA) purification by oxidation of P-Xylene. There are various applications of PTA, including PET resin, polybutylene terephthalate, polyester fiber, films, and intermediate. This market is driven by the rising use of PTA for home furnishing. The end-users of this industry include food & beverage packaging, construction, electrical & electronics, textiles, paints & coatings, furniture, and some others. This industry is expected to rise exponentially with the growth in the chemical industry.

• According to the annual report of Indian Oil Corporation Limited 2023-24, this company aims to enhance the Petrochemical Intensity Index (PII) to around 15% by 2030 from about 6.11% currently with significant investments in the PX/PTA project at Paradip, India.

Purified Terephthalic Acid Market Growth Factors

• The use of PTA for manufacturing polyester fiber.
• The rising application of PTA as a raw material in the pharmaceutical industry.
• Increasing demand for water-soluble coatings around the world.
• The ongoing usage of terephthalic acid for the production of polyethylene terephthalate (PET).
• Rising government initiatives for the development of the textile industry.
• The growing use of PTA in audio and video recording tapes, photographic films, and data storage tapes.
• The application of PTA in the automotive and packaging industry.
• There is an upsurge in demand for PET resin with temperature resistance and superior mechanical properties.
• The increasing application of PTA in the construction industry for the production of pipes, roofing membranes, and insulation.
• The growing use of PTA additives in manufacturing home appliances and engineering plastics.

What is the role of AI in the purified terephthalic acid industry?

The chemical industry is advancing rapidly with the developments in modern technologies such as AI, ML, Big Data Analytics, Blockchain, and some others. Most of the chemical manufacturing companies have started integrating AI in their production plant to increase the efficiency of the workers and automate several tasks. Nowadays, market players in purified terephthalic acid (PTA) have started using AI technology in the synthesis of terephthalic acid using Diels-Alder reactions and for analyzing the efficacy of ortho-phthalic acid. Thus, AI plays a prominent role in the development of the purified terephthalic acid market.

• In October 2023, Sumitomo Chemical launched ChatSCC. ChatSCC is a generative AI technology that will help chemical companies manufacture different products.

Top 10 PET Bottle Manufacturers

• Sangam Plastic Industries
• Aashmi Plast
• Berry Plastics Group Inc
• GTX Hanex Plastic Sp. Z O.O
• Gerresheimer AG
• Graham Packaging Company
• Better 2 Barter
• Jaiswal Bottle Manufacturer
• M.K. Export
• S.R. Polymers

Market Scope

Market Dynamics

Driver

Rising use of polybutylene terephthalate in electricals and automotive

The chemical industry has gained traction recently with the rising application of polybutylene terephthalate across the world. The demand for polybutylene terephthalate has increased due to several advantages such as UV resistance, weight reduction, high rigidity, heat resistance, moldability, and others. The use of PBT has increased in the electrical industry due to the growing demand for insulators. Also, the application of PBT in the automotive sector has grown due to its use in manufacturing automotive sensors, headlight bezels, pump impellers, lamp sockets, and others. Thus, the growing application of PBT in automotive and electrical is expected to drive the growth of the purified terephthalic acid market.

• In June 2024, Polymer Resources launched a new PBT resin. This PBT resin has been launched to perform various electrical applications.

Restraint

Environment issues and side-effects on health

The purified terephthalic acid market is retarded due to several problems associated with the use of PTA. The excessive use of PTA can act as an environmental pollutant that might cause toxic wastewater, which in turn restrains the market growth. Also, the increased application of PTA can cause lung diseases and shortness of breath, which can act as a restraining factor in the market growth of PTA.

Opportunity

Developments in AMOCO process and advancements Bio-based terephthalic acid

The purified terephthalic acid market is developing rapidly due to advancements in extraction methodologies associated with PTA. The rising developments in the AMOCO process that use homogeneous catalysts such as Co/Mn/Br for the oxidation of para-xylene into terephthalic acid are found beneficial for the market players. Also, the various advancements associated with bio-based terephthalic acid using Diels-Alder methods are highly adopted by the PTA manufacturers for numerous advantages. Thus, rising developments associated with the AMOCO process and bio-based terephthalic acid are expected to create ample growth opportunities for the market players in the upcoming years.

• In January 2024, Idemitsu Kosan announced a collaboration with OPTC and Marubeni. This collaboration is done to develop a suitable supply chain for bio-based purified terephthalic acid (PTA).

Application Insights

The PET resin segment dominated the market in 2023. The increasing demand for PET resin from the packaging industry due to its high strength and stiffness compared to PBT has driven market growth. Also, the advantages of PET resin, such as stability, recyclability, impact & thermal resistance, and some others that are useful in the textiles industry, are likely to propel the market growth. Moreover, the growing application of PET resin in the automotive sector for manufacturing door panels, car interior panels, and trims has boosted industrial growth. Furthermore, the increasing use of PET resin in the electronics industry for packing electronic chips is expected to drive the growth of the purified terephthalic acid market during the forecast period.

• In August 2024, ALPLA launched a new PET bottle. This new bottle is launched for two Polish mineral water brands named ‘Staropolanka’ and ‘Krystynka’ as a sustainable packaging solution.
• In May 2023, Plastipak Packaging launched PPKNatura. PPKNatura is the world’s first PET resin to be extracted from carbon emissions using LanzaTech technology.
• In May 2022, SABIC launched LNP™ ELCRIN™ WF0061BiQ. This is a PET resin that finds applications in consumer electronics and automobiles.

The polyester fiber segment is estimated to exhibit a significant growth rate during the forecast period. The rising demand for polyester fiber from the furniture industry for manufacturing upholstery of sofas and chairs has driven the market growth. Also, the growing use of polyester fiber from the textile industry for manufacturing jackets, trousers, shirts, jackets, and others is likely to propel the market growth.

Additionally, the increasing application of polyester fibers in the production of mouse pads, car tire reinforcements, conveyor belts, bottles, and some others has boosted industrial growth. Moreover, the growing use of polyester fabrics in manufacturing dielectric films, tarpaulin, LCDs, insulating tapes, and some others, along with its increased application in home furnishing products such as curtains, bedsheets, pillowcases, and blankets, is expected to drive the growth of the purified terephthalic acid market during the forecast period.

• In July 2024, Global Consortium launched a sustainable polyester. This polyester fiber is manufactured using bio-based materials and finds application in the North Face brand in Japan.
• In April 2024, Lululemon launched a limited-edition Packable Anorak jacket. This jacket is manufactured using recycled polyester, which makes it comfortable and lightweight.
• In February 2024, Intimiti Australia launched Celys. Celys is a compostable polyester fiber derived from recycled polyester that allows microbial decomposition and enhances bio-degradability.

End-User Industry Insights

The textile segment held a dominant share of the purified terephthalic acid market in 2023. The rising demand for designer clothes due to numerous parties, occasions, ceremonies, and other factors has increased the demand for PTA. Also, the increasing use of PTA in the textile sector as a raw material for polyester-based staple fiber and yarn is likely to boost the market growth. Moreover, the growing demand for polyester jackets and trousers has increased the demand for PTA and is expected to drive the growth of the purified terephthalic market during the forecast period. Furthermore, the growth in the textile sectors, along with increased initiatives from the governments of several countries to develop the eco-friendly textile industry, fosters market growth.

• In August 2024, the government of South Korea announced the Textile and Fashion Industry Competitiveness Strategy. This initiative is aimed to increase Korea’s world-wide market share related to eco-friendly textiles up to 10 % by 2030.
• In June 2024, Selenis launched recycled PET chips. These PET chips are manufactured using terephthalic acid, which finds several applications in the textile industry.

Purified Terephthalic Acid Market Companies

• Reliance Industries Limited
• Indorama Ventures
• BP Chemicals
• Indian Oil Corporation Limited
• MCPI Private Limited
• Oman International Petrochemical Industries Company's (OMPET)
• SABIC Ibn Rushd Arabia Industrial Fiber Company
• Yisheng Petrochemical
• Hengli Petrochemical
• Mitsubishi Chemical Group
• AKS Chemicals
• Formosa Plastics
• Eastman Chemical Company
• Alpek
• Sinopec

Recent Developments

• In April 2024, Sinopec Yizheng Chemical Fiber made an announcement to invest around 5 billion yuan. This investment is made to develop a purified terephthalic acid (PTA) manufacturing plant in Jiangsu Province, China.
• In December 2023, Sichuan Shengda Group announced the reopening of their purified terephthalic acid (PTA) facility in Nanchong, China, to cater to the demand for PTA from different industries.
• In November 2023, Hengli Petrochemical announced that it would restart its terephthalic acid production at the Dalian facility in Liaoning Province to maintain the demand-supply chain.
• In March 2023, Indorama Ventures announced that it would reopen its PET and PTA manufacturing plant in San Roque, Spain, to deliver the required amount of PET and PTA to local consumers. 
• In September 2022, Phoenix Technologies International LLC announced the opening of a manufacturing facility in Bowling Green, Ohio. This new facility is opened to manufacture pure terephthalic acid for numerous end-users.

Segments Covered in the Report

By Application

• PET Resin
• Polybutylene Terephthalate
• Polyester Fiber
• Films
• Intermediate

By End-User Industry

• Food & Beverage Packaging
• Construction
• Electrical & Electronics
• Textile
• Paints & Coatings
• Furniture

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa