Purified Terephthalic Acid Market Trends

Growth Drivers

• Surging demand for Polyethylene Terephthalate (PET) resin in the packaging sector - The rising e-commerce trend has increased demand for online food which has further boosted the growth of the packaging sector. For instance, in 2027, over the globe, over 3 billion people are predicted to order meals online. Moreover, the rising consumer busy lifestyle is additionally projected to dominate the demand for packaging since their demand for prepacked food.As a result, the use of PET resin is also surging. This is because PET resin is favored for its ability to be recycled at high temperatures. Hence, this demand for PET is also predicted to drive the market demand for PTA to control the inflammable properties of PET. Therefore, the purified terephthalic acid market is predicted to expand.
• Growing construction activities and infrastructure development - The construction industry is greatly dependent on polyester-based materials for applications including geotextiles, roofing membranes, and insulation which has further dominated the demand for PTA.Polyester materials have high tensile strength, resistivity to weather, and a great durable nature which makes them suitable for several construction purposes. Hence, with the growing infrastructure development projects in the world, the construction sector is expected to be a key contributor to the purified terephthalic acid market demand growth.
• Growing need for sustainable textile practices - The textile industry is experiencing significant growth over the decades. However, this sector is also responsible for the huge wastage of natural resources. Additionally, the chemical dyes utilized in the manufacturing of textiles may further lead to harming water resources and soil. As a result, the demand for sustainable practices in the textile industry is growing.This demand is specifically high among consumers since they are becoming aware of the pollution consequences of textile production. As a result, the recycling of textiles is rising. Hence, the purified terephthalic acid market is predicted to rise since, it plays a crucial role in the production of recycled PET fibers.

Challenges

• Fluctuating raw material prices - The production of PTA makes use of raw materials including paraxylene, which is however derived from crude oil. Hence, fluctuations in the prices of crude oil are predicted to significantly affect the manufacturing costs of PTA, therefore creating challenges in pricing and profit margins. Moreover, the PTA industry, similar to several chemical manufacturing sectors, faces growing scrutiny regarding its environmental impact.The production of PTA generates by-products, and concerns related to emissions, waste disposal, and energy consumption pose challenges. Adhering to stringent environmental regulations and adopting sustainable practices is essential. Hence, this factor is anticipated to hinder the expansion of market over the years to come.
• Environmental Concerns and Sustainability is poised to be a challenge in development of purified terephthalic acid market.
• Overcapacity Issues restricting the market growth