Terephthalic Acid Market Size (2024 - 2029)

Terephthalic Acid Market Analysis

, The Global Terephthalic Acid Market is projected to register a CAGR of over 5.5% during the forecasted period.

The sporadic outbreak of the COVID-19 pandemic in 2020 and the first half of 2021 drastically curtailed the demand for terephthalic acid in its major application sectors, i.e., packaging, fibers for textile, and paint and coatings, due to imposed government bans and restrictions, thereby limiting the growth of the market. The downstream packaging industry exhibited lackluster sales due to closed commercial places and tourist movements. The increased e-commerce food and retail service during lockdowns could not compensate for the declining sales in large-scale food and beverage sectors. Furthermore, the demand for textiles dropped drastically as people were confined to staying in their houses. Meanwhile, terephthalic acid production and distribution activities were paralyzed owing to scarce raw material supply, limited working hours/labor strength, and constrained financials. However, the industries have been on track for recovery since the pandemic's retraction in mid-2021. The demand from downstream sectors rebounded in 2022, reinstating terephthalic acid contracts, which kick-started the market growth.

• Over the medium term, the rising consumption of the downstream product polyethylene terephthalate (PET) from the packaging sector and the high demand for polyester fibers in the textile industries of Asia Pacific are the major driving factors augmenting the growth of the market studied.
• On the flip side, the toxic effects of terephthalic acid on health and the environment are anticipated to restrain the growth of the target industry over the forecast period.
• Nevertheless, the growing advancement in production techniques employed in manufacturing terephthalic acid will likely create lucrative growth opportunities for the global market.
• Asia-Pacific emerged as the largest market for textile chemicals and is expected to witness the highest CAGR during the forecast period. This dominance of Asia-Pacific is attributed to the bullish demand for packaging, fibers, and coating applications in growing economies like China and India.

Terephthalic Acid Industry Segmentation

Terephthalic Acid, chemically known as Benzene-1,4-dicarboxylic acid, is a condensation polymer and an essential industrial aromatic precursor for polyethylene terephthalate (PET). These other petrochemical derivatives find usage in diverse industries such as packaging, textile, etc. Crude terephthalic acid obtained from the oxidation reaction of p-xylene contains impurities such as 4-carboxy benzaldehyde and several colored polyaromatics. Hence, terephthalic acid is first subjected to purification before exploiting it as an intermediate in the petrochemical industry. The terephthalic acid market is segmented by derivative, application, and geography. By derivative, the market is segmented into polyethylene terephthalate (PET), polybutylene terephthalate (PBT), polytrimethylene terephthalate (PTT), and dimethyl terephthalate. By application, the market is segmented into packaging, fibers, paints and coatings, adhesives, and other applications. The report also covers the size and forecasts for the terephthalic acid market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kilo tons).