The purified terephthalic acid (PTA) market in Asia Pacific is anticipated to exceed US$ 132 Bn by 2030 and expand at a CAGR of 8% during the forecast period. China dominated the purified terephthalic acid (PTA) market in Asia Pacific, in terms of volume, in 2019. It is estimated to be the leading country of the purified terephthalic acid (PTA) market in Asia Pacific during the forecast period.
Manufacturers of PTA plan to expand their footprint and portfolio in Asia Pacific, thereby offering significant opportunities for the purified terephthalic acid (PTA) market.
Key Drivers and Restraints of the Market
The increase in usage of PTA in the textile sector for polyester fibers applications is anticipated to boost the purified terephthalic acid (PTA) market during the forecast period. Fabrics made from polyester fiber possess good elasticity, wrinkle resistance, shape retention, excellent wash-and-wear performance, and durability; therefore, polyester fiber is extensively utilized in all kinds of apparel fabrics.
It can be used for fashionable dresses. However, it is most preferred for its ability to resist wrinkling and easy wash ability. Its toughness makes polyester fiber a frequent choice for children’s wear. Polyester is often blended with other fibers, such as cotton, to obtain the best of both worlds. These factors are anticipated to fuel the purified terephthalic acid (PTA) market.
Advancements in technology have created a positive outlook for the PET bottle segment. For instance, manufacturers have introduced a plasma-based coating, which makes PET bottles more impervious in nature. Moreover, manufacturers have also started utilizing silver to increase the shelf life of PET bottles.
According to RADII China, in 2018 P.E.T. (Plastic Ecological Transformation) successfully recycled 110,000 bottles from traditional waste streams. This has created demand for PET resin from the packaging and food & beverages sector, which, in turn, is expected to drive the purified terephthalic acid (PTA) market.
According to a report, China's active PTA capacity has increased by 4.7 million tons per year since 2018 to stand at 48.9 million ton per year in November 2019. Two more new PTA plants are expected to commence production by early 2020; Hengli Petrochemical's 2.5 million ton per year new PTA line at Dalian and Xinjiang Zhongtai Chemical's 1.2 million ton per year at Korla in the Bayingolin Mongol Autonomous Prefecture. This expected to create overcapacity of PTA in China. This is anticipated to hamper the purified terephthalic acid (PTA) market in Asia Pacific during the forecast period.
Key Segments of PTA Market
In terms of volume, the polyester fibers application segment held a major share of the purified terephthalic acid (PTA) market in Asia Pacific in 2019. This trend is anticipated to continue during the forecast period, as a significantly high amount of PTA is consumed in polyester production, including polyester fiber. The polyester segment also offers significant opportunities for the purified terephthalic acid (PTA) market in Asia Pacific, owing to increase in utilization to make fabrics for apparel and home furnishings such as bed sheets, bedspreads, curtains, and draperies. However, the polyester films segment is estimated to expand at a sluggish pace during the forecast period.
Based on end use, the packaging segment held a significant share of more than 30% of the Purified Terephthalic Acid (PTA) market in Asia Pacific in 2019. This trend is estimated to continue during the forecast period. On the other hand, automotive and textile segments of the purified terephthalic acid (PTA) market in Asia Pacific are projected to expand at a steady CAGR, as compared to that of others segments, during the forecast period.
Source: TMR