Global Paraxylene Market: Snapshot
The global market for paraxylene is driven by the significant growth observed across the global polyester market in the past few years, which is led by the rising demand from textile applications, and the high demand for polyethylene terephthalate (PET) in Asia Pacific. Although the market is expected to embark upon a smooth growth path in the region in the next few years, it will witness limited growth avenues in developed regions such as North America and Europe. Strict government regulations regarding proper use of non-biodegradable materials and rising consumer awareness about the use of plastic-free products will have the most drastic influence on the consumption of paraxylene across these regions.
Nevertheless, the global paraxylene market will continue to exhibit growth at a healthy pace owing to demand across the textile and packaging industry and expand at a 7.0% CAGR over the period between 2016 and 2024. If the number holds true, the market, which had a valuation of US$33.03 bn in 2015, will reach US$60.04 bn by 2024.
Production of Purified Terephthalic Acid (PTA) to Remain Market’s Leading Application
In terms of application, the global paraxylene market has been segmented into purified terephthalic acid, dimethyl terephthalate, solvents, pesticides, and coatings. Of these, the segment of purified terephthalic acid (PTA) is the most important application area of the global paraxylene market, contributing revenues that constitute the lion’s share of the market’s overall revenues. In 2015, the segment held more than 97% of the global market in terms of volume. The segment is expected to remain the most lucrative application area of the market and witness a slight rise in its stake in the global market by 2024, chiefly owing to the high demand from the polyethylene terephthalate (PET) industry.
The other important applications of paraxylene, including dimethyl terephthalate, solvents, pesticides, and coatings accounted for a meagre 3% share of the overall market in 2015. Demand for paraxylene across these application areas is expected to achieve little or no rise in the next few years.
Asia Pacific to Remain Hub of Market Development
Backed by high demand in China, the market for paraxylene in Asia Pacific has emerged as the most lucrative regional market across the globe. In 2015, the region constituted a massive 84% of the global market in terms of volume. China alone accounted for a more than 50% of the region’s total uptake of paraxylene in the mentioned year. The paraxylene market in India and South Korea is also anticipated to expand substantially over the next few years, chiefly owing to the rising demand for PET in the food and beverages (F&B) packaging sector.
Nevertheless, China is expected to remain the center of the Asia Pacific paraxylene market’s development and growth. Over the period between 2016 and 2024, China is expected to maintain its top spot in the Asia Pacific paraxylene market and continue to have a notable influence on the global market owing to the high consumption of paraxylene for the manufacturing of PET. Although the consumption of paraxylene in China will be slightly affected by the recent economic slowdown, sustainable demand for polyethylene terephthalate across the country’s textile and F&B packaging sectors will continue to drive the paraxylene market.
However, oversupply of paraxylene in Asia Pacific and increase in consumer awareness about plastic-free products are estimated to hamper market growth to a certain extent. Demand for paraxylene across developed regions such as North America and Europe, which collectively accounted for only about 13% of the global market in 2015, is expected to witness sluggish growth over the forecasting horizon.
Some of the key vendors operating in the global paraxylene market are China National Petroleum Corporation, Sinopec Corporation, Exxon Mobil Corporation, BP plc, JX Nippon Oil & Energy Corporation, S-Oil Corporation, Jurong Aromatics Corporation, Reliance Industries Limited, CNOOC Limited, Lotte Chemical Corporation, and BASF SE.
Global Paraxylene Market: Methodology and Scope
Paraxylene is an aromatic hydrocarbon, which is used as feedstock to manufacture industrial chemicals, notably purified terephthalic acid (PTA) and dimethyl terephthalate (DMT). PTA and DMT are further employed in the manufacture of polyethylene terephthalate (PET) polyester. PET is used to produce bottles, which are widely used as containers for soda, water, and other beverages due to the superior physical attributes of PET. PET is shatter resistant, strong, and light in weight.
PET/Polyester is available in various forms such as filaments, staple, and fiberfill. It is used in clothing, furnishings, and technical textiles. Polyester is mostly preferred over cotton and other natural fibers due to its low cost and easy availability. PET possesses high strength-to-weight ratio and is non-reactive to food and beverages. It is a transparent thermoplastic; therefore, it is preferred in food packaging. Demand for PET is expected to increase in the F&B packaging market due to the rise in population, changing lifestyle, and growth in disposal income. This is anticipated to drive the paraxylene market in Asia Pacific. Fuelled by significant gains, PTA and PET producers in Asia Pacific have started to expand rapidly, the production capacity which is likely to exceed the demand in the next few years.
This study examines, estimates, and forecasts the global paraxylene market in terms of volume (kilo tons) and revenue (US$ Mn) from 2015 to 2024. Market numbers given in the report describe the demand for global paraxylene, but not production. The paraxylene report also analyzes several driving and restraining factors and their impact on the market during the forecast period.
Primary research represents the majority of our research efforts, supplemented by extensive secondary research. We studied key players’ annual reports, press releases, product literature, and appropriate documents for market understanding and competitive analysis. Secondary research also includes a search of technical writing, recent trade, internet sources, and statistical data from trade associations, government websites and agencies. This has proven to be the most reliable, effective, and dynamic approach for acquiring precise market data, identifying business opportunities, and understanding industry participants’ perceptions.
Secondary research sources that are typically referred to include broker reports, corporation websites, stockholder presentations, Securities & Exchange Commission filings, financial reports and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market. Secondary sources referred for this study include PlasticsToday, Plastics Business magazine, Factiva, ICIS, Chemical Week Magazine, Chemical Business Magazine, Hoover’s, and company presentations.
Global Paraxylene Market: Segmentation
The report provides comprehensive analysis of the paraxylene market by key applications. It segments the market into the following key applications: purified terephthalic acid (PTA), dimethyl terephthalate (DMT), and others (solvents, etc.). The report also segments the market based on major topographies into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report further provides volume and revenue for each application segment for each region.
Based on application and country, the report examines the attractiveness of each segment with the help of an attractiveness tool. The study comprises value chain analysis, which provides enhanced understanding of key players in the supply chain (from raw material producers to end-users). Additionally, the study examines market competition through Porter’s Five Forces Analysis.
Global Paraxylene Market: Competitive Landscape
The report includes an outline of the market share of key companies in the global paraxylene market. Market share of companies has been derived based on production by manufacturers of paraxylene. Key market players profiled in the study include BP plc, Exxon Mobil Corporation, Sinopec Corporation, China National Petroleum Corporation, S-Oil Corporation, JX Nippon Oil & Energy Corporation, Reliance Industries Limited, Jurong Aromatics Corporation, CNOOC Limited, Lotte Chemical Corporation, and BASF SE. Profiles of key players include vital parameters such as financial overview, business strategy, company overview, and current developments.
The report segments the global paraxylene market as follows:
Paraxylene Market – Application Analysis
- Purified Terephthalic Acid (PTA)
- Dimethyl Terephthalate (DMT)
- Others (solvents, etc.)
Paraxylene Market – Regional Analysis
- North America
- Rest of EU
- Asia Pacific
- Rest of APAC
- Latin America
- Rest of Latin America (LATAM)
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa (MEA)