Newsline-International | May 2019
$33-bn paraxylene market to double by 2024
The global paraxylene market features an increasingly fragmented landscape on account of the leading companies accounting for a scant market share, finds Transparency Market Research (TMR). The top three players—BP plc, S-Oil Corporation, and Reliance Industries Limited, held a share of just 12 per cent in the global market in 2015. TMR notes that a large part, estimated at around 85 per cent, of the global production of paraxylene is contributed by small firms and subsidiaries of large chemical manufacturers. A growing number of manufacturers are focusing on forward integration moving down the supply chain which is most likely to up the level of competition in the market, observes TMR.
The global paraxylene market stood at $33.03 billion in 2015 and is projected to reap an opportunity worth $60.04 billion by the end of 2024. During the forecast period of 2016–2024, the global market is projected to expand at a CAGR of 7 per cent.
The various applications of paraxylene are in the manufacturing of purified terephthalic acid (PTA), dimethyl terephthalate (DMT), solvents, pesticides, and coatings. Of all the segments, the purified terephthalic acid segment dominated in 2015 accounting for a share upward of 97 per cent. The application is expected to churn out vast lucrative prospects throughout the forecast period, on account of its uptake in the PET industry. On the regional front, Asia Pacific has emerged out to be the most attractive market accounting for a mammoth share in the global market. The growth will majorly be fueled by the extensive demand in China and its usage as raw materials for PET for the food and beverages packaging industry.