Increasing demand from Asia Pacific drives phthalic anhydride demand

13-Jun-14

The global phthalic anhydride market is estimated to grow at a CAGR of 3.4% over the next five years, to reach a demand of 4,828.80 KT by 2018. The Asia-Pacific region, with its thriving economies and rapidly expanding population, is expected to remain the largest market for phthalic anhydride from 2013 to 2018. Phthalic anhydride is an important compound derived from the oxidation reaction of naphthalene. On the basis of application areas, the market of phthalic anhydride can be broadly segmented into plasticizers, unsaturated polyester resins, alkyd resins, and others. Plasticizer is the main phthalic anhydride application and serves an array of industries due to its various properties and performance advantages. Among the important plasticizers, DOP and DINP are more commonly used phthalate plasticizers. As per Reportlinker, the Asia-Pacific region is the largest market for phthalic anhydride, consuming more than three-fifth of its total global demand. The region has potential for the product due to increasing demand for its end-user products. However, with the increasing focus on environmental as well occupational safety, the use of phthalic anhydride in its end-user applications is being restricted or banned in some applications. In some cases, phthalic anhydride is also being replaced by suitable substitutes. Thus, the growth in demand of the anhydride is estimated at a slower pace in European and North American markets during the forecast period. The important end-user industries of phthalic anhydride include construction, automotive, electrical & electronics, and paints & coatings, which are growing at a good pace. The key drivers for the increasing demand of phthalic anhydride is majorly due to increasing demand from Asia-Pacific region and relatively higher estimated growth rate in alkyd resins application.