Paraxylene market expected to register CAGR of 7% from 2015 To 2022

Global paraxylene demand is estimated to exceed 62.98 mln tons at a CAGR of 7% from 2015 to 2022, as per Grand View Research, Inc. Growing utilization of purified terephthalic acid (PTA) for polyester production, particularly in Asia Pacific is expected to fuel growth in paraxylene market over the forecast period. The global paraxylene (PX) market is anticipated to reach US$66.93 bln by 2022 owing to increasing demand for fiber and polyester resin in numerous end-use applications across various industries. Growing utilization of purified terephthalic acid (PTA) for polyester production, particularly in Asia Pacific is expected to fuel growth in paraxylene market over the forecast period Demand for PTA has been increasing exponentially over the past years owing to its efficient conversion rate coupled with lower costs associated with polyester production. The global utilization rate of PET has been adversely affected due to the fast growth of PTA production capacity. PTA manufacturers are now required to lower capacity utilization on account of the oversupply of PET. PTA producers in Asia Pacific have been adversely affected by sudden fall in PTA import in China due to increased domestic production, and this is expected to hamper market growth. Rising demand for bio-based alternatives and increasing consumer awareness subject to non-biodegradable nature of petrochemical products is expected to be the major obstacles for market participants. Also, campaigns involving sensitizing consumers about the harmful effects of PX production is supposed to impede the future market demand. PTA occupied over 95% of the overall PX demand on account of increasing utilization of polyester across various end-use industries. It is anticipated to remain the largest application segment for PX in the global market. Asia Pacific was the dominant regional market in 2014 with 79.2% of the share. Increasing consumption of PET and polyester fiber in developing countries including India and China is expected to augment the market. Asia Pacific is anticipated to observe the fastest growth of nearly 7.3% in the next seven years. Rapid Industrialization together with increasing polyester demand in textile and packaging is expected to propel growth over the forecast period. South Asian countries such as Vietnam, Thailand, and Indonesia are likely to witness expansion in the next seven years owing to high demand for polyester. Growing PET demand in industrial applications, sheets and films are anticipated to drive the regional market.