Paraxylene is an aromatic hydrocarbon primarily used as a basic raw material for the manufacturing of purified terephthalic acid (PTA) and dimethyl-terephthalate (DMT). PTA and DMT are used to manufacture polyethylene terephthalate (PET) saturated polyester polymers. Polyesters are used to produce fibers and films. PET bottles are widely used for water because of its non-breakage properties.
The global paraxylene market is witnessing significant growth, due to increasing demand of high end domestic & household products and personalized apparel. Globally, the polyester fibers segment was the largest application segment of paraxylene in 2015, followed by packaging application segment. The increasing buying power, along with increasing quality living standard is significantly fuelling the demand for personal and household paraxylene based products. The increasing demand for polyester fibers and packaging is anticipated to have positive impact on the growth of the paraxylene market. Moreover, films for x-rays, magnetic tapes, photographic film and electrical insulation, carbonated and non-carbonated beverage containers is further propelling the demand for paraxylene. The growing consciousness towards increasing use of bio-based paraxylene in bio plastics PET bottles (Bio-PET) and other bio plastics applications, such as catering utensils, is expected to drive the paraxylene market towards a steady growth.
Among the various applications, the PTA segment held the largest share in the global paraxylene market in 2015, and it is expected to retain its dominance during the forecast period. The growth in PTA application is owed to its non-breakage properties and good carbon dioxide barrier properties. Owing to light-weight, shatter-resistant, high tensile strength and cost efficient nature, PTA application is preferred over other applications such as DMT. The PTA application segment was valued at 39,886.5 kilotons or $32,964.1 million in 2015 and it is expected grow at a CAGR of 12.9%, in terms of value, during the forecast period. The DMT and DI-PX carry small share and is expected to grow at a CAGR of 11.8% and 11.7%, respectively.
The global paraxylene market is valued at $34,745.7 million in 2015, and it is expected to grow at a CAGR of 12.8% during the forecast period. In terms of volume, Asia-Pacific accounted for the largest share in the global paraxylene market, with 34,293 kilotons consumed in 2015. The major reason behind the growth of the market in the region is the growing demand for house hold domestic & personal apparel needs and fast growing GDP. Furthermore, the increased governments focus on recycling and renewables (mainly bio-based), are encouraging the companies for new product development and technique, thus boosting the overall paraxylene market in the region.
Some of the key companies operating in the global paraxylene market include Exxon Mobil, BASF SE, Chevron Phillips, Toray Industries, Reliance Industries, JX Nippon Oil & Energy Corp., British Petroleum, Saudi Aramco, PetroChina, Sinopec and Dragon Aromatics.