Paraxylene Market

Paraxylene Market Overview

Paraxylene Market size is forecast to reach US$68.5 billion by 2027 and is growing at a CAGR of 7.3% during 2022-2027. Paraxylene is a dimethyl benzene-derived aromatic hydrocarbon and isomer of the xylene molecule. Parylene is a general term for a specific family of paraxylene-based polymers. Paraxylene is a common feedstock (or building block ) for the production of terephthalic acid (TPA), purified terephthalic acid (PTA), and dimethyl-terephthalate (DMT). Polyethylene terephthalate (PET) polyesters, a type of plastic, are made using TPA, PTA, and DMT. The mixed xylenes' highest volume isomer is paraxylene (PX). Around 98% of PX is consumed in the polyester chain, mainly in the production of fibre, film. PX is utilised as a solvent and in the production of di-Paraxylene and herbicides. Increased PTA consumption in polyester manufacturing has fueled strong growth in the PX market. Hence due to the surging use of Paraxylene, the Paraxylene Market is going to grow in the forecast period.

COVID-19 Impact

Due to the COVID-19 pandemic, the Paraxylene Market was highly impacted. Most of the manufacturing plants of Paraxylene were shut down, which declined the production of Paraxylene. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff, OEMs have been forced to function at zero or partial capacity, resulting in lower demand and consumption for Paraxylene. However, with gradual lockdown relaxations, manufacturers started operating with minimum workforce abiding by necessary covid-19 norms. The Building and Construction work gradually started across the globe. The Paraxylene Market is expected to overcome the small economic disruption and further grow in the forecast period.

Report Coverage

The report: “Paraxylene Market - Forecast(2022-2027)” covers an in-depth analysis of the following segments of Paraxylene Market.

By Application: Terephthalic Acid (TPA),Dimethyle Terephthalate (DMT),Purified Terephthalic Acid(PTA),Herbicides, Others.

By End Use Industry: Automotive, Personal Care and Cosmetics, Food and Beverages, Industrial, Textile, Packaging, Others.

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia Pacific dominates the Paraxylene Market, owing to the increasing demand of polyethylene terephthalate (PET) from the plastic industry in the region.
• The Paraxylene market is benefiting from increased demand for PET bottle resin due to the increased usage of PET bottles in soft drink and mineral water. The growing usage of bio-based Paraxylene in bioplastics PET bottles (Bio-PET) and other bioplastics applications such as catering utensils is expanding the global paraxylene market.
• The need for plastic and plastic products is being driven by India’s increasing middle class, and the industry is now one of the fastest growing in the Indian economy. EDC (Export Development Canada) believes that this creates potential for Canadian machinery and equipment makers whose competencies can fulfil the plastic demand of buyers in this expanding region.
• Plastic packaging is the most important segment of the plastics industry, accounting for over 40% of total plastic use.
• Plastics are significant for increasing hygiene in healthcare such as in virus protection and minimising food waste by keeping food fresh for extended periods of time, among other things. Plastics are also utilized to reduce weight and improve fuel efficiency in automobiles and aeroplanes, as well as in synthetic fibres in clothes and other fabrics and furniture. Hence the paraxylene Market will grow in the future owing to the huge demand from plastic industry.

Purified Terephthalic Acid segment held the largest share in the paraxylene Market in 2020 and is growing at a CAGR of 3.7% during 2022-2027. Polyester coatings resins are made from purified terephthalic acid (PTA) and are used in the formulation of general metal, appliance, automobile, industrial maintenance, and coil coatings. PTA is most commonly used in polyester powder coating resins. It's also been employed in unsaturated polyesters for applications using fiberglass-reinforced polymers. PTA's aromatic ring gives coatings resins and unsaturated polyesters superior hardness, corrosion, and stain resistance. PTA is soluble in molten glycols, which speeds up the synthesis process and gives resins a moderate solubility. PTA-based polyester fibres are easy to care for, both alone and in blends with natural and synthetic fibres. Polyester films are frequently used in audio and video tapes, data storage tapes, photographic films, labels, and other sheet materials that require structural stability and toughness. Hence due to various uses of purified terephthalic acid it is going to boost the Paraxylene Market in the forecast period.

Packaging segment held the largest share in the Paraxylene Market in 2020 and is growing at a CAGR of 5.2% during 2021-2026. PET bottles which are made from Paraxylene are commonly used for water, soft drink packaging due to their non-breakability, as well as carbonated beverages due to their good carbon dioxide barrier qualities. They are also low in weight, shatter-resistant, and have a high tensile strength. Packaging for carbonated and non-carbonated beverage containers are made of polyester packaging for home chemicals, toiletries, and cosmetics. Films for x-rays, magnetic tapes, photographic film, and electrical insulation. Packaging for boil-in bags, processed meats, shrink films, and blister packs Packaging for boil-in bags, processed meats, shrink films, and blister packs. According to Reusable transport packaging report in 2020 of Reusable Packaging Association, the global packaging market reached an estimated US$950 billion in value in 2020. Due to the growth in Packaging industry, the Paraxylene Market is projected to grow in the forecast period.

Asia Pacific region held the largest share in the Paraxylene Market in 2020 up to 43%. The U.S. flexible packaging industry was projected at US$31.8 billion in annual sales based on FPA’s State of the Industry Report for 2019. Flexible packaging for retail and institutional food, medical, pharmaceutical, and industrial products, shrink and stretch films, retail shopping bags, consumer storage bags, and wrap and trash bags has grown steadily in recent years. Flexible packaging accounted for almost 19%t of the total US$170 billion in the Packaging sector in 2019. During the projected year 2022-2027, the Swedish packaging sector in China is expected to grow at a CAGR of 13.5 %, according to the UN Environment Program. The packaging sector in India was estimated at US$13 billion in 2020, according to the Indian Brand Equity Foundation. One of the fastest-growing industries on the subcontinent is packaging. India is not just one of the world's most densely inhabited countries, but it also has a young population. Because the vast majority of household items are purchased unpackaged, per capita packaging use is still much below that of other countries. Owing to the global Packaging industry growth, the Paraxylene Market is also going to grow in the forecast period.

Paraxylene Market Drivers

Growing demand for Plastics around the world:

The growing global demand for plastic is a major element driving the growth of the paraxylene market. Paraxylene is widely employed in the production of plastic products, and as a result, it is regularly used to make Polyethylene Terephthalate bottles, which is used to hold water, soda, and other liquids. Paraxylene is also used to make a variety of home items, including cosmetic containers, garments, curtain textiles, and other materials. One of the primary contributing factors in the paraxylene market demand is the development of bio-based paraxylene. According to Plastics Europe, the plastics industry is vital for Europe’s economy and its recovery plan. Plastic raw material producers, converters, recyclers, and machinery manufacturers collectively represent a value-chain that employs over 1.5 million people in Europe, with over 55,000 companies, the majority of which are SMEs, operating in all European countries. In 2019, these enterprises brought in more than 350 billion euros in income and provided more than 30 billion euros to European government coffers. Hence the surging plastic demand is a major driver for Paraxylene Market in the forecast period.

Rising concern about non disposable plastic:

The demand for paraxylene is increasing as people become more concerned about non-disposable plastic. As a result, manufacturers are being pushed to develop bio-based plastic. As a result, demand for paraxylene is increasing. Paraxylene is increasingly being used by major plastic users to create environmentally friendly plastic products. The paraxylene market has benefited from rising polyester fibre demand in various countries, including India, Bangladesh, and Brazil. Consumer demand for eco-friendly items has increased as environmental awareness has grown. Bioplastics, which are manufactured from paraxylene, is a component that is used in a variety of industries as a substitute for traditional plastic. The majority of plastics are landfilled or burnt, resulting in pollution, land consumption, and waste of limited natural resources. Only a small percentage of waste is now recycled, which makes the concept of a circular economy difficult to implement. This factor pushes the need for producing more bio paraxylene and hence the Paraxylene Market is going to grow in the forecast period.

Paraxylene Market Challenges

Environmental pollution and health hazard associated with Paraxylene:

Xylene is a cyclic hydrocarbon that pollutes the environment. It is also utilized as a solvent in dyes, paints, polishes, medical technologies, and other industries. Xylene is quickly vaporized and divided into various innocuous compounds when exposed to sunshine. Xylene is emitted into the environment as fugitive emissions from petrochemical companies, fire, cigarettes, and other vehicles, according to studies. Short-term exposure to mixed xylene or its individual isomers causes nasal, eye, and throat irritation, can lead to neurological, gastrointestinal, and reproductive consequences. Long-term xylene exposure can also be harmful to the respiratory system, central nervous system, cardiovascular system, and renal system. The dangers of xylene have been widely recognized in both animals and humans. Chronic diseases have become a global concern to humans, with a particular focus in areas where xylene is mixed with other chemicals (benzene, toluene, and so on), particularly in the petroleum and rubber industries. The mechanism of toxicity and interactions with the endocrine system is the greatest threat to human health, should be investigated.

Paraxylene Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Paraxylene Market. Paraxylene Market top companies are

BP plc

Chevron Phillips Chemical.

CNPC

ExxonMobil

Mitsubishi Gas Chemical.

NPC

RIL

Saudi Aramco.

BASF

INEOS and others.

Acquisitions/Technology Launches

• In July July 2020, NEDO launched the most advanced technology for Industrial Paraxylene as a development project for production of CO2 to substitute existing fossil fuel derived chemicals.
• In March 2019, BP, Virent Inc., and Johnson Matthey (JM) have signed an agreement to advance the commercialization of Virent's Bioforming process for producing bio-paraxylene (PX), a key raw material for renewable polyester production.

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