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Dimethyl Terephthalate Market - Forecast (2022 - 2027)

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  • 132 Pages
  • January 2022
  • Region: Global
  • IndustryARC
  • ID: 5616206
The Dimethyl Terephthalate Market size is forecast to reach $920 million by 2027, after growing at a CAGR of 4.5% during 2022-2027. Dimethyl terephthalate, also known as dimethyl 1, 4-benzene dicarboxylate is used as a feedstock in the production of polyethylene terephthalate (PET) and polybutylene terephthalate (PBT). One of the major factors driving the market is the rising demand for Polyethylene Terephthalate (PET) and Polybutylene Terephthalate (PBT). In addition, the development of bio-based DMT is creating opportunities for the dimethyl terephthalate market. The consumption of bottled water, Soft drinks, and other premium beverages has increased massively worldwide during the last decade and thus the dimethyl terephthalate market is anticipated to substantially grow during the forecast period.

Report Coverage

The report: “Dimethyl Terephthalate Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the dimethyl terephthalate industry.
  • By Form: Flake DMT, Liquid DMT, Oval DMT
  • By Application: Polyethylene Terephthalate (PET) and Polybutylene Terephthalate (PBT)
  • By End-Use Industry: Food & Beverages, Healthcare, Consumer Electronics, Packaging, and Others
  • By Geography: North America, South America, Europe, Asia Pacific, and RoW

Key Takeaways

  • Asia-Pacific dominates the dimethyl terephthalate market, owing to the increasing food packaging industry in the region. China’s food processing industry continued to grow in 2017. Revenue climbed to $1.47 trillion, an increase of 6.3 percent compared with the previous year. With the increasing food processing industry, the demand for packaging is also increasing, which is driving the dimethyl terephthalate market growth.
  • The DMT intermediate product is manufactured by joint oxidation of a mixture containing predominantly p-xylene and p-toluene acid methyl ester (p-TE) in a liquid phase with a gas containing oxygen. The acids produced then undergo methyl-esterification.
  • PBT is widely used as an insulator in the electrical and electronics industry. Its demand is increasing from the automotive industry for substituting replaceable metal parts, owing to the rising demand for lightweight vehicles. Besides this, PBT fiber is also used in toothbrushes, false eyelashes, and more.
  • The increasing demand for PET polymer for use in packaging of products, such as food, beverages, cosmetic, pharmaceuticals, household chemicals, and toiletries; producing both food and non-food films; production of credit and debit cards and more is further driving the demand for dimethyl terephthalate for producing PET polymer.
  • The availability of cost-effective substitutes like purified terephthalic acid may hinder the growth of the dimethyl terephthalate (DMT) market during the forecast period.
  • Due to the COVID-19 Pandemic, most of the countries have gone under lockdown, due to which operations of various industries such as packaging have been negatively affected, which is limiting the dimethyl terephthalate market growth.
  • By Applications - Segment Analysis
The polyethylene terephthalate (PET) segment held the largest share in the dimethyl terephthalate market in 2019, owing to the increasing application of polyethylene terephthalate in various end-use industries such as automotive, packaging, and electronics. PET plastics are the most preferred materials in the packaging industry. It is extensively deployed for the packaging of various food and beverage products owing to its lightweight, durable, impact-resistant, and hygienic properties, as well as maintains the freshness of the products. Additionally, these bottles find extensive usage in various consumable products, including detergents, alcoholic beverages, medicines, and personal care products & cosmetics. Thus, with the rising PET demand from such industries, the production of PET is also projected to increase, which will drive the dimethyl terephthalate market in the forecast period.
  • By End-Use Industry - Segment Analysis
The Food & Beverages industry held the largest share in the dimethyl terephthalate market in 2019 and is growing at a CAGR of 5.8%, owing to the increasing demand for packaging materials from the food & beverage sector. Dimethyl terephthalate is mostly used in the production of PET polymer for polyester fibers and for manufacturing PET solid-state resin bottles for packaging purposes. According to the International Trade Administration (ITA), Russia is the eighth largest market for packaged food products with 27.5 million tons of trade volume, as well as beverages (alcoholic and soft) with a trading volume of 26 billion liters. According to the United States Department of Agriculture (USDA), in 2018, the total value of all retail food and beverage sales in Japan was $479.29 billion (¥53,339 billion), an overall increase of 2.3 percent. Polyethylene terephthalate (PET) is predominantly consumed in the packaging of drinking water and carbonated soft drinks, and hence a significant share of PET resins is utilized in the production of PET bottles. In addition, polyethylene terephthalate (PET) is considered an exceptional barrier material that prevents the transfer of chemicals, making it most appropriate for the food & beverage industry. Thus, with the increasing food & beverage packaging industry, the dimethyl terephthalate is flourishing during the forecast period.
  • By Geography - Segment Analysis
The Asia Pacific held the largest share in the dimethyl terephthalate market in 2019 up to 33%, owing to the increasing packaging and electronics industry in the region. In 2016, according to the Federation of Indian Chambers of Commerce & Industry (FICCI) packaging stood at USD 700 billion and was one of the fastest-growing industries globally. In developing countries like India, it grew at a CAGR of 16%. According to the Electronic Industries Association of India (ELCINA), the total production of the electronics sector in India was Rs.3,87,525 crore in 2017-18, compared to Rs.3,17,331 crore in 2016-17, exhibiting a growth of about 22%. According to the Singapore Economic Development Board (EDB), Singapore has one of the most diverse semiconductor industries in the Asia Pacific; in 2015 S$3.3 billion of fixed asset investments (FAI) was attracted by the electronics sector in the region. According to the Thailand Board of Investment (BOI), the country’s non-alcoholic beverage market was worth roughly USD 7.9 billion with a 5.2% CAGR1 and an export value of USD 1.1 billion in 2016. Also, functional drinks are enjoying increasing popularity among Thai consumers, and the market was worth USD 1.6 billion in 2016 and is expected to grow as consumers demand is also increasing. Thus, the increasing packaging and electronic industries in the region are anticipated to drive the dimethyl terephthalate market in the Asia Pacific region.

Drivers - Dimethyl Terephthalate Market

Increasing Consumer Electronics Industry

According to the United States International Trade Commission, the total exports of electronic products grew by $7.9 billion (3 percent) to $268 billion in 2017 in the United States., which acts as a driver for the dimethyl terephthalate market during the forecast period. According to the Department for International Trade, The electronics sector is worth £16 billion every year to the UK economy. The UK is the largest European market for high-end consumer electronics products with about 18,000 UK based companies. According to Invest India, the Consumer Electronics and Appliances Industry in India is expected to become the fifth-largest in the world by 2025. By 2025, India could create a digital economy of $800 billion to $1 trillion, and India’s digital economy could fuel 18-23% of overall economic activity by 2025. And since dimethyl terephthalate is often used for manufacturing consumer electronic products, it acts as a driver for the dimethyl terephthalate market during the forecast period.

Increasing Food Processing Sector

The food processing industry is increasing in various regions. With the increasing food industry, the demand for dimethyl terephthalate will also increase for food packaging as dimethyl terephthalate is a feedstock for polyethylene terephthalate (PET) and polybutylene terephthalate (PBT) production. According to the United States Department of Agriculture (USDA), in 2018, Canada’s total food and beverage industry sector sales reached $87 billion. According to the International Trade Administration (ITA), Russia has the eighth largest market for packaged food products with 27.5 million tons of trade volume. The demand for packaged products in Russia is expected to increase and reach 29 million tons by 2020. In 2018, total processed food production in Ukraine was $15 billion and the processed food exports reached $9.4 billion, accounting for 50 percent of Ukraine’s agricultural products and processed food exports. In 2017, the packaging material production industry represented 1.7 percent of Mexico’s GDP, 5.8 percent of the industrial sector GDP, and 8.5 percent of manufacturing GDP. In 2017, Mexico produced 11.9 million tons of packaging containers and packaging materials with a value of USD 14.6 billion. Thus, the rising food processing sector is increasing the demand for dimethyl terephthalate in various regions, which act as a driver for the dimethyl terephthalate market.

Challenges - Dimethyl Terephthalate Market

Health Hazards Related to The Dimethyl Terephthalate Market

This chemical is considered hazardous by the 2012 OSHA Hazard Communication Standard (29 CFR 1910.1200). Studies have indicated that dimethyl terephthalate (DMT) had an irritant action on the skin, eyes, and mucous membranes of laboratory animals. Limited Western studies suggested a more mild local action. Guinea-pig studies involving repeated application to the skin of a dilute solution found no evidence of sensitizing potential. Repeated administration in the diet of rats produced urinary tract stones and associated tissue changes. Limited information from repeated inhalation studies conducted in the West suggests low toxicity in laboratory animals whereas in Soviet studies toxic effects on multiple organs have been claimed. All these factors may act as a restrain for dimethyl terephthalate market growth.

Covid-19 Impact on The Dimethyl Terephthalate Market

The COVID-19 pandemic outbreak has impacted the imports and exports of dimethyl terephthalate globally. Governments of various countries have imposed export restrictions on commodities which are significantly disrupting the supplies. Also, the dimethyl terephthalate manufacturers are facing issues such as delays in receiving raw materials, which is further resulting in delayed shipments to the customer. In addition, the quality of some raw materials has declined considerably and the shipments' orders are being heavily affected due to the non-availability of vessels and blank sailing, which is heavily affecting the dimethyl terephthalate market growth.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the dimethyl terephthalate market. In 2019, the market of dimethyl terephthalate has been consolidated by the top five players accounting for xx% of the share. Major players in the dimethyl terephthalate market are A.B. Enterprises, Eastman Chemical Company, Fiber Intermediate Products Co., JSC Mogilevkhimvolokno, Merck KGaA, Sarna Chemicals Pvt. Ltd., SASA, SK Petrochemical Co., Ltd, TCI Chemicals, and Teijin Ltd.

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Table of Contents

1. Dimethyl Terephthalate Market- Market Overview
1.1 Definitions and Scope
2. Dimethyl Terephthalate Market- Executive Summary
2.1 Market Revenue, Market Size and Key Trends by Company
2.2 Key Trends by Form
2.3 Key Trends by Application
2.4 Key Trends by End-Use Industry
2.5 Key Trends by Geography
3. Dimethyl Terephthalate Market- Landscape
3.1 Comparative analysis
3.1.1 Market Share Analysis- Top Companies
3.1.2 Product Benchmarking- Top Companies
3.1.3 Top 5 Financials Analysis
3.1.4 Patent Analysis- Top Companies
3.1.5 Pricing Analysis
4. Dimethyl Terephthalate Market- Market Forces
4.1 Market Drivers
4.2 Market Constraints
4.3 Market Opportunities
4.4 Porters five force model
4.4.1 Bargaining power of suppliers
4.4.2 Bargaining powers of customers
4.4.3 Threat of new entrants
4.4.4 Rivalry among existing players
4.4.5 Threat of substitutes
5. Dimethyl Terephthalate Market -Strategic analysis
5.1 Value chain analysis
5.2 Opportunities analysis
5.3 Market life cycle
5.4 Suppliers and distributors Analysis
6. Dimethyl Terephthalate Market- By Form (Market Size -$Million)
6.1 Flake DMT
6.2 Liquid DMT
6.3 Oval DMT
7. Dimethyl Terephthalate Market- By Application (Market Size -$Million)
7.1 Polyethylene Terephthalate (PET)
7.2 Polybutylene Terephthalate (PBT)
7.3 Others
8. Dimethyl Terephthalate Market- By End-Use Industry (Market Size -$Million)
8.1 Food & Beverages
8.2 Healthcare
8.3 Consumer Electronics
8.4 Packaging
8.5 Others
9. Dimethyl Terephthalate Market - By Geography (Market Size -$Million)
9.1 North America
9.1.1 U.S.
9.1.2 Canada
9.1.3 Mexico
9.2 South America
9.2.1 Brazil
9.2.2 Argentina
9.2.3 Colombia
9.2.4 Chile
9.2.5 Rest of South America
9.3 Europe
9.3.1 U.K
9.3.2 Germany
9.3.3 France
9.3.4 Italy
9.3.5 Netherland
9.3.6 Spain
9.3.7 Russia
9.3.8 Belgium
9.3.9 Rest of Europe
9.4 Asia Pacific
9.4.1 China
9.4.2 Japan
9.4.3 India
9.4.4 South Korea
9.4.5 Australia & New Zealand
9.4.6 Rest of Asia Pacific
9.5 ROW
9.5.1 Middle East Saudi Arabia UAE Israel Rest of Middle East
9.5.2 Africa South Africa Nigeria Rest of Africa
10. Dimethyl Terephthalate Market- Entropy
10.1 New Product Launches
10.2 M&A’s, Collaborations, JVs and Partnerships
11. Dimethyl Terephthalate Market Company Analysis
11.1 Market Share, Company Revenue, Products, M&A, Developments
11.2 Company 1
11.3 Company 2
11.4 Company 3
11.5 Company 4
11.6 Company 5
11.7 Company 6
11.8 Company 7
11.9 Company 8
11.10 Company 9
11.11 Company 10 and more