Forecast Period | 2026-2030 |
Market Size, By Volume (2024) | 132.67 Million Tonnes |
CAGR (2025-2030) | 6.42% |
Fastest Growing Segment | PET Resin |
Largest Market | West India |
Market Size, By Volume (2030) | 190.56 Million Tonnes |
Market Overview
India Purified Terephthalic Acid Market achieved a total market volume of 132.67 Million Tonnes in
2024 and is expected to reach 190.56 Million Tonnes by 2030 with a CAGR of 6.42%
during the forecast period. Purified Terephthalic Acid (PTA) is an essential
raw material primarily used in polyester production, which serves various
sectors including textiles, packaging, and automotive. PTA is also integral to
the manufacture of various resins and films employed in packaging and
industrial applications. The production of PTA typically involves oxidizing
para-xylene with air in the presence of a catalyst, followed by purification to
eliminate impurities. This process is energy-intensive and produces CO₂ emissions, prompting ongoing efforts to
enhance sustainability through improved technologies and recycled PET
utilization.
The growth of the textile industry, both
for domestic use and export, significantly drives the demand for PTA, as
polyester fibers are essential for apparel, home textiles, and industrial
fabrics. Additionally, increased infrastructure and construction activities
fuel the need for polyester products in applications such as geo-textiles and
reinforcement materials.
India is a major player in the PTA
market, with leading companies such as Reliance Industries and Indian Oil
Corporation investing in advanced facilities to cater to both domestic and
export demands. PTA production relies on paraxylene (PX), a petroleum-derived
feedstock, and fluctuations in PX availability and global crude oil prices can
impact production costs and market dynamics.
India imports a large portion of its
PTA, primarily from China, the Middle East, and Southeast Asia, to supplement
domestic production and meet high demand from various end-use industries.
Stringent environmental regulations on emissions and waste management require
investments in cleaner technologies and compliance measures. Technological
advancements aim to improve production efficiency, reduce costs, and lessen
environmental impact. There is also a growing focus on sustainability, with
efforts towards recycling and developing bio-based PTA alternatives to minimize
ecological impact. The
Indian PTA market offers significant growth potential driven by robust domestic
industrial demand. Future advancements in technology and sustainability will be
pivotal in shaping the market’s development.
Key Market Drivers
Infrastructure Development
Purified
Terephthalic Acid (PTA) is integral to the production of polyester resins,
which are crucial for manufacturing construction materials such as composites,
adhesives, and coatings. These materials play a key role in various
infrastructure projects, including building construction, road repairs, and
bridges. Polyester-based coatings, derived from PTA, are applied to
construction materials to protect against weathering and corrosion, thus
enhancing the durability of infrastructure.
Foreign
Direct Investment (FDI) in construction development, including townships,
housing, and built-up infrastructure projects, totaled USD 26.54 billion, while
FDI in the construction (infrastructure) sector reached USD 33.52 billion
between April 2000 and December 2023.
Government efforts to develop and modernize urban infrastructure—encompassing
both residential and commercial buildings—drive the demand for polyester-based
products, thereby increasing the need for PTA. Additionally, large-scale public
works projects, such as highways, railways, and airports, rely on polyester
resins and other PTA-derived materials, further boosting PTA consumption.
The
recent Interim Budget for 2024-25 has increased the capital investment outlay
for infrastructure by 11.1% to USD 133.86 billion, representing 3.4% of GDP. Such increased government expenditure
on infrastructure typically stimulates demand for various construction
materials, including those containing PTA, particularly during periods of
economic growth or recovery. As India continues to invest in and expand its
infrastructure, the demand for PTA and its derivatives is expected to rise,
reflecting the broader trends in infrastructure development and modernization.
Growth of Textile Industry
Purified
Terephthalic Acid (PTA) is a key raw material for producing polyester fibers,
which are widely used in the textile industry. As demand for polyester textiles
increases, so does the need for PTA. Shifts in fashion trends and a growing
consumer preference for affordable, durable, and low-maintenance clothing are
driving up the consumption of polyester fabrics, thereby boosting PTA demand.
Rapid urbanization in India has led to a heightened need for a variety of
textile products for both residential and commercial purposes, including
apparel and home furnishings, which heavily rely on polyester.
Economic
growth and rising disposable incomes are also contributing to increased
consumer spending on textile products, further driving the demand for
polyester-based materials and PTA. Government initiatives and incentives aimed
at revitalizing the textile industry, such as subsidies and modernization
support, indirectly benefit the PTA market by promoting growth in textile
production. For example, the government allocated USD 109.99 million to the
Amended Technology Upgradation Fund Scheme (ATUFS) in the 2023-24 budget to
stimulate private investment and job creation in the sector.
Investment
in new textile manufacturing facilities, including mills and production lines,
increases PTA demand, as these operations require large quantities of
polyester. According to IBEF, textiles, handicrafts, and apparel represented
10.6% of India's total exports in FY22. Despite a dip in FY20 and FY21, exports
have consistently risen since FY16, with textile and apparel exports reaching a
record USD 44.4 billion in FY22, a 41% increase from FY21. As India's
textile industry grows and meets both domestic and international demands, the
need for PTA remains strong, especially given the increasing trend towards
sustainable textiles and recycled polyester. This ongoing evolution in consumer
preferences and technological advancements ensures a continued rise in PTA
demand as a vital component in polyester production.
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Key Market Challenges
Regulatory and Trade Barriers
High
import tariffs can drive up the cost of PTA and its derivatives for domestic
manufacturers, making raw material sourcing more expensive and challenging
competition with imported products. Export tariffs or restrictions from other
countries can also restrict market access for PTA producers, limiting their
ability to enter international markets. For instance, in 2023, Indian
manufacturers in plastics, packaging, textiles, and automotive sectors are
banned from sourcing purified terephthalic acid from mainland Chinese producers
due to a decision by Indian authorities. This prohibition is part of India's
updated list of Bureau of Indian Standards-certified global PTA suppliers,
which excludes Chinese producers.
Different
markets impose specific product standards and certifications for PTA and its
derivatives. Securing these certifications can be both time-consuming and
costly, impacting market access. Additionally, adhering to health and safety
regulations related to the handling and transportation of PTA can add
operational costs and complexities. Changes or deficiencies in trade agreements
can affect PTA trade flows, influencing both imports and exports. Complex
customs procedures and documentation requirements can result in delays and
higher costs for importing PTA, while increased border inspections may lead to
longer lead times and potential supply chain disruptions. Effectively
navigating these regulatory and trade barriers is essential for PTA producers
to remain competitive and ensure stable operations.
Volatility in Raw Material
Prices
PTA
production depends on para-xylene, which is derived from crude oil. Variations
in crude oil prices can lead to fluctuations in para-xylene costs, which in
turn affect PTA production expenses. Unpredictable changes in crude oil prices
can cause PTA costs to vary, impacting profit margins and complicating
financial planning for manufacturers. Disruptions in the supply chain for raw
materials like para-xylene can result in shortages or delays, affecting PTA
production continuity and increasing costs. Market speculation can drive up raw
material prices, impacting both PTA production costs and market prices.
Manufacturers
must frequently adjust their pricing strategies in response to raw material
price changes, which can affect their competitiveness and customer
relationships. Fluctuating raw material costs also complicate investment
decisions and financial planning, making it difficult to budget for capital
expenditures and operational costs. Long-term supply contracts can help
stabilize prices but may present challenges if raw material prices fall
significantly. Securing a reliable supply of raw materials at predictable
prices can be particularly difficult in a volatile market, affecting production
stability and cost management.
Key Market Trends
Rise of Innovative Packaging
There
is a notable shift towards sustainable packaging solutions that utilize
recycled or biodegradable materials. PTA, a crucial raw material for
polyester-based packaging, is seeing increased demand for eco-friendly
packaging options. In April 2024, UFlex, India’s leading multinational in
flexible packaging solutions, began producing poly-condensed polyester chips at
its Panipat facility. This plant, with an annual capacity of 168,000 metric
tons, focuses on manufacturing polyester chips essential for Biaxially Oriented
Polyethylene Terephthalate (BOPET) packaging films. The movement towards
reducing plastic waste has boosted the use of recycled PET (rPET) in packaging,
which in turn drives PTA demand since PTA is used in creating new polyester
products.
In
June 2024, Germany’s Coperion and Herbold Meckesheim, known for recycling
technology, partnered with India’s Magpet Polymer Pvt. Ltd. to establish a PET
bottle-to-bottle recycling facility. Also in June, Coca-Cola India introduced
100% recycled polyethylene terephthalate (rPET) bottles in a 250ml Affordable
Small Sparkling Package (ASSP) format in Odisha, India, advancing plastic
circularity efforts. Advancements
in packaging technologies, including barrier coatings and sophisticated film
structures, require specialized PTA formulations to enhance material
performance and functionality. The rise of smart packaging solutions, featuring
elements like temperature indicators and QR codes, is also driving demand for
high-quality PTA to ensure the durability and reliability of these advanced
packages.
Customization
in packaging to address specific industry needs such as improved protection,
extended shelf life, and enhanced aesthetics is on the rise. PTA is used to
produce tailored polyester films and coatings that meet these demands.
Additionally, the growth of e-commerce has increased the need for durable
packaging solutions that protect products during transit, further boosting PTA
demand. Emerging
markets are experiencing a surge in demand for innovative packaging due to
rapid economic development and rising consumer spending. This trend opens new
opportunities for PTA producers to broaden their market presence.
Segmental Insights
Sales Channel Insights
Based
on Sales Channel, the Direct Sales Channel emerged as
the dominating segment in the Indian market for Purified Terephthalic Acid in
2024. PTA
is required in substantial volumes for industrial uses like textile production
and packaging. Direct sales are more effective for managing these large orders,
allowing for efficient delivery of substantial quantities directly from
producers to major clients. This approach helps PTA producers build and sustain
long-term relationships with significant customers, such as textile mills and
packaging firms, fostering trust and encouraging repeat business. By cutting
out intermediaries, direct sales reduce extra costs associated with
distributors or agents, benefiting both producers, who can offer competitive
prices, and buyers, who can save on expenses. Direct sales also provide
producers with better control over pricing strategies and quality assurance, ensuring
that PTA meets the specific needs of large buyers. Additionally, this method
simplifies the supply chain by minimizing intermediary steps, which leads to
quicker order fulfillment and more reliable supply management. Large buyers
often prefer direct dealings with producers to strengthen brand loyalty and
guarantee consistent delivery of high-quality products.
End User Insights
Based
on End User, Polyester Fiber and Yarn emerged as the dominating segment in the Indian
market for Purified Terephthalic Acid in 2024. Polyester fibers are widely
utilized across the textile industry, spanning products such as clothing, home
furnishings, and industrial textiles. This extensive use significantly drives
the demand for PTA. Polyester is highly regarded for its durability, affordability,
and versatility, with its resistance to wrinkles, shrinking, and abrasion
making it a popular choice for both everyday apparel and specialized textiles.
As one of the largest consumers of PTA, the polyester fiber market reflects the
high volume of fibers produced and used globally, further solidifying its
dominance in PTA consumption.
Polyester’s
cost-effectiveness, particularly when compared to natural fibers like cotton or
wool, contributes to its widespread adoption and, consequently, increased PTA
demand. The efficient and scalable production processes for polyester allow for
large quantities of fiber and yarn to be produced at relatively low costs,
thereby reinforcing the reliance on PTA. Additionally, ongoing innovations in
fiber technology such as enhancements in strength, texture, and performance drive
the creation of new polyester products, many of which require specialized PTA
formulations. The development of diverse polyester fiber types, including
high-performance and specialty variants, further stimulates the need for PTA.
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Regional Insights
Based
on Region, West India emerged as the dominant region in the Indian market for Purified
Terephthalic Acid in 2024. The Western region of India, especially in states
like Gujarat and Maharashtra, is a key industrial and manufacturing hub. Cities
such as Mumbai, Pune, and Surat are prominent centers for the textile and
packaging industries, which are major consumers of PTA. PTA is essential for
polyester production, and the high volume of textile manufacturing in this
region drives substantial demand for PTA. In 2023, a Memorandum of
Understanding (MoU) was signed between the State and Central governments to
establish the PM MITRA Park on 1,141 acres in Vansi Borsi, Navsari, Gujarat.
This initiative, part of the PM MITRA (Mega Integrated Textile Region and
Apparel) Park, reflects the region's commitment to bolstering its textile and
manufacturing sectors. The Western region benefits from advanced
infrastructure, including well-developed ports, transport networks, and
industrial facilities, which facilitate the efficient distribution and
consumption of PTA. The region’s robust economic activity, with a strong
industrial base, further contributes to high PTA demand. Additionally, its
proximity to major ports supports significant export and trade activities,
enhancing its market position in PTA.
Significant
investments have been made in the Western region’s industrial facilities and
technology. For example, in 2024, TCG invested USD 149.25 million in expanding
its FDY Yarn production, aiming to revive Garden Silk Mills with a
state-of-the-art plant in Jolwa that produces high-quality polyester chips,
POY, FDY, and specialty yarns. TCG’s expansion reflects the region’s growing
role in the PTA-polyester downstream segment. The
Western region's high concentration of PTA-consuming industries, coupled with
substantial investments and advanced infrastructure, results in a higher demand
for PTA compared to other regions in India.
Recent Development
- In
June 2024, Indian Oil Corp. Ltd. (IOC) awarded a contract to Technip Energies
NV for a range of services related to a new unit set to be installed at IOC’s
upcoming petrochemical complex. This complex will be built adjacent to and
integrated with IOC’s existing 15-million-tonnes-per-year refinery in Paradip,
Odisha, on India’s northeastern coast. The refinery and its current
petrochemical units will provide the new complex with all required feedstocks,
including monoethylene glycol, petcoke-based synthetic ethanol, and
paraxylene-purified terephthalic acid (PX-PTA).
- In
June 2023, GAIL (India) Ltd acquired the Purified Terephthalic Acid (PTA)
manufacturing facility of JBF Petrochemicals Ltd and established a new entity,
GAIL Mangalore Petrochemicals Ltd (GMPL). As part of the acquisition, GAIL
invested Rs 2,100 crore into the financially troubled private-sector company
JBF Petrochemicals Ltd, which was acquired through bankruptcy proceedings.
- In
June 2023, Reliance Industries Limited (RIL), the leading entity in India's
polyester value chain, raised the prices of purified terephthalic acid (PTA)
and MELT, while lowering the price of monoethylene glycol (MEG). The revised
prices were set at ₹82.40 per kg for PTA (an increase of ₹0.80), ₹48.20 per kg
for MEG (a decrease of ₹0.70), and ₹87.25 per kg for MELT (an increase of
₹0.45). These adjustments in the pricing of polyester raw materials became
effective in July.
Key Market Players
- Reliance Industries Limited
- Moradia Brothers Chem Pvt. Ltd.
- Sigma Aldrich Chemicals Private Limited
- Eastman Chemical India Private Limited
- RX CHEMICAL RXSOL RX MARINE
- MCPI Private Limited
- Indorama Ventures Public Company Limited
- Indian Oil Corporation Ltd
- BP India Services Private Ltd.
- GAIL (India) Limited
|
By
Sales Channel
|
By
End User
|
By Region
|
- Direct Sales
Channel
- Indirect Sales
Channel
|
- Polyester Fiber
and Yarn
- PET Resin
- Polyester Film
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Purified Terephthalic
Acid Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- India Purified Terephthalic Acid Market, By Sales Channel:
o Direct Sales Channel
o Indirect Sales Channel
·
India Purified
Terephthalic Acid Market, By End
User:
o Polyester Fiber and Yarn
o PET Resin
o Polyester Film
o Others
- India Purified Terephthalic Acid Market, By
Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Purified
Terephthalic Acid Market.
Available Customizations:
India Purified Terephthalic Acid Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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