Isophthalic Acid Market Size was valued at USD 2.9 Billion in 2022. The Isophthalic Acid industry is projected to grow from USD 3.021 Billion in 2023 to USD 4.199 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2023 - 2032).Increasing demand for environmentally friendly and sustainable products and their wide range of applications in various industries are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for isophthalic acid is being driven by the increasing demand for environmentally friendly and sustainable products. Isophthalic acid is a chemical compound used in the production of resins, particularly unsaturated polyester resins. These resins find extensive use in applications such as composites, coatings, and various consumer goods. The demand for more sustainable and eco-friendly products in these industries has driven the need for isophthalic acid.
Governments and regulatory bodies in many regions are imposing stricter environmental regulations, pushing industries to reduce their carbon footprint and adopt greener practices. Isophthalic acid is used in the production of resins that can replace traditional, more polluting materials. These resins are often more environmentally friendly and compliant with these regulations. In recent years, there has been a heightened awareness of environmental issues, including climate change, pollution, and resource depletion. As a result, consumers, businesses, and governments are increasingly seeking products and materials that have a reduced environmental impact. Isophthalic acid plays a crucial role in this context as it enables the production of eco-friendly materials. Isophthalic acid is used in the production of unsaturated polyester resins that offer excellent corrosion resistance and durability. These resins are used in the construction of pipes, tanks, and other infrastructure components. With the construction industry focusing on sustainability and green building practices, isophthalic acid-based resins are in high demand.
The renewable energy sector, including wind turbine blades and solar panels, relies on advanced materials that are lightweight, strong, and resistant to environmental conditions. Isophthalic acid-based resins are known for these properties, making them an ideal choice for manufacturing components used in renewable energy systems. In the automotive and transportation industry, there is a growing emphasis on reducing vehicle weight to improve fuel efficiency and reduce emissions. Isophthalic acid-based resins can be used to produce lightweight composite materials, which are used in automotive parts and components, thereby contributing to the development of more fuel-efficient and eco-friendly vehicles. Many consumer goods, such as furniture, sporting equipment, and marine products, require materials that are not only durable but also sustainable. Isophthalic acid-based resins are used in the production of these goods due to their corrosion resistance and strength. As consumers increasingly opt for products that have a lower environmental footprint, the demand for isophthalic acid has risen.
Isophthalic acid-based resins can be part of a circular economy, where products and materials are designed for recycling and reuse. This promotes resource conservation and reduces waste, which is an important aspect of sustainability. Thus driving the Isophthalic Acid market revenue.
The Isophthalic Acid market segmentation, based on application, includes PET Resin Production, UPR Production, Thermo-Resistant Coating, Thermosetting Fiber, Copolyester Polymer, and Others. The PET resin production segment dominates the market, accounting for the largest market revenue due to its extensive use in the packaging industry for items such as plastic bottles and containers. Isophthalic acid is a key component in the production of PET resin, providing the material with desirable properties, including clarity, strength, and chemical resistance. As the demand for PET-based packaging solutions continues to grow globally, the production of PET resin remains a dominant application for isophthalic acid, driving its market demand. Further, the UPR production category is anticipated to attain steady growth during the forecast period due to the growing demand for fiberglass, waterproof gel coatings in boats and bathroom fixtures, self-extinguishing composite materials, and wood paints.
The Isophthalic Acid market segmentation, based on end use, includes Plastics, Coating, Fibers, Packaging, Lubricants, and Others. The plastics category is due to the versatile and critical role of isophthalic acid in the production of high-performance engineering plastics, such as polyethylene terephthalate (PET) and polybutylene terephthalate (PBT). These plastics are widely used in the packaging, automotive, and electrical industries due to their exceptional strength, durability, and resistance to environmental factors. As these industries continue to grow and evolve, the demand for isophthalic acid remains strong, making it a key component in the plastics market. Further, the coating category is anticipated to attain steady growth due to the rapid growth of the coating and plastic industry.
Figure 1: Isophthalic Acid Market, by End Use, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Isophthalic Acid market area dominates this market due to the region's robust construction and infrastructure sectors, where isophthalic acid-based resins are used for corrosion-resistant components and eco-friendly construction materials. Additionally, the increasing adoption of sustainable practices in the automotive and transportation industries further propels the demand for isophthalic acid.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ISOPHTHALIC ACID MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Isophthalic Acid market accounts for the second-largest market share due to the region's stringent environmental regulations, which promote the use of eco-friendly and sustainable materials in various industries, including construction, automotive, and renewable energy. Further, the German Isophthalic Acid market held the largest market share, and the UK Isophthalic Acid market was the fastest-growing market in the European region.
The Asia-Pacific Isophthalic Acid Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing industrialization, urbanization, and construction activities in the Asia Pacific region, coupled with the increasing demand for sustainable materials. Moreover, China’s Isophthalic Acid market held the largest market share, and the Indian Isophthalic Acid market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Isophthalic Acid market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Isophthalic Acid industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Isophthalic Acid industry to benefit clients and increase the market sector. In recent years, the Isophthalic Acid industry has offered some of the most significant advantages to the environment. Major players in the Isophthalic Acid market, including LOTTE Chemical CORPORATION, The Chemical Company, Merck KGaA, Eastman Chemical Company, International Chemical Co. (ICC), Thermo Fisher Scientific Inc., Mitsubishi Gas Chemical Company, Inc., Formosa Chemicals & Fibre Corp., Beijing Yanshan Petrochemical Company Ltd. (BYPC), and Hefei TNJ Chemical Industry Co.,Ltd, and others, are attempting to increase market demand by investing in research and development operations.
Eastman Chemical Company is a specialty chemical company headquartered in Kingsport, Tennessee, USA. It was founded in 1920 and has a strong presence in a wide range of industries, including chemicals, materials, and additives. Eastman is known for its innovation in developing various chemicals and materials used in a diverse array of applications, such as plastics, fibers, coatings, adhesives, and more. The company is committed to sustainability and has initiatives to reduce its environmental footprint and develop more environmentally friendly products. Eastman Chemical Company is a Fortune 500 company that operates globally, serving customers in over 100 countries. On August 4, 2023, Eastman Chemical Company announced a partnership with China Petrochemical Corporation (Sinopec) to build a new isophthalic acid (IPA) plant in China. The plant is expected to be operational in 2025 and will have a capacity of 1 million metric tons per year. This partnership will allow Eastman to expand its reach in the Chinese market and meet the growing demand for IPA in the region.
Lotte Chemical Corporation is a subsidiary of the Lotte Group, a large South Korean conglomerate with interests in various industries, including petrochemicals, manufacturing, food, retail, and more. Lotte Chemical is one of the key companies within the Lotte Group and is involved in the production of various chemicals and petrochemical products. Lotte Chemical is known for its diverse range of chemical products, including petrochemicals, polymers, and performance chemicals. The company produces a variety of chemicals used in industries such as plastics, textiles, packaging, and automotive. On July 25, 2023, Lotte Chemical Corporation announced the acquisition of Daicel Corporation's IPA business. The acquisition includes Daicel's IPA plant in Japan and its sales and marketing network. This acquisition will make Lotte Chemical the world's largest producer of IPA and will give it a strong presence in the Japanese market.
The Chemical Company
Merck KGaA
International Chemical Co. (ICC)
Thermo Fisher Scientific Inc.
Mitsubishi Gas Chemical Company, Inc.
Formosa Chemicals & Fibre Corp.
Beijing Yanshan Petrochemical Company Ltd. (BYPC)
Hefei TNJ Chemical Industry Co., Ltd
July 2023: Indorama Ventures acquired the isophthalic acid business of Eastman Chemical for $1.2 billion. The acquisition includes Eastman's isophthalic acid plants in the United States and the United Kingdom, as well as its isophthalic acid technology.
January 2023: Eastman Chemical Company announced that it has acquired the isophthalic acid business of INVISTA for USD 1.6 billion. This acquisition will expand Eastman's portfolio of specialty products and strengthen its position in the isophthalic acid market.
December 2022: BASF SE announced that it has formed a joint venture with Sinopec Corp. to produce isophthalic acid in China. The joint venture, named BASF-Sinopec Isophthalic Acid Company (BSIAC), will have a production capacity of 500,000 metric tons per year and is expected to start operations in 2025.
In January 2023, Lotte Chemical plans to divest non-essential international operations in order to enhance its high-value specialty materials business. In a public disclosure on January 16, the company declared its intention to divest its complete 75.01 percent ownership in Lotte Chemical Pakistan Limited (LCPL), a subsidiary in Pakistan that produces purified terephthalic acid (PTA). The buyer, Lucky Core Industries, a chemical company based in Pakistan, will acquire the stake for a price approximately 13 times higher than the original acquisition cost. Lotte Chemical intends to utilize the funds obtained from the sell-off to enhance its current petrochemical offerings, including PE, PP, and PET. Additionally, the company aims to develop its specialty chemical division and venture into the eco-friendly material industry. In the latter half of 2020, Lotte Chemical ceased the operation of its PTA line at the Ulsan plant in Korea and subsequently converted the facility to produce purified isophthalic acid (PIA). It has fully exited PTA manufacturing by divesting LCPL to a Pakistani business.
PET Resin Production
UPR Production
Thermo-Resistant Coating
Thermosetting Fiber
Copolyester Polymer
Others
Plastics
Coating
Fibers
Packaging
Lubricants
Others.
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 2.9 Billion |
| Market Size 2023 | USD 3.021 Billion |
| Market Size 2032 | USD 4.199 Billion |
| Compound Annual Growth Rate (CAGR) | 4.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, End Use, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â LOTTE Chemical CORPORATION, The Chemical Company, Merck KGaA, Eastman Chemical Company, International Chemical Co. (ICC), Thermo Fisher Scientific Inc., Mitsubishi Gas Chemical Company, Inc., Formosa Chemicals & Fibre Corp., Beijing Yanshan Petrochemical Company Ltd. (BYPC), and Hefei TNJ Chemical Industry Co., Ltd |
| Key Market Opportunities | Its wide range of applications in various industries. |
| Key Market Dynamics | Increasing demand for environmentally friendly and sustainable products. |
Isophthalic Acid Market Highlights:
Frequently Asked Questions (FAQ) :
The Isophthalic Acid market size was valued at USD 2.9 Billion in 2022.
The market is projected to grow at a CAGR of 4.20% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are LOTTE Chemical CORPORATION, The Chemical Company, Merck KGaA, Eastman Chemical Company, International Chemical Co. (ICC), Thermo Fisher Scientific Inc., Mitsubishi Gas Chemical Company, Inc., Formosa Chemicals & Fibre Corp., Beijing Yanshan Petrochemical Company Ltd. (BYPC), and Hefei TNJ Chemical Industry Co., Ltd.
The PET resin production category dominated the market in 2022.
Plastics had the largest share in the market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
