Phthalic Anhydride Market is Expected to Reach $5.6 Billion by 2030

According to a new report published by Allied Market Research, titled, “Global Phthalic Anhydride Market: Opportunity Analysis and Industry Forecast, 2021–2030,”

The global phthalic anhydride market was valued at $3.7 billion in 2020, and is projected to reach $5.6 billion by 2030, growing at a CAGR of 4.2% from 2021 to 2030.

Phthalic anhydride is a white crystalline solid that is the commercial form of phthalic acid. Commercial phthalic anhydride is 99.8–99.9% pure and is available in two forms namely molten and flake. It finds application in the manufacturing of unsaturated polyester resins, phthalate plasticizers, and alkyd resins for surface coatings.

Demand for phthalic anhydride has witnessed tremendous growth driven by increasing penetration in applications such as plasticizers, alkyd resins, unsaturated polyester resins, and others. All industry players are investing heavily to find new commercial avenues for their product segments via strategic production and business expansion. Some of the major factors that drive the demand for phthalic anhydride include growing usage of phthalic anhydride in the manufacturing of plasticizers and alkyd resin, extensive properties of phthalic anhydride such as lightweight, chemical rotting, high transparency, resistant to weather, corrosion, abrasion, and impact resistance, growing consumption of alkyd resin in paints and coatings industry, and increasing construction activities in Asia-Pacific region. However, harmful effects of phthalates due to its toxicity and development of bio-based alternative of phthalic anhydride are expected to hamper the growth of the phthalic anhydride market during the forecast period. Furthermore, growing demand for polyester polyols and surge in usage of glass fiber-reinforced polymers is expected to provide growth opportunities for the phthalic anhydride market during the forecast period.

By process, the global phthalic anhydride market size is studied o-xylene catalytic oxidation and naphthalene catalytic oxidation. The o-xylene catalytic oxidation segment accounted for the largest market share in 2020, owing to lower investment and operational costs. The o-xylene catalytic oxidation segment dominated the global phthalic anhydride market with more than four-fifths of the total market share in 2020.

By application, the global phthalic anhydride market is studied across plasticizers, alkyd resins, unsaturated polyester resins, and others. The plasticizers segment accounted for the largest market share in 2020, owing to surge in its demand from PVC product manufacturers. The plasticizers segment dominated the global phthalic anhydride market with more than half of the total market share in 2020.

By end-use industry, the global phthalic anhydride market is studied across paints & coatings, automotive, electrical & electronics, building & construction, agriculture, marine, and others. The building & construction segment emerged as the leader in 2020, owing to growing consumption of PVC products for applications such as flooring, wiring and plumbing. The building & construction segment dominated the global phthalic anhydride market with more than one-third of the total market share in 2020.

Region-wise, the global phthalic anhydride market is studied across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for a major phthalic anhydride market share in 2020, and dominated the global market with more than half of the total market share in 2020.

The major players studied and profiled in the global phthalic anhydride market are BASF SE, Nan Ya Plastics Corporation, Exxon Mobil Corporation, Asian Paints Ltd., C-Chem Co. Ltd., I.G. Petrochemicals Ltd., Koppers Inc., Mitsubishi Gas Chemicals Co. Ltd., Polynt Spa, Stepan Company, Thirumalai Chemicals Ltd. and UPC Technology Corporation.

COVID-19 analysis:

• According to the International Monetary Fund (IMF), owing to the outbreak of novel coronavirus (COVID-19), the global economy shrunk by 3.0% in 2020. Many countries are under strict lockdowns, which have forced several sectors to shut down their operations. This halted manufacturing activities and reduced the demand and production of phthalic anhydride.
• According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across developing economies, such as India, has been worst affected due to the COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for phthalic anhydride from various end-use industries such as building & construction, automotive, and paints & coatings. In addition, in the second half of 2020, some countries started to lift restrictions and gradually start business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the phthalic anhydride market growth in the coming years.
• According to the UNIDO, 30.0%–70.0% of pre-COVID-19 workforce of various manufacturing industries, such as automotive, building & construction, paints & coatings, and electrical & electronics have migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect production activities of these industries, thereby resulting in decline in demand for phthalic anhydride. This is expected to decline growth of the market during the forecast period.
• Attributed to the COVID-19 pandemic, the paints & coatings manufacturing units across various countries have been shut down amid lockdown imposed by governments of various countries across the globe. As a result, demand for phthalic anhydride-based alkyd resins that are widely used in production of solvent-based coatings has been decreased significantly, which declines growth of the market during the forecast period.
• Phthalic anhydride is widely used in production of plasticizers. Around 90.0% of the plasticizers are consumed by PVC manufacturers to modify the properties of their PVC products according to the requirement of the end user. Attributed to the outbreak of COVID-19 pandemic, the construction of various residential, commercial, and industrial projects has been halted amid lockdown. As a result, the demand for PVC products to be used in flooring, wiring and plumbing have been declined. In addition, amid lockdown, various PVC product manufacturing plants has shut down their production activities, which resulted in decline in demand for plasticizers and have eventually affected the demand for phthalic anhydride.
• Phthalic anhydride is widely used in the automotive industry in the manufacturing of dashboard and various other automotive body parts such as doors, sheathing electrical cables, and instrument panels. The automotive industry has been affected badly amid the lockdown imposed owing to the COVID-19 outbreak, resulting in shutdown of production activities due to the disruptive supply of automotive components. As a result, demand for PVC has been declined significantly, which eventually has affected the demand for phthalic anhydride, and this trend is expected to continue till the imposed lockdown continues across various countries in the world.

Key findings of the study

• In 2020, Asia-Pacific dominated the global phthalic anhydride market with around 52.0% share, in terms of revenue. In addition, it is also projected to grow at the highest CAGR of 4.5% in terms of value.
• The o-xylene catalytic oxidation segment dominated the global phthalic anhydride market with around 84.0% of the share in terms of revenue. In addition, it is also projected to grow at the highest CAGR of 4.7% in terms of value.
• The plasticizer segment dominated the global phthalic anhydride market with around 52.8% of the share in terms of revenue.
• The alkyd resins segment is projected to grow at the highest CAGR of 5.5% in terms of revenue.
• The building & construction segment dominated the global phthalic anhydride market with 35.0% of the share in terms of revenue.
• The paints & coatings segment is projected to grow at the highest CAGR of 5.2% in terms of revenue.