Global phthalic anhydride market size was estimated at USD 6.90 billion in 2013. Increasing use of phthalate plasticizers in automotive manufacturing coupled growing automotive industry is expected to drive demand over the forecast period.
The global phthalic anhydride industry is expected to witness growth owing to increasing application scope in the plastic industry. It is used extensively for manufacturing phthalate plasticizers which in turn is employed in the production of polyvinyl chloride (PVC), unsaturated polyester resins, alkyd resins, dyes and insect repellants. Growing demand for these products is expected to subsequently drive growth.
Rising demand for products containing phthalic anhydride in various end-use industries including paints & coatings, medical devices, home appliances and furniture is expected to augment growth over the forecast period. In addition, its increasing use in manufacturing of unsaturated polyester resins (UPR) which in turn is employed in manufacturing fiberglass-reinforced plastics is likely to propel demand over the next few years.
Toxic nature of alkyd resins and phthalates coupled with stringent environmental regulations is likely to limit growth. In addition, increase in demand for non-phthalates in manufacturing PVC compound is a major restraining factor towards phthalic anhydride market growth. Moreover, global phthalic anhydride prices have witnessed notable fluctuations over the past few years owing to fluctuating feedstock prices and increasing energy cost. However, rising demand for polyester polyols which are used in manufacturing polyurethanes is expected to offer high growth opportunity in the near future.
North America phthalic anhydride market volume by application, 2012-2020, (Kilo tons)
Phthalate plasticizers dominated the global share accounting for over 55% of the volume share in 2013. Growing demand for the product in manufacturing PVC compounds which in turn is used in making hoses, cables, packaging films and shoes are expected to propel market growth over the next six years.
Unsaturated polyesters resins (UPR) market is expected to grow at a CAGR of 5.0% from 2014 to 2020. Increasing demand for the product for manufacturing reinforced laminates and surface coating industry is expected to drive growth. Rising demand for fiberglass in construction and automotive industries owing to its lightweight property is expected to have a positive impact on UPR demand.
Asia Pacific was the largest consumer in 2013 on account of growth of construction and automotive industries, particularly in China and India. Asia Pacific phthalic anhydride market was valued at USD 3.55 billion in 2013 and is expected witness robust growth over the forecast period due to abundant raw material availability.
Europe accounted for the second largest share in terms of volume and revenue, and is expected to grow at a CAGR of 3.8% from 2014 to 2020. The region is expected to witness sluggish growth on account of slow recovery of manufacturing industries from the effects of economic downturn.
North America accounted for over 14% of the revenue share in 2013. Recovery of construction industry in the U.S. post the economic downturn in 2008-09 is expected to promote application scope of specialty polymers. As a result, UPR and phthalate plasticizers are anticipated to gain momentum on account of being used as a raw material for the production of various specialty polymers including PVC and FRP.
Shandong Hongxin, BASF, ExxonMobil Chemical, Nan-Ya Plastics, Aekyung Petrochemical, Polynt SPA, IG Petrochemicals, Koppers Industries, Asian Paints, Cp-Chem Co. Ltd., Mitsubishi Gas Chemicals Co. Ltd. and UPC Technology Corp. dominated the global phthalic anhydride market in 2013.
The global phthalic anhydride market share is highly fragmented in nature due to the presence of numerous manufacturers spread across the globe. UPC Technology Corp., ExxonMobil and Aekyung Petrochemical accounted for over 17% of the global demand in 2013. Refining expansion in China coupled with growing domestic demand is expected to keep high penetration of manufacturers in vicinity. As a result, other industry players accounted for over 80% share in 2013.
UPC Group is engaged in the production and marketing of phthalic anhydride along with its derivates such as plasticizers, UPR and alkyd resins. UPC also established a subsidiary in Malaysia under the name, Malaysia UPC Chemicals SDN BHD in 2013.