The global phthalic anhydride market size was USD 8.58 billion in 2017 and is anticipated to grow at a steady pace during the forecast period. Owing to the increasing demand for polyvinyl chloride (PVC) in construction and automobile industries which is further produced using phthalate plasticizers. Moreover, phthalic anhydride is a multipurpose catalyst in organic chemistry, because it’s cheaply available and bi-functional. Stringent regulation and policies by government due to environment and health concern are restraining the market from growing further.
Phthalic anhydride is a significant organic compound in the chemical industry, whose molecular formula is C6H4 (CO) 2O. It is present in white crystalline solid form and has a pungent choking smell. It is a commercial form of phthalic acid. The compound is soluble in carbon disulfide alcohol, benzene, hot water, and is slightly soluble in water.
Extensive derivatives of phthalic anhydride derivatives such as unsaturated polyester resins, dyes & pigments, alkyd resins, detergents, insecticide, herbicide and rubber scorch inhibitor are expected to drive the global phthalic anhydride market in the coming years. Chemical companies are strategically expanding their production capacity to meet the customer’s demand. For instance, in July 2015, BASF doubled their production capacity from 100 kilo metric tons to 200 kilo metric tons of non-phthalate plasticizer Hexamoll DINCH. So as to meet the demands of the market and serve the end industries to sustain the competition.
The global market for the Phthalic Anhydride is anticipated to develop at a compound annual growth rate (CAGR) of 4.63% throughout the course of the forecast, to reach USD 7.9 Billion by 2030.
Environmental and health concerns that surround phthalates, which is used in plasticizers can hinder the future growth of the market. Human exposure with the chemical can cause asthma, irritation to the eyes and skin to them and at the time also damage the environment. However, concerned governments and regulatory bodies are taking measures to reduce the damage follow some precautions to prevent exposure. For instance, in the United Kingdom, according to Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) the exposure limit value of phthalic anhydride is 4 mg/ m^3 and a worker should not work for more than specified time in the production facility.
PVC is widely used in the electronic industry for the coatings of wires, cables, chips and plastic surfaces in electronic devices. Some of the most common phthalates like DBP, DEHP, and DiNP are found in PVC derivatives. However, in 2015 due to endocrine – disrupting potential the derivatives was banned in Europe which caused the market growth to decline in this region as companies were using substitute products.
Furthermore, Apple initiated the “Full Material Disclosure Program”. Under this program, they disclose all the chemical composition of components which are used in the manufacturing of their devices. At present Apple’s products are claimed to be free of phthalates and PVC, except which are manufactured in India and South Korea, where the company is still seeking government approval for an alternative material.
Plasticizers held the major market share for the global phthalic anhydride market in 2017. It is an organic esters which is added to polymers to enable processing and this further increase the toughness and flexibility of PVC. The consumption of PVC is increasing due to the growing demand from automobiles and construction industries which is directly increasing the demand for phthalate plasticizers.
Asia Pacific dominated the global phthalic anhydride market volume by occupying 63.7% share in 2017. The region is incorporated of key markets such as China and India due to increasing demand from its end-user industry such as automobile, construction and paints & coatings. For instance, in October 2015, China Petroleum & Chemical Corporation (SINOPEC) and BASF opened their largest isononanol plant in Maoming, China. The plant has an annual capacity of 180,000 metric tons. The plant enabled both the companies to meet the growing demand of its customers especially in this region.
The competitive landscape of global phthalic anhydride market is highly fragmented with the presence of large number of global and regional players including AEKYUNG PETROCHEMICAL Co., Ltd, Koppers Inc., Polynt SpA, Thirumalai Chemicals Ltd, UPC Technology Corp, BASF, Ostend Basic Chemicals NV, I G Petrochemicals Ltd, Stepan and ExxonMobil Chemical Holland B.V.
Phthalic Anhydride Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2025||USD 13.26 billion|
|Segment Covered||Derivatives, Regions|
|Regions Covered||North America, Europe, Asia-Pacific, Rest of the World|
|Key Players Profiled||AEKYUNG PETROCHEMICAL Co., Ltd, BASF, I G Petrochemicals Ltd., UPC Technology Corp., Thirumalai Chemicals Ltd., ExxonMobil Chemical Holland B.V., Polynt SpA, Ostend Basic Chemicals NV, Stepan, and Koppers Inc.|
Key segments of the global phthalic anhydride market
Derivatives Overview, 2015-2025 (USD million) (Kilo tons)
- Phthalate Plasticizers
- Unsaturated polyester resins (UPRs)
- Alkyd resins
Regional Overview, 2015-2025 (USD million) (Kilo tons)
- North America
- United Kingdom
- Asia Pacific
- Rest of the World