Dimethyl Terephthalate Market Outlook from 2024 to 2034

The global dimethyl terephthalate market size was valued at USD 1,143 million in 2023. Over the forecast period, demand is anticipated to rise at 5.9% CAGR. Total industry value is predicted to increase from USD 1,202.5 million in 2024 to USD 2,131.2 million in 2034.

Demand in the solid segment is projected to remain high in the dimethyl terephthalate (DMT) market. The latest industry analysis shows that the segment is projected to thrive at 6% CAGR during the assessment period.

The sector is predicted to expand around 1.8X through 2034, accompanied by a 1% increase in the predicted CAGR compared to the historical one. There are several causes for this prediction.

Increasing utilization of polyethylene terephthalate (PET) and polybutylene terephthalate (PBT) in different end-use applications will likely bolster sales. These include packaging, consumer electronics, and textiles. Changes in manufacturing processes, latest innovations, and growing emphasis on ecological sustainability are projected to create new growth potential for DMT in developing regions.

East Asia is anticipated to retain dominance in the sector during the forecast period. The region is set to hold around 36% of the share in 2034. Key end-use industries such as textiles, packaging, and consumer electronics are experiencing steady growth. These industries are the region's top consumers of DMT-based goods.

Merger and acquisition activities in the DMT sector are another key factor augmenting growth in East Asia. As economies in the region grow and consumer attitudes shift, demand for items containing the compound is projected to rise.

Leading DMT producers in East Asia constantly invest in research and development to improve production. Apart from that, technological advances are set to enable local manufacturers to improve the quality and cost-effectiveness of existing products. With leadership in innovation, East Asia has a competitive advantage in the global industry.

The region’s industrial environment is strong, with state-of-the-art infrastructure and a qualified workforce. This solid technical base allows for smooth process development for the compound and derivatives.

The ability of key companies in the region to efficiently produce the compound contributes to global dominance. With government policies promoting the use of recycled PET content in DMT production, East Asia has a competitive advantage in meeting the requirements of a wide range of industries that rely on these products.

Attributes Description
Estimated Global Dimethyl Terephthalate Market Size (2024E) USD 1,202.5 million
Projected Global Dimethyl Terephthalate Market Value (2034F) USD 2,131.2 million
Value-based CAGR (2024 to 2034) 5.9%

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Key Industry Highlights

Increasing Demand for PET Packaging to Aid Growth

The role of innovation in the DMT industry is experiencing an upswing on the back of increasing demand for PET packaging. Growth is driven by the material’s environmentally friendly attributes and recyclability.

The popularity of PET made from dimethyl terephthalate has increased in several industries. The material has become an eco-friendly solution that answers ecological concerns while improving brand image and customer confidence.

As individuals go green, the recyclability of PET becomes one of many compelling reasons behind the surging demand. Manufacturers and brand owners are incorporating PET packaging into existing and new product lines, which is set to propel the industry.

Electrical Component Manufacturers to Create High Demand

Demand for dimethyl terephthalate is significantly influenced by rising consumption of polybutylene terephthalate (PBT) in the electronics and electrical industry. PBT-based materials are set to be utilized as electronic components. These are increasingly becoming a prominent part of several industries, such as automotive, electronics, and telecommunications.

Exceptional performance characteristics and reliability make the material an ideal choice for manufacturing electrical connectors, insulators, switches, and other components. Impact of technological advancements on DMT production is anticipated to remain positive. As demand for miniaturization, light-weighting, and energy efficiency rises in electronics sector, sales are set to skyrocket.

Manufacturers to Incorporate Backward and Forward Integration

Key manufacturers have recently started focusing on backward and forward integration of dimethyl terephthalate production. In this case, a backward integration involves the production of raw materials to control fluctuating raw material prices. Consequently, supply chain stability improves with reduced reliance on external suppliers, thereby ensuring constant quality and availability of raw materials.

Forward integration, on the other hand, may include investing in facilities for PET resin production, polymerization hubs, and finished product manufacturing, such as packaging materials or fibers. Manufacturers can take advantage of vertical integration to take up a high share of the value chain, increase product variations, and improve competitiveness among key end-use industries for DMT products.

2019 to 2023 Global Dimethyl Terephthalate Sales Analysis Compared to Demand Forecast for 2024 to 2034

Dimethyl terephthalate demand grew at a CAGR of 1% between 2019 and 2023. Total revenue reached about USD 1,143 million in 2023. In the forecast period, the industry is set to thrive at a CAGR of 5.9%.

The market witnessed steady growth between 2019 and 2023. This was due to increasing use in industries like clothing, wrapping, and consumer electronics. The COVID-19 pandemic has also affected the supply and demand for the compound. Global economic growth was significantly hit by the pandemic and related contraction in activities. Different regions experienced massive jolts because of national lockdowns.

The future outlook for the DMT market is set to be bright. Over the forecast period, the industry is poised to exhibit healthy growth, totaling a value of USD 2,131.2 million by 2034. Life cycle assessment of DMT and PET products, as well as a focus on sustainability and environmental conservation, is expected to increase demand.

The compound is set to gain impetus in industries such as packaging, where PET is extensively used due to high recyclability and eco-friendliness. Technological advancements in manufacturing processes coupled with product innovations are set to broaden applicability across automotive and construction industries.

Construction companies are anticipated to partner with start-ups or invest in research and development activities to stay ahead of the competition. Such strategic alliances between key players are estimated to facilitate innovation and product development.

Nikhil Kaitwade
Nikhil Kaitwade

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Comparative Market Overview

The section below compares two related industries in the chemicals and materials domain. These include the polyethylene terephthalate and the polyethylene terephthalate glycol (PETG) industries. The investment research report on the chemical sector provided below would enable potential clients to make unique business strategies and gain profit.

Polyethylene Terephthalate Industry Assessment:

Demand for polyethylene terephthalate is anticipated to surge by 2034 amid government initiatives to reduce the use of single-use plastic in food packaging. In addition, adoption of novel plastic circulation methods in developed countries will likely spur sales.

Attributes Description
Related Market Polyethylene Terephthalate Market
CAGR (2024 to 2034) 3.4%
Growth Factor Increasing demand from the food and beverage sector for the production of carbonated soft drink packaging solutions is set to propel growth.
Opportunity High demand for ready-to-cook, packaged, and ready-to-eat food items is estimated to create new opportunities.
Key Trends High demand for sustainable packaging materials in the food and beverage industry is a leading trend.

Polyethylene Terephthalate Glycol (PETG) Industry Assessment:

Rising focus on aesthetic appeal in the packaging section is anticipated to augment sales of PETG. Cosmetics manufacturers are set to accelerate demand with an urgent need for lightweight, robust, and breakage-resistant packaging materials.

Attributes Description
Related Market Polyethylene Terephthalate Glycol (PETG) Market
CAGR (2024 to 2034) 3.3%
Growth Factor Demand will likely rise in medical device, cosmetics, and packaging sectors with high transparency of PETG.
Opportunity Ability to withstand alkalis, acids, and other harsh chemicals is anticipated to push sales.
Key Trends Consumers are looking for customized packaging solutions infused with PETG, which is set to be a key trend.

Country-wise Insights

The table below shows the estimated growth rates of the leading countries worldwide. China, South Africa, and South Korea are set to record high CAGRs of 7.2%, 6.8%, and 6.5% respectively, through 2034.

Countries CAGR 2024 to 2034
China 7.2%
South Africa 6.8%
South Korea 6.5%
India 6.3%
Türkiye 6.3%

China’s DMT Market Outlook for Sustainable Packaging Solutions Looks Bright

The DMT market size and forecast show that China will likely reach USD 644.4 million by 2034. Over the assessment period, demand in the country is set to rise at 7.2% CAGR.

Multiple factors can be attributed to China’s exceptional growth trajectory in the industry. Thriving textile and fiber sectors in the country are anticipated to fuel sales. Rising demand for packaging materials and consumer electronics has increased the need for the compound as an essential raw material required in producing PET and PBT.

High manufacturing capacity and inexpensive production techniques have made the country a leading producer of the compound. Hence, China is anticipated to help meet both national and international demands. Additionally, favorable government policies, investments in research and development, and increasing focus on sustainability have all contributed to rapid growth.

High Demand for Consumer Electronics Pushes Sales in India

India’s rise to prominence in the dimethyl terephthalate sector has resulted from a number of reasons. The country’s well-established textile and packaging sectors are significant users of DMT-based products like PET and PBT.

Growing middle-class populations have led to rising use of consumer electronics, thereby pushing demand for the compound in this industry. India’s focus on safety regulations for handling and transporting DMT, coupled with government policies such as ‘Make in India,’ has increased investment in the chemical sector.

The dimethyl terephthalate sector in India is anticipated to total USD 292.4 million by 2034. Over the forecast period, demand in the country is set to increase at a steady CAGR of 6.3%.

Need for Supply Chain Stability in Japan Accelerates Demand

Due to advanced technology and experience in chemical manufacturing, Japan is able to produce high-quality compounds in both solid and liquid forms. Supply stability and consistency resulting from this technological advantage are key to enterprises that manufacture PET and PBT.

Japan’s strong presence in consumer electronics, packaging, and textile industries provides a considerable domestic sector for products derived from DMT. This makes the compound highly competitive because of the country’s reputation for innovation and high-quality products.

The sector in Japan is anticipated to total USD 111.1 million by 2034. Over the forecast period, demand is set to increase at an average CAGR of 6.1%.

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Category-wise Insights

The section below shows the solid segment dominating based on form. The segment is forecast to thrive at 6% CAGR between 2024 and 2034. Based on end-use, the consumer electronics segment is anticipated to hold a dominant share through 2034. The segment is set to exhibit a CAGR of 6.5% during the forecast period.

Rising Need to Cut Down on Product Costs to Propel Solid Form Demand

Segment Solid (Form)
Value CAGR (2024 to 2034) 6%

The solid segment dominates the dimethyl terephthalate industry due to ease of handling, transportation, and storage in comparison to liquid form. Solid DMT is preferred by both producers and customers as the product is highly stable.

Solid products are unlikely to leak or spill during shipping or storage. In addition, the product can be readily converted for different uses, such as PET and PBT, without needing any extra steps to transform into a solid form. This can help in cutting down on production costs while increasing manufacturing productivity. As a result, the segment is anticipated to hold a significant volume share of 86.3% in 2024.

Consumer Electronics Manufacturers to Gain Impetus

Segment Consumer Electronics (End-use)
Value CAGR (2024 to 2034) 6.5%

Dimethyl terephthalate is becoming immensely popular in consumer electronics for a number of reasons. The compound is considered the ideal raw material to make polybutylene terephthalate. This is an important material in the manufacturing of electronic components and housing due to excellent electrical properties and heat resistance.

Booming consumer electronics sector led by smartphones, tablets, and wearable devices enhances DMT sales. The trend towards miniaturization and weight reduction of electronic devices necessitates increased use of materials derived from the compound.

The consumer electronics segment is projected to thrive at 6.5% CAGR during the forecast period. The segment is set to attain a value of USD 368.9 million by 2034.

Competition Outlook

The dimethyl terephthalate market is consolidated, with leading players accounting for about 75 to 78.6% share. SASA Polyester Sanayi A.S., Eastman Chemical Company, Connect Chemicals, OAO Mogilevkhimvolokno, Fiber Intermediate Product Company, TCI Chemicals, Tejin Ltd, SK Petrochemical Co, Sarna Chemicals Pvt Ltd, Merck KGaA, Kanto Chemicals, Kishida Chemicals, Indian Oil (Bongaigaon Refinery), Haihang Industry Co. Ltd, and Oxxynova are the leading manufacturers and suppliers listed in the report.

Leading dimethyl terephthalate manufacturers are adopting strategic tactics to maintain supremacy. These players are spending on research and development activities to improve product quality, efficiency, and sustainability.

A few other companies are adhering to strict government laws. Long-term supply contracts help companies strengthen partnerships with end-users, promoting stability and loyalty. At the same time, investment strategies for the declining DMT market are anticipated to enable companies to gain prominence.

Firms prioritize the optimization of manufacturing processes in order to achieve cost efficiency and competitiveness. By focusing on innovation, quality, and customer satisfaction, these industry leaders maintain global positions. The main focus is on managing difficulties and capitalizing on chances for development and expansion in the market.

Industry Updates

  • In February 2024, United States-based Eastman Chemical Company signed an agreement with the European recycling firm Dentis Group. The aim is to secure post-consumer polyethylene terephthalate (PET) for the methanolysis-based depolymerization plant, which is under construction in Port-Jérôme-sur-Seine, France. Dentis will supply Eastman with 30,000 metric tons of PET from plants in France, Italy, and Spain. Eastman has secured 70% of the feedstock for the recycling plant.
  • In February 2023, RePEaT Co., Ltd., a Japan-based firm, signed an agreement with Zhejiang Jianxin Jiaren New Materials Co., Ltd. The agreement would enable the firm to license the existing chemical recycling technology, especially for polyester products. The technology is based on dimethyl terephthalate.

Leading Dimethyl Terephthalate Brands

  • Eastman Chemical Company
  • Connect Chemicals
  • OAO Mogilevkhimvolokno
  • Fiber Intermediate Product Company
  • TCI Chemicals
  • Tejin Ltd
  • SK Petrochemical Co.
  • Sarna Chemicals Pvt Ltd
  • Merck KGaA
  • Kanto Chemicals
  • Kishida Chemicals
  • Indian Oil (Bongaigaon Refinery)
  • Haihang Industry Co. Ltd
  • Oxxynova

Key Segments of Market Report

By Form:

Based on form, the industry is bifurcated into solid and liquid.

By Application:

The industry is segmented into polyethylene terephthalate and polybutylene terephthalate by application.

By End-use:

In terms of end-use, the industry is segregated into textile and fiber, packaging, consumer electronics, and others.

By Region:

Information about key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia and Pacific, and the Middle East and Africa is given.

Frequently Asked Questions

What was the value of the industry in 2023?

The market was valued at USD 1,143 million in 2023.

How big is the market set to be in 2024?

The global market is set to reach USD 1,202.5 million in 2024.

At what rate will demand rise through 2034?

Demand is anticipated to rise at 5.9% CAGR.

What is the predicted market size in 2034?

The global market is set to reach USD 2,131.2 million by 2034.

Which form segment is expected to lead the market?

Solid form is anticipated to lead from 2024 to 2034.

Which application is set to dominate the market?

Polyethylene terephthalate segment.

Which region is projected to lead through 2034?

East Asia.

Table of Content

1. Executive Summary

2. Industry Introduction, including Taxonomy and Market Definition

3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments

4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections

5. Pricing Analysis

6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034

    6.1. Form

    6.2. Application

    6.3. End-use

7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Form

    7.1. Solid

    7.2. Liquid

8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application

    8.1. Polyethylene Terephthalate

    8.2. Polybutylene Terephthalate

9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End-use

    9.1. Textile & Fiber

    9.2. Packaging

    9.3. Consumer Electronics

    9.4. Others

10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region

    10.1. North America

    10.2. Latin America

    10.3. Western Europe

    10.4. Eastern Europe

    10.5. East Asia

    10.6. South Asia and Pacific

    10.7. Middle East and Africa

11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

16. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

18. Sales Forecast 2024 to 2034 by Category A, Category B, and Category C for 30 Countries

19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard

20. Company Profile

    20.1. SASA Polyester Sanayi A.S

    20.2. Eastman Chemical Company

    20.3. Connect Chemicals

    20.4. OAO Mogilevkhimvolokno

    20.5. Fiber Intermediate Product Company

    20.6. TCI Chemicals

    20.7. Tejin Ltd

    20.8. SK Petrochemical Co

    20.9. Sarna Chemicals Pvt Ltd

    20.10. Merck KGaA

    20.11. Kanto Chemicals

    20.12. Kishida Chemicals

    20.13. Indian Oil (Bongaigaon Refinery)

    20.14. Haihang Industry Co. Ltd

    20.15. Oxxynova

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