Phthalic Anhydride Market Size, Share, and Growth Analysis, By Process (O-Xylene Catalytic Oxidation, Naphthalene Catalytic Oxidation), By Application (Plasticizers, Unsaturated Polyester Resins), By End User, By Region - Industry Forecast 2025-2032

Global Phthalic Anhydride Market size was valued at USD 5.3 billion in 2023 and is poised to grow from USD 5.52 billion in 2024 to USD 7.68 billion by 2032, growing at a CAGR of 4.2% during the forecast period (2025-2032).

Phthalic anhydride is set for significant growth in the near future due to its critical role in producing phthalic plasticizers. The escalating demand for plasticizers within the polymer industry, coupled with increased investments in infrastructure development, will drive sales of phthalic anhydride. Additionally, the rising application of alkyd resins in coatings, known for their glossy finish, further supports market expansion. The growing utilization of phthalic anhydride in manufacturing unsaturated polyester resins (UPRs) presents new opportunities for suppliers. However, challenges such as fluctuating raw material prices, the availability of alternative chemicals, and stringent environmental regulations may pose constraints on market demand throughout the study period and beyond. Overall, the outlook for the phthalic anhydride market remains positive amidst these challenges.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Phthalic Anhydride market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Phthalic Anhydride Market Segments Analysis

Global Phthalic Anhydride Market is segmented by Process, Application, End User and region. Based on Process, the market is segmented into O-Xylene Catalytic Oxidation and Naphthalene Catalytic Oxidation. Based on Application, the market is segmented into Plasticizers, Unsaturated Polyester Resins, Alkyd Resins, Flame Retardant and Dyes and Pigments. Based on End User, the market is segmented into Automotive, Electrical and Electronics, Construction and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Phthalic Anhydride Market

The global phthalic anhydride market is significantly driven by the essential function of plasticizers in polymer manufacturing, where phthalic anhydride serves as a vital raw material for producing phthalate plasticizers. The increasing demand for flexible PVC products is anticipated to further enhance the need for phthalic anhydride, given that phthalate plasticizers are integral to the production of PVC polymers. As industries increasingly rely on these materials for a range of applications, the market for phthalic anhydride is likely to experience substantial growth, fueled by the ongoing trends in flexible product development and the expansion of the PVC market.

Restraints in the Global Phthalic Anhydride Market

The global phthalic anhydride market faces significant constraints primarily due to the reliance on petroleum-based feedstock, particularly ortho-xylene. This raw material is often affected by severe price fluctuations, driven by various factors, including economic shifts and trade restrictions. Such volatility in the availability and pricing of ortho-xylene poses a considerable threat to the growth potential of the phthalic anhydride market. As production costs fluctuate and supply becomes unpredictable, manufacturers may struggle to maintain profitability, ultimately impacting the overall market dynamics for phthalic anhydride in the competitive global landscape.

Market Trends of the Global Phthalic Anhydride Market

The Global Phthalic Anhydride market is witnessing a significant trend towards expansion in emerging markets, particularly in Brazil, India, China, and Indonesia. These regions are experiencing rapid urbanization and industrialization, creating a robust demand for phthalic anhydride across various applications, including plastics, resins, and coatings. Companies are increasingly focusing on establishing operations in these developing countries to leverage growth opportunities, anticipating that infrastructural developments and rising consumer markets will drive consumption. As investments in these areas increase, phthalic anhydride manufacturers can position themselves to benefit from long-term market expansion, aligning with the shifting dynamics of global supply and demand.