Phthalic Anhydride Market - Global Forecast 2025-2030

The Phthalic Anhydride Market size was estimated at USD 1.58 billion in 2024 and expected to reach USD 1.72 billion in 2025, at a CAGR 7.84% to reach USD 2.50 billion by 2030.

Phthalic anhydride stands as a foundational organic compound that underpins a wide array of industrial applications, from polyester resins used in coatings and composites to plasticizers that confer flexibility in polyvinyl chloride products. Its relevance extends into synthetic detergents and unsaturated polyester resins, where specific grades and purities dictate performance outcomes. As global demand for high-performance materials intensifies, understanding the nuanced drivers of phthalic anhydride utilization and supply becomes paramount for stakeholders across the value chain. This report opens with an exploration of the compound’s chemical properties and market context, setting the stage for a granular examination of evolving trends.

In recent years, the phthalic anhydride landscape has undergone profound transformation, driven in part by an emergent circular economy ethos encouraging the valorization of plastic waste into high-value chemical feedstocks. Industry pioneers have demonstrated the feasibility of converting mixed plastic debris into aromatic monomers such as benzene, toluene, and xylenes that, through Integrated Cascading Catalytic Pyrolysis processes, yield circular phthalic anhydride suitable for polyester resin production, reducing lifecycle emissions by an estimated 10 percent compared to virgin feedstocks. Concurrently, digital supply chain platforms have gained prominence, offering real-time analytics and predictive demand planning to counteract volatility in raw material costs and cross-border logistics, especially as trade policies tighten under national security rationales. This convergence of sustainability initiatives and digital innovation is reshaping production footprints and procurement strategies, heralding a new era of resilience and efficiency.

Phthalic anhydride imports into the United States are subject to a base ad valorem duty of 6.5 percent under the Harmonized Tariff Schedule, reflecting its classification in HTS code 2917.35.00.00. Layered atop this baseline, Executive Proclamation adjustments effective March 12, 2025, have introduced an additional 25 percent ad valorem surcharge on imports from all countries except Russia, amplifying the cost structure for global suppliers and prompting many to reevaluate their North American logistics hubs. Moreover, products originating from China remain exposed to Section 301 retaliatory duties, retaining a 25 percent import levy, although recent orders seek to mitigate cumulative stacking by prioritizing the highest-rate tariff when multiple provisions overlap. Together, these measures have elevated landed costs, incentivized domestic capacity expansions, and triggered strategic tariff exclusion petitions, underscoring the critical need to navigate evolving trade regulations with agility.

The phthalic anhydride market’s complexity is further revealed through its multifaceted segmentation framework, which delineates product grade into categories like Cosmetic, Electronic, Food, and Technical, each tailored to stringent purity and performance criteria. Purity classifications span High, Standard, and Ultra High, guiding end-users in selecting feedstocks that align with regulatory or application-specific thresholds. Production processes encompass catalytic air oxidation, fluidized bed oxidation, and gas phase oxidation, each offering distinct trade-offs between energy efficiency and throughput. Application segments range from the formulation of alkyd resins to the synthesis of plasticizers and unsaturated polyester resins, with the latter subdivided to capture isophthalic, orthophthalic, and terephthalic resin variants, and plasticizers further bifurcated into non-phthalate and phthalate chemistries including dibutyl, diisodecyl, diisononyl, and dioctyl phthalates. End-use industries diversify demand across automotive, construction, electrical and electronics, furniture, and textile sectors. Finally, sales channels extend from direct, to distributor, to online models, reflecting an ongoing shift toward digital procurement platforms and just-in-time logistics solutions.

Regional dynamics exert a pronounced influence on the phthalic anhydride value chain. In the Americas, North America consumed approximately 700,000 metric tons in 2024, driven by robust plasticizer and alkyd resin demand and supported by investments in plant modernization that enhanced operational efficiency by roughly ten percent. Within Europe, Middle East & Africa, consumption patterns reached near 1.2 million metric tons in Europe, with stringent regulatory frameworks tempering phthalate plasticizer use yet sustaining demand in marine and industrial coatings, while the Middle East & Africa region recorded around 350,000 metric tons, led by growth in the UAE, Saudi Arabia, and South Africa as they progressively invest in local production capacity. Meanwhile, Asia-Pacific solidified its position as the largest regional market with over 3.1 million metric tons in 2024, underpinned by rapid infrastructure development, escalating plasticizer needs, and annual capacity additions across China, South Korea, and Taiwan.

Leading chemical producers continue to shape the phthalic anhydride competitive landscape through strategic expansions, sustainability investments, and targeted acquisitions. BASF SE has advanced catalyst technologies that optimize xylene oxidation pathways and reduce greenhouse gas emissions, while ExxonMobil Corporation has commissioned large-scale processing facilities and integrated upstream feedstock sourcing to bolster supply resilience. Lanxess and Mitsubishi Gas Chemical have recalibrated their portfolios, with Mitsubishi divesting part of its plasticizer business to focus on core aromatic intermediates, and DIC Corporation acquiring specialty chemical assets to strengthen its performance materials offerings in North America and Asia Pacific. Concurrently, Eastman Chemical Company and Polynt S.p.A. are collaborating on joint ventures to expand capacity in emerging markets, and Stepan Company continues to drive innovations in phthalate and non-phthalate plasticizer formulations to address evolving regulatory requirements.

In response to shifting tariff regimes, regulatory scrutiny, and evolving sustainability imperatives, industry participants should prioritize diversifying feedstock sources, including advancing partnerships in waste-to-chemical projects and evaluating bio-based furan and maleic anhydride precursors. Streamlining production through digital twins and real-time analytics can mitigate feedstock price volatility and identify energy savings opportunities. It is equally imperative to engage proactively with trade authorities to secure tariff exclusions and leverage free-trade agreements, while simultaneously strengthening downstream collaboration to innovate phthalate alternatives that align with tightening environmental regulations. By embedding circular economy principles into product design and supply chain operations, companies can unlock new revenue streams, reduce carbon footprints, and enhance resilience against policy headwinds.

This analysis integrates a rigorous methodological framework combining primary research interviews with senior executives, technical experts, and policy advisors to capture on-the-ground intelligence. Secondary data sources include trade databases, customs filings, harmonized tariff schedules, and peer-reviewed literature to ensure comprehensive coverage of production processes, tariff classifications, and environmental regulations. Quantitative data underwent cross-validation through multiple trade and industry repositories, while qualitative insights were vetted via an expert panel to refine scenario analysis and verify strategic imperatives. This mixed-methods approach ensures that findings reflect the full spectrum of market dynamics and stakeholder perspectives.

The phthalic anhydride industry is navigating a period of profound change, characterized by escalating trade restrictions, nascent circular feedstock initiatives, and intensifying regulatory oversight on phthalate usage. While tariff surcharges have elevated import costs and prompted a reevaluation of regional supply chains, they have also spurred domestic capacity investments and fueled innovation in both traditional and bio-based production pathways. The convergence of sustainability mandates and digital transformation presents a dual opportunity for cost optimization and environmental stewardship. As stakeholders chart their strategic course, aligning operational excellence with forward-looking policy engagement will be critical to capitalizing on emerging growth corridors and mitigating systemic risks.

To obtain the comprehensive insights and in-depth analysis essential for strategic decision-making, reach out directly to Ketan Rohom, Associate Director, Sales & Marketing. He will guide you through the report’s full scope and tailor access to the proprietary data and executive recommendations you need to drive growth and mitigate risks in the phthalic anhydride market. Secure your copy today to stay ahead of evolving trade policies, regulatory shifts, and innovation trends shaping the industry’s future.