Market Challenges And Opportunities

Drivers

Increased Focus Towards Environment Friendly Products

The bio-based polyethylene (PE) has a number of advantages, including being 100 percent recyclable and carbon neutral, which has led to its significant acceptance. The growing focus on sustainable packaging is expected to drive bio-based polyethylene (PE) demand over the anticipated period. Furthermore, the introduction of bio-based polymers as an environmentally acceptable alternative to traditional plastics to help reduce fossil fuel usage will spur business expansion. Owing to the product’s environmental-friendly properties, the market is estimated to have an accelerated growth over forecast period.

Increased Utilization of Bio-Based Polyethylene (PE)

The increased use of bio-based polyethylene (PE) colorants and compounds in pharmaceutical and medical applications will accelerate the overall market growth. Furthermore, rising beauty product production in emerging nations is expected to be a major driver over the forecast period. The increasing usage across packaging applications such as carry bags, plastic films, and bottles will further propel the bio-based polyethylene (PE) market growth rate.

Furthermore, the high expenditure on digital technologies and an increase in e-commerce sales of cosmetics and personal care items will drive demand for sustainable packaging choices, resulting in market value growth. The shifting consumer lifestyle and the increasing awareness towards sustainable packaging around the world are projected to bolster the growth of the market.

Rising consumption of beverages coupled with the regulations imposed by various governments to reduce GHG emission, is one the major factors contributing to the growth of the bio-based PET market. In 2021, France adopted Green Growth and Energy Transition Law, with key objectives for GHG reduction, energy efficiency (reducing demand by 20% by 2030 and 50% by 2050), and diversification of energy supply by reducing the consumption of fossil and nuclear fuels and to accelerate the deployment of renewables. Further, the adoption of Montreal and Kyoto protocol in various countries including the U.S., Canada and Japan among others is expected to increase the demand for low carbon emitting substitutes such as bio-based PET. Moreover, growing demand for sustainable environment friendly and lightweight material in automotive industry is expected to boost the demand for bio-based polyethylene terephthalate market at the global level. However, availability of substitutes such as bio-based polyethylene furanoate (PEF), is a major factor hindering the growth of the market. The production cost of bio-based PEF is less than the bio-based PET. Moreover, PEF has a relatively long product shelf life. Owing to these factors, bio PEF is gaining popularity in packaging industry and thus, hampering growth of bio-based PET market.

Market Restraints

Availability of Substitutes

The bio-based polyethylene (PE) market growth is likely to be hampered by the emergence of various alternatives such as bio-based polyethylene terephthalate (PET), polylactic acid (PLA), and PEF polyethylene furanoate (PEF). The availability of these alternatives reduces the market demand for the bio-based polyethylene (PE).

Fluctuating Raw Materials

The overall cost structure of the product is affected by changing raw material costs. The fluctuating raw material prices operate as a restriction. Price fluctuations in petrochemical-based raw materials have impacted the bio-based polyethylene (PE) market. Consistent worldwide demand and capacity limits in key chemicals and resins have caused raw material supply to tighten and prices to rise. Therefore, the uncertainty regarding the accessibility of raw materials will challenge the bio-based polyethylene (PE) market growth rate.