POLYETHYLENE TEREPHTHALATE (PET) MARKET ANALYSIS

Polyethylene Terephthalate (PET) is the most common plastic resin of polyester made from the combination of two monomers. Polyethylene terephthalate, also referred to as PET or PETE, is a remarkable cost and energy-efficient packaging material, which possesses properties of versatility, strength, and recyclability, thus being used in various end-use industries such as packaging and textile.

However, growing environmental pollution from the chemical and petrochemical industries is expected to be one of the key concerns for the PET market. Despite various environmental concerns about PET use, it is much more favorable in comparison to steel, aluminum, glass, and other materials used for packaging, due to its high weight-bearing capacity and lightweight, which in turn reduces the transportation cost by utilizing less space and weight.

The global polyethylene terephthalate market is estimated to surpass US$ 72.88 Bn by the end of 2030 in terms of revenue, exhibiting a CAGR of 6.7% during the forecast period (2022 to 2030).

Drivers

Increase in the use of polyethylene terephthalate in food and beverages packaging

Rising demand for polyethylene terephthalate in food and beverage packaging such as carbonated soft drinks packaging contributed to the growth of the global polyethylene terephthalate market. The increasing demand for bottled beverages, the glass and metal container replacements finds no better alternatives than the polyethylene terephthalate, due to its versatility in shape and size. According to the springer report 2019, the global production of plastics is over 300 million tons, 20% of which is produced in China. China is not only the largest producer of polyethylene terephthalate but also the largest consumer in the world. The rising demand in the food and beverages packaging industry increased the demand for polyethylene terephthalate during the forecast period.

Advancements in the technology for the development of lightweight PET bottles

Technological advancement for developing lightweight, high-strength, and energy-efficient PET bottles is expected to boost market growth. For instance, in April 2022, Sidel, one of a leading provider of equipment, services and complete solutions for packaging liquids, foods, home and personal care products in PET, can, glass and other materials launches PressureSAFE, which is an innovative PET aerosol container design that will give home and personal care brands the opportunity to offer more environmentally sustainable dispensing spray packaging. This new PET product-packaging solution is approved for the traditional PET recycling stream.

Figure 1. Global Polyethylene Terephthalate (PET) Market Value Share (%), By Region, 2022

To learn more about this report, Request sample copy

Asia Pacific dominated the global Polyethylene Terephthalate (PET) market in 2022, accounting for a 48% share in terms of revenue, followed by Europe and North America, respectively.

Market Restraints

Increase in the stringent regulatory standards and guidelines governing the use of PET material

Rise in the strict government norms and regulations associated with the usage of PET material, increase in the availability of substitute products in the market and less PET recycling rates due to high contamination are the major factor among others acting as a restraint, and will further challenge the growth of polyethylene terephthalate (PET) market in the forecast period mentioned above. For instance, in 2019, according to an article published by 'The Economic Times', nine out of ten bottles of polyethylene terephthalate are recycled in India, affecting the manufacturing of polyethylene terephthalate. In October 2019, India announced a plan, "Clean India Mission" which is an attempt to "sensitize" the public against single-use plastics and it planned to eliminate single-use plastics within three years. Imposing strict regulations on manufacturing and recycling plastic products have a negative impact on the polyethylene terephthalate market.

Market Trends

As polyethylene terephthalate (PET) is an excellent water and moisture barrier material, plastic bottles made from PET are widely used for Mineral Water and Soft Drinks (Low and High Carbonated). PET bottles are also recycled for various purposes. For example, they are used in solar water disinfection in developing nations, in which empty PET bottles are filled with water and left in the sun to allow disinfection by ultraviolet radiation. PET is useful for this purpose because many other materials (including window glass) that are transparent to visible light are opaque to ultraviolet radiation. According to the Indian Journal of Science and Technology, PET bottles filled with sand, soil, fly ash, or any other material like household plastic waste when well compacted can be used as a building material replacing traditional bricks.

Figure 2. Global Polyethylene Terephthalate (PET) Market value Share (%), By Application, 2022

To learn more about this report, Request sample copy

Polyethylene Terephthalate Market, Segment Analysis by application:

Based on application, the market is segmented into Food & Beverages, Automotive, Electronics, and Others. The food & beverages segment accounted for the largest market share in the Global Polyethylene Terephthalate market which was 80.3% of the total revenue share in 2021 and is expected to continue its dominance over the forecast period.

Recent Developments

• In June 2022, BASF, packaging machinery OEM Bobst, and film expert Evertis supported Sulayr in the formation of a strategic partnership combining expertise from across the entire packaging value chain. Their collaborative contributions were key to the success of this impressive recycling process and its potential for adoption on a larger scale.
• In February 2022, Alpek, S.A.B. de C.V, a Mexican chemical manufacturing company has announced that it has signed an agreement to acquire OCTAL Holding SAOC, a company operating within the materials sector. This acquisition forward-integrates Alpek into the high-value PET sheet business segment, closes the gap towards achieving its ESG goals, and enhances its ability to serve its customers’ growing PET resin needs.
• In June 2021, Dow, a material science company announced several advancements in its efforts to prevent plastic waste, reduce greenhouse gas emissions, and provide customers with recycled plastic products that provide the same performance as virgin plastics derived from fossil fuel-based feedstocks.

Competitive Section

Major players operating in the global Polyethylene Terephthalate market include Alpek S.A.B de C.V., RTP Company, BASF SE, The Dow Chemicals Company, Jiangsu Sanfangxiang Group, Indorama Ventures, M&G Chemicals, Nan Ya Plastics Corporation, Far Eastern New Century, and Quadrant AG.