POLYETHYLENE TEREPHTHALATE (PET) MARKET ANALYSIS

Market Challenges And Opportunities

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.

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.