|Base Year Market Size
|USD 30.09 Billion
|Forecast Year Market Size
|USD 40.65 Billion
|Fastest Growing Market
The global polyethylene terephthalate market size was valued at USD 30.09 billion in 2022 and is projected to reach USD 40.65 billion by 2031, with a CAGR of 3.4% during the forecast period, 2023–2031.
Polyethylene terephthalate, abbreviated as PET or PETE, is a versatile, recyclable plastic that doesn't leach hazardous chemicals into the environment. It can withstand three or four rounds of treatment without compromising its chemical integrity. Due to its many advantageous qualities, polyethylene terephthalate is widely used in numerous sectors, including the food and beverage, automotive, electronic, and textile industries. The addition of reinforcing elements like carbon nanotubes or glass fiber improves the mechanical properties of PET, which is composed of polymerized units of the monomer ethylene terephthalate. Throughout the world, PET resins have replaced traditional materials as the packaging industry's go-to option. Because it is hygienic, strong, and lightweight, does not absorb odors, does not degrade in the dishwasher, and does not break easily, it is frequently used for food and drink packaging. Its most common application is in the packaging of water and fizzy drinks. A unique triangle resin identifier is molded into each bottom (Bottles or Jars) to quickly and accurately identify PET containers.
The polymer is extensively used in packaging, fabrics, films, and molded parts for automotive and electronics. The polymer is mainly used as flexible packaging for FMCG products or daily-use consumer products such as water bottles, toothpaste, cosmetics, and personal care and hygiene products. Polyethylene terephthalate is resistant to oil, alcohol, diluted acid, aliphatic hydrocarbons, and grease. It has moderate resistance to diluted alkali halogenated and aromatic hydrocarbon. It is witnessing huge demand in the food and beverage industries, further driving market growth.
Increasing demand for polyethylene terephthalate in packaging for food and beverages, such as packaging for carbonated soft drinks, contributed to the expansion of the polyethylene terephthalate market. Due to its adaptability in size and shape, polyethylene terephthalate is the only material that can meet the rising demand for beverage bottles and glass and metal container substitutes. According to the Springer report for 2019, the global production of plastics exceeds 300 million tonnes, with China producing 20 percent of the total. China is the greatest producer and the largest user of polyethylene terephthalate in the world. During the projection period, the rising demand in the food and beverage packaging industry increased the need for polyethylene terephthalate.
Shifting preference towards bottled water is compelling the market players to introduce a new variety of water, such as sparkling water, minerals-infused water, and flavored bottled water. According to the International Bottled Water Associations 2018 report, bottled water market consumption in the US increased from 12,808 million gallons to 13,7105 million gallons. Similarly, per-person consumption of bottled water is projected to reach more than 50 gallons in the coming years. Polyethylene Terephthalate (PET) is extensively used for packaging bottled water as it is recyclable and environment-friendly.
The rise in strict government norms and regulations associated with the use of PET material, as well as the increased availability of substitute products in the market and lower PET recycling rates due to high contamination, are the major factors acting as a restraint and will further challenge the growth of the polyethylene terephthalate (PET) market during the forecast period mentioned above. According to an article published in 'The Economic Times in 2019, nine out of 10 polyethylene terephthalate bottles are recycled in India, affecting polyethylene terephthalate manufacture. In October 2019, India unveiled the "Clean India Mission," an effort to "sensitize" the public to the dangers of single-use plastics to eliminate them within three years. Strict limitations on the production and recycling of plastic products have a detrimental influence on the polyethylene terephthalate market.
PET will likely benefit from increased demand for lightweight packaging solutions for electronics and food. Furthermore, the level of competition is expected to rise over the forecast period. As a result, players are concentrating their efforts on developing novel technologies to strengthen their market position. Companies are working on PET manufacturing techniques that are both cost-effective and high-quality in order to get a competitive advantage in the market.
The pandemic has increased the demand for consumer goods, with ready-to-eat packaged foods and other perishable goods flying off the shelves. The pandemic has also accelerated the demand for online food delivery and other essential goods. Companies like Amazon, Walmart, and Target in the U.S. are channelizing efforts to offer consumer goods in such challenging times. The pandemic is also causing panic buying and hoarding of essential goods such as hand sanitizers by consumers. The FMCG industry employs extensive use of Polyethylene Terephthalate (PET) for packaging processed foods, beverages, cosmetics, and toiletries.
The global market for Polyethylene Terephthalate has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.
Asia-Pacific contributed to 39.6% of the global polyethylene terephthalate market in 2021. Increasing demand for automobile films in countries like China, India, Indonesia, and Malaysia and the increased consumption of packaged food is expected to fuel polyethylene terephthalate demand in the Asia Pacific region. A projected 42% of global sales would come from the region by 2031. Polyethylene terephthalate demand in the region could be impacted by international environmental regulations enacted by organizations like the Environmental Protection Agency (EPA), the International Union for the Conservation of Nature (IUCN), and the Intergovernmental Panel on Climate Change (IPCC) (IPCC).
As a result of increased GDP per capita and an improving domestic manufacturing environment of consumer items, China and India, the two fastest-growing economies in the region, the present especially substantial growth potential for the consumer goods sector, it is expected that consumer product sales will rise as a result of rising incomes, expanding middle classes, and rising middle incomes in Latin American and Asian economies.
Also, there are already many players in the PET industry, and the price sensitivity of the goods they sell is only expected to increase competition in the area. The economies of countries like India, Indonesia, and China, which are developing powers, are expected to grow rapidly in the coming years. The demand for films and sheets is expected to rise in the next years due to the anticipated increase in infrastructure investment in Europe and the Asia-Pacific. Green construction initiatives, especially in Europe, are predicted to increase demand for coatings without volatile organic compounds.
North America and Europe are more developed markets than Asia-Pacific. Due to stringent restrictions in the regions mentioned above, manufacturers have shifted their production environment to growing economies in Asia-Pacific, such as China and India. These countries offer relatively inexpensive land and skilled labor. The U.S. market for PET is relatively mature but expanding due to high demand from various end-use industries, including automotive, construction, electronics, and packaging. The economic recovery has resulted in substantial consumer spending and a confidence boost. In addition, the U.S. government and several federal agencies are boosting their investments in infrastructure, regional development, and related initiatives. These factors are projected to result in a substantial expansion in the infrastructure and building markets, which is favorable for the PET market because these materials are extremely effective, lightweight, and have fast bonding times.
The Middle East is a prominent region for petrochemical products such as polyethylene terephthalate. The region is primarily focused on the production of petrochemical products. The GCC polymer industry employs around 40,000 people. Saudi Arabia is the largest producer of petrochemicals in the region. The country accounted for about 67% of GCC resin production in 2016. It was also the largest consumer of polymers in the region, accounting for about 61% or 5 million tons of consumption in the GCC. In addition, Saudi Arabia alone accounted for 2% of the global polymer sales and ranked eighth among the top plastic producers globally.
|By Packaging Application
|Alpek S.A.B de C.V BASF SE DuPont de Nemours, Inc. Indorama Ventures Lanxess Corporation KoninklijkeDSM N.V. Dhunseri Petrochem Ltd. Eastman Chemical Company Reliance Industries Ltd Distrupol Verdeco Recycling Inc SRF Limited RadiciPartecipazioni S.P.A. Kolon Plastics SABIC
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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The global market for polyethylene terephthalate is categorized by application and packaging application.
The market for polyethylene terephthalate (PET) has been divided into packaging, films & sheets, and other applications. In 2018, the packaging application emerged as the largest category, accounting for roughly 32.0% of the market. The expanding packaging sector, driven by rising consumption in emerging economies, is anticipated to increase the need for plastics such as polyethylene and PET over the foreseeable future. Regulatory authorities have established several criteria for the safe use of packaging materials in food contact applications, influencing the demand for PET in this market sector.
In the meantime, the rising demand for food containers in emerging economies such as China and India is anticipated to dramatically increase the need for PET films and sheets. These containers provide thermal insulation and visual appeal for the things they store. In addition, microwave-safe containers pave the way for expanding the films & sheets market segment. Customers around the world prefer microwave-compatible food containers to save time during preparation.
Based on packaging application, the market for polyethylene terephthalate has been segmented into bottled water, carbonated soft drinks, juices, alcoholic beverages, thermoforming trays, food packaging, and non-food packaging, among others. PET is extensively utilized in packaging applications due to its durability and lightweight. Numerous applications exist for the material in the packaging of bottled water and fizzy beverages. As PET-based packages are easier to recycle than those made from other materials, juice packaging is anticipated to be the application category with the highest growth rate. The lightweight, enhanced flexibility, high strength, and 100% recyclable qualities of polyethylene Terephthalate make it a suitable material for usage in the packaging industry. Because polyethylene terephthalate is available in homopolymer and copolymer forms, it is an appealing option for beverage packaging applications. Several corporations have begun to take steps to make items with eco-friendly packaging materials. Coca-World Cola's Without Waste campaign, for example, aims to collect and recycle the equivalent of every bottle or can sold globally.