by The Polyethylene Terephthalate (PET) Market is estimated to be valued at US$ 46.46 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Polyethylene terephthalate (PET) is a thermoplastic polymer resin of the polyester family that is clear, hard, tough and has high melting point. PET is widely used in packaging foods and beverages due to its excellent barrier properties against gases, moisture and light. It is also used to make clothing fibers, containers and building materials. The key uses of PET includes packaging of bottled water, carbonated soft drinks, sports drinks, juices, beer and food items.
Market Dynamics:
One of the major drivers for the growth of PET market is increasing demand for bottled water and carbonated soft drinks globally. According to the International Bottled Water Association, the bottled water industry has grown on average by 7% annually over the past 30 years. Moreover, the environmental advantages of PET such as lightweight and recyclability compared to glass and aluminum containers is also propelling the market growth. However, fluctuation in prices of raw materials such as paraxylene, MEG and terephthalic acid pose threat to the PET market. Furthermore, availability of substitutes such as HDPE and PLA provide competition to PET market.
Segment Analysis
The global polyethylene terephthalate (PET) market is dominated by the bottles segment, accounting for over 60% share of the total market. PET bottles are widely used for packaging of beverages such as carbonated soft drinks, water, juices, and others. This is due to PET bottles being lightweight, durable and economical when compared to other packaging materials. PET bottles also enable clear packaging solutions which help brands showcase their products attractively.
PEST Analysis:
- Political: The PET market is influenced by various environmental regulations imposed on plastic packaging by governments across regions. Strict norms pertaining to use of recyclable and sustainable materials are driving demand for recycled PET products.
- Economic: Growth in industries such as food and beverages, and home and personal care which are major end-users of PET is a key factor propelling market revenues. PET packaging offers cost savings to brands along with marketing benefits.
- Social: Rising health consciousness among consumers has increased demand for bottled water and other beverages packaged in PET bottles. Easy availability of packaged foods and beverages through supermarkets and online platforms also supports market growth.
- Technological: Developments in PET production technologies allow manufacture of lightweight bottles with improved barriers. Technologies for enhancing recycling rates of PET waste through chemical and mechanical processes are helping reduce environmental footprint.
Key Takeaways
The Global Polyethylene Terephthalate (PET) Market Demand is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing demand from the beverages industry. The beverages segment accounts for over 50% share of the PET market and growth in bottled water consumption along with changing lifestyle and diet patterns are driving sales of packaged beverages.
On a regional basis, Asia Pacific dominates the global PET market with over 40% share. This is ascribed to massive packaging industry in China, India, and other Southeast Asian economies where PET bottles are widely used across food and beverages applications. Japan also has significant market however China is the largest consumer of PET bottles globally.
Key players operating in the polyethylene terephthalate (PET) 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. Leading players are focusing on innovations to develop recyclable PET grades and expanding production capacities particularly in Asia to leverage growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
