Polyethylene Terephthalate is a polymer that is used in the manufacturing of packaging material, such as plastic bottles and containers. PET is a transparent, hard, and lightweight polymer that is widely used in consumer products packaging, including as cosmetics and food. The PET used in manufacturing soda bottles is made by combining terephthalic acid and adipic acid. Both of these acids can be obtained from crude oil, making the entire manufacturing process carbon neutral. The main reason that PET is so popular is its durability. The properties of PET lend to its versatility in a variety of end uses, which has led to its significant use in packaging applications. The high transparency of PET also makes it an ideal material for use in displays, such as smartphones and computer monitors.
The global Polyethylene Terephthalate (PET) market size is expected to reach close to US$ 40 Billion by 2029 with an annualized growth rate of 3.4% through the projected period.
Covid-19 Impact & Market Status
COVID-19 had a negative impact on the polyethylene terephthalate market all across the globe. As a result of the pandemic scenario, certain countries went into lockdown, causing supply chain challenges and labour shortages. The pandemic has had a significant impact on the worldwide economy, resulting in labour and travel restrictions, supply chain and industrial disruptions, and lower demand and expenditure across a wide spectrum of enterprises. Manufacturing was hampered by shortages, and as a result, market demand was not met during the lockdown. It has, however, become worse since the lockdown was lifted.
The food and the bottle segment likely to dominate the PET market
The growing population and increased disposable income in emerging nations are the primary drivers of the food and beverage industry's expansion. The expansion is particularly noticeable in developing economies like China and India. The food consumption is expected to increase with the rise in disposable income. The rising urbanization and increasing demand for food and beverage products in the emerging economies is a key factor driving the growth of the food industry. Because of the vast range of end-use applications for PET, including as food and beverage packaging, medicines, and electronics, the bottles category is likely to dominate the polyethylene terephthalate (PET) market. Demands for PET bottles have been soaring and healthcare industry is one of the chief end-users.
Increasing customer choice for food packaging, such as single-serve beverage packaging, and growing health concern are two main drivers expected to drive market development throughout the projected period. The high price of PET, on the other hand, is likely to impede market expansion throughout the projection period.
Asia Pacific emerges as the market leader in the polyethylene terephthalate market
The Asia-Pacific region is likely to lead the market for polyethylene terephthalate (PET), a material used in beverage and pharmaceutical packaging. This region will be the biggest in terms of volume and will be the largest in terms of value. PET engineering plastic goods in the packaging industry is an increasingly popular use for this flexible material, and this demand is likely to enhance supply of this versatile material in the Asia-Pacific area. This has resulted in a rise in the price of PET in the region, which is projected to boost demand for PET packaging. Asia-Pacific also has the biggest packaging usage, which is a major driver of PET demand.
The polyethylene terephthalate market is expected to be of worth USD 37.4 billion at a CAGR of 3.7% during 2018-2028.
The rising CO2 prices also support the growth of the PET market. PET is an excellent material for its strength and clarity, which makes it ideal for use in packaging applications. The main advantage of using PET is its low cost, which makes it a great material to use for packaging. Another benefit of using PET is that it is lightweight, which makes it ideal for use in items such as bottles and food containers.
The polyester and the polyamide are the two major PET manufacturing methods. The polyester method is more expensive than the polyamide method, but PET is also more resistant to heat and other chemical substances than the polyamide.
The polyethylene terephthalate (PET) market is anticipated to grow further during the forecast period, owing to the rising demand for PET from various industries, including packaging, automotive, and others. In addition to this, the increasing awareness about the advantages of PET in varied applications, such as food and cosmetics, is expected to drive the growth of the global polyethylene terephthalate market. On the other side, the limited supply of raw materials is likely to stymie the expansion of the worldwide polyethylene terephthalate market.
The Polyethylene terephthalate market is expected to grow during the forecast year from 2018 to 2028. The rising prevalence of plastic as a packaging material has led to a rise in demand for PET. The growing demand for PET to meet the rising demand for the packaging of food is the main driving factor for the market. However, the rising demand for PET in the packaging of pharmaceuticals and medical devices is expected to be the major driver for the market during the forecast period.
The global market for polyethylene terephthalate is expected to increase substantially in the near future, owing to the growing demand for polyester in the packaging industry. The increasing demand for polyester packaging material is primarily attributed to the growth in the food & beverages and bioplastics market.
The rising demand for PET in the packaging and packaging industry is the key growth driver of the market.
Several challenges are hampering upward rise in the global PET market. Firstly, the government in various nations has been trying to reduce the pollution of the environment and has set a series of standards to the industry. Secondly, the price of raw material has been increasing, so has the price of the product. Thirdly, most of the nations in the world are now looking at banning the use of plastic bags which is one of the biggest challenges for the Polyethylene Terephthalate Market.
The government policies have been focused on promoting the use of renewable sources, which have been beneficial to the PET industry as it has resulted in an increase in the demand for renewable plastics. High price rise is a significant challenge and it has been restraining market growth and production in the global polyethylene terephthalate industry in the last few years.
The key market players in the Polyethylene Terephthalate market includes DuPont, PET Processors LLC., Lanxess Corporation, Indorama Ventures, Toray Industries, Reliance Industries Limited, etc.
Major Developments in The Polyethylene Terephthalate Market: A Snapshot
- HANOI – Indorama Ventures is set to purchase Ngoc Nghia Industry, a Vietnam-based PET converter (NN). NN is a leading PET converter in the nation with long-standing ties with big brands.
Polyethylene Terephthalate (PET) Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 37.4 billion|
|Growth Rate||CAGR of 3.7 % during 2021-2028|
|Segment Covered||Type, End User, Technology, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||DuPont, PET Processors LLC., Lanxess Corporation, Indorama Ventures, Toray Industries, Reliance Industries Limited, etc.|
Key Segments of the Polyethylene Terephthalate Market
- By Type
- By End User
- By Technology
- Household Products
- By Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa