Polyethylene Terephthalate (Pet) Resin Market 2023 – 2030 by , Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Chemicals & Materials | Pages : 179 Pages | Published On : Jul 2023
The global market for Polyethylene Terephthalate (PET) Resin is projected to witness substantial growth, increasing from 28,494.61 metric kilotons in 2023 to 35,509.47 metric kilotons by 2030, with a Compound Annual Growth Rate (CAGR) of 4.50% during the forecast period from 2023 to 2030.
However, the market was adversely affected by the COVID-19 pandemic, as countries implemented lockdown measures, resulting in supply chain disruptions, labor shortages, and work stoppages. This had a significant impact on various end-user sectors, including electrical and electronics, consumer products, and food and beverage, leading to a decline in the demand for polyethylene terephthalate resin. Nonetheless, with a 3% growth in automobile manufacturing reported by the OICA at the end of 2021 compared to the previous year, the market is expected to experience further recovery in 2022.
- Over the short term, the increasing consumption in food and beverage packaging, demand for energy-efficient and sustainable packaging, and high recycling rate of PET across the globe.
- On the flip side, stringent regulations regarding the usage of PET and the increasing usage of substitute products, such as high-density polyethylene, are expected to hinder the growth of the market studied.
- Growing awareness regarding bio-Based PET and increasing R&D activities and investments in PET technology are likely to act as opportunities for the market's growth in the future.
- Asia-pacific region is expected to dominate the market and is expected to grow with the highest CAGR during the forecast period.
Polyethylene Terephthalate Industry Segmentation
PET, a transparent, durable, and lightweight plastic resin, is commonly used in the production of bottles, jars, containers, and packaging materials. The widespread utilization of PET resin in packaging applications is attributed to its hygienic nature, lightweight properties, and recyclability. As a result, it is predominantly consumed in the food and beverage industry, followed by consumer goods and other end-use products. The market for polyethylene terephthalate (PET) resin is segmented based on product type, end-user industry, and geography, including Asia-Pacific, North America, Europe, South America, the Middle East, and Africa. In terms of product type, the market is divided into bottles, films and sheets, and other product types. Regarding end-user industry, the market is categorized into food and beverage, consumer goods, and other end-user industries. The report also provides market sizes and forecasts for 15 countries across major regions. Volume-based market sizing and forecasts have been conducted for each segment.
- Films and Sheets
- Other Product Types (Fibers, Thermoforming, and Glass Fiber)
- Food and Beverage
- Consumer Goods
- Other End-user Industries
- South Korea
- Rest of Asia-Pacific
- United States
- United Kingdom
- Rest of Europe
- Rest of South America
Middle-East and Africa
- Saudi Arabia
- South Africa
- Rest of Middle-East and Africa
Polyethylene Terephthalate Market Trends
Soaring Demand from the Food and Beverage Industry
- The food and beverage industry is a major consumer of PET resins due to their widespread use in packaging applications. PET-based packaging products are utilized in various forms, including containers (bottles, jars, and tubs), thin-oriented films (bags and snack food wrappers), and semi-rigid sheets for thermoforming (trays and blisters).
- PET-based packaging finds extensive use in take-out containers, frozen foods, carbonated drinks and juices, ketchup, bottled water, jars, baked goods containers, clamshells, deli containers, and microwave food trays within the food industry.
- Strict regulations governing food-grade packaging and compatibility necessitate the use of approved food-grade materials. Major food and beverage packaging manufacturers adhere to standards such as the American FDA 177.2600, the European Union's (VO) 1935/2004, or the Chinese GB 4806 and GB 9685. Packaging for global consumption must meet the approved standards of the European Hygienic Engineering and Design Group's Hygienic Design Standards.
- The rise in online food delivery systems has fueled the demand for lightweight and flexible packaging made from PET materials. There has been a significant increase in the demand for PET-based packaging trays, containers, bottles, and other products worldwide.
- PET-based bottles are widely used in beverage packaging due to their lightweight nature and resistance to moisture and water. Additionally, microwave-compatible food trays are gaining popularity in the processed and packaged food market.
- The North American food packaging market is strong, driven by people's heavy reliance on packaged food and the presence of prominent food processing companies like PepsiCo, Tyson Foods, and Nestle. The preference for fast food and ready-to-eat meals further contributes to the demand for specialty seals used in the food and beverage industry.
- In the Asia Pacific region, China, India, and Japan are the primary drivers of food and beverage packaging demand. Japan's food industry, particularly in the packaged and preserved food categories, relies heavily on exports. In 2022, Japanese exports of agricultural, forestry, and fishery products and foodstuffs surpassed JPY 1.4 trillion (USD 12.48 billion), a 14.3% increase compared to the previous year. The United States, China, and several European countries were major export destinations. The Japanese government aims to achieve food export revenue targets of JPY 2 trillion (USD 18.25 billion) by 2025 and JPY 5 trillion (USD 45.63 billion) by 2030.
- Organic packaged food consumption reached approximately USD 21.4 billion in 2022. In the United States, Danone led the organic packaged food segment, accounting for 4.2% of value sales in 2021. The demand for organic packaged food is expected to grow significantly as consumers seek healthier and more environmentally friendly options.
- These factors collectively contribute to the projected increase in demand for PET resin in the market during the forecast period.
Asia-Pacific Region is Expected to Dominate the Market
- The PET market in the Asia-Pacific region is poised for dominance due to factors such as population growth, increased disposable income, urbanization in developing economies, and a growing demand for fast-moving consumer goods.
- China holds a prominent position as a PET resin producer, with PetroChina Group and Jiangsu Sangfangxiang being among the largest global manufacturers in terms of volume, boasting capacities of over 2 million tons.
- The use of engineering plastic products in the packaging sector, including PET containers and bottles, is experiencing rapid growth due to their advantages over conventional packaging plastics. China's demand for packaging materials is rising in industries such as food and beverage, consumer goods, and others, driven by increased exports and domestic consumption.
- The Asia-Pacific electronics industry has witnessed significant growth, particularly in countries like India and China. China, with its low labor costs and flexible policies, serves as a favorable market for electronics manufacturers. In 2021, the revenue in the consumer electronics and household appliances segment in China reached CNY 934.64 million (USD 138 million) according to the National Bureau of Statistics of China.
- The thriving e-commerce sector in India is also expected to drive the consumption of PET resins. Projections from IBEF suggest that the Indian e-commerce market will reach USD 111 billion by 2025 and USD 350 billion by 2030. Technological innovations such as digital payments, hyper-local logistics, analytics-driven customer engagement, and digital advertising will contribute to the sector's growth.
- In February 2022, the logistics e-commerce platform Xpressbees achieved unicorn status with a valuation of USD 1.2 billion. The company raised USD 300 million in its Series F funding round.
- The Indian food and beverage industry, contributing approximately 3% to India's GDP, stands as the largest employer in the country with over 7.3 million workers.
- All of these factors collectively contribute to the expected increase in demand for PET resin in the Asia-Pacific region during the forecast period.
Polyethylene Terephthalate Industry Overview
The PET resin market is characterized by consolidation, with major players including Indorama Ventures Public Company Limited, Alpek SAB de CV, China Petrochemical Corporation, SABIC, and Far Eastern New Century Corporation, among others (listed in no particular order).
Polyethylene Terephthalate Market Leaders
- Indorama Ventures Public Company Limited
- Far Eastern New Century Corporation
- Alpek S.A.B. de C.V.
- China Petrochemical Corporation
Polyethylene Terephthalate Market News
- In February 2022, Alpek signed an agreement to acquire OCTAL Holding SAOC (""Octal""). This acquisition aims to expand Alpek's global presence and enhance its offering of value-added production in polyethylene terephthalate sheets.
- In January 2022, Indorama Ventures proposed the acquisition of NN, a Vietnamese PET converter. The process of acquiring shares in NN is currently underway. This planned acquisition is expected to strengthen IVL's market position in the packaging sector in high-growth Asia-Pacific regions.
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