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, commonly referred as PET, is a thermoplastic polymer resin of the polyester family that is clear, hard, and tough. PET is majorly used for packaging foods & beverages due to properties such as lightweight, moisture & gas barrier, durability, and flexibility in manufacturing. Common PET packaging includes plastic bottles for water, soda, juices; containers & trays for meals, snacks, frozen foods; thermoforming applications such as clamshell containers. Developing nations are experiencing rapid growth in consumption of packaged & ready-to-eat foods which is boosting demand for PET packaging formats.
Market Dynamics:
Two key drivers contributing to the growth of PET market are significant demand from developing economies and increasing preference for sustainable packaging formats. Developing countries in Asia Pacific and Latin America are witnessing fast economic development along with rising disposable incomes. This has led to changing consumption patterns towards packaged & branded products. PET packaging is ideal in such nations due to affordability and versatility of manufacturing for diversified product sizes and formats. In addition, sustainability consciousness is compelling brand owners to move from single-use plastics to recyclable PET as it has high recycling rate compared to other plastics. PET packaging can be recycled and reprocessed repeatedly without loss of quality which is boosting its adoption across industries.
Segment Analysis
The global PET market is dominated by packaging segment which accounts for over 60% of the total market share. PET is widely used in packaging of food & beverages, cosmetics and daily household products due to its lightweight, strength, shatter resistance and recyclability properties. Bottled water consumption has increased phenomenally over the years which has further propelled the demand for PET in packaging segment.
PEST Analysis
Political: Stringent government regulations regarding the use of plastic have influenced the PET market. Few countries have banned certain plastic products or imposed tax on virgin plastics.
Economic: Growth in the packaging industry especially in Asia Pacific due to rising disposable incomes is fuelling the demand for PET. Increased consumption of bottled beverages, food products have boosted the market.
Social: Rising health consciousness among consumers have propelled the consumption of bottled water and other packaged beverages in PET bottles. Changing lifestyles and busy schedules rely more on packaged foods and beverages.
Technological: Development of bio-based PET using renewable feedstock helps in reducing dependency on fossil fuels. Advances in manufacturing processes have enhanced PET properties and effectiveness in packaging.
Key Takeaways
Global Polyethylene Terephthalate (PET) Market Demand is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing consumption of packaged food & beverages. The market size for 2023 is estimated at US$ 46.46 Bn.
Asia Pacific accounts for over 50% share of the global PET market led by China, India and other Southeast Asian countries. Rising disposable incomes, growing middle class, changing consumer lifestyles and expansion of packaging industry are fueling the PET consumption in the region.
Key players operating in the PET market are 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. Industry players are focusing on development of bio-based and recycled PET to expand their product portfolio and tap opportunities in sustainable packaging market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
