The global 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 or PET is a thermoplastic polymer resin of the polyester family that is clear, lightweight yet strong and impact-resistant. PET is widely used in food packaging, non-food packaging, containers, clothing fibers, and thermoforming applications. As a packaging material, PET offers good moisture and gas barrier properties along with high tensile strength and chemical resistance. It allows transparent packaging that helps the product inside to attract consumers. PET packaging is lightweight and shatter-resistant making it safe and easy to handle. Being recyclable and sustainable in nature, PET is gaining popularity as an eco-friendly alternative to traditional packaging materials like glass and metal.
Market key trends:
The growing demand for sustainable packaging from end-use industries like food and beverage, personal care, and home care is fueling the PET market. PET packaging produces less garbage and conserves resources as compared to other materials. Rising environmental awareness among consumers is increasing the preference for recyclable PET over non-recyclable plastics. PET possesses excellent barrier properties that help extend the shelf-life of products. Therefore, PET is widely used for packaging food products, sauces, beverages, and household cleaning agents where barrier protection is important. Implementation of stringent government regulations regarding the use of plastic is further augmenting the demand for recyclable PET resin. Growing e-commerce sector and on-the-go consumption trend are also driving the market as PET fulfills the packaging needs of online shopping as well as portable food and beverages.
Porter’s Analysis:
- Threat of new entrants: The PET industry requires high capital investments for setting up manufacturing units, which acts as a barrier for new players.
- Bargaining power of buyers: The presence of numerous PET manufacturers allows buyers to negotiate lower prices.
- Bargaining power of suppliers: Majority of raw materials used in PET production such as paraxylene and monoethylene glycol are commodity chemicals supplied by large conglomerates with strong bargaining power.
- Threat of new substitutes: New biodegradable and recycled plastic alternatives are emerging but PET still holds an advantage in properties and versatility across packaging and fiber applications.
- Competitive rivalry: The PET industry witnesses stiff competition due to overcapacity issues globally. Major players focus on expanding capacity and backward integration.
Key Takeaways:
The Global Polyethylene Terephthalate (PET) Market Size is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing demand for packaged food and beverages.
Regionally, Asia Pacific dominates the global PET market and is expected to grow at the fastest pace during the forecast period. Rapid industrialization and urbanization coupled with rising middle-class population are driving the PET demand in the region. China represents the largest PET market in Asia Pacific.
Key players operating in the polyethylene terephthalate (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. Major players are expanding their production capacities and integrating backward to gain a competitive advantage.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
