Polyethylene terephthalate (PET) is a lightweight and recyclable thermoplastic polymer resin of the polyester family that is widely used in food packaging and beverage containers. PET is used to produce plastic bottles for bottled water, soft drinks, juices, sport and energy drinks, alcoholic beverages and other consumable liquids. It is favored over other plastics for its barrier properties, clarity, impact strength and resistance to grease and moisture. PET containers offer consumers a cost effective and easy way to drink beverages while away from home.
The global PET market is estimated to be valued at US$ 53.53 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global PET market growth is primarily driven by the growing consumption of bottled water and other packaged beverages around the world. According to the Beverage Marketing Corporation, bottled water consumption in the United States alone reached 43.1 gallons per person in 2021, leading to high demand for PET bottles. PET offers advantages over glass and aluminum containers for bottled water applications, including lighter weight, impact resistance and higher recyclability. Another key driver for the PET market is the rising disposable incomes in emerging economies such as India, China, Brazil and other Asian and Latin American countries. As income levels rise in these regions, demand for bottled and packaged beverages has grown significantly, presenting lucrative opportunities for PET manufacturers and converters. Furthermore, ongoing innovations in PET recycling techniques aimed at facilitating higher recycling rates of post-consumer PET bottles and food-grade r-PET production will continue to support market expansion over the forecast period. However, stringent regulations around single-use plastics in some countries may negatively impact PET bottle consumption.
Segment Analysis
The global polyethylene terephthalate market size is segmented into bottles, films & sheets, food containers, non-food containers, and others. The bottles segment dominates the market and accounts for over 50% share of the overall market. This is because PET bottles are widely used for packaging of beverages such as water, juices, carbonated soft drinks, and other food & drinks. PET bottles are lightweight, affordable, flexible, and safe for storing beverages and food products.
Pest Analysis
Political: Environmental concerns related to plastic waste have led various governments to impose regulations on single-use plastics. However, PET is eco-friendly and recyclable plastic.
Economic: High demand from end-use industries such as food & beverages drives the market growth. Fluctuating crude oil prices pose a challenge.
Social: Growing health consciousness and changing lifestyles increase the demand for PET in bottled water and packaged food containers.
Technological: Developments in PET manufacturing technologies help lower the production costs and enhance material properties. New production processes offer flexibility in design and size.
Key Takeaways
The global polyethylene terephthalate market is expected to witness high growth over the forecast period. The global PET market is estimated to be valued at US$ 53.53 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 to 2031.
The Asia Pacific region currently dominates the market due to rapid growth of end-use industries in the region. Countries like China, India, Japan, and South Korea are the major markets in Asia Pacific. The Asia Pacific PET market accounts for over 40% share of the global market. China is the largest producer and consumer of PET. The growing population, rising disposable incomes, and increasing demand for PET bottles and food packaging from end-use sectors such as beverages and packaged foods drive the APAC PET market.
Key players related content comprises:
Key players operating in the polyethylene terephthalate market are Medtro, Indorama Ventures, M&G Chemicals, Far Eastern New Century, and JBF Industries.
