Polyethylene Terephthalate Market Size, Market Research and Industry Forecast Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Polyethylene Terephthalate Market


The global polyethylene terephthalate market size was valued at USD 25.25 billion in 2018. It is anticipated to register a CAGR of 5.6% over the forecast period. Polyethylene terephthalate, commonly known as PET or PETE, is a non-toxic, lightweight, safe, and flexible material, which can be recycled and reused efficiently. It can also be processed up to 3 to 4 times without affecting its chemical properties. These features make polyethylene terephthalate an ideal choice for use in various industries such as automotive, electronics, and textiles, among others.

Moreover, polyethylene terephthalateoffers unique physical properties, such as it is shatterproof and non-reactive to food and water, due to which it is widely used in flexible packaging applications. The growing technological advancements and innovations in packaging applications, mainly through weight reduction, are expected to positively influence the market growth. Major factors driving the market growth for Polyethylene Terephthalate (PET) include increasing consumption of textiles and fabrics, increasing recycling and collection rate of PET in Europe, and rising demand for sustainable & recyclable products globally. Meanwhile, stringent environmental regulations controlling the increasing use of PET and rising demand for environmentally friendly alternatives such as High-Density Polyethylene (HDPE) are expected to negatively impact the growth of the market.

The increasing demand for lightweight packaging solutions for electronics and food is anticipated to introduce new application avenues for polyethylene terephthalate. Moreover, the intensity of rivalry is expected to increase over the forecast period. Hence, players are focusing on strengthening their market position through the development of novel technologies.Companies are also focusing on the cost-effective and high-quality manufacturing processes of PET to gain a competitive edge in the market.

The bottled water segment has emerged as the largest application segment in the market for polyethylene terephthalate (PET) owing to the increasing demand for bottled water and carbonated soft drinks across the globe. The segment accounted for over 65% market share in 2018 and is expected to further grow over the forecast period. Packaging product manufacturers are expanding in terms of infrastructure and production capacity to cater to the dynamically growing market requirements. Moreover, numerous PET film & sheet manufacturers are adopting strategies such as acquisitions and collaborations for procuring raw material.

Application Insights of Polyethylene Terephthalate Market

Based on application, the market for Polyethylene Terephthalate (PET) has been segmented into packaging, films & sheets, and others. The packaging application emerged as the largest segment in 2018, accounting for a market share of over 32.0%. The growing packaging industry, which is driven by high consumerism in emerging economies, is expected to boost the demand for plastics such as polyethylene and PET over the forecast period. Regulatory bodies have laid down various guidelines regarding the safe use of packaging materials in food contact applications, which is influencing the demand for PET in this segment.

Meanwhile, the increasing consumption of food containers in emerging economies such as China and India is expected to significantly drive the demand for PET in films & sheets applications. These containers offer thermal insulation to the products stored in them along with an aesthetic appeal. Moreover, microwave-safe containers are paving the way for the growth of the films & sheets segment. Customers across the globe prefer using microwave-compatible food containers to save preparation time.

Packaging


Application Insights of Polyethylene Terephthalate Market

Based on packaging application, the polyethylene terephthalate market has been segmented into bottled water, carbonated soft beverages, juices, alcoholic beverages, thermoforming trays, food packaging, non-food packaging, and others.PET is widely used in packaging applications on account of its features such as durability and light weight. The material finds numerous uses in the packaging of bottled water and carbonated beverages. Meanwhile, the juices packaging segment is expected to emerge as the fastest-growing application segment as PET-based packages are easier to recycle compared to other materials.

Polyethylene Terephthalate offers various beneficial properties such as light weight, increased flexibility, high strength, and 100% recyclable, which makes it a preferred material to be used in the packaging segment. Polyethylene terephthalate is available in both, homopolymer and copolymer forms, making it an attractive choice for beverage packaging applications. Various companies have started taking initiatives to manufacture products using eco-friendly packaging materials. For instance, Coca-Colas World Without Waste initiative is focused on collecting and recycling the equivalent of every bottle or can it sells globally.

Regional Insights of Polyethylene Terephthalate Market

Asia Pacific dominated the Polyethylene Terephthalate market in 2018, accounting for a market share of 40.32%. Increasing consumption of packaged food coupled with the growing demand for automobile films in countries such as China, India, Indonesia, and Malaysia is expected to drive the demand for polyethylene terephthalate in Asia Pacific. The region is expected to account for a market share of approximately 38% of the total revenue by 2025. This can be attributed to various environmental regulations laid down by international agencies such as Environmental Protection Agency (EPA), International Union for Conservation of Nature (IUCN), and Intergovernmental Panel on Climate Change (IPCC), which is likely to influence the demand for polyethylene terephthalate in the region.

Moreover, factors such as price sensitivity of the products coupled with the presence of a large number of players in the PET market are likely to intensify competition in the region. Developing economies such as India, Indonesia, and China are expected to observe robust economic growth in the near future. High investments being made in the building & construction sectors for infrastructure development in Europe and Asia Pacific are expected to boost the demand for films & sheets over the coming years. In addition, green building initiatives, especially in Europe, are anticipated to propel the demand for VOC-free films.

Market Share Insights of Polyethylene Terephthalate Market

Prominent companies operating in the market for Polyethylene Terephthalate (PET) include BASF SE, M&G Chemicals, SABIC, Arkema, Evonik Industries, and The Sherwin-Williams Company.Majority of the key players have integrated their resin production and distribution operations with an aim to improve resin quality and expand their regional presence. This has resulted in cost reduction, thus positively impacting the profit margin for companies. Moreover, in an attempt to gain a competitive edge in the market, companies are focused on investing in R&D activities to develop new application scopes and to efficiently cater to the dynamically evolving end-user requirements.

p2 Segments covered in the report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the polyethylene terephthalate market report on the basis of application, packaging application, and region:

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Packaging
  
Films & Sheets
  
Others

Packaging Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Bottled Water
  
Carbonated Soft Beverages
  
Juices
  
Alcoholic Beverages
  
Thermoforming Trays
  
Food Packaging
  
Non-Food Packaging
  
Others