"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global polyethylene terephthalate (PET) market size was USD 37.21 billion in 2020. The market is projected to grow from USD 40.66 billion in 2021 to USD 77.76 billion in 2028 at a CAGR of 9.7% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with polyethylene terephthalate witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a growth of 5.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Polyethylene terephthalate is a transparent amorphous thermoplastic that belongs to the polyester family. It is produced using terephthalic acid and ethylene glycol as raw materials. The polymer is recyclable and offers lightweight properties making it the ideal material in the packaging industry. The increasing preference for high-quality packaging in pharmaceuticals, food and beverages will fuel product consumption. Furthermore, increased research and development activities, as well as advancements in polymers, will boost the polyethylene terephthalate market growth throughout the forecast period.
Growth in Packaging Industry Due to Spread of COVID-19 Resulted in Market Expansion
The most important opportunity developed by the COVID-19 pandemic is itself. The demand for packaging has increased, as many people switched to online purchases due to lockdown conditions. This included an increase in online demand for essential items such as groceries, vegetables, and medicines. This has resulted in high demand for the product for packaging of various finished products. In addition, rapid growth in the healthcare industry coupled with the expansion of the e-commerce industry has further fueled the adoption of packaging. However, movement restrictions of man & material and closure of plants have somewhat affected the supply chain, production, and consumption of polyethylene terephthalate. Although many governments are trying to get their economies back on track; as a result, the market is estimated to grow rapidly in the next couple of years.
Request a Free sample to learn more about this report.
Increasing Adoption of Recycled Polyethylene Terephthalate is a Prominent Trend
The growing demand for recycled-PET from various industries such as food & beverages, packaging, and automotive would provide the market with significant growth opportunities. Major players have begun to create recyclable plastics in response to rising greenhouse gas emissions from the production of plastics and pollution caused by plastic trash. In addition, this plastic is an easily recyclable material when compared to other polymers, further supporting the market growth. According to the PET Resin Association, polyethylene terephthalate is the most recycled plastic in the world. In the U.S., more than 680 kilotons of old PET bottles and containers are recycled each year. Furthermore, the demand for the product as single-use plastic is also rising worldwide owing to its disposable characteristics. This leads to product demand for the production of food packaging, straws, bottles, cups, containers, and cutlery. Hence, such factors will further fuel market expansion in the upcoming years.
Rising Consumption in Packaging Industry to Boost Market Growth
The product is molded and extruded into plastic containers and bottles for packaging of beverages, personal care, consumer, and foods products. Furthermore, polyethylene terephthalate is cost-effective and offers high strength and lightweight properties, which helps in delivering more products with advanced packaging and using less fuel during transportation. These properties make PET the best packaging material compared with substitutes such as glass, paper, and aluminum. The ongoing advancement in light-weighting technology and the increasing expansion of packaging in the e-commerce and healthcare industries will boost the product demand further during the review period.
Availability of Substitute Products to Hamper Market Growth
The availability of substitute products such as polypropylene, polyethylene, and polystyrene will act as a restraint for product consumption. These substitutes are more cost-effective and possess similar properties to polyethylene terephthalate. Additionally, various stringent government regulations were also imposed over the consumption of plastics. This is because the manufacturing process of plastic causes a high amount of pollution and severely affects the environment. According to the ClinMed International Library, high-temperature exposure and long-term use of plastic goods can cause hazardous chemical components to seep into beverages, food, and water. The indiscriminate dumping of plastics on land and open-air burning can result in hazardous compounds being released into the air, posing a public health risk. Such factors restrict product adoption in various applications and hamper market growth.
Virgin Segment to Hold Larger Share in during Forecast Period
Based on type, the market is segmented into virgin and recycled. Virgin segment accounted for a larger market share in 2020. It is a direct resin and manufactured from a petrochemical feedstock, including crude oil and natural gas. Its high demand can be seen in the food & beverage packaging industry for the manufacturing of containers and bottles. Furthermore, the consumption of virgin product type is also rising in the packaging industry, owing to its ability to resist bacteria or microorganisms.
The recycled segment is increasing with the higher growth rate during the forecast timeline. The rising demand for biodegradable and recycled plastic has fueled the growth of this segment. Additionally, recycled PET is convertible into sheets, fabrics, and fibers. This further makes it an ideal choice for manufacturing and packaging automotive parts, including car chassis.
To know how our report can help streamline your business, Speak to Analyst
Rigid Packaging Segment to be Fastest-growing Application During Forecast Period
Based on application, the market is segmented into rigid packaging, film, sheets & straps, and others. The rigid packaging segment holds the largest share and is the fastest-growing application. Increasing consumer expenditure over online shopping and rising demand for packaging foods in order to meet hygiene are driving the segment growth. This results in increasing polymer usage for the packaging of several products.
The rising use of PET films in pressure-sensitive adhesive and magnetic tapes due to their high mechanical strength will augment the segment growth. Furthermore, the stretched PET is used for the production of biaxially-oriented polyethylene terephthalate (BoPET) film. The increasing adoption of PET straps in heavy loads, which requires heavy tension during transportation, and high demand for sheets from consumer goods will flourish the sheets & straps segment. The other segment includes fibers, comforter fill, and fleece jackets. Hence, increasing their demand from the textile or clothing industry will augment the segment growth.
Asia Pacific Polyethylene Terephthalate (PET) Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market size in Asia Pacific stood at USD 14.12 billion in 2020. The increasing technological advancement in plastic to make it more sustainable has fueled the market growth in the Asia Pacific. In this region, China holds the highest market share and is the fastest-growing country. The increasing plastics recycling, rising research & development activities, and growing packaging, electrical and electronics industries are some of the prominent factors fueling the product demand in China.
In North America, the U.S. and Canada are the leading contributors. The rapid expansion of the food & beverage industry has fueled the market growth in this region. Additionally, increasing online food demand by several people coupled with rising demand for packaged foods in order to maintain hygiene has boosted the product adoption for packaging purposes. In Europe, the high demand for the product is associated with the rapid growth in the automotive industry. The PET resin offers thermal resistance, chemical resistance, and mechanical properties. These benefits increase its demand in the manufacturing of several automotive parts, including seat covers and wheel arch liners.
To know how our report can help streamline your business, Speak to Analyst
In Latin America, the market growth is attributed to the rising consumption of PET straps in the transportation industry. During transporting and storing of goods, the PET-based straps are ideal for fastening pallet loads and bundling items, owing to their high mechanical strength. The e-commerce and healthcare industries expansion in the Middle East & Africa will showcase significant market growth in the near future. This expansion in industries is resulting in increased demand for packaging in sterilized products, food & beverages, consumer goods, and cosmetic products.
Business Expansion is Strategic Initiative Implemented by Companies
Key producers operating in the market are Indorama Ventures, Sabic, Dupont, and Reliance Industries. These companies are involved in capacity improvement, product innovation, acquisition, and collaborations in the market. Indorama Ventures is a manufacturer of polymers and has 19 PET production plants across four continents in 11 countries. According to the company, one in five PET bottles in the world are made from Indorama’s resins. The company’s plastics products are mainly used as a raw material in the production of sheets, bottles, fibers, films, and filaments. The company adopted growth strategies such as expansion and acquisition to expand its business globally.
An Infographic Representation of Polyethylene Terephthalate (PET) Market
To get information on various segments, share your queries with us
The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, types, applications, and products. Also, it provides quantitative data in terms of volume and value, market analysis, research methodology for market data, and insights into market trends and highlights vital industry developments and competitive landscape. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.
Value (USD Billion); Volume (Million Ton)
Type, Application, and Geography
Fortune Business Insights says that the global market size was USD 37.21 billion in 2020 and is projected to reach USD 77.76 billion by 2028.
In 2020, the market value stood at USD 37.21 billion.
Growing at a CAGR of 9.7%, the market will exhibit rapid growth in the forecast period (2021-2028).
The packaging segment is expected to lead the market during the forecast period.
The increasing demand in the packaging industry is the key factor driving the market.
China held the highest share in the market in 2020.
Indorma Ventures, Sabic, Dupont, and Reliance Industries are the leading players in the market.
The rapid growth in the packaging industry and expansion of healthcare and e-commerce industries are anticipated to boost the consumption of the product.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry