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The global polyethylene terephthalate (PET) market size was USD 44.30 billion in 2022. The market is projected to grow from USD 48.43 billion in 2023 to USD 91.37 billion by 2030, recording a CAGR of 9.5% during the forecast period.
Polyethylene terephthalate is a semi-crystalline, amorphous thermoplastic that belongs to the polyester family. It is produced using raw materials, such as terephthalic acid and ethylene glycol. PET is recyclable and lightweight, making it an ideal material in the packaging industry. The growing inclination toward high-quality packaging in the pharmaceutical and food & beverage industries will boost the product adoption. Furthermore, enhanced research & development activities and advancements in polymers will fuel the polyethylene terephthalate market growth throughout the forecast period.
Growth in Packaging Industry Due to COVID-19 Pandemic Resulted in Market Expansion
Government restrictions on people’s movement due to the COVID-19 pandemic compelled many consumers to switch to online shopping. This created a massive demand for packaging and wrapping films from the e-commerce sector. The growth in online purchases of essential goods including groceries, medicines, packed foods, and beverages increased the demand for packaging materials from the consumer goods and pharmaceutical sectors during this period. Furthermore, major growth in the e-commerce and healthcare industries fueled the adoption of PET packaging products. In the current scenario, the packaging sector has returned to pre-COVID-19 levels and is working at full capacity. This has positively influenced the market growth.
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Increasing Adoption of Recycled Polyethylene Terephthalate to Boost Market Progress
The growing demand for recycled PET from various industries, such as packaging, food & beverages, and automotive is expected to provide significant growth opportunities for the market. Some of the major key players in this market are focusing on innovating recyclable plastics in response to growing greenhouse gas emissions and pollution caused by plastic trash. Furthermore, this polymer is an easily recyclable material as compared to other polymers, supporting the market growth. According to the PET Resin Association, polyethylene terephthalate is the most recycled plastic in the world. In the U.S., over 680 kilotons of old PET bottles and containers are recycled annually. Moreover, the product’s disposable characteristics have enhanced its demand as a single-use plastic. This has surged the adoption of PET products in food packaging and the production of straws, bottles, cups, containers, and cutlery. These factors will further support the market expansion in the upcoming years.
Rising Consumption of PET in the Packaging Industry to Boost Market Growth
PET is often molded and extruded into plastic bottles and containers to pack beverages and consumer, personal care, and food products. This polymer is cost-effective as well and offers high strength, excellent insulation, and lightweight properties, making it a suitable packaging product for deliveries and using less fuel during transportation. The usage of PET containers and sheets for packaging various goods is expanding in the e-commerce sector. This growth is attributed to the easy accessibility of online products, lower prices, attractive discounts, and shipping & return policies offered by e-commerce platforms to consumers. The continuous advancement in lightweight technologies and increasing preference for recyclable packaging in the e-commerce and healthcare industries will drive the polyethylene terephthalate market share during the analysis period.
Availability of Substitute Products to Hamper Market Growth
The wide availability of substitute polymers, such as polypropylene, polyethylene, and polystyrene is a restraining factor for product consumption. These substitutes possess similar properties, such as flexibility, low thermal conductivity, high stress-bearing capacity, lightweight, and cost-effectiveness. Moreover, stringent government regulations have been imposed on the consumption of plastics as the manufacturing process of plastic causes high pollution and severely affects the environment. According to the ClinMed International Library, high-temperature exposure to 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. These factors are expected to hamper the market growth.
Virgin Segment to Hold Larger Share due to High Preference from Packaging Industry
Based on type, the market is segmented into virgin and recycled. The virgin segment accounted for a large market share in 2022. This resin is manufactured from a petrochemical feedstock including crude oil and natural gas. The demand for virgin PET is high in the food & beverage packaging industry for manufacturing containers and bottles. Furthermore, the ability of virgin plastic products to resist bacteria or microorganisms can boost their consumption in the packaging sector.
The recycled segment is anticipated to record a strong growth rate during the forecast timeline. The rising demand for biodegradable and recycled plastic has surged the segment’s growth. Additionally, recycled PET can be converted into sheets, fabrics, and fibers. This makes it an ideal material for manufacturing and packaging automotive parts including car chassis, further boosting the market growth.
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Rigid Packaging to be the Fastest-growing Application owing to Rising Demand for Containers from Food Industry
Based on application, the market is segmented into rigid packaging, film, sheets & straps, and others. The rigid packaging segment is expected to hold the largest share and grow at the fastest rate during the forecast period. Increasing consumer expenditure on online shopping and surging demand for packaging foods to meet hygiene standards are driving the segment growth.
The rising consumption of polyethylene terephthalate films in pressure-sensitive adhesive and magnetic tapes due to their high mechanical strength will fuel the film segment growth. Furthermore, stretched PET is used in biaxially-oriented polyethylene terephthalate (BoPET) film production. High demand for sheets from the consumer goods sector and increasing adoption of PET straps in heavy loads, which requires heavy tension during transportation, will help the sheets & straps segment flourish. The others segment includes fibers, comforter fill, and fleece jackets. Rising demand for these products from the textile industry will surge segment growth.
Asia Pacific Polyethylene Terephthalate Market Size, 2022 (USD Billion)
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The market size in Asia Pacific stood at USD 16.98 billion in 2022. Increasing advancements in plastic production to make it more sustainable have surged the market growth in the region. China holds the leading market share in the region and is the fastest-growing country. This growth is attributed to the rising research & development activities, increased plastics recycling, and growing packaging, electrical, and electronics industries.
The rapid expansion of the food & beverage industry has boosted the market growth in North America, where the U.S. and Canada are the leading contributors. The increasing online food orders and rising demand for packaged foods to maintain hygiene has boosted the product adoption for packaging purposes. In Europe, rapid growth in the automotive industry is expected to drive the product demand. The PET resin offers thermal & chemical resistance and mechanical properties, increasing its use in the production of automotive parts, such as seat covers and wheel arch liners.
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The Latin America market is predicted to grow steadily owing to the rising use of PET straps in the region’s transportation industry. These straps offer high mechanical strength and are preferred for fastening pallet loads and bundling items while transporting and storing goods. The expansion of e-commerce and healthcare industries in the Middle East & Africa region will showcase significant market growth in the future. These factors have increased the product demand for packaging foods, beverages, consumer goods, sterilized products, and cosmetic products.
Companies to Adopt Strategic Initiatives Such As Business Expansion
Key producers operating in the market include Indorama Ventures, Sabic, Dupont, and Reliance Industries. These companies are involved in product innovation, capacity improvement, collaborations, and acquisitions. For example, Indorama Ventures manufactures polymers and has 19 PET production plants across four continents in 11 countries. As per the company, one in five PET bottles worldwide is made using resins from Indorama. The firm’s plastic products are mainly used as raw materials to produce bottles, sheets, films, fibers, and filaments. It adopted various growth strategies, such as expansion and acquisition to improve its business competence.
An Infographic Representation of Polyethylene Terephthalate (PET) Market
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The research report provides a detailed market analysis and focuses on crucial aspects, such as leading companies, types, applications, and products. It also provides quantitative data regarding volume & value, market analysis, research methodology for market data, and insights into market trends. The report highlights vital industry developments and competitive landscape as well. In addition to the abovementioned factors, the report encompasses various factors that have contributed to the market's growth in recent years.
CAGR of 9.5% over 2023 to 2030
Value (USD Billion); Volume (Million Ton)
Type, Application, and Geography
Fortune Business Insights says that the global market size was USD 44.30 billion in 2022 and is projected to reach USD 91.37 billion by 2030.
In 2022, the market value stood at USD 44.30 billion.
Growing at a CAGR of 9.5%, the market will exhibit rapid growth in the forecast period (2023-2030).
The packaging segment is expected to lead the market during the forecast period.
The increasing demand for PET products in the packaging industry is the key factor driving the market.
China held the largest share of the market in 2022.
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.
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