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The global polyethylene terephthalate market size is estimated to grow by USD 18.95 billion between 2022 and 2027 at a CAGR of 7.65%. Market expansion hinges on various factors, notably the surge in packaging material consumption, the growing demand for sustainable and recyclable materials, and heightened requisites from the textile sector. However, several challenges impede this growth trajectory. These challenges encompass the unpredictable fluctuations in crude oil prices, the environmental hazards associated with PET production and application, and the stringent regulations governing plastic use. Despite the market's potential for growth driven by increasing demand and evolving consumer preferences, these obstacles pose significant barriers. Overcoming them necessitates strategic adaptation and proactive measures to mitigate risks and capitalize on opportunities. As stakeholders navigate these complexities, they must adapt to dynamic market conditions and regulatory landscapes to sustainably drive market expansion and maintain competitiveness in the packaging materials industry.
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During the Coronavirus period, the Government's environmental policies have gained significant attention in various industries, including Thermal insulation products, Furniture, Construction, Rail, Aerospace, and Marine. One such material that has been in the limelight is Polyethylene Terephthalate (PET). PET is widely used in the manufacturing of Mattresses due to its excellent thermal insulation properties. The Circular economy has been a major focus area, leading to an increase in demand for 100% recycled PET foam. Suppliers and Recyclers have been working diligently to overcome Technical limitations and Material losses during the Washing and Grinding processes. Stringent regulations have been imposed on the industry to ensure the production of high-quality PET. Moreover, the R&D efforts have been ongoing to explore the potential of Fusion technology and Resin manufacturing techniques using Nanotechnology. The Marine industry has been a significant consumer of PET, with Circular innovations being introduced in Marine applications. The Crude oil prices have also influenced the demand for PET, making it a cost-effective alternative to traditional insulation materials. Machinery suppliers have been providing advanced solutions to meet the industry's demands, including Woven plastic packaging for beverage producers. Overall, the Polyethylene Terephthalate market is expected to grow significantly in the coming years, driven by the need for sustainable insulation solutions and the circular economy.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
An increase in the consumption of packaging material will drive market growth. The Polyethylene Terephthalate (PET) market is significantly driven by the packaging industry, which holds the largest market share and is anticipated to continue this trend. Product packaging plays a crucial role in consumer decision-making, incorporating design, color, and product information. PET's usage extends beyond packaging, including thermal insulation products, and various industries such as furniture, construction, rail, aerospace, and marine. Fusion technology, resin manufacturing techniques, and nanotechnology are advancing PET's applications. The coronavirus period has accelerated the demand for 100% recycled PET foam in household and industrial packaging, furniture, and mattresses.
Further, suppliers cater to plastics, beverage producers, and circular innovations. Government environmental policies, taxes on plastic waste, and stringent regulations necessitate R&D efforts to address technical limitations and material losses during processing, such as washing, grinding, and PET fines. Inferior applications face challenges due to the high cost of PET and the need for superior quality. Circular economy initiatives involve recyclers and machinery suppliers in the production of recycled plastics. These factors are expected to drive market growth during the forecast period.
Volatility in crude oil prices is restraining the market growth. The Polyethylene Terephthalate (PET) market faces challenges due to the volatile prices of raw materials, particularly polymers and resins, which are derived from petroleum and natural gas. The Russia-Ukraine conflict and resulting oil price surge in 2022 have intensified this issue. PET is used extensively in various industries, including thermal insulation products, furniture, construction, rail, aerospace, marine, and mattresses. Fusion technology, resin manufacturing techniques, nanotechnology, and 100% recycled PET foam are key areas of innovation.
Additionally, suppliers and manufacturers of plastics, household products, industrial packaging, PET bottles, cooking oil, peanut butter, and salad dressings are impacted. Recycled plastics, taxes on plastic waste, and stringent regulations are driving the circular economy. R&D efforts and machinery suppliers are focusing on circular innovations, marine applications, and beverage producers to mitigate technical limitations, material losses, and inferior applications. Hence, the fluctuation in crude oil and natural gas prices impacts the price of PET, and it can have a significant impact on the global PET market in the forecast period.
An increase in the use of bio-based PET products is a trend appreciated by everyone in the market. The Polyethylene Terephthalate (PET) market is experiencing significant shifts due to increasing environmental concerns and government policies. Thermal insulation products, furniture, construction, rail, aerospace, and marine industries are exploring eco-friendly alternatives to PET, leading to a surge in research and development for recyclable and biodegradable materials. Fusion technology, nanotechnology, and advanced resin manufacturing techniques are being employed to create 100% recycled PET foam. Suppliers are adapting to these trends, focusing on plastics used in household products and industrial packaging, including PET bottles for beverages, cooking oil, peanut butter, and salad dressings. Recycled plastics are gaining popularity due to taxes on plastic waste and stringent regulations.
However, technical limitations and material losses during washing, grinding, and PET fines production pose challenges. R&D efforts are ongoing to address these issues, with machinery suppliers and circular innovations playing crucial roles in the circular economy. Circular applications in marine industries are also being explored. Beverage producers are at the forefront of these innovations, with woven plastic packaging and circular economy initiatives leading the way.
These factors are expected to drive market growth for eco-friendly packaging during the forecast period.
This report extensively covers market segmentation by product (fibers, resins, and others), type (virgin and recycled), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth of the fibers segment will be significant during the forecast period. The Polyethylene Terephthalate (PET) market has experienced significant growth due to the advantages of PET fibers in various industries. With government environmental policies promoting the use of thermally insulating and recycled materials, PET fibers have gained popularity in sectors like furniture, construction, rail, aerospace, and marine. The coronavirus period further accelerated this trend as the need to reduce reliance on natural fabrics increased. PET fibers offer ample availability, cost advantages, and superior performance characteristics compared to competing materials. Fusion technology, resin manufacturing techniques, and nanotechnology have enhanced the applications of PET fibers in mattresses and other industries. Suppliers of PET resin and plastics have benefited from the increasing demand for household products, industrial packaging, PET bottles, cooking oil, peanut butter, and salad dressings.
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The fibers segment was valued at USD 22.60 billion in 2017 and continued to grow until 2021. Recycled plastics, including 100% recycled PET foam, have gained traction due to circular economy initiatives and taxes on plastic waste. However, technical limitations and material losses during processing, such as washing, grinding, and the production of PET fines, can pose challenges. Inferior applications and stringent regulations require continuous R&D efforts and machinery suppliers' innovations to address these issues. Circular innovations, such as circular economy initiatives and recycling technologies, are crucial for the sustainable production and use of PET fibers. Marine applications, beverage producers, and recyclers are key players in the circular economy of PET. Thus, owing to the rising demand for PET fibers, the segment is expected to grow rapidly during the forecast period.
When PET plastic production material is at its purest, it is referred to as virgin PET. The Polyethylene Terephthalate (PET/PETE) market encompasses the production and utilization of this thermoplastic polymer resin, a member of the polyester family. In its purest form, PET is referred to as virgin PET, derived from natural gas, crude oil, and other petrochemical feedstock. However, Recycled PET foam, obtained through plastic recycling, is also significant. The food & beverage industry is a major consumer, utilizing PET for containers and bottles due to its lightweight, strong, and flexible properties.
Crude oil prices impact the production cost. Authentic industry journals and trade associations' releases report the increasing demand for PET in fibers for clothing, containers for liquids and foods, and engineering resins. PET's closed-cell structure is beneficial in various applications, including glass fiber reinforcement, engineering resins, and medical field items with antimicrobial property coatings to combat nosocomial infections and drug-resisting bacteria. The market also includes the production of plastic bottles for water, ethylene glycol, monoethylene glycol (MEG), dimethyl terephthalate (DMT), and terephthalic acid. Plasticizer, polymeric plasticizer, nitrile rubber, and rubber sheets are other applications. Recycled plastic, with printed designs, is gaining popularity due to its environmental benefits and cost-effectiveness. Alcoholysis depolymerization is a process used in recycling PET. Such advantages are expected to drive the virgin segment growth during the forecast period.
APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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APAC held the largest market share of the global PET market in 2022, backed by the strong demand from economies such as China and India, which have been increasing above the world average. The Polyethylene Terephthalate (PET) market in APAC holds a significant share of the global industry due to robust demand from economies like China and India. PET is extensively used as a flexible substrate material in cable sheathing, connectors, and electrical insulation components. Its superior electrical properties, including dielectric strength and dielectric constant, make it ideal for use in switches, relays, sensors, capacitors, and other electrical components. China, with its low labor costs and government support, is a leading manufacturer and exporter of non-biodegradable plastic packaging made from virgin plastics. However, concerns regarding toxins and environmental impact are driving the need for PET recycling facilities. rPET flakes and pellets derived from recycled PET are gaining popularity due to consumer preferences for sustainable solutions. Raw material prices remain a critical factor in the PET industry, impacting the production and application of this versatile plastic in various sectors.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
EasyPak LLC - The company offers PET solutions with its patented Honeycomb technology for the food industry. The company manufactures thermoformed packaging products for food, consumer goods, medical and industrial applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is a significant sector in the global chemicals industry. PET is a type of polyester resin, produced from the reaction of purified terephthalic acid (PTA) and ethylene glycol (EG). The market for PET is driven by its versatile applications in various industries. Products made from PET include beverage bottles, food packaging, textiles, and industrial applications. The textile industry is a major consumer of PET, using it to produce fibers for clothing and upholstery. In the packaging sector, PET is widely used for bottled water, carbonated soft drinks, and other food and beverage products due to its excellent barrier properties. The production of PET involves several processes, including polymerization, extrusion, and injection molding.
Moreover, the market for PET is influenced by several factors, including the price of raw materials, demand from end-use industries, and regulatory requirements. The global PET market is expected to grow at a significant rate due to increasing demand from the packaging and textile industries. The market is also driven by the growing trend towards sustainable and eco-friendly packaging solutions. Key players in the PET market include LG Chem, SABIC, Covestro, and Eastman Chemical Company. In summary, the Polyethylene Terephthalate market is a dynamic and growing sector, driven by its diverse applications in various industries and the increasing demand for sustainable packaging solutions.
Polyethylene Terephthalate Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.65% |
Market growth 2023-2027 |
USD 18.95 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.02 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alpek SAB de CV, BASF SE, Covestro AG, Dhunseri Tea and Industries Ltd., DuPont de Nemours Inc., Eastman Chemical Co., EasyPak LLC, Far Eastern New Century Corp., Formosa Plastics Corp., Indorama Ventures Public Co. Ltd., Jiangsu Sanfangxiang Group Co. Ltd., Koninklijke DSM NV, Lanxess AG, Mitsubishi Chemical Corp., NEO GROUP UAB, Plastipak Holdings Inc., Reliance Industries Ltd., Saudi Arabian Oil Co., Toray Industries Inc., and Verdeco Recycling Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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