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The global polyethylene terephthalate market size is estimated to grow by USD 18,946.93 million between 2022 and 2027 and the size of the market is forecast to increase at a CAGR of 7.65%.
The growth of the market depends on several factors, including the increase in the consumption of packaging material, demand for sustainable and recyclable material, and an increase in demand from the textile industry.
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.
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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. This is particularly prominent in the packaging sector, which is the largest end-user of PET and is expected to maintain this trend. Packaging plays a vital role in sales, providing critical information to customers and attracting attention. Therefore, industries such as food and beverage are focusing on innovative packaging solutions to boost brand recognition. Digital printing has transformed the packaging industry by enabling printing on various materials using safe inks. Rigid packaging provides a defined shape and ease of printing and labeling, while flexible packaging offers benefits such as durability, flexibility, and lightweight. Advances in digital printing have facilitated printing on flexible packaging, leading to significant growth in the packaging sector.
End-users in various sectors are switching to flexible plastic packaging materials due to their advantages, such as durability and lightweight. PET is a preferred packaging material due to its ease of use, storage, and resealing. These factors are expected to drive market growth during the forecast period.
Volatility in crude oil prices is restraining the market growth. The global PET market faces a significant challenge due to the fluctuating prices of raw materials like polymers and resins, which are used for PET manufacturing. The prices of these materials have been volatile in recent years, particularly in 2022, due to the Russia-Ukraine conflict. The prices of crude oil and natural gas, which PET is derived from, also affect the prices of PET.
Oil and gas companies have implemented cost-cutting measures like workforce layoffs due to the decline in oil prices in recent years. This decline has caused downward price pressures despite the increase in Brent and WTI crude oil prices. Volatility in crude oil prices directly affects supply and demand, exchange rates, imports and exports, and production capacity. Moreover, the decline in oil prices has made advanced drilling activities economically challenging in regions like Europe, the Middle East, and North America. 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. Growing environmental and sustainability concerns have prompted many consumers to demand eco-friendly packaging from manufacturers. As a result, packaging vendors are researching and developing new materials that promote the use of renewable resources, such as bioplastics. Bioplastic packaging products offer sustainability benefits such as lower energy consumption, lighter weight, and reduced CO2 emissions compared to conventional plastic packaging. Companies such as bottled water manufacturers are increasingly emphasizing sustainability by using eco-friendly packaging solutions that can be recycled, such as PlantBottle, a bio-based PET bottle that is 100% recyclable and made with 30% bio-based material. These factors are expected to drive market growth for eco-friendly packaging during the forecast period.
The market share growth of the fibers segment will be significant during the forecast period. The growing demand for PET fibers can be ascribed to its expanding use in the textile sector, as well as the growing need to reduce reliance on natural fabrics such as cotton, wool, and so on. Demand for the Product has also been stimulated by rising customer knowledge of a number of advantages of PET fabrics, including their resilience to heat, stretching, abrasion, and wrinkles.
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The fibers segment was valued at USD 22,600.47 million in 2017 and continued to grow until 2021. The growing use of PET fiber in the production of disposable medical garments because of its anti-bacterial and anti-fungal qualities, as well as its widespread use in fiber filling for insulated apparel, is driving product demand. Furthermore, the necessity for recycling PET materials has been fueled by the growing environmental concerns about reducing carbon emissions as a result of rising plastic waste. 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 plastic is "fresh" and has never been used or treated before, thus it is in its purest form. It is a direct resin manufactured from natural gas, crude oil, and other petrochemical feedstock. The virgin segment accounted for the largest share of the type segment in 2022. The increasing demand for packaging of containers and bottles from food and beverage industry is further driving the market during the forecast period. They are primarily used for protective packaging of furniture, electronics, automotive parts, and other products. Virgin PET is shock-sensitive, waterproof, mechanically resistant, chemically resistant, and fully recyclable. 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. PET has a stable demand from major consuming APAC countries such as Japan and South Korea. China has emerged as the hub of the world for the manufacture of low-value mass-produced goods, primarily because of cheap labor and generous support from the Chinese government. China is also a preferred destination for the manufacture and export of low-grade plastics with low value. China's growth is still above the world average and will act as the principal demand driver in APAC.
In 2020, the PET market in the region witnessed certain challenges due to the COVID-19 pandemic. However, mass vaccination drives and the reopening of commodity chemical manufacturing companies led to the rebounding of the growth of the regional PET market in 2021. The recommencement of operations in end-user industries such as automobile and construction augmented the demand for PET.
Vendors 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 Polyethylene Terephthalate 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.
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 18,946.93 million |
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 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 |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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