July 21, 2024
Polyethylene Terephthalate (PET) Market

Food Packaging segment is the largest segment driving the growth of Polyethylene Terephthalate (PET) Market

The global Polyethylene Terephthalate (PET) Market is estimated to be valued at US$ 46.46 Bn or Billion in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

PET is a thermoplastic polymer resin of the polyester family that is clear, lightweight, and strong. It has advantages over glass and aluminum for its versatility, durability, safety, and recyclability. PET is predominantly used in various kinds of food packaging, bottles and containers.

Market key trends:

One of the key trends in the PET market is increasing demand from food and beverage industry. PET is majorly used for packaging water, carbonated soft drinks, juices, sports drinks and other food items due to its high impact strength, transparency and barrier resistance against gases like carbon dioxide and oxygen. The demand is driven by changing consumer lifestyle, preferences for packaged and on-the-go food and drinks over unpacked variety. The trend is expected to continue driving the market growth of PET over the forecast period.

SWOT Analysis:

  • Strength: PET has high tensile strength and is lightweight in nature. It can be recycled efficiently and has good barrier properties against gases, moisture and other contaminants making it suitable for packaging food and beverages.
  • Weakness: Cost of PET resins is relatively high compared to alternatives like HDPE and LDPE. Depends heavily on crude oil prices thus making it susceptible to price fluctuations.
  • Opportunity: Growing demand for bottled water and packaged foods & beverages globally is driving the PET market. Increasing use of PET in thermoforming applications like automotive interior parts offers new growth opportunities.
  • Threats: Stringent environmental regulations regarding plastic waste disposal could impact PET consumption. Substitution threat from bioplastics and other alternative green materials.

Key Takeaways

The Global Polyethylene Terephthalate (PET) Market Growth is expected to witness high, exhibiting a CAGR of 6.7% over the forecast period, due to increasing consumption of packaged foods and beverages.

Regional analysis: Asia Pacific dominates the global PET market currently accounting for over 40% of global demand led by China, India and other Southeast Asian countries. This trend is expected to continue due to rising incomes, population growth and increasing urbanization in the region. North America and Europe are also major markets for PET.

Key players operating in the Polyethylene Terephthalate (PET) market are Alpek S.A.B de C.V., RTP Company, BASF SE, The Dow Chemicals Company, Jiangsu Sanfangxiang Group, Indorama Ventures, M&G Chemicals, Nan Ya Plastics Corporation, Far Eastern New Century, and Quadrant AG. Major players are undertaking capacity expansion as well as backward integration to gain cost competitiveness and ensure secure raw material supplies.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it