February 21, 2024
Polyethylene terephthalate or PET

The Polyethylene Terephthalate (PET) Market is Estimated to Witness High Growth Owing to Growing Demand for Packaged Food and Beverage Products

Polyethylene terephthalate (PET) is a thermoplastic polymer resin of the polyester family that is clear, lightweight, rigid, and shatter-proof. It is widely used for beverage and food packaging such as carbonated soft drink bottles, water bottles, containers for edible oils, preserves, peanut butter, salad dressings, and more. It provides excellent gas and moisture barrier properties, protecting products from toxins and pollutants. PET packaging is also durable and easy to recycle. The global PET market is estimated to be valued at US$ 46.46 Bn or Billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

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 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Growing demand for packaged food and beverage products is a key driver for the Polyethylene Terephthalate (PET) market. PET is the most widely used plastic for packaging foods and drinks due to its excellent barrier and mechanical properties. Trends towards ready-to-eat meals, mobile snacking and single-serve containers have boosted PET consumption. Furthermore, PET recycling rates are rising with more consumers seeking sustainable packaging options. Beverage manufacturers are also using increased amounts of recycled PET (rPET) in their bottles in response to regulatory pressures. Adoption of rPET reduces dependence on virgin PET and customers prefer eco-friendly packaging. Overall, petrochemical companies are expanding PET production capacities to capitalize on robust demand outlook over the forecast period.

SWOT Analysis
Strength: PET is characterized by durability, lightweight, resistance to heat and electricity. It has wide scope of applications in food and beverage packaging, textiles, automotive, electronics and electrical applications and is considered to be one of the most recyclable plastics. Due to its versatility and recyclability, demand for PET is expected to rise sharply.
Weakness: Dependence on crude oil prices for ethylene and paraxylene which are primary raw materials for PET production. Fluctuations in crude oil prices affect overall PET production costs. stringent regulation in certain region regarding use of plastic packaging material.
Opportunity: Rising demand for bottled water and packaged foods and beverages is expected to boost PET consumption over the forecast period. Increasing use of recycled PET content helps reduce reliance on virgin PET and promotes sustainability which is a major opportunity.
Threats: Availability of substitutes like glass, aluminum, paper and bio-based PET poses threat to market. Growing environmental concerns regarding plastic waste is a challenge for PET market players. Declining oil prices can reduce profit margins of PET producers.

Key Takeaways

The Global Polyethylene terephthalate (PET) Market is expected to witness high growth.

Regional analysis: Asia Pacific dominates the global PET market in terms of both production and consumption. China accounts for over 50% of global PET production. Other major PET producing countries in Asia Pacific include India, Japan, South Korea and Taiwan.North America and Europe also account for significant shares in global PET market driven by large food and beverage industries. Several regulations in place in these regions regarding use of recycled plastic content will drive market size.

Key players operating in the Polyethylene Terephthalate (PET) market are Medtronic, Abbott Laboratories, Boston Scientific, Biotronik, Koninklijke Philips, Nihon Kohden, Fukuda Denshi, Hill-Rom Holdings, Mindray Medical, Schiller AG, Spacelabs Healthcare, GE Healthcare, Cardiac Science Corporation, Lifewatch AG, Beijing Choice Electronic Tech Co, Vivaquant, Preventice Solutions, iRhythm Technologies, Applied Cardiac Systems, BioTelemetry. These key manufacturers are focusing on expansion of production facilities especially in Asian countries to leverage low cost of production and cater growing demand from food and beverage industry. These companies are also investing in R&D to develop innovative PET resins for various end-use industries. Partnerships with recycling companies will help gain leadership position in sustainable PET market.

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