The global polyethylene terephthalate market size is anticipated to hit USD 77.76 billion by 2028 and exhibit a CAGR of 9.7% during the forecast period. The increasing demand from packaging industry is likely to bolster the market growth in the coming years. Fortune Business InsightsTMhas presented this information in its report titled “Polyethylene Terephthalate (PET) Market, 2021-2028”. The market size stood at USD 32.71 billion in 2020 and USD 40.66 billion in 2021.
Additionally, the rising recycled polyethylene terephthalate demand is anticipated to be a key trend influencing the market growth in the coming years.
COVID-19 Impact-
Growth in Packaging Industry Due to Spread of COVID-19 Resulted in Market Expansion
The unprecedented spread of the coronavirus pandemic has positively impacted the market. The increased packaging demand observed during the pandemic has augmented the polyethylene terephthalate market growth. Though the market has experienced restraints in growth due to strict lockdowns and curfews implemented by governments across the globe to curb the virus spread, the market is expanding. The market is projected to witness rapid growth in the coming years.
Segments-
On the basis of type, the market is bifurcated into recycled and virgin. On the basis of application, the market is fragmented into sheets and straps, film, rigid packaging, and others. Geographically, the market is classified into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Drivers & Restraints
Rising Demand from Packaging Industry to Propel Polyethylene Terephthalate (PET) Market Growth
Polyethylene Terephthalate Market is economical and offers lightweight and high-strength properties. It serves as an exemplary packaging material. It helps in reducing fuel consumption in transportation and helps to deliver more products with advanced, modern packaging. These properties, combined with the growing advancements in lightweight technology, are expected to boost the consumption of PET and bolster the global polyethylene terephthalate (PET) market growth.
The demand for recycled polyethylene terephthalate has increased in recent years. Industries, including packaging, automotive, and food & beverages are emphasizing the utilization of recycled PET to cope with growing greenhouse gas emissions due to plastic production. Moreover, the demand for polyethylene terephthalate as single-use plastic is expanding due to its disposable properties. This has spiked the demand for PET in containers, cups, straws, food packaging, and other such applications. These factors are expected to boost the market growth significantly.
However, the substitute products available may hinder the market growth.
Regional Insights-
Rising Technological Advancements to Fuel Growth in Asia Pacific
Asia Pacific is expected to emerge dominant in the global polyethylene terephthalate (PET) market share. The rising technological advancements to improve plastic’s sustainability are fueling the market growth in Asia Pacific. Regionally, China holds the maximum share of the market and is swiftly expanding due to rising PET recycling, increasing packaging, surging R&D activities, and other such factors.
North America is anticipated to experience remarkable growth in the forthcoming years. The swiftly expanding food & beverage industry is bolstering the region's market growth. The growing demand for packaged foods to maintain hygiene promotes the demand for PET in the region.
Europe is projected to register substantial growth due to high product demand by the automotive industry. PET resin offers mechanical, chemical, and thermal resistance properties, fueling its consumption in manufacturing automotive parts such as wheel arch liners and seat covers.
Latin America is likely to showcase strong growth due to the increasing PET straps consumption by the transportation industry. The Middle East & Africa is predicted to experience significant growth in the coming years. The expanding food & beverage, cosmetic, consumer goods, and other end-use industries are expected to contribute to the market’s growth.
Competitive Landscape-
Key Players Focus on Innovative Strategies to Garner Growth
The Polyethylene Terephthalate (PET) Market includes Reliance Industries, Dupont, Sabic, and Indorma Ventures, amongst the top industry players. They emphasize product innovation, capacity improvements, collaborations, and acquisitions to expand their market positions. Recently, Indorma Ventures Public Company Limited (IVL) built a new recycling plant in Karawang, West Java, in July 2021. The plant can recycle 1.92 billion PET bottles annually.
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