The global Polyethylene Terephthalate (PET) Market is estimated to be valued at US$ 46.46 Bn 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.
Polyethylene terephthalate or PET is a thermoplastic polymer resin belonging to the polyester family. PET is a semi-crystalline thermoplastic which possesses advantageous properties such as high tensile strength, clarity, thermal stability, and electrical insulation. It is widely used in making bottles for soft drinks, water, beer, sports and energy drinks, salad dressings, edible oils, and other food packaging applications. PET is also used in fiber form for applications such as clothing, home furnishings, industrial yarns, and other consumer products. It provides excellent barrier properties against moisture, air, carbon dioxide, and aroma. The use of PET bottles is growing rapidly due to shift towards single-use plastic bottles for beverages. The lightweight and shatter-resistant properties of PET also make it suitable for packaging applications.
Market key trends:
One of the major trends driving the growth of the PET market is the rising consumption of single-use plastic bottles for packaged drinking water and carbonated soft drinks across both developing and developed countries. Single-use PET bottles offer convenience to consumers for on-the-go consumption which is fueling their demand. Another key trend is the increasing focus on use of recycled PET (rPET) content in bottles due to rising environmental concerns related to plastic waste. Beverage companies are collaborating with retail chains and recycling partners to improve the collection and recycling rates of used PET bottles. The bio-based or plant-based PET also offers opportunities for market players as it provides sustainability benefits over conventional PET resins. Continuous investments in expanding production capacities by leading PET manufacturers to meet growing demand from packaging industry is another major trend.
– Threat of new entrants: High capital requirements for setting up manufacturing plants pose significant barriers for new players. Stringent regulatory norms also discourage new entrants.
– Bargaining power of buyers: Many large buyers like packaging and beverage industries have significant bargaining power due to bulk purchase volumes. This puts pressure on margins.
– Bargaining power of suppliers: A few suppliers control the raw material supply which gives them pricing power. However, availability of substitutes balances the supplier power.
– Threat of new substitutes: Alternatives like bioplastics and paper/aluminum continue to pose a threat, forcing companies to invest in R&D for product innovation and driving sustainability efforts.
– Competitive rivalry: Intense competition among established players keeps pricing and profitability under check. Industry concentration is moderate to high with top players accounting for a major chunk of global production.
Global Polyethylene Terephthalate (PET) Market Demand is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing demand from beverage packaging applications.
– The Asia Pacific region dominated the global PET market in 2023 with a share of over 50%, led by China and India. Growth in the region will be driven by rising living standards, changing consumer preference for packaged food & beverages and expansion of manufacturing base.
– Key players operating in the Polyethylene Terephthalate (PET) 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. Industry leaders are focusing on expanding production capacities to meet growing demand.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it