Polyethylene terephthalate (PET) is a thermoplastic polymer resin that is commonly used in the production of containers for liquids and foods. As a polyester, PET offers properties such as lightweight, flexibility, durability, moisture and gas barrier nature, and the ability to be recycled. PET is used widely in the bottling of soft drinks and also used in food packaging, such as peanut butter jars, salad dressing and vegetable oil bottles. Demand for PET bottles has increased significantly over the years due to its non-reactive and shatterproof nature compared to glass bottles.
The global Polyethylene Terephthalate Market is estimated to be valued at US$ 53.53 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period between 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing consumption of packaged food and beverages presents a significant growth opportunity for the PET market. PET bottles are popular in the food and beverage packaging industry due to properties such as durable, lightweight, flexibility and transparency. In addition, PET bottles are 100% recyclable, which has increased its adoption in the packaging industry for sustainable and environmental-friendly packaging solutions. Increasing health awareness and busy lifestyle of consumers are factors driving the demand for packaged and ready-to-consume food and beverages. Thus, the growing consumption of packaged food and beverages is expected to augment the demand for PET over the forecast period.
Porter's Analysis
Threat of new entrants: The PET market already has significant presence of established players with economies of scale and control over raw material and distribution channels. High capital requirements for setting up manufacturing plants pose barrier for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of numerous players. However, brand loyalty and product differentiation provides advantage to few market leaders.
Bargaining power of suppliers: Few manufacturers control global supply of raw materials like paraxylene and terephthalic acid, giving them bargaining power over buyers. However, long term contracts and availability of substitutes balances their influence.
Threat of new substitutes: Alternatives like glass, metal and paper offer substitution threat. However, PET's features like recyclability, durability and lightweight nature have sustained its demand over substitutes.
Competitive rivalry: Intense competition exists among leading players to gain market share and expand globally. Companies differentiate based on product quality, cost leadership, packaging solutions and sustainability initiatives.
SWOT Analysis
Strength: High demand from packaging and fiber industries. Excellent recyclability and processing properties. Availability of waste PET for production.
Weakness: Price volatility of crude oil affecting raw material costs. Stringent regulations over plastic waste disposal in several regions.
Opportunity: Expanding e-commerce sector driving demand for flexible packaging. Innovations in barrier technologies and PET production methods.
Threats: Growing preference for non-plastic and biodegradable substitutes. Trade restrictions hampering overseas markets access.
Key Takeaways
The global Polyethylene Terephthalate market size is expected to witness high growth over the forecast period driven by expanding packaging industry. The global Polyethylene Terephthalate Market is estimated to be valued at US$ 53.53 billion in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period between 2024 to 2031.
Regional analysis shows that Asia Pacific dominates currently owing to large packaging and textile industries in China and India. The region is forecast to maintain its lead, expanding at a CAGR of over 9% during the forecast period.
Key players operating in the PET market are Medtro, Indorama Ventures, Far Eastern New Century, JBF Industries, and DAK Americas. Growing focus on sustainability and circular economy offers opportunities to strengthen recycling infrastructure and develop bio-based PET variants. Supportive government policies and public-private collaborations will be crucial for the market's transition towards a circular model.
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PET or polyethylene terephthalate is a tough thermoplastic resin which is used in production of many products such as canes, pouches, bottles, films & sheets and others.
They are colorless and are very lightweight in nature.
These plastics are considered as re- usable in nature because they don’t percolate any chemicals and are safe for the human as well.
These plastics are widely used in industries such as food and beverage, electronics, healthcare, consumer goods and others.polyethylene terephthalate (PET) market is set to witness substantial CAGR of 7.18% in the forecast period of 2019- 2026.
The report contains data of the base year 2018 and historic year 2017.
Rising demand for lightweight & packed food and increasing investments in R activities to produce less hazardous PET materials are the factor for the growth of this market.Get Sample PDF (including COVID19 Impact Analysis) of Market Report @ https://www.databridgemarketresearch.com/request-a-sample/?dbmr=global-polyethylene-terephthalate-pet-marketMarket Drivers and Restraints:Rising disposable income will accelerate the market growthGrowing food and beverage industry drives the market growthIncreasing demand for sustainable and recyclable material will also enhance the growth of this marketGrowing demand for frozen and processed food among population will also contribute as a factor for the growth of this marketStrict government norms and regulation associated with the usage of PET material will restrain the marketAvailability of substitute product in the market will also hinder the growth of the marketLess PET recycling rates due to high contamination will also hamper the market growth The major players covered in the Polyethylene Terephthalate (PET) MarketFew of the major competitors currently working in the global polyethylene terephthalate (PET) market are Alpek S.A.B.
Global PET Packaging Market: by Form (Amorphous PET, Crystalline PET), Pack type (Bottles & jars, Bags & pouches, Trays, Lids/Caps & closures, others), Packaging Type (Rigid, Flexible), End-use industry, and Region - Global Forecast to 2023Market ScenarioPET (polyethylene terephthalate) is a type of polyester, which can be shaped into plastic boxes and plastic jugs for packaging of refreshments and food, personal care items, and several other consumer products.
Flexible packaging offers extraordinary features when compared to rigid packagings, such as a smaller amount of packaging materials required, negligible solid waste, less shipping cost, and requires less storage space.
The use of flexible packaging is beneficial to value chain comprising manufacturers, retails, and consumers.
For manufacturers, this is useful in moderating energy intake, augmenting features, including shapes and graphics, and altered shelf life that acts as significant drivers for the market evolution.
The competition among manufacturers has recently intensified due to availability and introduction of innovative products in the market.
Furthermore, the competition among manufacturers has increased in terms of portfolio and pricing.
