Polyethylene terephthalate (PET) is a thermoplastic polymer resin of the polyester family that is clear, strong, and dimensionally stable and is widely used in food and beverage packaging. It is known for desirable properties such as crystal clarity, good gas and moisture barrier characteristics, high stiffness and strength. PET is also lightweight and flexible making it suitable for manufacturing of plastic bottles for water, juices, soda, and other beverages. The wide range of applications of PET in various industries and eco-friendly nature is fueling the demand in the global market.
The global Polyethylene terephthalate (PET) market is estimated to be valued at US$ 53.53 Bn in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 to 2031.
Key Takeaways
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.
The key opportunities in the PET market include the rising demand from developing economies as PET offers good barrier properties, mechanical strength, lightweight, and dimensional stability. Major Asian countries are projected to be the major consumers of PET owing to increasing application in food & non-food packaging.
Technological advancements are focused on developing PET resin that have improved gas and moisture barrier properties by blending PET resin with other polymers. Manufacturers are also developing bio-based PET resins derived from renewable feedstock like sugarcane which helps reduce dependency on crude oil and contributes to sustainability goals.
Market drivers:
The major drivers contributing to the Polyethylene Terephthalate (PET) Market Growth are increasing demand from the food & beverage industry for packaging of water, juices, carbonated drinks and other products. PET imparts good strength, shatter resistance and is lightweight offering great convenience in terms of transportation. Growing environmental consciousness is also fueling the adoption of PET as it is recyclable and replaces alternative non-recyclable plastics.
Current challenges in Polyethylene Terephthalate (PET) Market
The PET market is facing challenges due to rising raw material prices and stringent environmental regulations on plastic waste disposal. PET resin prices have been volatile over the past year due to tight supply of paraxylene and raw material inflation caused by supply chain issues from the pandemic and geopolitical tensions. Manufacturers are struggling with increased production costs. Many countries have also implemented strict norms on single-use plastics to curb plastic pollution, which can impact the demand for PET in food packaging and beverage bottles. The PET market players need to focus on developing enhanced recycling solutions and invest in recycled PET to overcome these challenges and promote sustainable growth.
SWOT Analysis
Strength: PET is lightweight, shatter-resistant and 100% recyclable making it preferable for packaging food & beverages. It is also affordable and has good moisture and gas barrier properties.
Weakness: Reliance on crude oil prices for raw materials makes PET prices volatile. Improper disposal of PET plastic waste is a major concern.
Opportunity: Rising demand for recycled PET provides opportunities. Development of bio-based PET using renewable resources can boost sustainability.
Threats: Stringent regulations against single-use plastics pose threats. Substitute packaging materials like aluminum, glass and bioplastics are replacing PET in some applications.
Geographical regions with major PET market share based on value include:
- Asia Pacific: China, India, Japan dominate APAC PET consumption led by packaging industry growth.
- North America: US and Canada account for over 30% share of global demand for PET resins & films.
- Europe: Germany, Italy, UK, France are key European markets due to advanced packaging sector.
The fastest growing regional PET market is projected to be Asia Pacific due to rising incomes, growing population, urbanization and expanding e-commerce sector in China, India and Southeast Asian countries. As purchasing power increases, demand for packaged food & beverages is increasing rapidly in APAC, driving PET consumption.
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