Polyethylene Terephthalate (PET) Resin Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Polyethylene Terephthalate (PET) Resin Market is segmented by Product Type (Bottles, Films and Sheets, and Other Product Types), End-user Industry (Food and Beverage, Automotive, Electrical and Electronics, Healthcare, Consumer Goods, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers the market sizes and forecasts in volume (kilotons) for all the above segments.

Market Snapshot

Polyethylene Terephthalate (PET) Resin Market Size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >5 %
Polyethylene Terephthalate (PET) Resin Market Major Players

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Market Overview

The polyethylene terephthalate (PET) resin market was estimated at over 80 million ton in 2021, and it is projected to register a CAGR of over 5% during the forecast period (2022-2027).

The COVID-19 pandemic had a negative influence on the market. Several nations went into lockdowns due to the pandemic, causing supply chain problems, labor shortages, and work stoppages. Various end-user sectors, including electrical and electronics, consumer products, food and beverage, and others, were badly hit as a result of this. The demand for polyethylene terephthalate resin suffered as well. Automobile manufacturing climbed by 9.8% in the first nine months of 2021 compared to the previous year, according to the OICA. In 2022, the situation is anticipated to improve, restoring the growth trajectory of the market.

Over the short term, the growing food and beverage industry, increase in PET collection and recycling rates in Europe, and demand for sustainable and recyclable materials are likely to drive the market's growth. The food industry has been witnessing robust growth in the Asia-Pacific and Middle-East and African regions. The rising income levels and the increasing population levels are the primary factors driving the growth of the food industry in these regions. With huge scope for growth in these regions, new investments are being observed in the food and beverage sector, which is intended toward setting up individual confectionery, food processing, and beverage producing facilities.

On the flip side, stringent regulations regarding the usage of PET and increasing usage of substitute products, such as high-density polyethylene, are expected to hinder the growth of the market studied.

The shift toward flexible packaging and the advent of bio-based PET are likely to act as opportunities for the market's growth in the future.

The bottles segment accounted for the largest market share of more than 50%. It is estimated to register a healthy CAGR during the forecast period.

Scope of the Report

The raw materials used in the production of PET are mono ethylene glycol (MEG), purified terephthalic acid (PTA), and dimethyl terephthalate (DMT). The PET resin is processed to convert it into bottles, fibers, films, and sheets, which are then used in various applications for many end-user industries, such as food and beverage, healthcare, consumer appliances, and others.

The polyethylene terephthalate (PET) resin market is segmented by product type, end-user industry, and geography. By product type, the market is segmented into bottles, films and sheets, and other product types. By end-user industry, the market is segmented into food and beverage, automotive, electrical and electronics, healthcare, consumer goods, and other end-user industries. The report also offers the market sizes and forecasts for 15 countries across the major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilotons).

Product Type
Bottles
Films and Sheets
Other Product Types (Fibers, Thermoforming, and Glass Fiber)
End-user Industry
Food and Beverage
Automotive
Electrical and Electronics
Healthcare
Consumer Goods
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

The Bottles Segment is Expected to Dominate the Market

As polyethylene terephthalate (PET) is an excellent water and moisture barrier material, plastic bottles made from PET are widely used for mineral water and soft drinks (low and high carbonated).

Apart from the above-mentioned applications, PET bottles are also used for alcoholic beverages, agro-chemicals, cosmetics and pharmaceuticals, edible oil, etc.

PET bottles are also recycled for various purposes. For example, they are used in solar water disinfection in developing nations, in which empty PET bottles are filled with water and left in the sun to allow disinfection by ultraviolet radiation. PET is useful for this purpose because many other materials (including window glass) that are transparent to visible light are opaque to ultraviolet radiation.

According to IBWA, bottles were the largest beverage category by volume in 2020. Around 23% of the bottles are utilized for water storage purposes in the United States.

PET bottles filled with sand, dirt, fly ash, or any other material such as domestic plastic garbage, when adequately compacted, may be used as a construction material instead of conventional bricks, according to the Indian Journal of Science and Technology.

Owing to the investments from the polyethylene terephthalate manufacturers in Saudi Arabia, the production capacity of PET resin is expected to increase in the coming years. For instance, in January 2019, Pan-Asia PET Resin (Guangzhou) Co., one of China's leading PET bottle suppliers, launched a SAR 3.9 billion-worth manufacturing plant in the country, which produces PET and PTA used in the packaging and fabric industries. Such investments are likely to boost the demand for PET resins in the bottles segment.

All the aforementioned factors are expected to increase the demand in the PET resin market during the forecast period.

Polyethylene Terephthalate (PET) Resin Market Share

The Asia-Pacific Region is Expected to Dominate the Market

The PET market in the Asia-Pacific region is driven by factors such as population growth, the rise in disposable income, urbanization in developing economies, and growing demand for fast-moving consumer goods.

China is a major producer of PET resins, with PetroChina Group and Jiangsu Sangfangxiang being among the largest global manufacturers in terms of volume, with capacities of more than 2 million ton.

The use of engineering plastic products in the packaging sector (PET containers, bottles, etc.) is increasing at a tremendous rate due to their advantages over conventional packaging plastics used. The demand from industries like food and beverage, consumer goods, and others for packing materials is increasing in China, owing to the increasing exports and domestic consumption.

China's food and beverage consumption has evolved dramatically over the past 40 years, and it gradually transformed from an industry-driven to a consumption-driven market.

The Asia-Pacific electronics industry grew rapidly in the recent past due to the high demand from countries like India and China. China is a strong, favorable market for electronics producers due to the country’s low labor cost and flexible policies.

Asian PET bottle markets have remained under pressure from a combination of plentiful supplies and buying resistance amid rising COVID-19 cases. However, the situation has changed since 2021, as flexible packaging is opted by many industries due to hygiene issues.

All the aforementioned factors are expected to increase the demand for PET resin in the region during the forecast period.

Polyethylene Terephthalate (PET) Resin Market Growth

Competitive Landscape

The PET resin market is a semi-consolidated market. The major players in the market include Indorama Ventures Public Company Limited, Alpek SAB de CV, Sinopec Group, Far Eastern New Century Corporation, and CR Chemical Materials Technology Inc., among others.

Recent Developments

  • On January 11, 2022, NN, a Vietnamese PET converter, was proposed to be acquired by Indorama Ventures. The company is now in the process of obtaining shares in NN. The planned acquisition is intended to assist IVL in strengthening its market position in the packaging sector in Asia-Pacific areas with high growth.
  • In January 2019, FENC US JV completed the acquisition of the M&G PTA/PET plant in Texas, United States.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Food and Beverage Industry

      2. 4.1.2 Demand for Sustainable and Recyclable Materials

    2. 4.2 Restraints

      1. 4.2.1 Stringent Regulations Regarding the Usage of PET

      2. 4.2.2 Increasing Usage of Substitute Products

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Product Type

      1. 5.1.1 Bottles

      2. 5.1.2 Films and Sheets

      3. 5.1.3 Other Product Types (Fibers, Thermoforming, and Glass Fiber)

    2. 5.2 End-user Industry

      1. 5.2.1 Food and Beverage

      2. 5.2.2 Automotive

      3. 5.2.3 Electrical and Electronics

      4. 5.2.4 Healthcare

      5. 5.2.5 Consumer Goods

      6. 5.2.6 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

        4. 5.3.2.4 Rest of North America

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Alpek SAB de CV

      2. 6.4.2 BY Sanfame Group (Jiangsu Sanfangxiang Group)

      3. 6.4.3 CR Chemical Materials Technology Inc.

      4. 6.4.4 Far Eastern New Century Corporation

      5. 6.4.5 Hengli Group Co. Ltd

      6. 6.4.6 Indorama Ventures Public Company Limited

      7. 6.4.7 JBF Industries Ltd

      8. 6.4.8 Lotte Chemical Corporation

      9. 6.4.9 OCTAL

      10. 6.4.10 Reliance Industries Limited

      11. 6.4.11 SABIC

      12. 6.4.12 Sinopec Group

      13. 6.4.13 Zhejiang Hengyi Group Co. Ltd

      14. 6.4.14 Zhejiang Zhink Group Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Advent of Bio-based PET

    2. 7.2 Shift Toward Flexible Packaging

      1. 7.2.1 Increase in PET Collection and Recycling Rates in Europe

**Subject to Availability

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Frequently Asked Questions

The Polyethylene Terephthalate (PET) Resin Market market is studied from 2017 - 2027.

The Polyethylene Terephthalate (PET) Resin Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Indorama Ventures Public Company Limited, Far Eastern New Century Corporation, Sinopec Group, CR Chemical Materials Technology Inc., Alpek S.A.B. de C.V. are the major companies operating in Polyethylene Terephthalate (PET) Resin Market.

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