The South America polyethylene terephthalate (PET) resin market is estimated to witness a significant growth, at an estimated CAGR of over 4%, over the forecast period. Growing food and beverage industry and growing demand for sustainable and recyclable material are expected to drive the market during the forecast period.
- Increasing use of bio-based PET products are projected to create opportunities to the market growth in the future.
- Brazil is expected to dominate the market and is also expected to witness the fastest CAGR during the forecast period.
Key Market Trends
Increasing Demand from Food & Beverage Industry
- PET is a plastic material, which has found increasing applications in the food and beverage industry for packaging purposes. PET has been replacing glass in food packaging applications, owing to its extremely lightweight, easy and efficient to transport, and shatterproof features.
- PET is a very strong and inert material that does not react with foods. It is resistant to attacks by micro-organisms and will not biologically degrade. Additionally, unlike glass, PET is extremely lightweight, easy and efficient to transport, re-sealable for efficient on-the-go hydration, environmentally safe, recyclable, and shatterproof. Owing to its chemical inertness and physical properties, especially glass-like transparency, lightweight, and rigidity, PET is widely used as a food packaging material.
- Common applications of PET in the food and beverage industry are bottled water, milk, juices, and carbonated drinks bottles, ketchup, jars for peanut butter, mayonnaise, pickles, jam, and others, sandwich boxes, tubs and food containers, can laminations, etc.
- Besides packaging, PET is also used in the food industry for clamshells, deli containers, as well as microwave food trays. Growing population, increase in consumers' disposable income and purchasing power, increasing demand for easily transportable and flexible food packaging, etc. are further expected to increase the demand for PET during the forecast period.
Brazil to Dominate the Market
- The political instability, high inflation, low prices of export of goods, and decreased confidence levels have resulted in the contraction of the country's economy.
- The production capacity of PET resin in the country is more than 1,000 kilotons annually and is the seventh largest across the globe.
- Brazil's packaging industry is the fifth largest in terms of sales, and it accounts for about 1.5% of the country's GDP. Sustainable packaging has increased with consumer awareness and environmental concerns by the manufacturers, in order to comply with governmental regulations. Therefore, this has resulted in a demand for PET, which is expected to increase at a high rate.
- The sales of consumer electronics appear to have reached saturation in the country. Consumers are more careful while buying expensive products, and this behavior is expected to continue in the upcoming years.
- The growth in the automotive and packaging segments is expected to increase the demand for PET in the coming years in the country.
The South America polyethylene terephthalate (PET) resin market is consolidated in nature. Key players in the market include SABIC, Indorama Ventures Public Company Limited, DAK Americas, and BASF SE, among others.
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