The Middle-East and Africa polyethylene terephthalate (PET) resin market is estimated to witness a significant growth, at an estimated CAGR of over 4.5%, over the forecast period. Increasing emphasis on recycling is 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.
- Saudi Arabia 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.
Saudi Arabia to Dominate the Market
- Being an oil-producing economy, from the initial phase itself, the country's interest in other industries was less. However, after the emergence and dominance of the non-OPEC countries, globally, and high volatility of crude oil prices, Saudi Arabia decided to diversify its portfolio to help the economy grow uniformly.
- The market's openness and investment opportunities in Saudi Arabia are less, when compared to other emerging economies. However, the government, in its 10th development plan, is reforming economic policies, with investments in diversified sectors, and is trying to attract private investments in the country, to make it a diversified economy that is not dependent on oil.
- The packaging industry has been witnessing substantial growth in Saudi Arabia, majorly driven by the increasing food manufacturing and processing and growing online food delivery services.
- The Saudi Arabian food manufacturing and processing sector rapidly grew in the past 10 years. The processed food industry in Saudi Arabia is expected to grow significantly, due to the increasing market for frozen foods, chilled processed foods, snacks, and chocolate confectionary.
- The healthcare industry in Saudi Arabia accounts for the largest expenditure in the GCC region, and there is a rising demand for increasing the hospital bed capacity and long-term care centers. The increasing healthcare expenditure in the country, along with the privatization of several public hospitals, is expected to drive the demand for healthcare equipment in the country, which, in turn, is expected to drive the PET market in the coming years.
- Owing to all the aforementioned factors, the market for PET is expected to grow in the country during the forecast period.
The Middle-East and Africa polyethylene terephthalate (PET) resin market is consolidated in nature. Key players in the market include SABIC, Indorama Ventures Public Company Limited, Equate Petrochemical Company, and BASF SE, among others.
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