The Europe polyethylene terephthalate (PET) resin market is estimated to witness a significant growth, at an estimated CAGR of over 4.5%, over the forecast period. Increase in PET Collection and recycling rates and PET as choice for eco-conscious bakers are expected to drive the market during the forecast period.
- Increase in prices of PET due to supply issues are likely to hinder the market's growth.
- Increasing use of bio-based PET products are projected to create opportunities to the market growth in the future.
- Germany 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.
Germany to Dominate the Market
- The packaging industry in Germany has been growing at a rapid pace, owing to the huge increases in domestic e-commerce and rising foreign exports. In addition, the increasing preference for packaged food and beverages has also aided its growth. Due to this positive development in the packaging industry, the demand for advanced packaging has increased in Germany, which is expected to contribute to the demand for polyethylene terephthalate (PET).
- Recycling takes priority with PET, with 34% of the recycled material processed into new PET bottles. Other end-users include the film industry, which accounts for 27%, textile fiber manufacturers 23%), and other applications, such as tape and cleaning agent container production. 80% is recycled within Germany, and the rest is exported to destinations near the country's borders.
- PET material exports to China from Germany have seen a steady decrease in recent years.
- In Europe, Germany holds the largest healthcare market. The annual expenditure on health in the country is estimated to be more than EUR 350 billion, excluding fitness and wellness.
- Hence, with the growth of the food and beverage industry in the country, the demand for PET is expected to witness growth in the country in the upcoming years.
The Europe polyethylene terephthalate (PET) resin market is consolidated in nature. Key players in the market include SABIC, Indorama Ventures Public Company Limited, Polisan Hellas, and BASF SE, among others.
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