The Asia-Pacific polyethylene terephthalate (PET) resin market is estimated to witness a significant growth, at an estimated CAGR of over 5.5%, over the forecast period. Increasing consumption of packaging material and demand for sustainable and recyclable material are expected to drive the market during the forecast period.
- Stringent government regulations are likely to hinder the market's growth.
- Advent of bio-based PET and shift toward flexible packaging are projected to create opportunities to the market growth in the future.
- China 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.
China to Dominate the Market
- China is one of the largest consumers of polyethylene terephthalate (PET) globally. The abundant availability of raw materials and low cost of production have been supporting the production growth of the engineering plastics, such as PET in the country since the past few years.
- The consumption of PET has increased drastically in the recent past due to the growing population, increasing urbanization, and substitution of many metals in various industries, such as automotive, consumer appliances, etc.
- The use of engineering plastic products in the packaging sector (PET containers, bottles, etc.) is increasing at a tremendous rate, owing to their advantages over the 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, as well as domestic consumption.
- The PET market for food and beverage are also being boosted as the living standard in China increases along with consumption power, and people venture into packaged food, and ready-to-eat and ready-to-cook food, as well as a variety of beverages, including health drinks.
- Thus, from the aforementioned points, the prolific Chinese market has attracted many PET manufacturers in the country, catering to the market in China and also to other countries of the Asia-Pacific region.
The Asia-Pacific polyethylene terephthalate (PET) resin market is consolidated in nature. Key players in the market include LOTTE Chemical CORPORATION, Reliance Industries Limited, Far Eastern New Century Corporation, Indorama Ventures Public Company Limited, and Sinopec, among others.
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