The Global Polyethylene Terephthalate (PET) Resin Market was estimated at over 80 million tons in 2020 and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19. Owing to pandemic scenario, several countries went into lockdown, which led to supply chain disruptions, labour shortages, and work stoppages. Owing to this various end-user industries such as electrical & electronics, consumer goods, food & beverage, and others were severly impacted. This had an negative impact on the demand of polyethylene terephthalate resin.

The global automotive production was estimated to fall by around 17% in 2020 compared to the previous year, majorly due to the COVID-19 pandemic, however, various other factors have also affected the production. According to the OICA, automobile production declined by 23% in the first three quarters of 2020. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of market studied.

- Over the short term, growing food and beverage industry, increase in PET collection and recycling rates in Europe, and demand for sustainable and recyclable materials, are driving 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 that have been driving the growth of the food industry in these regions. Moreover, 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 of individual confectionaries, 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 towards flexible packaging and 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%. Furthermore, it is estimated to register a healthy CAGR during the forecast period.

Key Market Trends

Bottles 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, Cosmetic and Pharmaceuticals, Edible Oil, etc.

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- 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.
- Another niche application of PET bottles is as an Eco-Bricks in the developing countries of Asia, Africa, and Latin America.
- According to Indian Journal of Science and Technology, the PET bottles filled with sand, soil, fly-ash or any other material like a household plastic waste when well compacted can be used as a building material replacing traditional bricks.

- The strength parameters of filled plastic bottles are on a higher end as compared to traditional bricks. The eco-bricks are light in weight and possess the same thermal properties as of traditional bricks. The eco-bricks have high sound reduction index as compared to concrete blocks. Eco-bricks also do not permit light to pass through then as when seen by naked eyes.

- 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, on January 2019, Pan-Asia PET Resin (Guangzhou) Co., one of the leading PET bottle suppliers in China had launched SAR 3.9 billion manufacturing plant in the country, which produce PET and PTA used in the packaging and fabric industries. Such investments are likley to boost up the demand for PET resins in bottle segment.

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

Asia-Pacific Region to Dominate the Market

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

- China accounted for more than 15% of the global market and the demand is expected to grow drastically during the forecast period.

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

- 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.

- China's food and beverage consumption has evolved dramatically over the past 40 years, and gradually transformed from an industry-driven to a consumption-driven market. Revenue in the Food & Beverages segment of China is projected to reach USD 176,857 million in 2021 and is expected to show an annual growth rate (CAGR 2021-2025) of over 8 %, resulting in a projected market volume of USD 244,055 million by 2025.
- The Asia-Pacific electronic industry grew rapidly in the recent past, owing to the high demand from countries, like India and China. China is a strong, favorable market for electronics producers, owing to the countryâ low labor cost and flexible policies. Also, the Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025.

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

Competitive Landscape

The global 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.

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