Bio-based Polyethylene Terephthalate Market By Application (Beverages Containers, Food Containers, Non-food Containers, Films & Sheets, Moulded Parts & Components, Fabrics), by End-use Industry (Food & Beverages, Cosmetics & Pharmaceuticals, Automotive, Textile, Others) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

The bio-based polyethylene terephthalate (PET) market is projected to exhibit a CAGR of 20.8% during the forecast period from 2018 to 2026. The bio-based polyethylene terephthalate (PET) market is currently gaining traction owing to rising demand for eco-friendly, sustainable solutions from end-use industries, coupled with growing public awareness and increasing customer interest in bio-based plastics. Polyethylene terephthalate, a highly commercialized and preferred resin in the packaging industry, can be derived from bio-MEG as well as petroleum-derived PTA. However, manufacturers are currently shifting to bio-based PET owing to the ongoing green movement, and bio-based PET finds its way into all existing applications of polyethylene terephthalate.

Favorable government and environmental regulations are driving the market for an environmentally friendly substitute. However, an inadequate supply of raw materials due to the high price of ethanol from biofuel and the food and beverage sector is projected to limit the availability of MEG. Moreover, the emergence of substitutes such as polyethylene furoate (PEF) is expected to hamper industry growth in the near future.

For instance, in December 2011, The Coca-Cola Company signed an agreement with Avantium for the development of PEF, a 100% recyclable and bio–a based polymer that has superior properties as compared to bio-based PET and has the potential to replace conventional resource-based durable material polyethylene terephthalate (PET).

The U.S. has been one of the largest consumers of bio-PET for manufacturing bottles and consumer goods. A surge in demand for eco-friendly packaging from food and beverage, pharmaceutical, and consumer products in order to mitigate greenhouse gas (GHG) emissions on a domestic level is expected to fuel the market in developed economies. Also, increasing demand from non-packaging application industries such as automotive, textile, and electronics is expected to play a significant role in driving growth in the near future.

The majority of bio-PET comprises 70% petroleum-based PTA and 30% bio-based MEG. However, some companies are heavily investing in the development of 100% bio-based and biodegradable PET. Key players operating in the bio-based polyethylene terephthalate (PET) market include Toray Industries Inc., Teijin Limited, M&G Chemicals, and Toyota Tsusho, among others.

Market Snapshot

The beverage container segment accounts for more than three-quarters of the total bio-based polyethylene terephthalate demand.

The beverage container segment dominated the bio-based polyethylene terephthalate (PET) market demand in 2017 and is expected to maintain its position during the forecast period, with the majority of the demand coming from bio-PET water bottles, followed by carbonated soft drinks bottles and others. The growing importance of sustainable packaging among beverage manufacturers such as Heinz, Coca-Cola, and PepsiCo is expected to be the key driving factor for overall market growth.

In 2017, the Films and Sheets segment came in second, followed by food and non-food containers. Food containers include a wide range of food storage products such as bottles, jars, tubs, and so on. The films, sheets, and fabrics application segment are projected to witness robust growth during the forecast period owing to increasing demand for bio-PET from these applications.

The food and beverage end-use industry held the largest share in 2017 and is projected to remain dominant during the forecast period.

The Food & Beverage segment accounted for more than 70% of bio-based polyethylene terephthalate market demand in 2017. Bio-PET is becoming the preferred packaging material over oil-based PET for many food and beverage products. Being an inert material with good physical properties, glass-like transparency, and environmentally friendly nature makes Bio-PET a good option for water and carbonated soft drink packaging.

Moreover, its compatibility with food-grade materials, good gas barrier properties, and retention of carbonation during the normal distribution and usage of carbonated beverages fuel its growth in the food and beverage industry. Bio-PET also exhibits a high strength-to-weight ratio that enables the manufacture of lightweight, unbreakable containers.

Bio-PET also finds promising applications in the textile industry. Many manufacturers are moving towards producing bio-polyester fabrics, which result in much lower greenhouse gas emissions while offering the same versatility and performance as their petroleum counterparts, which is expected to boost the demand for bio-PET from the textile industry.

Growing End-Use Industries in Asia-Pacific Position the Region as the Leader

Asia-Pacific markets accounted for the largest market value and volume share in 2017. Growing end-use industries such as food and beverages, automotive, and textile in Asia-Pacific offer several growth opportunities for the bio-based polyethylene terephthalate market.

Asia Pacific's cosmetics, pharmaceutical, and consumer goods markets are also flourishing owing to rising disposable income and strong economic growth, which will also stimulate government spending, solid consumer spending, and increased demand for goods. These factors are expected to positively contribute to the growth of bio-PET in the Asia-Pacific region.

Leading Asia's economic growth-Pacific Countries

The majority of bio-PET demand comes from economies such as India and China. Rising disposable income, high economic growth, improving living standards, high government spending, etc., all offer abundant opportunities for bio-PET in these emerging economies.

In 2017, North America was the second-largest market by value and volume, followed by Europe. North America's bio-based polyethylene terephthalate market is mainly driven by technical innovation, rising consumer awareness about the use of green products, and strict government and environmental regulations for reducing GHG emissions.

Latin America is projected to be one of the most lucrative regions besides Asia-Pacific for producing bio-based PET on account of the abundance and availability of sugar alcohol sources, including corn and sugarcane in Brazil. Furthermore, the rapid growth of the Latin American soft drink market is expected to propel the region's bio-PET market.

New product development is the preferred strategy adopted by key players in the bio-based polyethylene terephthalate market.

Increasing costs of petrochemical feedstock and consumer shifts towards environmentally friendly products motivate manufacturers to develop green substitutes for polyethylene terephthalate to cater to varying consumer needs. The bio-based polyethylene terephthalate market is highly fragmented, with the presence of many public and private players forcing companies to form strategic alliances for manufacturing 100% bio-based products.

However, new product development is the preferred strategy adopted by key players to get an edge over other players. For instance, in April 2016, Wisconsin-based company Virent introduced the world's first 100% plant-based polyester shirts in order to develop a petroleum-free polyester and a lower carbon footprint alternative to current petroleum-based fabrics. Key manufacturers of the bio-based polyethylene terephthalate market include The Coca-Cola Company, Teijin Limited, Toray Industries Inc., and Toyota Tsusho Corporation, among others.

Periods of History and Forecast

Each market segment is analyzed in our study for the period of 2016 to 2026,with 2017 as the base year, while the period from 2018 to 2026 is considered for the CAGR calculation.

Report Scope

The report provides a thorough outline of the global bio-based polyethylene terephthalate market by categorizing the market into the different segments given below.

Key questions are answered in this report.

  • What are the current market trends in the bio-based polyethylene terephthalate market and the most valuable opportunities for the players?
  • How do environmental regulations affect global as well as regional markets?
  • Which is the most lucrative region for investment?
  • What are the market size and trends in emerging markets?
  • Which are the prime end-use industries for bio-PET across different geographies?
  • What are the major bio-PET applications and market sizes?
  • Which are the leading players and their market positions?

Frequently Asked Question:

The market for Bio-based Polyethylene Terephthalate Market is expected to reach USD$ XX Mn in 2026.

The Bio-based Polyethylene Terephthalate Market is expected to see significant CAGR growth over the coming years, at 20.8%.

The report is forecasted from 2018 -2026.

The base year of this report is 2017.

The Coca-Cola Company, Teijin Limited, Toray Industries Inc., and Toyota Tsusho Corporation. are some of the major players in the global market.

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Published Date:  Sep 2018
Category:  Advanced Materials
Report ID:   59331
Report Format:   PDF
Pages:   120
Rating:    4.1 (69)
Delivery Time: 24 Hours to 48 Hours   
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