Industry Outlook

Bio-based polyethylene terephthalate (PET) market projected to exhibit the CAGR of 20.8% during the forecast period from 2018 to 2026. Bio-based polyethylene terephthalate (PET) market is currently gaining traction owing to rising demand for eco-friendly sustainable solution from end-use industries coupled with growing public awareness and increasing customer interest in bio-based plastics. Polyethylene terephthalate is highly commercialized and preferred resin in 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 ongoing green movement and also bio-based PET find its usage in all existing application of polyethylene terephthalate.

Favorable government and environmental regulations driving the market as an environment friendly substitute. However, inadequate supply of raw materials due to high for ethanol from biofuel and food and beverage sector projected to limit the availability of MEG. Moreover, the emergence of substitutes such as polyethylene furanoate (PEF) 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, 100% recyclable and bio–based polymer has superior properties as compared to bio-based PET and has the potential to replace conventional resources 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. Surge in demand for eco-friendly packaging from food & beverage, pharmaceutical, and consumer products in order to mitigate the greenhouse gas (GHG) emissions on a domestic level expected to fuel the market in developed economies. Also, increasing demand from non-packaging application industry such automotive, textile, and electronics 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 for the development of 100% bio-based and biodegradable PET. Key players operating in the bio-based polyethylene terephthalate (PET) market includes Toray Industries Inc., Teijin Limited, M&G Chemicals, and Toyota Tsusho among others.

"Beverages Container Segment Represents Over 3/4th Share of Total Bio-based Polyethylene Terephthalate Demand"

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

Films & Sheets segment accounted for the second largest share in 2017, followed by food and non-food containers. Food containers includes wide range of food storage products such as bottles, jars, tubs, and so on. Films & sheets and fabrics application segment projected to witness the robust growth during the forecast period owing to increasing demand of bio-PET from these application.

"Food & Beverages End-use Industry Held the Largest Share in 2017 and Projected to Remain Dominant during the Forecast Period"

Food & Beverages segment accounted for more than 70% of bio-based polyethylene terephthalate market demand in 2017. Bio-PET is becoming preferred packaging material over oil-base PET for many food and beverages products. Being an inert material with good physical properties, glass-like transparency, and environment 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 fuelling its growth in food & beverages industry. Bio-PET also exhibits a high strength to weight ratio that enables the manufacture of lightweight unbreakable containers.

Bio-PET also find promising application in textile industry. Many manufacturers are moving towards producing bio-polyester fabrics resulting in much lower greenhouse gas emissions while offering same versatility and performance as its petroleum counterpart expected to boost the demand for bio-PET from textile industry.

"Growing End-Use Industries in Asia-Pacific, Making It the Leading Region"

Asia-Pacific market accounted for the largest market value and volume share in 2017. Growing end-use industries such as food & beverages, automotive, and textile in Asia-Pacific offers several growth opportunities for bio-based polyethylene terephthalate market. Asia Pacific cosmetics & pharmaceutical and consumer goods market is 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 Asia-Pacific region.

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

North America is the second largest market with the significant value and volume share, followed by Europe in 2017. North America bio-based polyethylene terephthalate market is mainly driven by technical innovation, rising consumer awareness about the use of green products, and strict government & environment regulation for reducing GHG emission market. Latin America is projected to be one of the most lucrative region besides Asia-Pacific for producing bio-based PET on account of abundance availability of sugar alcohol sources including corn and sugarcane in Brazil. Moreover, rapid growth of soft drinks market in Latin America expected to propel the bio-PET market in the region.

"New Product Development is the Preferred Strategy Adopted by Key Players in Bio-based Polyethylene Terephthalate Market"

Increasing costs of petrochemical feedstock and consumer shift towards environmentally friendly products motivate manufacturers to develop green substitute of polyethylene terephthalate to cater varying consumer needs. 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 product. 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 world’s first 100% plant-based polyester shirts in order to develop the petroleum-free polyester and a lower carbon footprint alternative to current petroleum-based fabrics. Key manufacturers of bio-based polyethylene terephthalate market includes The Coca-Cola Company, Teijin Limited, Toray Industries Inc., and Toyota Tsusho Corporation among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Bio-based Polyethylene Terephthalate market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Bio-based Polyethylene Terephthalate market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Bio-based Polyethylene Terephthalate market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Bio-based Polyethylene Terephthalate market?
• Which is the largest regional market for Bio-based Polyethylene Terephthalate market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Bio-based Polyethylene Terephthalate market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Bio-based Polyethylene Terephthalate market worldwide?