The global polyethylene terephthalate (PET) compounding market is expected to reach USD 7.82 billion by 2024, according to a new report by Grand View Research, Inc. Rising polymer demand in end-use industries such as packaging, automotive, electrical & electronics and constructions is expected to remain a key driving force for PET compounding market growth.
Strong demand for PET bottles coupled with growing packaged food & beverage industry in emerging economies of Asia Pacific and Latin America such as China, India, Mexico, and Brazil are anticipated to fuel industry growth significantly.
Regulatory agencies to reduce Green House Gas (GHG) emissions by means of vehicular weight reduction and fuel efficiency improvements have formulated policies and guidelines. Automotive manufacturers & OEMs in order to meet these regulations have adopted plastics as a replacement for metals such as aluminum and steel.
Packaging accounted for over 55% of overall market volume in 2015. Growth in packaging industry can be attributed to the suitability of PET compounds to meet customer requirements with more durable, lightweight and corrosion-resistant parts.
Further key findings from the study suggest:
- The global polyethylene terephthalate (PET) compoundingmarket demand was over 2,000 kilo tons in 2014 and is expected to exceed 3,500 kilo tons by 2024, growing at a CAGR of 6.9% from 2016 to 2024
- Increasing substitution for glass, metals, wood, natural rubber and man-made materials by PET is driving the global market
- Developing recycling processes that utilize lesser input in terms of fluids, energy, and machinery is crucial for production improvisation
- Government regulations restricting petrochemical derived polymers consumption in applications such as food packaging, and medical devices are expected to further boost bio-based PET production
- China accounted for nearly half of the Asia Pacific compounding volume in 2015. The country is characterized by high demand for PET compounds in packaging & electronic applications
- BASF and Avantium Dutch technology firm formed a joint venture company to focus on polyethylene furanoate (PEF) and furandicarboxylic acid (FDCA), a bio-based polymer to replace polyethylene terephthalate
- Polyethylene terephthalate (PET) compounding market is highly fragmented among multinational players and small domestic companies
- Key industry participants in the market include Dow Chemical Company, RTP Company, SABIC, LyondellBasell, BASF SE, DuPont, SRF Plastics, A. Schulman, Polyvisions, Covestro, Washington Penn Plastics and PET Processors LLC