The global bio-based Polyethylene Terephthalate (PET) market is expected to reach US$6.73 bln by 2025, according to a new report conducted by Grand View Research, Inc. Growing demand for sustainable packaging solutions including bottles and cartons is expected to drive the demand for bio-based PET. The adoption of Kyoto Protocol in economies, such as Japan, Australia, and Canada, and the Montreal Protocol in the U.S. and Canada, are expected to further restrict the use of products contributing to GHG emission, thus, driving the demand for bio-based products such as PET.
Consumer goods are projected to witness growth at a CAGR of 11.2%, in terms of volume, from 2016 to 2025. Rising demand for eco-friendly packaging among personal care companies including P&G is expected to play a vital role in increasing the market size for bio-based PET in consumer goods. Further key findings from the report suggest:
• Bio-based PET is used in the form of sheets, foams, and fabrics for automotive and electronics applications. High shatter resistance and light weight properties are expected to fuel bio-based PET demand for the manufacturing of internal and exterior automotive parts.
• Europe was the second largest market, which is likely to account for 27.1% of global volume by the end of 2025. Rising awareness about reducing greenhouse gas emissions in the manufacturing sector in accordance with the implementation of Horicon 2020 Strategy on a regional level is expected to remain a favorable factor.
• Central & South America is projected to be one of the most lucrative destinations for producing bio-based PET on account of abundance availability of sugar alcohol sources including corn and sugarcane in Brazil. In addition, rapid growth of soft drinks market in Brazil is expected to remain a key driving factor over the next nine years.
• Rapid industrialization across the Middle East is anticipated to drive the growth of various sectors such as construction, packaging, electronics, and automotive in the region which is expected to play a fundamental role in increasing the demand for bio-based PET over the next nine years. The market is estimated to be worth USD 241.6 million by 2025.
• The market is marked by the presence of few players including The Coca-Cola Company, Toray Industries Inc., Teijin Limited, M&G Chemicals, and Toyota Tsusho. Companies are focusing on research for the development of 100% PET, which is sourced from bio-based MEG and PTA.