The global PET market was estimated to be worth US$23.3 bln in 2010 and is expected to reach US$48.4 bln in 2016, growing at a CAGR of 9.6% from 2011 to 2016, as per a report published by Transparency Market Research. In the overall global market, Asia Pacific is expected to maintain its lead position in terms PET demand over the next five years. Demand for PET is primarily being driven by increasing application in CSD packaging as well as rising consumption of packaged, frozen and other processed foods. Largest PET applications include packaging of CSD and bottled water, alcoholic and hot beverages, sheet/films and food. The PET value chain market has been further segmented under two markets, polyethylene terephthalate (PET) and ethylene. Over the last decade demand PET has increased considerably due to growing demand from food and beverages industry. Ethylene market is segmented on the basis of its application as polyethylene, ethylene oxide, and ethylene dichloride and ethyl benzene. The market for ethylene was estimated to be worth US$140.4 bln in 2010 and it is expected to reach US$254.5 bln in 2016.
Polyethylene terephthalate saw a growth of around 7% last decade, according to GBI Research. The demand for the flexible packaging chemical is a result of its diverse application in a range of new products in the fast-moving consumer goods (FMCG) and food. Global PET demand was 6,472,350 in 2000, increasing to 12,621,553 in 2010 - a compound annual growth rate (CAGR) of 6.9%. GBI said this upward trend is likely to continue into the future, with global PET demand expected to reach 23,452,281 by 2020. The Asia-Pacific region showed the greatest demand for PET, accounting for 40.6% of global demand for the chemical. GBI anticipates this will increase to 47.8% by 2020 as a result of growing petrochemical product manufacturing in China. China is expected to be the PET market leader by 2020, due to major PET producers investing in operations in the country. Other countries that could see an increase in PET markets are Brazil, Russia and India. The growing demand for greater product protection and longer shelf life will see further growth in flexible packaging. The company said better gas barriers and UV light protection, which extends the shelf life of PET-packaged products, will see PET packaging increase its share in the packaging sector in the next decade. New hot-filling processes are creating potential for PET packaging of pasta and sauces.