Bio Polyethylene Terephthalate (PET) market estimated to grow to US$12.6 bln by 2020

17-Nov-15

The global Bio Polyethylene Terephthalate (PET) Market is likely to be valued at US$12.6 bln by 2020; as per a report by Radiant Insights, Inc. Growing preference of biopolymers in numerous applications coupled with favorable government regulations supporting sustainable packaging is likely to drive bio PET market demand. Increasing beverage consumption in BRICS countries and steps taken by companies like PepsiCo and Coca-Cola Company towards sustainable packaging for CSD (carbonated soft drinks) consumption is likely to favor demand. Adoption of protocols such as Kyoto and Montreal in countries such as Japan, Canada and U.S. is expected to reduce dependency on products contributing towards carbon emissions. Substitute products such as polyethylene furanoate coupled with biomass raw material uncertainty are anticipated to challenge bio PET industry growth. Bottles dominated the application segment and accounted for more than 75% of the total bio-based PET market demand in 2013. This application is also likely to witness higher gains over the forecast period owing to companies’ policy to adopt sustainable packaging for food & beverage applications. Consumer goods applications are anticipated to witness sluggish gains at an estimated CAGR of 28.3% up to 2020. Key report insights suggest: Global Bio PET market size was estimated 650,000 tons in 2013 and may register 5800,000 tons by 2020 growing with an estimated CAGR of 40.9% from 2014 to 2020. Asia Pacific dominated the region market and accounted for 32.1% of the total demand in 2013. Growing beverage consumption in the form of energy & carbonated drinks particularly in China and India is likely to favor demand. North America is anticipated to witness moderate gains at CAGR of 39.8% from 2014 to 2020. Europe bio PET market was dominated by bottle applications with an estimated revenue generation of approximately USD 270 million in 2013. This application is anticipated to be the fastest growing in terms of demand with estimated gains of 38.6% up to 2020. The market is characterized by limited number of manufactures owing to stiff competition. The companies form strategic alliances for manufacturing 100% bio-based product. Major companies include The Coca-Cola Company, Teijin Ltd, M & G Chemicals, Toyota Tsusho and Toray Industries.