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PET and PBT resins market to grow at a robust rate of 7.3% from 2014 to 2019

PET and PBT resins market to grow at a robust rate of 7.3% from 2014 to 2019

PET & PBT resin consumption is significantly increasing in packaging and electrical & electronics industry respectively. PET is replacing conventional packaging materials such as glass, aluminium, paper and metal due to its light weight; whereas PBT features thermal, dimensional and moulding stability. PET & PBT resin market is estimated to be US$47.379 bln by 2019, signifying a robust growth rate of about 7.3% from 2014 to 2019, as per MarketsandMarkets. The value of the PET market was estimated to be US$29,358.5 mln in 2013, and is projected to reach US$44,581.8 mln by 2019, at a CAGR of 7.3%, from 2014 to 2019. The PBT resin market reached US$2112.6 mln in 2013 and is projected to reach US$2796.9 mln by 2019, at a CAGR of 4.6% during the period of study. The high demand across the industries, such as bottles, films and food packaging will increase the overall PET resin consumption. The high demand of PBT resin across the industries, such as electrical & electronics, automotive and consumer appliances will support the PBT resin market. The key drivers of PBT resin market, such as the trend of metal being replaced by engineering plastics, growth in electrical & electronics applications, growth of emerging economies; and restraints, such as reducing halogen content in flame-retardant PBT and replacement by bio-based PBT. The key drivers of PET resin industry are population growth, rise in disposable income, urbanization in developing economies, growing fast moving consumer goods, and restraint such as being a capital and technology intensive industry.

The Asia-Pacific region emerged as the driving factor for both PET & PBT resin market, contributing about 38% and 53.6% shares respectively, of the total demand in terms of consumption. In the PBT resin market, China is the leading country in terms of consumption in the Asia-Pacific region, due to the increased demand from the automotive and electrical & electronic industries. The Asia-Pacific region is expected to dominate the PET Resin Market from 2014 to 2019 with its growing demand for PET resin in different applications, especially bottles, films, and food packaging segments. The Asia-Pacific and Europe markets are estimated to show a growth of 10.9% and 2.8% respectively during the period under review. PBT is replacing metal in many areas with the same thermo-mechanical properties in automotive applications, eventually driving the PBT resin market. Growth in auto sales and electronics market in emerging economies is also expected to boost the PBT resin market. The Asia Pacific region is the largest market, both, in terms of volume and value, followed by Europe and ROW. China, USA, Germany, Japan, India, South Korea, Brazil and Mexico are expected to continue as successful thermoplastic polyester resin markets. The key players in the PET Resin Market are Indorama Ventures (Thailand), M&G Chemicals (Luxembourg), Jiangsu Sanfangxiang Group (China), Far Eastern New Century (Taiwan), Alpex (Mexico), and others. The main players in the PBT resin market are BASF (Germany), Toray Industries (Japan), Royal DSM N.V. (The Netherlands), E. I. du Pont de Nemours and Company (U.S.), Saudi Basic Industries Corporation (Saudi Arabia), Nan Ya Plastics (Taiwan), Lanxess Corporations (Germany), Celanese Corporation (U.S.), and others

The following capacity additions are underway with production scheduled for the next couple of years:
Indorama Ventures (Thailand) is all set to invest US$190 mln to build a new PET resin manufacturing plant with an annual capacity of 500,000 tons at Decatur in Morgan County, U.S. Construction of this new facility commenced in 2013 and is set for completion in Q4-2015.
M&G Chemicals (Luxembourg) awarded a US$1 bln engineering, procurement and construction contract to Sinopec Engineering (Group) Co. Ltd. to build a polyethylene terephthalate-purified terephthalic acid (PTA) plant to be started in 2014 in Corpus Christi, Texas. The plant will produce 600,000 metric tons of PET and 864,000 metric tons of PTA, making it the largest single-line PET and PTA plant in the world.

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