Polyethylene Terephthalate, also called PETE or PET, is a plastic resin of polyester. It is extensively used as a packaging material owing to its properties such as high versatility, strength, and recyclability. Bio-based polyethylene terephthalate is a resin manufactured from terephtalic acid and ethylene glycol, which is obtained from plants such as sugar cane and sugar beet by thermo-chemical process. Due to its environment friendly qualities, such as reduction in GHG emissions and carbon footprint, bio-based polyethylene terephthalate is widely accepted in packaging of various food and beverages and in automotive industry.
Global bio-based polyethylene terephthalate market was valued at US$ 2456.00 Mn in 2021 in terms of revenue, exhibiting a CAGR of 17.57 % during the forecast period (2022 to 2030).
Drivers
Increased Focus Towards Environment Friendly Products
The bio-based polyethylene (PE) has a number of advantages, including being 100 percent recyclable and carbon neutral, which has led to its significant acceptance. The growing focus on sustainable packaging is expected to drive bio-based polyethylene (PE) demand over the anticipated period. Furthermore, the introduction of bio-based polymers as an environmentally acceptable alternative to traditional plastics to help reduce fossil fuel usage will spur business expansion. Owing to the product’s environmental-friendly properties, the market is estimated to have an accelerated growth over forecast period.
Increased Utilization of Bio-Based Polyethylene (PE)
The increased use of bio-based polyethylene (PE) colorants and compounds in pharmaceutical and medical applications will accelerate the overall market growth. Furthermore, rising beauty product production in emerging nations is expected to be a major driver over the forecast period. The increasing usage across packaging applications such as carry bags, plastic films, and bottles will further propel the bio-based polyethylene (PE) market growth rate.
Furthermore, the high expenditure on digital technologies and an increase in e-commerce sales of cosmetics and personal care items will drive demand for sustainable packaging choices, resulting in market value growth. The shifting consumer lifestyle and the increasing awareness towards sustainable packaging around the world are projected to bolster the growth of the market.
Rising consumption of beverages coupled with the regulations imposed by various governments to reduce GHG emission, is one the major factors contributing to the growth of the bio-based PET market. In 2021, France adopted Green Growth and Energy Transition Law, with key objectives for GHG reduction, energy efficiency (reducing demand by 20% by 2030 and 50% by 2050), and diversification of energy supply by reducing the consumption of fossil and nuclear fuels and to accelerate the deployment of renewables. Further, the adoption of Montreal and Kyoto protocol in various countries including the U.S., Canada and Japan among others is expected to increase the demand for low carbon emitting substitutes such as bio-based PET. Moreover, growing demand for sustainable environment friendly and lightweight material in automotive industry is expected to boost the demand for bio-based polyethylene terephthalate market at the global level. However, availability of substitutes such as bio-based polyethylene furanoate (PEF), is a major factor hindering the growth of the market. The production cost of bio-based PEF is less than the bio-based PET. Moreover, PEF has a relatively long product shelf life. Owing to these factors, bio PEF is gaining popularity in packaging industry and thus, hampering growth of bio-based PET market.
Figure 1. Global Bio-Based Polyethylene Terephthalate Market Value Share (%), By Region, 2021
Market Restraints
Availability of Substitutes
The bio-based polyethylene (PE) market growth is likely to be hampered by the emergence of various alternatives such as bio-based polyethylene terephthalate (PET), polylactic acid (PLA), and PEF polyethylene furanoate (PEF). The availability of these alternatives reduces the market demand for the bio-based polyethylene (PE).
Fluctuating Raw Materials
The overall cost structure of the product is affected by changing raw material costs. The fluctuating raw material prices operate as a restriction. Price fluctuations in petrochemical-based raw materials have impacted the bio-based polyethylene (PE) market. Consistent worldwide demand and capacity limits in key chemicals and resins have caused raw material supply to tighten and prices to rise. Therefore, the uncertainty regarding the accessibility of raw materials will challenge the bio-based polyethylene (PE) market growth rate.
This bio-based polyethylene (PE) market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the bio-based polyethylene (PE) market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 2456.00 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 17.57 % | Forecast Period: | 2022-2030 |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Toray Industries Inc., The Coca-Cola Company, Teijin Limited, Toyota Tsusho Corporation, Anellotech Inc., Gevo Inc., Plastipak Holdings Inc., Virent Inc., and Ford Motor Company. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Market Trends
The rising environmental concerns and awareness amongst consumers regarding the detrimental effects caused by conventional plastic materials have prompted governments of various nations to promote the uptake of sustainable packaging solutions with a higher recyclable rate. This, in turn, is facilitating the widespread adoption of bio-based polyethylene (PE) across several industrial verticals in the form of carry bags, bottles, plastic films, and containers for packing various consumer goods, which represents a prime factor driving the market growth. Moreover, the increasing need for carbon-free products to mitigate fossil fuel depletion and greenhouse gas (GHG) emissions is acting as another growth-inducing factor. In line with this, significant technological advancements in hydraulic fracturing procedures have resulted in the rise of shale gas formations that supply as a feedstock for manufacturing polymers, is supporting the market growth. Additionally, the implementation of global wide lockdown has supplemented the usage of e-commerce platforms to order multiple products, which is further fueling the demand for sustainable packaging materials, such as bio-based polyethylene, thus propelling the market growth. Other factors, such as strategic collaborations amongst key players and extensive investments in research and development (R&D) activities to engineer high-performance, recyclable, and non-toxic polymers, are creating a positive outlook for the market.
Figure 2. Global Bio-Based Polyethylene Terephthalate Market value Share (%), By Application, 2021
Recent Developments
Competitive Section
Major players operating in the global bio-based polyethylene terephthalate market include Toray Industries Inc., The Coca-Cola Company, Teijin Limited, Toyota Tsusho Corporation, Anellotech Inc., Gevo Inc., Plastipak Holdings Inc., Virent Inc., and Ford Motor Company.
Bio-based polyethylene terephthalate (PET) is produced from terephthalic acid (PTA) and monoethylene glycol (MEG). Bio-based PET is gaining popularity due to increasing environmental concerns. The wastes from these bio-based materials emit approximately 50% less carbon dioxide as compared to conventional plastics. Furthermore, bio-based polyethylene terephthalate is a widely used as a material in the packaging textile and automotive industry.
Market Dynamics
Fluctuating oil prices and awareness regarding the growing GHG emission are the major factors propelling the growth of the bio-based PET market. Further, bio-based PET is highly resistant to heat which in turn, is acting a major factor for high demand from the packaging industry. However, most of the bio-based PET produce currently, contains 30% monoethylene glycol which is made from sugar molasses with the rest made from petroleum- based purified terephthalic acid (PTA). The replacement of PTA with a bio-based content is expected to propel the growth of the bio based PET market significantly, as this will eliminate the dependency on oil-based products. Several leading players operating in the global bio-based PET market are focusing on the production of 100% bio based PET. For instance, in 2017, Nestle S.A. and Groupe Danone S.A. had started working with the Origin Materials based in West Sacramento, California for commercial- scale production of containers made of 100 percent bio-based PET.
Asia Pacific dominated the bio based PET market in 2021 and is expected to retain market dominance throughout the forecast period. Further, Asia Pacific is also expected to witness the fastest growth during the forecast period. This is attributed to the increasing concerns about GHG emissions. According to the Asian Development Bank (ADB), without any climate policy interventions, South Asia would become increasingly carbon intensive by 2030. Furthermore, bio-based PET is a lightweight material and thereby, its transportation cost is low. These are some of the key factors largely supporting the growth of the Bio-Based PET market in Asia Pacific.
Key features of the study:
Detailed Segmentation:
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