Asia-Pacific Polyethylene Terephthalate (PET) Resin Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia-Pacific Polyethylene Terephthalate (PET) Resin Market is segmented by Product Type (Bottles, Films and Sheets, and Other Product Types), End-user Industry (Food and Beverage, Automotive, Electrical and Electronics, Healthcare, Consumer Goods, and Other End-user Industries), and Geography (China, India, Japan, South Korea, ASEAN Countries, and Rest of Asia-Pacific).

Market Snapshot

Asia-Pacific Polyethylene Terephthalate PET Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2020
CAGR: >6 %
Asia-Pacific Polyethylene Terephthalate PET Market Top Companies

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Market Overview

The Asia-Pacific polyethylene terephthalate (PET) resin market size was estimated at over 50 million ton in 2020, and the market is estimated to witness a CAGR of over 6% over the forecast period (2021-2026).

The market was negatively impacted due to COVID-19. The COVID-19 impact on the automotive industry may act as a barrier to the growth of the market studied. The automotive production in China fell to 16.95 million units in Q3 2020 from 18.16 million units in Q3 2019, whereas in Japan, the number fell from 7.37 million units to 5.69 million units in the same period. Owing to pandemic scenario, several countries went into lockdown, which led to supply chain disruptions, labor shortages, and work stoppages, which impacted various end-user industries such as electrical and electronics, consumer goods, food and beverage, and others. However, the condition is expected to recover in 2021, thereby restoring the growth trajectory of the market studied.

  • Over the medium term, increasing consumption of packaging material and demand for sustainable and recyclable material are expected to drive the market during the forecast period. The food industry has been witnessing robust growth in the Asia-Pacific region. The rising income levels and the increasing population levels are the primary factors that have been driving the growth of the food industry in the region. Moreover, with huge scope for growth in the region, new investments are being observed in the food and beverage sector, intended to set up individual confectionaries, food processing, and beverage producing facilities.
  • Stringent government regulations are likely to hinder the market’s growth.
  • The advent of bio-based PET and the shift toward flexible packaging are projected to create opportunities for market growth in the future.
  • China is expected to dominate the market and is also expected to witness the fastest CAGR during the forecast period.

Scope of the Report

Polyethylene terephthalate (PET) is one of the most common thermoplastics belonging to the polyester family of products. It is used as fibers and in containers, in combination with glass as engineering resins and for thermoforming. The market is segmented by product types, end-user industry, and geography. By product types, the market is segmented into bottles, films and sheets, and other product types. By end-user industry, the market is segmented into food and beverage, automotive, electrical and electronics, healthcare, consumer goods, and other end-user industries. The report also covers the market size and forecasts for the Asia-Pacific polyethylene terephthalate (PET) resins market in 5 countries across the region. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Product Type
Bottles
Films and Sheets
Other Product Types
End-user Industry
Food and Beverage
Automotive
Electrical and Electronics
Healthcare
Consumer Goods
Other End-user Industries
Geography
China
India
Japan
South Korea
ASEAN Countries
Rest of Asia-Pacific

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Key Market Trends

Increasing Demand from the Food and Beverage Industry

  • PET is a plastic material, which has found increasing applications in the food and beverage industry for packaging purposes. PET has been replacing glass in food packaging applications, owing to its extremely lightweight, easy and efficient to transport, and shatterproof features.
  • PET is a very strong and inert material that does not react with foods. It is resistant to attacks by micro-organisms and will not biologically degrade. Additionally, unlike glass, PET is extremely lightweight, easy and efficient to transport, re-sealable for efficient on-the-go hydration, environmentally safe, recyclable, and shatterproof. Owing to its chemical inertness and physical properties, especially glass-like transparency, lightweight, and rigidity, PET is widely used as a food packaging material.
  • Common applications of PET in the food and beverage industry are bottled water, milk, juices, and carbonated drinks bottles, ketchup, jars for peanut butter, mayonnaise, pickles, jam, and others, sandwich boxes, tubs and food containers, can laminations, etc.
  • The revenue generated by the Indian food industry had increased from USD 68,960 million in 2010 to USD 262,339 million in 2019. The revenue generated by the meat products and sausages increased from USD 19,072.8 million in 2010 to USD 64,137.7 million in 2019. The revenue generated from milk products had increased from USD 19,072.8 million in 2010 to USD 64,137.7 million in 2019.
  • The government is taking measures to boost the investment in its food processing industry. The government sanctioned about 39 Mega Food Parks (MFPs) to set up in the country under the Mega Food Park scheme. Among these, only 18 MFPs became operational, while the others are under development. The food processing industry is expected to potentially attract an investment of around USD 33 billion by 2024. This is also expected to drive the demand for PET in the country.
  • The Japanese food industry witnessed major growth over the past decade. The revenue generated by the food industry in Japan had increased from USD 131,616 million in 2010 to USD 138,488 million in 2019. The revenue generated by the meat products and sausages increased from USD 5,929.2 million in 2010 to USD 6,261.2 million in 2019. The revenue generated from milk products increased from USD 12,075.4 million in 2010 to USD 15,173.7 million in 2019.
  • Besides packaging, PET is also used in the food industry for clamshells, deli containers, as well as microwave food trays. Growing population, increase in consumers’ disposable income and purchasing power, increasing demand for easily transportable and flexible food packaging, etc., are further expected to increase the demand for PET during the forecast period.
Asia-Pacific Polyethylene Terephthalate PET Market Share

China to Dominate the Market

  • In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. China's economic growth rate in 2020 was initially expected to be moderate compared to the previous year.
  • Although China was the first country affected by COVID-19 and its related lockdown, it was also the first country to come out of lockdown. However, the country has been witnessing recurring cases of coronavirus, leading to further lockdowns. With this, manufacturing seems to be heavily impacted, which continued with slow growth during 2020. According to the IMF, in 2020, China's GDP to register meager 1.9% growth. However, the GDP is expected to reach 8.2% in 2021.
  • China is one of the largest consumers of polyethylene terephthalate (PET) globally. The abundant availability of raw materials and low cost of production have been supporting the production growth of the engineering plastics, such as PET, in the country for the past few years.
  • The consumption of PET has increased drastically in the recent past due to the growing population, increasing urbanization, and substitution of many metals in various industries, such as automotive, consumer appliances, etc.
  • The use of PET products in the packaging sector (PET containers, bottles, etc.) is increasing at a tremendous rate, owing to their advantages over the conventional packaging plastics used. The demand from industries like food and beverage, consumer goods, and others for packing materials is increasing in China, owing to the increasing exports and domestic consumption.
  • The PET market for food and beverage is also being boosted as the living standard in China increases along with consumption power. People venture into packaged food and ready-to-eat and ready-to-cook food as a variety of beverages, including health drinks.
  • The country stands to be the world’s largest manufacturing economy and exporter, due to which the country’s packaging requirement is huge. The packaging industry in China is expected to register tremendous growth, with a CAGR of nearly 6.8%, to reach CNY 2 trillion during the forecast period.
  • Processed fruits, pork, dairy, and some specialty grains and legumes are the food products that may drive the growth of the food processing industry in the country. Thus, the food and beverage industry is offering opportunities for investment, which is further expected to create demand for packaging, offering opportunities for the market.
  • In May 2020, Nestle decided to make a series of investments to strengthen its footprints and enhance its product portfolio in the country. Nestle plans to invest about USD 103.4 million in capacity expansion of its existing pet food plant in Tianjin and its first production facility in Asia for plant-based products.
  • The company also has plans to make additional investments in the confectionery business, including the up-gradation of the production line of Nestle Chengzhen Wafer and Tianjin Nestle Quality Assurance Center.
  • Moreover, the maturing food processing industry in the country is further expected to increase the demand for packaging.
  • China is the second-largest market for pharmaceuticals globally. The market for pharmaceuticals is emerging rapidly, owing to the growing middle-class and aging society present in the country, rising incomes, and increasing urbanization. The pharmaceutical sales of the country are expected to reach up to USD 175 billion by 2022. The country has a large and diverse domestic drug industry, comprising around 5,000 manufacturers, of which many are of small- or medium-sized companies. This is expected to boost the growth of packaging used in the pharmaceutical industry.
  • China is the largest base for electronics production in the world. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices recorded the highest growth in the electronics segment. The country serves not only the domestic demand for electronics but also exports electronic output to other countries. In China, with the increase in the disposable income of the middle-class population and the rising demand for electronic products from countries importing electronic products from China, the production of electronics is projected to grow. With the growing electronics and construction industry, the demand for PET is expected to increase.
  • Thus, from the aforementioned points, the prolific Chinese market has attracted many PET manufacturers in the country, catering to the market in China and also to other countries of the Asia-Pacific region.
Asia-Pacific Polyethylene Terephthalate PET Market Growth Rate By Region

Competitive Landscape

The Asia-Pacific polyethylene terephthalate (PET) resin market is consolidated in nature. Key players in the market include LOTTE Chemical Corporation, Reliance Industries Limited, Far Eastern New Century Corporation, Indorama Ventures Public Company Limited, and SINOPEC YIZHENG CHEMICAL FIBRE LIMITED LIABILITY COMPANY, among others.

Recent Developments

  • In March 2020, Chinese producer Zhejiang Zhengkai's subsidiary Chongqing Wankai started its new 600,000 t/yr polyethylene terephthalate (PET) bottle chip plant. The project has a design capacity of 1.2 million tons per year of PET bottle chip, including two 600,000 tons per year production lines, and the total investment involved in the project was CNY 3.6 billion (~USD 507 million).

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Consumption of Packaging Material

      2. 4.1.2 Demand for Sustainable and Recyclable Material

      3. 4.1.3 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Stringent Government Regulations

      2. 4.2.2 Unfavorable Conditions Arising Due to the Impact of COVID-19

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Product Type

      1. 5.1.1 Bottles

      2. 5.1.2 Films and Sheets

      3. 5.1.3 Other Product Types

    2. 5.2 End-user Industry

      1. 5.2.1 Food and Beverage

      2. 5.2.2 Automotive

      3. 5.2.3 Electrical and Electronics

      4. 5.2.4 Healthcare

      5. 5.2.5 Consumer Goods

      6. 5.2.6 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 China

      2. 5.3.2 India

      3. 5.3.3 Japan

      4. 5.3.4 South Korea

      5. 5.3.5 ASEAN Countries

      6. 5.3.6 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis**/Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Alpek S.A.B. de C.V.

      2. 6.4.2 CR Chemical Materials Technology Inc.

      3. 6.4.3 Far Eastern New Century Corporation

      4. 6.4.4 Hengli Group Co. Ltd

      5. 6.4.5 Indorama Ventures Public Company Limited

      6. 6.4.6 JBF Industries Ltd

      7. 6.4.7 LOTTE Chemical CORPORATION

      8. 6.4.8 Reliance Industries Limited

      9. 6.4.9 Sanfame Group

      10. 6.4.10 SINOPEC YIZHENG CHEMICAL FIBRE LIMITED LIABILITY COMPANY

      11. 6.4.11 Zhejiang Hengyi Group Co. Ltd

      12. 6.4.12 Zhejiang Zhink Group Co. Ltd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Advent of Bio-based PET

    2. 7.2 Shift Toward Flexible Packaging

**Subject to Availability

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Frequently Asked Questions

The Asia-Pacific Polyethylene Terephthalate (PET) Resin Market market is studied from 2016 - 2026.

The Asia-Pacific Polyethylene Terephthalate (PET) Resin Market is growing at a CAGR of >6% over the next 5 years.

Far Eastern New Century Corporation, Indorama Ventures Public Company Limited, Reliance Industries Limited, LOTTE Chemical CORPORATION, SINOPEC YIZHENG CHEMICAL FIBRE LIMITED LIABILITY COMPANY are the major companies operating in Asia-Pacific Polyethylene Terephthalate (PET) Resin Market.

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