Market Trends of GCC Polyethylene Terephthalate (PET) Industry
This section covers the major market trends shaping the GCC Polyethylene Terephthalate Market according to our research experts:
Soaring Demand from the Food and Beverage Industry
- PET is formed by combining purified terephthalic acid (PTA) or dimethyl terephthalate, and modified ethylene glycol, which makes it high-impact resistant and provides food contact safety.
- PET resin in the food and beverage industry is commonly used for packaging. The three major packaging applications of PET are as containers (bottles, jars, and tubs), thin-oriented films (bags and snack food wrappers), and semi-rigid sheet for thermoforming (trays and blisters).
- Mainly, these products include take-out containers, frozen foods, carbonated drinks and juices, ketchup, bottled water, jars, and baked good containers. They are also used in the food industry for clamshells, deli containers, as well as microwave food trays.
- Owing to the increasing demand from countries, such as Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar, the food and beverage sector in the GCC region is expected to grow strongly, during the forecast period.
- In Saudi Arabia, the increasing population is one of the factors driving the huge demand for food and beverages, especially in the fast food and café segments.
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Saudi Arabia to Dominate the Market
- Being an oil producing economy, from the initial phase itself, the country's interest in other industries was less. However, after the emergence and dominance of the non-OPEC countries, globally, and high volatility of crude oil prices, Saudi Arabia decided to diversify its portfolio to aid the economy grow uniformly.
- The market's openness and investment opportunities in Saudi Arabia are less, when compared to the other emerging economies. However, the government, in its 10th development plan, is reforming economic policies, with investments in diversified sectors, and is trying to attract private investments in the country, to make it a diversified economy that is not dependent on oil.
- Owing to the investments from the polyethylene terephthalate manufacturers in the country, the production capacity is expected to increase in the coming years. For instance, recently, on January 2019, Pan-Asia PET Resin (Guangzhou) Co., one of the leading PET bottle suppliers in China had launched a SAR 3.9 billion manufacturing plant in the country, which produce PET and PTA used in the packaging and fabric industries.
- The packaging industry has been witnessing substantial growth in Saudi Arabia, majorly driven by the increasing food manufacturing and processing and growing online food delivery services.
- The healthcare industry in Saudi Arabia accounts for the largest expenditure in the Middle Eastern region, and there is an increasing demand for the rise in hospital bed capacity and long-term care centers. The increasing healthcare expenditure in the country, along with the privatization of several public hospitals, is expected to drive the demand for healthcare equipment in the country, which, in turn, is expected to drive the market studied in the coming years.
- Owing to the increasing demand from the end-user industries, the market studied is likely to grow during the forecast period.
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