Middle East Polyethylene Terephthalate (PET) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Middle East Polyethylene Terephthalate (PET) Market Trends

Growing investments from the government and private players

• In the Middle East, Saudi Arabia is quickly emerging as one of the key markets for the electrical and electronics industry. Aside from the oil and gas industry, the country has a sizable consumer base and a broad range of industrial pursuits, contributing to the rapid annual increase in production for the electrical and electronics industry. Thus, electrical and electronics production in the region registered a CAGR of 18% from 2017 to 2019 in revenue terms.
• In 2020, the demand for consumer electronics for remote working and home entertainment increased due to the COVID-19 pandemic. In 2020, Saudi Arabia registered the highest smartphone penetration rate, around 97%, in the world, which enabled approximately 60% of Saudi customers to discover new sellers through social networks. Saudi Arabia faced a higher rate of e-commerce growth, nearly 60% (between 2019 and 2020), mainly due to the pandemic. The revenue from electrical and electronics production increased by 1.8% compared to the previous year.
• Electrical and electronic production is expected to witness a CAGR of 8.51% in value during the forecast period (2023-2029). The major driving component behind the growth is likely to be the growing investments from the government and the manufacturers like Samsung. Samsung has also been pitching its 5G wireless technology to the Middle East. Saudi Arabia implemented a 5G network in line with the Vision 2030 initiative. All such factors are expected to boost electronics production over the forecast period in the region.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End User Industry

Packaging Segment in Middle East PET Market

The PET packaging segment dominates the Middle East PET market, commanding approximately 98% of the total market share in 2024. This substantial market presence is primarily driven by the extensive use of PET in food and beverage packaging applications, particularly in convenience-sized soft drinks, juices, and PET bottles. The segment's dominance is further strengthened by the region's growing population, significant increase in per capita income, and evolving consumer lifestyles. The demand for packaged food in the region is experiencing robust growth, with major countries like Saudi Arabia leading the consumption due to rapidly developing lifestyles and economic growth, along with a shift in population dynamics from rural to urban areas.

Electrical and Electronics Segment in Middle East PET Market

The electrical and electronics segment is emerging as the fastest-growing segment in the Middle East PET market, projected to grow at approximately 10% during 2024-2029. This remarkable growth is attributed to the rising demand for advanced technologies such as digitalization, robotics, virtual reality, augmented reality, IoT (Internet of Things), and 5G connectivity across the region. The segment's growth is particularly notable in the United Arab Emirates, where significant investments in cloud computing, smart services, and cybersecurity are driving demand. The UAE government's planned investment of approximately USD 1 billion in cloud computing by 2026 is expected to further accelerate the segment's growth, creating substantial opportunities for PET applications in electrical encapsulations, solenoids, and smart meters.

Remaining Segments in End User Industry

The other segments in the Middle East PET market include building and construction, automotive, industrial and machinery, and other end-user industries. The building and construction segment utilizes PET film in exterior wall ceilings and as an additive in concrete construction. The automotive segment employs PET in exterior body parts, casings, engine covers, and headlamp retainers. The industrial and machinery segment primarily uses PET in food processing machinery applications. Other end-user industries encompass various applications such as consumer goods, locomotives, and marine parts, where PET is valued for its clarity, strength, and lightweight properties. Additionally, the use of thermoplastic polyester in these applications highlights the versatility and durability of PET as a polyester material.

Middle East Polyethylene Terephthalate (PET) Market Geography Segment Analysis

Polyethylene Terephthalate (PET) Market in Saudi Arabia

Saudi Arabia dominates the Middle Eastern polyethylene terephthalate (PET) market, commanding approximately 45% of the total market value in 2024. As the region's fastest-growing market with a projected growth rate of around 8% during 2024-2029, the country's dominance is driven by its robust PET packaging industry and significant investments in PET manufacturing capabilities. The Kingdom's commitment to becoming a manufacturing hub has attracted substantial investments in PET production facilities. The country's focus on Vision 2030 initiatives has accelerated the adoption of advanced manufacturing technologies and sustainable practices in PET production. The packaging industry, particularly in food and beverage applications, remains the primary driver of PET consumption. The growing emphasis on recycling initiatives and circular economy principles has led to increased investments in recycled PET facilities. Furthermore, the country's strategic location and well-developed infrastructure facilitate efficient distribution across the Middle East region.

Polyethylene Terephthalate (PET) Market in United Arab Emirates

The United Arab Emirates has established itself as a crucial hub for PET manufacturing and distribution in the Middle East. The country's strategic focus on diversifying its economy beyond oil has led to significant investments in petrochemical industries, including polyethylene terephthalate production. The UAE's market is characterized by its strong emphasis on technological advancement and innovation in PET manufacturing processes. The presence of major international players and robust infrastructure has strengthened the country's position in the regional market. The electrical and electronics industry has emerged as a significant consumer of PET resin, driven by the country's push toward digitalization and smart manufacturing. The UAE's commitment to sustainability has led to an increased focus on recycling initiatives and eco-friendly PET production methods. Additionally, the country's free trade zones and strategic location have made it an attractive destination for PET manufacturers and distributors serving the broader Middle Eastern market.

Polyethylene Terephthalate (PET) Market in Rest of Middle East

The Rest of Middle East region, encompassing countries like Iran, Iraq, and Qatar, represents a significant portion of the Middle Eastern polyethylene terephthalate market. These countries have shown increasing adoption of PET across various industries, particularly in packaging and consumer goods. Iran, specifically, has emerged as a key player with its growing manufacturing capabilities and domestic market demand. The region's focus on developing local manufacturing capabilities has led to increased investments in PET production facilities. The growing emphasis on food security and packaging requirements has driven the demand for PET in these countries. The presence of established petrochemical industries in these nations provides a strong foundation for PET production. Furthermore, government initiatives to reduce dependency on imports have encouraged local PET manufacturing. The region also benefits from its strategic location between Asia and Europe, facilitating trade relationships and market expansion opportunities.

Polyethylene Terephthalate (PET) Market in Other Countries

Other countries in the Middle East region have shown varying degrees of development in their polyethylene terephthalate markets. These markets are characterized by their diverse industrial bases and growing consumer demands. Countries like Kuwait, Bahrain, and Oman have been focusing on developing their petrochemical industries, including PET production capabilities. The emphasis on economic diversification in these nations has led to increased investments in manufacturing sectors. These countries are also witnessing growing demand for PET packaging applications, driven by changing consumer preferences and urbanization. The development of specialized industrial zones and free trade areas has attracted investments in PET-related industries. Additionally, these markets benefit from regional cooperation and trade agreements, facilitating market growth and technology transfer. The increasing focus on sustainability and circular economy principles is shaping the development of PET industries in these countries.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 15+ free charts, the section covers rare data on various end-user production trends including passenger vehicle production, commercial vehicle production, motorcycle production, aerospace components production, electrical and electronics production, and regional data for engineering plastics demand etc.