Market Trends of Polyethylene Naphthalate Industry
Increasing Demand from Packaging Segment
- Polyethylene naphthalate is a polyester that is derived from 2,6 dicarboxylic acid and ethylene glycol. It has superior properties like high resistance to chemicals & solvents, high mechanical strength, and excellent scintillation properties.
- The demand for polyethylene naphthalate in packaging applications is increasing owing to its high stiffness modulus (Young's modulus) which is responsible for better-shrinking resistance of the material and superior barrier capabilities.
- Additionally, polyethylene naphthalate is used for food packaging applications as it is less permeable to oxygen and water vapor, thus reducing the oxidation effects in containers, making it ideal for food preservation purposes.
- Furthermore, polyethylene naphthalate reduces the number of layers required for packaging, which enables simplification in packaging and also reduces overall packaging costs.
- According to the Packaging Industry Association of India (PIAI), the Indian packaging industry is expected to grow at a rate of 22% during the forecast period. Moreover, the Indian packaging market is expected to reach USD 204.81 billion by 2025.
- Flexible packaging is used in food packaging applications in low-income countries in South America, Africa, and Asia-Pacific. The popularity and demand for flexible packaging are rising in emerging economies, and the demand is supported by continued economic expansion and an acceleration in the food and beverage industry.
- In Germany, the paper packaging industry grew significantly in 2022 because of increasing demand for non fossil based packaging for different end user industries.
- Owing to all the above-mentioned factors for polyethylene naphthalate, its market is expected to grow rapidly over the forecast period.
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North America Region to Dominate the Market
- North America region is expected to dominate the market for polyethylene naphthalate during the forecast period. In countries like the United States and Canada owing to the growing demand from major end-user industries like packaging and electronics, the demand for polyethylene naphthalate has been increasing in the region.
- Polyethylene naphthalate is widely used in films and pellet forms to manufacture electronic parts owing to its high mechanical and thermal properties, due to which the demand for polyethylene naphthalate is increasing in the region.
- Additionally, with the increasing trend of electric vehicles and the growing use of polyethylene naphthalate in making high-performance and rigid rubber tires is likely to boost its market in the region.
- Furthermore, the rising demand for polyethylene naphthalate in making shatterproof and lightweight beer and juice bottles is likely to further support the polyethylene market growth in the region.
- The United States Food and Drug Administration (FDA) has approved the use of recyclable plastic products like polyethylene naphthalate in food packaging which is likely to stimulate its market in the region during the forecast period.
- According to the IEA, in the United States, the federal aim is for electric vehicles (EVs) to make up 50% of new passenger cars and light trucks sold by 2030. Moreover, as per the International Council on Clean Transportation, in 2020, the California Government has announced an executive order which directs the state to require that, by 2035, all new cars and passenger trucks sold in California be zero-emission vehicles, which includes BEV and PHEV, and others.
- Some of the major companies operating in North America region are - Polyonics and Dupont Teijin Films.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for polyethylene naphthalate during the forecast period.
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