Bio-based PET Market Expected to Reach $941.4 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Bio-based PET Market," The bio-based PET market size was valued at $441.3 million in 2021, and bio-based PET industry is estimated to reach $941.4 million by 2031, growing at a CAGR of 7.9% from 2022 to 2031.

A bio-based PET is made from ethylene glycol derived from plant sources such as sugar, molasses, and corn, and it contains 25-30% mono-ethylene glycol (MEG) and terephthalic acid. Recyclability, non-toxicity, a lower carbon footprint, and great shatter resistance are all features of bio-based PET.

The global bio-based PET market is being driven by the rise in adoption of green, secure, and bio-based products to protect the environment and human health. The shifting price of products made from petroleum and its derivatives is another significant factor influencing the global market. The risky nature of conventional plastics and advantageous regulatory restrictions are further factors driving the global bio-based PET market. In addition, a key driver of market expansion is the rise in demand for ecologically friendly packaging across a range of end-use industries, including food & beverage, automotive, electrical & electronics, consumer appliances, and others.

Environmental factors that urge a paradigm shift are anticipated to boost demand for bio-based PET during the anticipated forecast period. An emphasis on renewable energy sources is predicted to assist in market expansion in the future. The Asia-Pacific region dominated the global market, closely followed by North America. Therefore, Asia-Pacific is expected to increase at the fastest rate. The expanding environmental safety concerns and fast industrialization are driving demand for a bio-based PET.

On the basis of application, the beverage packaging segment plays a crucial role in the overall growth of the beverages industry. There are numerous types of beverages each are packaged using varied materials and in different sizes. This is a key factor responsible for the growth of the beverage packaging market across the globe.

 Depending upon end use industry, the packaging segment is expected to dominate the market in the next few years. The packaging sector proposals maximum market potential in the PET, due to the rise in demand for PET materials for well-organized & eco-friendly packaging replacements globally. It also proposals a rise in demand for packed and processed food. Also, a rise in the leaning of customers toward effective and effortlessly recyclable beverage vessels & growth in use as an eco-friendly alternative further boost the development of this sector.

Among different regions, due to the availability of raw materials, affordable production, and industrial development in the region, Asia-Pacific is the region with the quickest rate of growth in the worldwide bio-based PET market. China and India, two emerging nations, produce and export consumer goods and vehicles, which has accelerated market expansion in the Asia-Pacific area. On January 11, 2022, Indorama Ventures put forward a purchase offer for NN, a Vietnamese PET converter. NN shares are currently being purchased by the corporation. The intended acquisition will assist IVL in strengthening its position in the packaging business in fast-expanding Asia-Pacific markets.

The bio-based PET market is segmented on the basis of application, end use industry, and region. Depending on application, the market is categorized into beverages, sheet & films, consumer goods, food packaging, and others. On the basis of end use industry, the market is categorized into packaging, electrical & electronics, automotive, and others. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Major players operating in the global bio-based PET market include, Amyris, Anellotech Inc., Biome Bioplastics, Braskem, DAIKIN, Gevo Inc., Indorama Ventures Public Company Limited, Kuraray Co., Ltd., M&G Chemicals, NatureWorks LLC, Novamont S.p.A, Plastipak Holdings, Inc., PTT Global Chemical Public Company Limited, Solvay, Teijin Limited, Toray Industries Inc, Toyota Tsusho Corporation, Total Energies.

Key findings of the study

• By application, the beverages segment emerged as the global leader with more than 52.5% share in 2020.
• By end use industry, the packaging segment dominated the global bio-based PET market with around 48.7% global market share in 2021.
• By region, Asia-Pacific dominated the market with highest revenue share in 2021 and is expected to continue its dominance during the forecast period.

COVID-19 impact analysis on the global bio-based PET market

The rapid spread of corona virus pandemic reduced the application of any new plastic bags including biodegradable bags. Consumers are bringing their old fabric and plastic bags, and retail shops and small stores are not providing new plastic bags to prevent further spread. Prior to COVID-19 breakdown, a large number of multinationals such as Danone, Coca-Cola, and Nestlé promised to adopt biodegradable plastics under pressure from activists and consumers. However, after COVID-19 outbreak governments across different countries made several changes in their regulations regarding disposable and single use plastics to prevent further spread of the virus.

For instance, the State of Maine postponed its ban on plastic bags until January 2021; thus, negatively impacting the market growth.In addition, supply chain disruptions due to irregular transport led to increasing lead time of raw materials, such as corn starch; thus, delaying the entire product process. For instance, according to a report by business standard, the corn starch consumption has reduced by 50% from 400,000 tons to 200,000 tons. As China started production in limited capacity, the material price for biodegradable plastic is expected to increase. Industry players are focusing to extend the lead time to avoid such high material price. The market is recovering from the impact of COVID-19.