Global Bio-based Polyethylene Terephthalate Market - 2020-2027
Global bio-based polyethylene terephthalate market size was worth US$ XX billion in 2019 and is estimated to reach US$ XX billion by 2027, growing at a CAGR of XX% during the forecast period.
An inclination of the common masses towards environment-friendly products is paving the way for the market's growth during the forecast period. Bio-based PET is a biomass-extracted, completely recyclable, eco-friendly, compostable, and renewable bioplastic material. The bio-based polyethylene terephthalate is used in the production of various products such as, bottles, packed merchandises, locomotive interiors, construction materials, and electronics.
However, the presence of substitute products such as starch and cellulose based biopolymers in the market place can subside the market growth of bio-based PET market during the forecast timeframe, owing to the factors such as these polymers are naturally obtained as well as easily decayed as compared to bio-based PET which are bio-extracted forms of polymers.
Rising distresses related to greenhouse gases combined with the evolution of bioplastics as an alternative in the packaging and automotive industry is anticipated to play a pivotal role in boosting growth in the near future. Additionally, the growing prominence of ecological packaging, specifically in China and India, is projected to have a positive impact on market value over the analysis time-frame.
In the recent past, the majority of bio-based PET comprised of 70% petroleum-based PTA and 30% bio-based MEG. Nevertheless, companies have been capitalizing comprehensively in research for the production of 100% bio-based PET comprising bio-based MEG and naturally extracted PTA.
On the other hand, the existence of alternatives for bios-based PET such as Polyethylene Furanoate (PEF) is probable to constrain the business growth in the forthcoming years. For instance, in December 2011, The Coca-Cola Company signed a contract with Avantium for the production of PEF, which has high glass changeover temperature and thermal steadiness as equated to bio-based PET. This feature is projected to result in other corporations employing PEF consequently, slightly limiting the growth over the forthcoming years.
By application, bio-based polyethylene terephthalate is segmented into Bottles, Electronics and consumer goods. The rising requirement for bio-based polyethylene terephthalate (PET) for developing various packaging solutions, including bottles, is foreseen to boost the growth of the market.
The electronics applications segment is projected to be followed by bio-based PET bottles among the application segment. Escalating attentiveness concerning the reduction of greenhouse emissions in the industrial sector is projected to play a crucial role in growing the usage of biomass-derived products. Consequently, this had ensued in the utilization of bio-based PET in the production of automotive accessories and construction materials over the forecast period.
Moreover, lightweight and high shatter resistance are the main characteristics to encourage bio PET market size in the production of exterior and interior electronics parts.
Bio-based polyethylene terephthalate is designed and used in the form of foams, sheets and fabrics for electronics and technical usage. European and U.S. commission, including Euro Standards (I, II and III) and the Corporate Average Fuel Economy (CAFE) standards, have established norms to a standardized framework for fuel efficiency in vehicles, which would support the growth of bio-based PET market size in the respective regions. Increase preferences for light-weighted materials in automotive may enhance its performance, which subsequently might encourage product demand.
Asia Pacific is amongst the fastest-growing region in the development of Bio-based PET products. The increasing cognizance related to the significance of bioplastics in established economies such as Japan and South Korea as a consequence of regulatory disposition directed at plummeting dependence on using artificially derived polymer materials, which is likely to continue an advantageous feature over the forecast period for the business growth in the region.
Additionally, increasing bio-extracted PET production capacity by major players in China and India is a foremost aspect driving the market growth in APAC. Furthermore, a rise in the per capita disposable income has led to an improvement in the standard of living of the residents, which in turn led to the leading of luxurious lifestyle, indicating a rise in the alcohol beverages and aerated soft drinks consumption. This rise has also led to an increase in the use of its related packaging industry; the bio-based PET packaging industry is one in the trend and highly recommended by the environmentalists in the region. The bio-based PET market is growing at the back of the above-mentioned industrial growth factors.
Technological inventions and increasing apprehension toward green or ecological packaging are expected to drive market growth in North America. For instance, The Canadian and U.S. governments have approved the Montreal Protocol for decreasing greenhouse gas emissions and limiting the use of products instigating global warming.
Moreover, the United States captures the largest market share of bio-based polyethylene terephthalate in North America, growing predominantly by the food and beverage packaging industry.
The major manufacturing industries in the United States, growing by value, include petroleum, steel, automobiles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining.
In the manufacturing segment, due to several governmental and economic factors, many industries are offshoring and getting the manufacturing industry back to the country, which in turn, will increase the demand for the bio-based polyethylene terephthalate market.
The Bio-based Polyethylene Terephthalate Market is competitive in nature, with the presence of international players making a healthy and highly competitive environment in the market. Coca-Cola Company, M&G Chemicals, Danone, Toyota Tsusho, Plastipak holdings, Toray Industries, PepsiCo and Teijin Limited, are the major players. Manufacturers are actively involved in R&D for the betterment of the quality of emission to reduce greenhouse gases. These companies usually enter into partnerships with raw material producing companies to confirm a continuous supply of PTA and bio-based MEG. On the other hand, companies are making noteworthy efforts to produce PTA using biomass-derived raw materials to produce 100% bio-based PET are currently in progress.
Companies including Gevo, Virent and Anellotech emphases in manufacturing bio PTA in order to produce 100% bio-based polyethylene terephthalate production. Additionally, Toyota made a ten-year contract with a Brazilian company, Petrobras, for around 380 bioethanol gallons to confirm the availability of bio-based MEG production at its subsidiary company named Greencol Taiwan subsidiary. Furthermore, in December 2013, Renmatix and Gevo joined hands for the transformation of cellulosic sugar into renewable compounds, which also comprised of bio-extracted MEG and bio-based packaging ingredients. The efforts made by the companies are in a positive direction, which might influence the growth of the market as well as increase the market competitiveness of the companies worldwide. The adoption of bio-based PET as a product by emerging players will also help to expand its product portfolio in the marketplace as well as increase its imprint on the regional as well as global