The global bio based polyethylene teraphthalate (PET) market is growing at the CAGR of 29.9% and will contribute $73900 billion till 2022. Bio based polyethylene teraphthalate is widely used in bottling plants, packaging, fibers and other industrial sectors.
The fluctuating crude oil prices and rising awareness towards eco-friendly sources is expected to boost the global bio-based polyethylene terephthalate (PET) market over the forecast year. Bio-based polyethylene teraphthalate is manufactured from bio based products such as bacteria, regenerated cellulose, cornstarch and other organic products. Presently, bio-based polyethylene teraphthalate contains around 35% of bio-content. Major players are investing heavily to investigate feasibility for 100% renewable content bio-based polyethylene teraphthalate, and are expected to create greater opportunities for the market participants. The Coca-Cola company and Torray industries have formed partnership with Virent and Anellotech to develop bio polyethylene teraphthalate. This is anticipated to fuel bio-based polyethylene teraphthalate market over the next five years. The development is also expected to solve the polyethylene teraphthalate supply problem for many manufacturing industries to meet the demand. Crude oil reserves depletion and overgrowing petroleum prices is projected to shift the synthetic polyethylene teraphthalate based industries towards the bio-based polyethylene teraphthalate. Tremendous growth of packaging material market is anticipated to have positive influence on bio-based polyethylene teraphthalate market in the forecast period.
The government initiatives have been undertaken to reduce overgrowing carbon emission. The American Chemistry Council recently introduced a network of bio based chemistry in order to give education to policy makers to draft successful regulatory programs for the boosting bio-based chemical industry. The craving for the green plastic products is another growth factor, as green packaging is marketed by several companies to attract and to increase customer base. The Coca Cola Company introduced a concept called the plant bottle, which essentially focused towards bio-based polyethylene teraphthalate and to raise environmental awareness among consumers. The company has plans to replace standard polyethylene teraphthalate bottles by plant bottles (Polyethylene Teraphthalate) by the end of 2020. Most of the polyethylene teraphthalate is manufactured by fermentation process using bio based feed stocks such as rice hull, corn and sugarcane. The introduction of technological advancement for the production of bio-based polyethylene teraphthalate is also expected to swing the market for bio-based polyethylene teraphthalate upward.
The bio-based polyethylene teraphthalate is a save for the environment as compared to traditional PET. According to experts, the processing of plants and farming uses raw materials for the manufacturing process of bio-based polyethylene teraphthalate, that cause severe acidification of the ground water and soil that can adversely affect the environment. This acts as a barrier in the growth of global bio based polyethylene teraphthalate (PET) market.
The global bio based polyethylene teraphthalate (PET) market is sub segmented into applications and regional outlook. In application segment, market is divided into bottles, packaging, fibers, automotive, injection molding and others. This segment is majorly dominated by carbonated soft drink bottles and packaging. It covered about 75% market share in 2015. Increasing focus of major companies like PepsiCo and Coca-Cola towards sustainable packaging and increasing CSD demand in China, Russia, Brazil, India and South Africa region is anticipated to boost the global bio based polyethylene teraphthalate (PET) market. The technical applications include exterior & interior parts of automobiles and bottles. Owing to lightweight and durable characteristic, PET is used as an exterior as well as interior component of the automobiles which is expected to propel the bio-based PET application market over the forecast period. Nissan, Toyota and AT&T have announced to use bio-based products in their vehicles which are expected to have a positive effect on the growth of bio-based PET market.
In regional outlook market is divided into North America, Asia Pacific, Europe and Rest of the World. Asia Pacific dominates the global bio based polyethylene teraphthalate (PET) market having around 35% of market shares; this dominance is expected to prevail in the forecast year. Rising consumption of cold drinks, alcoholic and non alcoholic beverages are one of the major reasons for the growth of this region. India, China and Japan are the major countries in Asia Pacific region. Japanese government started an initiative related to green plastics, which is expected to target the consumption of around 20% of bio plastics by 2020. This factor acts as an opportunity in the growth of global bio based polyethylene teraphthalate (PET) market. North America and European regions have stringent rules and regulations towards standard PET usage, as it is harmful for environment. This boosts the global bio based polyethylene teraphthalate (PET) market in this region.
Some Of the major market players are the Coca Cola company, Natureworks, Indorama Ventures, Novamont S.P.A, Metabolix Inc., Ianan Biologics materials, Tiajjin green biomaterials, Evonik industries, RTP company, Techno polymer Co. Ltd., Toray industries Inc., etc. Acquisition, mergers and expansions are the key strategies adopted by the market players to sustain in the market.
