The demand for flexible packaging chemical polyethylene terephthalate (PET) witnessed growth of around 7% CAGR last decade, due to its diverse application in a wide range of new products developed by fast moving consumer goods (FMCG) and food sector companies, according to chemicals intelligence providerGBI Research (www.gbiresearch.com).
analysis* indicates that fast growing economies and strong production
industries will lead Brazil, Russia, India and China (BRIC) to become dominant
forces in the global PET market.
significant portion of demand for PET came from the Asia-Pacific region, which
accounted for 40.6% of global PET demand during 2010. This is expected to
increase to 47.8% by 2020, as China is rapidly emerging as a global petrochemical
products manufacturing hub. Production in China enjoys the advantage of
relatively low operating costs and, as a result, there have been huge capacity
PET capacity additions in the country, with the country accounting for almost
half of Asia-Pacific’s import volumes during 2010.
anticipated to be the PET market leader towards 2020 due to major PET players
focusing their operations within the country. The announcement of anti-dumping
duties on imports from other regions, alongside significant capacity additions,
means that Brazil and Russia’s PET markets are also expected to expand towards
2020. In addition, India’s large population is causing consumption of packaged
goods to rise, creating increased demand for PET capacity additions.
packaging will continue to grow in importance as major retail chains demand
greater product protection and longer shelf-life for various products.
Carbonated soft drinks (CSD) accounted for an impressive share of 31.5% in the
demand for PET during 2010, while the food and beer sectors accounted for
respective shares of 22.4% and 11.4%. According to GBI Research’s analysis, PET
packaging is expected to increase its share in the packaging sector towards
2020 due to better gas barriers and ultraviolet (UV) light protection, which
extends the shelf-life of PET-packaged products, while new hot-filling
processes are creating new opportunities for PET packaging for pasta and
beer distilleries also adopted PET bottles for use as packaging, which is
expected to continue towards 2020 due to advantages in product quality,
transport and bar regulations concerning the use of glass in outdoor areas.
demand stood at 6,472,350 tons in 2000, increasing at a compound annual growth
rate (CAGR) of 6.9% to reach 12,621,553 tons in 2010. This upward trend is
expected to continue in the near future, with global PET demand tipped to reach
23,452,281 tons by 2020, following a forecast CAGR of 6.4%.
Terephthalate (PET) Global Market to 2020 - Increasing Demand from Carbonated
Soft Drinks, Food and Beer Packaging in BRIC Nations Driving Growth
Fizzy drinks and bottled water create a thirst for PET in BRIC Nations
May 16, 2012