The Amorphous Polyethylene Terephthalate Market size is estimated to reach US$62.8 billion by 2027 after growing at a CAGR of 7.5% during the forecast period 2022-2027. Amorphous Polyethylene Terephthalate or APET is a thermal rigid plastic belonging to the polyester family and is known for transparency and light processing. The plastic resin due to its barrier properties has high applicability in food & beverage, pharmaceuticals and cosmetic & personal care sectors for packaging applications. This factor is positively influencing the Amorphous Polyethylene Terephthalate Market. The food & beverage sector is flourishing on account of growing demand for food items such as dairy products which have increased their consumption. According to China’s Ministry of Industry and Information Technology, in 2021, dairy product sales in China increased by 9% in 2020. In addition, the rapid development in pharmaceuticals and cosmetics & healthcare sectors are also driving the Amorphous Polyethylene Terephthalate industry growth. However, growing oil prices can hamper the Amorphous Polyethylene Terephthalate Market growth restraining the Amorphous Polyethylene Terephthalate Market size. The decrease in market demand for Amorphous Polyethylene Terephthalate due to lockdown restrictions from COVID-19 led to a drop in its market revenue, thereby negatively impacting the Amorphous Polyethylene Terephthalate industry outlook.
Amorphous Polyethylene Terephthalate Market Report Coverage
The “Amorphous Polyethylene Terephthalate Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Amorphous Polyethylene Terephthalate Industry.
Key Takeaways
- Asia-Pacific dominates the Amorphous Polyethylene Terephthalate industry owing to the rapidly growing food & beverage sector in the region which is influencing APET plastic demand for packaging applications.
- Bolstering growth in the pharmaceuticals sectors resulting from growing production for various medicines has increased APET bottles and containers demand in the sector, thereby positively impacting the Amorphous Polyethylene Terephthalate industry outlook.
- Growing consumption of skincare cosmetics has propelled the usage of Amorphous Polyethylene Terephthalate in bottle applications for creams and lotions, thereby boosting the market growth.
- Growing crude oil price can limit the production of raw materials required for making APET, thereby affecting the market growth as well as the Amorphous Polyethylene Terephthalate Market size.
- Amorphous Polyethylene Terephthalate Market Segment Analysis – by Grade
The industrial grade held the largest share in the Amorphous Polyethylene Terephthalate Market in 2021 and is estimated to grow at a CAGR of 7.4% during the forecast period 2022-2027. The industrial grade of APET has high applicability in food & beverage, pharmaceuticals, cosmetics & personal care and others. Being a rigid plastic, having rich mechanical strength, lightweight and chemical resistance properties, the industrial grade APET is used in packaging applications such as bottles, containers, films and sheets. High-performance features of the industrial grade, coupled with rapid development in its major end-users, have accelerated its usage in these sectors, thereby contributing to its segment growth in the Amorphous Polyethylene Terephthalate Market during the forecast period.
Amorphous Polyethylene Terephthalate Market Segment Analysis – by End-use Industry
The food & beverage sector held the largest share in the Amorphous Polyethylene Terephthalate Market in 2021 and is projected to grow at a CAGR of 7.9% during the forecast period 2022-2027. The demand for soft drinks and confectionary items such as chocolates has shown a significant increase among consumers, especially the millennials. This trend has increased the scale of production and consumption of such items. According to the National Confectioners Association, in 2021, chocolate sales in the US increased by 9.2% in comparison to the previous year. Also, according to Eurostat, in 2019, soft drinks production in the EU stood at US$60.45 billion, showing a 2.24% increase from 2018. Such an increase in the production and consumption of food & beverage items has accelerated the demand for APET bottles and sheet packaging applications, thereby boosting the growth of the Amorphous Polyethylene Terephthalate Market.
Amorphous Polyethylene Terephthalate Market Segment Analysis – by Geography
Asia-Pacific held the largest share of up to 46% in the Amorphous Polyethylene Terephthalate Market in 2021. Usage of amorphous polyethylene terephthalate in the food & beverage sector in the major Asia-Pacific countries such as China, India and Australia is influencing its demand in the region. Production of dairy items and soft drinks has shown a significant increase in the region resulting from an increase in demand and consumption. According to the National Bureau of Statistics, in June 2022, soft drink production in China’s Chongqing stood at 1,027.7 tons, showing a 24% increase than 2021 for the same month. Furthermore, according to the Food and Agriculture Organization Corporate Statistical Database, in 2021, India’s milk production stood at 210 million metric tons, showing a 5.8% increase from 2019. Such rapid growth in soft drinks and dairy item production has accelerated the usage of APET for bottle application in the food & beverage sector in the Asia-Pacific region. This boosts the growth of the Amorphous Polyethylene Terephthalate Market during the forecast period.
Amorphous Polyethylene Terephthalate Market Drivers
Increase in Consumption of Cosmetics:
Amorphous Polyethylene Terephthalate being a polyester has rich mechanical properties, is lightweight and provides a greater barrier from external climatic factors. Due to these factors, the resin has high applicability in cosmetics bottles for creams and lotions. The growing shift of millennials towards skin nourishment has increased the consumption of skincare cosmetics. According to statements given by skincare giant Shiseido, in 2021, the global sales of the company’s skincare products increased by 12.4% than 2020. Furthermore, according to the Personal Care Association of Europe, in 2020, skincare products with a valuation of US$23.74 billion held the maximum sales share of the European cosmetics market in countries like Germany, France, the UK, Spain and Italy. Such an increase in the consumption of skincare cosmetics has accelerated the usage of APET bottles for skincare creams and lotions, thereby positively impacting the growth of the Amorphous Polyethylene Terephthalate industry.
Bolstering Growth in Pharmaceutical Sector:
Amorphous Polyethylene Terephthalate, being a rigid plastic, provides excellent toughness and chemical resistance which makes it an important material to be used in packaging applications in the pharmaceutical sector. The growing demand for various medicines coupled with government policies for the development of the sector has resulted in its significant growth. According to a statement by the Indian Government, in 2021, the pharmaceutical sector in the country showed significant growth of 103% in comparison to 2013. Furthermore, according to the European Federation of Pharmaceutical Industry and Association, in 2020, pharmaceutical production in Europe increased by 5.7% in comparison to 2019. Such bolstering growth in the pharmaceutical sector has boosted the demand and usage of amorphous polyethylene terephthalate in medicine packaging applications, thereby having a significant influence on the growth of the Amorphous Polyethylene Terephthalate industry.
Amorphous Polyethylene Terephthalate Market Challenge
Growing Price of Crude Oil:
In order to make APET products, petroleum-based raw materials are required that are majorly made from crude oil. Due to the high industrial demand for crude oil, its prices have increased significantly over the years. According to the US Energy Information Administration, in October 2021, crude oil prices stood at US$86 dollars per barrel, which showed a 104.7% increase from 2020’s price for the same month. With the increase in crude oil prices, the production volume of amorphous polyethylene terephthalate would also fluctuate, thereby posing a challenge to its market growth and restraining the Amorphous Polyethylene Terephthalate Market size during the forecast period.
Amorphous Polyethylene Terephthalate Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Amorphous Polyethylene Terephthalate Market. The top 10 companies in the Amorphous Polyethylene Terephthalate Market are:
Indorama Ventures Public Company Limited
- JBF Industries Ltd.
- Reliance Industries Limited
- M&G Chemicals
- Quadrant AG
- Jiangsu Sanfangxiang
- DAK Americas
- PolyQuest
- MPI Polyester Industries
- Covestro AG
Recent Developments
In March 2022, Indorama Ventures completed the acquisition of Vietnam-based Ngoc Nghia Industry and such acquisition would increase the production capacity of APET packaging products of the company.
In November 2021, Evergreen acquired UltraPET and NovaPET from WTE Corp. and such acquisition would increase the food-grade Amorphous Polyethylene Terephthalate production of the company to more than 147 million pounds.
In October 2021, ALPA signed a contract to acquire Germany-based BTB Polyethylene Terephthalate recycling and such acquisition would enable the company to generate recycled food-grade Amorphous Polyethylene Terephthalate.
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