Polyethylene Terephthalate Market Continues to Expand as British Petroleum plc signs a cooperation agreement with China Resources Chemical Materials Technology Co. Ltd to strengthen cooperation on PTA sourcing

 

PET is an abbreviation for polyethylene terephthalate; the material most often used in PET bottles. PET is an extremely tough plastic, which is why it's commonly used as a packaging material. PET has many advantages over other plastics, including strength, resistance to breaking and crushing, and its natural plasticity it will fill almost anything and is resistant to oil and chemicals that can cause it to break down over time.

Rapid growth of the food and beverage industry is expected to drive of the global polyethylene terephthalate market growth. The food and beverage industry has witnessed significant growth in both developed and emerging economies. According to the Food and Drink Federation, the U.K., the food and drink manufacturing sector accounts for 17% in terms of economic contribution. Furthermore, according to the India Brand Equity Foundation (IBEF), the food processing industry contributed 14% of the country’s GDP in 2016. Polyethylene terephthalate or PET is widely used in the packaging of food and beverage products. Since PET is clear, strong, and lightweight plastic, it has witnessed massive demand for convenience-sized soft drinks, water, and juices. Hence, such factors are expected to drive growth of the global polyethylene terephthalate market. Furthermore, rapidly increasing PET collection and recycling in Europe is expected to boost the global polyethylene terephthalate market growth in the near future. For instance, in December 2020, PepsiCo Inc., a U.S.-based food and beverage organization, announced that it will reach its goal of 100% recycled content in plastic Pepsi bottle in the European market by 2022. PepsiCo has estimated that it will prevent around 70,000 tons of virgin plastic use annually. 

However, stringent regulations regarding the use of PET products combined growing use of alternative products are expected to hinder the global polyethylene terephthalate market growth in the near future. Among Regions, Asia Pacific is expected to witness significant growth in the global polyethylene terephthalate market. This is owing to increasing consumption of packaged food and increasing demand for automobile films in emerging economies such as India, China, Indonesia, and Malaysia. Furthermore, Europe is expected to register a robust growth rate over the forecast period, owing to increasing demand for VOC-free films in the region.

Key players involved in the global polyethylene terephthalate market are Alpek SAB de CV Zhejiang Zhink Group Co. Ltd, China Resources Chemical Materials Technology Co. Ltd., Sinopec Group, Far Eastern New Century Corporation, Saudi Basic Industries Corporation, Hengli Group Co. Ltd, Reliance Industries Ltd, Hengyi Petrochemical Co. Ltd, Lotte Chemical Corporation, Indorama Ventures Public Company Limited, Jiangsu Sanfangxiang Group, and JBF Industries Ltd.

For instance, in April 2020, British Petroleum entered into a strategic cooperation agreement with China Resources Chemical Materials Technology Co. Ltd, a producer of PET, for to explore opportunities to enhance their cooperation on PTA sourcing.