The Recycled Polyethylene Terephthalate market also referred to as the recycled PET market is projected to grow at a CAGR of 7.1% to reach USD 11.3 billion by 2026 from 7 billion in 2019. Polyethylene Terephthalate (PET) is a highly recyclable plastic resin and form of polyester. It is a polymer that is created by the combination of two monomers: Modified Ethylene Glycol and Purified Terephthalic Acid. PET is frequently used to package a range of products and is prized for its strength, thermo-Stability, and transparency.
According to PETRA, the PET Resin Association, the U.S. Recycling Rate was about 31% in 2012, while it was 52% in the European Union. In 2016, the U.S. recycling rate had fallen below 29%. Almost 1.8 billion pounds of PET was recycled in 2015, used to make a variety of end products. The U.S. Environmental Protection Agency (EPA) estimates that 1% of municipal solid waste in the U.S is attributed to PET containers.
The major factor influencing plastic recycling is recycled plastics trade at a 20-40% discount as compared to the ‘virgin’ (new, oil-based) plastics, making it financially attractive to plastic converters. The higher the price of oil, the more attractive recycled plastics become. Hence, this is a major driving factor for the Recycled Polyethylene Terephthalate market.
The research report analyses the ecosystem of the Recycled Polyethylene Terephthalate market or recycled PET market and categorizes the Recycled Polyethylene Terephthalate Market to forecast the revenues and analyze the trends in each of the following below-mentioned market segments.
In terms of market by product color, the Clear PET segment is estimated to be the largest segment of the recycled PET market during the forecast period
Clear recycled PET accounted for the largest share of recycled polyethylene terephthalate market in 2019. This segment is expected to lead the market on account of the high usage of clear PET bottles globally.
By End Use the Fibre segment is expected to be the largest segment of the recycled PET market
The Recycled Polyethylene Terephthalate market is expected to grow at a healthy CAGR. The Recycled Polyethylene Terephthalate is being increasingly adopted by various organizations, owing to its flexible, smooth, scalable, and affordable characteristics.
The bottles and jars segment is also growing in the recycled PET Market, on account of growing demand from the beverage industry. Therefore beverage industry has been identified as the key end-user of recycled PET Packaging solutions, as this sector generates constant demand.
Prominent packaging manufacturers are adopting stretch blow molding technology to design and manufacture a wide variety of recycled PET packaging solutions, as this technology offers high output quantities and fine dimensional accuracies
In 2019, fiber was the largest segment of the Recycled Polyethylene Terephthalate market accounting for over 40% of the market share in terms of volume. The growth in the fiber segment is largely due to increasing demand from the sectors such as FMCG, consumer goods, automobiles, clothing and accessories, textile, telecom, and home furnishing.
The Asia Pacific is expected to be the largest region in the forecast period
Asia Pacific region accounted for the largest share of the Recycled Polyethylene Terephthalate market followed by Europe and North America. The North America region is also projected to witness a higher product demand in the coming years on account of increasing consumption in end-user industries. The demand in the Asia Pacific region is primarily driven on account of demand from end-user industries. The Asia Pacific region is growing on account of rising urbanization, rising disposable income, and government initiatives, and a rise in residential and commercial construction projects. Major manufacturers of plastic recycling are targeting South East Asia region in particular as China has banned imports of plastic waste for recycling. This has resulted in deluge of waste in South East Asian Countries. Some of the major companies operating in the plastic recycling market in South East Asia countries include IAV Global, WESPACK, SME Recycle Sdn Bhd, Thai Plastic Recycle Group Co., Ltd. among others. Key Recycled Polyethylene Terephthalate markets in Asia- Pacific include China, India, Indonesia, Malaysia, Vietnam, and the Philippines.
Recycled Polyethylene Terephthalate Market Drivers
Recycled Polyethylene Terephthalate Market Restraints
Recycled Polyethylene Terephthalate Market Opportunities
Recycled Polyethylene Terephthalate Market Challenges
|1||The Ocean Clean up industry is using machine and satellite imaging to find the five trillion pieces of plastic waste and targets to collect 50% of marine trash within 56 years. The European Space Agency has also reported that it will use geostationary satellites from space to locate exactly where it is most targeted and also concentrate on recycling initiatives.||Positive|
|2||A recycling bot named Clarke had been designed with artificial intelligence to separate and identify things at superhuman speeds. Algorithms empower Clarke to find packaging points such as images and logos- then identify them for collecting and sorting. Most of these modern advances can help reduce energy costs which will lead to reduced recycling costs.||Positive|
|3||Resin giant Indorama Ventures is planning to invest $1.5 billion by 2025, in order to increase its annual Recycled Polyethylene Terephthalate capacity to 750,000 metric tonnes. The company is making this investment as many of its customers have set clear targets to increase RPET consumption in their beverage packaging.||Positive|
|News and Developments in the Middle East region of the Recycled Polyethylene Terephthalate market|
|1||Veolia Middle East, a local subsidiary of Veolia in partnership with AGS is planning to construct a new recycling facility in Abu Dhabi. This facility can produce 14000 tonnes of food-grade quality recycled raw material also referred as RPET. The new facility seeks to strengthen Abu Dhabi and UAE’s waste management strategy which seeks to eliminate waste from landfill, improve recycling rate, and boost the circular economy.|
|2||Equate a Kuwait-based petrochemical producer has successfully produced food grade recycled PET named Viridis 25. This requires a very less amount of virgin resin. The company is targeting the European Market of PET Recycled products.|
|3||UAE based waste management and recycling company Bee’ah has entered Saudi Arabia. The company has successfully won 3 waste collections and recycling contracts in Madinah. Along with disinfection and sanitization of waste bins the company will also be providing solid waste collection and transport services.|
|4||BariQ , a subsidiary of Ray holding has become the first company to set up a bottle-to-bottle grade recycling PET plant in the Middle East. The company recycles roughly around 1.6 Billion PET bottles per year from Post-consumer PET waste.|
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.