Bio-based PET market estimated at 5,800 Kilo Tons By 2020
Global Bio-Based Polyethylene Terephthalate (PET) market is expected to reach 5,800 kilo tons by 2020, according to a study by Grand View Research, Inc.
Volatile crude oil prices and growing sustainable packaging market have fuelled bio-based PET market growth in packaging, automotive and electronic applications. Growing GHG emission concerns has fuelled demand for eco-friendly substitute, which is expected to boost bio-based PET market growth in the near future.
Companies such as The Coca Cola Company, Heinz & Co., Ford Motors, Nike Co. and Proctor & Gamble have signed Plant PET Technology Collaborative (PTC), intended for development and use of 100% bio-based PET in their product offerings. These developments are expected to provide new market opportunities over the forecast period.
Bio-based PET was predominantly used for the packaging of CSD (Carbonated Soft Drinks), accounting for more than 75% of market share in 2013. Growing beverage consumption in emerging markets of BRICS is expected to drive bio based PET market growth. CSD marketing companies such as Coca-Cola are committed on promoting the use of bio-based PET in packaging, which is expected to have a major impact on market growth in the near future. Bio based PET is also used in technical applications such as electronics and automotive vehicles. Growing demand for lightweight material in automobiles is expected to propel bio-based plastics demand, resulting in bio-based PET market growth over the forecast period.
Asia Pacific accounted for over 30% of global bio based PET demand in 2013. The Japanese government’s target of 20% of bio-based plastics consumption by 2020 coupled with application growth of packaging and technical applications in China and India is expected to boost regional market growth over the next six years. European Commission has included bio-based production as a key priority area intended for increasing industry share in EU’s GDP from 15% to 20%, which in turn is expected to provide new opportunities for the market in the near future.
The market is expected to be highly competitive, on account of limited presence of manufacturers such as Coca-Cola Company, Toyota Tsusho and Teijin Limited. Raw material manufacturers including Gevo, Virent and Anellotech have invested in the development of fully bio-based PTA, intended for 100% bio-based PET production.