Global PET Compounding Market is Segmented By Application (Packaging, Electrical & Electronics, Industrial Machinery, Automotive, Construction, Material Handling), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
The Global "PET Compounding Market" is expected to reach at a CAGR of 5.5% during the forecast period (2024-2031).
Market Scope
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Metrics |
Details |
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Market CAGR |
5.5% |
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Segments Covered |
By Application, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
North America |
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Compounding is the melting and mixing of polymers with various additional substances. The compounding process alters the plastic's physical, thermal, electrical, and aesthetic properties. The compounding process is put to a lot of work when working with engineering plastics and masterbatch plastics.
PET is a chemical compound that is a thermoplastic polymer resin used as fiber for clothing, thermoforming for manufacturing, and the production of technical resins. It is a polymer, which is a macromolecule, made up of thousands of monomer units that repeat. Chemists employ two monomers to make PET: terephthalic acid and ethylene glycol. Esterification happens when an organic acid and an alcohol combine to generate an ester and water in both units.
On the other hand, PET is not an ordinary ester; it's polyester with considerably different properties from conventional esters. It's also used to keep things from rusting. When applied to carbon steel using an industrial press, polyethylene terephthalate (PET) functions as an anticorrosive coating. Compared to standard organic coatings, PET has good adherence to these substrates.
PET compounding products are widely used for packaging various foods and beverages because they are clean, solid, lightweight, retain the freshness of the contents, do not break, and are dimensionally stable. It's resistant to water, chemical substances, and non-harmful materials that can be recycled.
PET (Polyethylene Terephthalate) is also used in textiles, packaging, foils, and specialty. The compounding procedure is particularly crucial for specializations. The polymer and blend components, if applicable, must be melted softly and uniformly without shear peaks and the filler and flame retardant fractions must be evenly distributed. It is a difficult task for compounding technology. The reinforcing fibers must be supplied to maximize mechanical qualities while extended dwell periods in the various process zones are maintained.
Source: DataM Intelligence Analysis (2023)
Market Dynamics and Trends
PET compounding market growth is predicted to be fueled by rising polymer demand in end-use sectors like packaging, automotive, electrical & electronics, and construction. Regulatory authorities have developed policies and standards to reduce Green House Gas (GHG) emissions by reducing vehicle weight and improving fuel economy. Strong demand for PET bottles and a burgeoning packaged food and beverage industry in emerging nations are expected to drive significant industry growth.
The surge in PET compounding applications usage, especially in water bottles
Consumption growth is predicted throughout end-use industries such as packaging, automotive, electrical & electronics, and construction. The rising demand for water bottles is a major driver of market expansion. PET bottles are more convenient since they are lightweight, non-breakable, and can be resealed. Winter jackets, door panels, industrial strapping, sheets, fibers, and automobile bumpers are just a few of the goods that can be made from the compound.
Because of their more excellent impact resistance, PET compounds are increasingly employed as an alternative to glass and acrylic materials. The recent trend of using conventional materials in transportation applications such as windshields and windows to replace the above-mentioned traditional materials offers profit potential.
The rise in regulatory intervention regarding the usage of conventional plastics
Key manufacturers have developed bio-based alternatives with higher biocompatibility in response to regulatory intervention on using conventional plastics in medical devices and food packaging applications. The trend has aided the development of bio-PET and similar chemicals.
Traditional applications for recycled plastics in packaging, such as bottling and non-food product wrapping, are positioned as opportunities. Improved logistics networks, such as improved garbage collection and post-recycling supply, will boost industry growth. For instance, numerous environmental legislation, such as REACH (Registration, Evaluation, Authorization, and Restriction) and the EPA (Environmental Protection Agency), have prompted manufacturers to shift their focus toward bio-based polymers in North America and Europe.
Volatility in raw material prices and increasing environmental regulations and policies hinder growth.
Over the last few months, global crude oil prices have been wildly fluctuating. Social upheaval in key crude oil-producing regions such as Nigeria, Venezuela, Iraq, Iran, and Libya has harmed crude oil production, causing demand and supply inelasticities.
Polymers, plastic additives, lubricants, and solvents are among the raw ingredients used in PET compounding. The majority of raw materials used are derived from petrochemical downstream processes and they are likely to impact overall production costs.
COVID-19 Impact on PET Compounding Market Growth
To combat the unique coronavirus, businesses have been forced to close temporarily, development has been halted, social isolation has persisted and other measures have been adopted that have affected every part of life. The packaging business is facing several issues due to the recent global coronavirus outbreak, which has caused supply chains to stagnate and the retail industry, particularly e-commerce, to grind to a standstill.
The PET compounding demand has unfavorable conditions due to the outbreak of COVID-19 is anticipated to foil the growth of the market studied. Due to the lockdown, laborers have been in a shortage, significantly hampering gas output. Furthermore, the imposition of lockdown directly impacts all modes of construction globally.
Segmentation Analysis
The PET compounding market is segmented into packaging, electrical & electronics, industrial machinery, automotive, construction, material handling, and others.
Packaging segment to hold the largest share
With a healthy growth rate, the packaging segment will emerge as the top application category in the coming years. In the packaging industry, PET plastic is frequently utilized. It is commonly used for the packaging of various foods and beverages since it is clean, solid, lightweight, retains the freshness of the contents, and does not break. It is commonly used to package water and carbonated beverages.
For example, the most important consumer demands across all markets are the container's sanitation and leak-proof capabilities for food packaging. Still, the packaging material itself is equally important. According to a global consumer poll commissioned by global chemicals manufacturer, Kemira over half of the 4,000 respondents in the U.S., China, Germany, and Finland said they would pay more for renewable food packaging.
PET plastic is thought to be a durable, safe, lightweight, versatile, and non-harmful material that may be reused. Over the projected period, advancements in packaging technology and the consequent development of requirements for plastics in packaging are expected to evolve as key determinants of market dynamics. The applicability of PET compounds to meet consumer requirements with more durable, lightweight, and corrosion-resistant parts has fueled growth in the packaging industry. The growing food and beverage processing industry and rising customer preferences for processed and convenience foods in Latin America benefit the market.
Source: DataM Intelligence Analysis (2023)
Geographical Analysis
Rising recyclability and sustainability in Asia-Pacific
The Asia-Pacific dominates the global polyethylene terephthalate (PET) compounding market and is projected to continue during the forecast period. The regional use of PET compounds is expected to be driven by rising demand for beverages, primarily carbonated and nutritious drinks. A growing population, changing lifestyles and the advent of domestic beverage makers contribute to this trend. The availability of a big pool of contract bottlers in the area will expand the PET compounding demand in the packaging application segment's scope.
Plastics have long been used extensively in the construction sector, ranging from pipe fittings and insulation to masonry materials and equipment. Plastic compounds are adjusted to meet their specific needs. Consumer demand for recyclable and sustainable products and the expansion of key end-use industries like packaging, automotive, electrical, and electronics are expected to fuel regional market growth.
The favorable tax climate in the Asia-Pacific for global corporations is predicted to increase the number of manufacturing utilities in the region, resulting in a demand for industrial machinery. The region is expected to lead global construction spending by the end of 2020, with countries such as China, India, and Indonesia making large investments. During the projected period, increased demand from various sectors is expected to drive the PET compounding market in the region.
Some countries in the region are taking substantial steps to provide solutions and incorporate sustainable processes into businesses to accomplish sustainable development goals. For example, Mitsui Chemicals Group, a Japanese chemical producer, launched a bio-polypropylene initiative in 2019 as part of its attempts to reduce environmental impact and accomplish sustainable development goals.
Countries in Asia-Pacific, particularly China and India, have seen an exponential surge in manufacturing activity due to a significant rise in consumerism driven by economic expansion, a favorable lending landscape, and more disposable income. Plastics, which are used to produce practically all tangible things, are expected to grow in popularity in the future, affecting the compounding sector.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
The compounding of PET is a crowded market. The Polyethylene Terephthalate (PET) compounding market is highly fragmented, with many small and large-scale players. To gain the most market share, market players are interested in product development and innovation. The leading firms in the PET compounding market are concentrating on growing their global footprint through acquisitions and mergers and diversifying their product range to match the dynamic trends of the global industries. Companies like PolyQuest, Inc., Mitsubishi Polyester Film, Inc., BASF SE, SABIC, The Dow Chemical Company, DuPont, RTP Company, Covestro, Schulman, and SRF Plastics are prominent players in this industry.
PolyQuest Inc.
Overview: One of the largest PET resin distributors in North America, a prominent recycler of PET resins, and a value-added processor of PET scrap streams. For every major end application, the company offers the most comprehensive, cost-effective portfolio of virgin prime and wide-spec PET resins, as well as recycled PET resins. It uses cutting-edge processing technology and equipment to produce high-quality post-industrial or post-consumer recycled PET goods.
Product Portfolio: The organization offers the most extensive and cost-effective PET Resins supply range. Among the items available are PET resins, amorphous PET resins, RPET flake, and RPET resins.
Key Developments: PolyQuest, Inc. (PQ), a significant distributor of PET resins and recycler of PET resins in North America, announced in 2021 that its factory in Darlington, South Carolina, will be expanded. The Darlington facility, which opened in 2004, has functioned as the company's flagship distribution and recycling hub.
Darlington has long given PolyQuest the potential to generate value for its business partners, independent of their position in the PET supply chain, due to its central location in the heart of North America's virgin PET manufacturing, with access to major railroads, railways, and coastal ports. The plant also has recycled plastic processing capabilities, allowing customers to provide sustainable raw material solutions for PET in any end-use.
Why Purchase the Report?
- Visualize the PET compounding segmentation by application and region, highlighting the key commercial assets and players.
- Identify commercial opportunities in PET compounding by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of PET compounding - level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global PET compounding report would provide access to an approx. 45 market data tables, 34 figures, and 180 pages.
Target Audience 2024
- PET Compounding Manufacturers And Suppliers
- PET Compounding Industry Players
- PET Compounding Buyers
- Emerging Companies
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
- Distributors
