According to a recent study conducted by Grand View Research, Inc., the global bio-based Polyethylene Terephthalate (PET) market is expected to reach 5,800 kilotons by 2020. The volatile crude oil prices and growing sustainable packaging market have accelerated the demand for bio-based PET market in packaging, automotive and electronic applications.
Increased greenhouse gas emissions raised the need for an eco-friendly substitute. Companies such as the Coca-Cola Company, Heinz & Co., Ford Motors, Nike Co. and Proctor & Gamble have signed Plant PET Technology Collaborative (PTC), intended towards the development and use of 100% bio-based PET in their product offerings.
Bio-based PET is mainly utilized for the packaging of CSD (carbonated soft drinks). In 2013, the market share for PET was more than 75%. The rising beverage consumption in Brazil, Russia, India, China and South Africa also triggered the growth of bio-based PET market.
The key findings of the study are listed below:
- Bio-based PET is also used in technical applications such as electronics and automotive vehicles. The demand for lightweight material in automobiles is expected to increase the need for bio-based plastics.
- Asia Pacific accounted for over 30% of global bio-based PET demand in 2013. The Japanese government’s initiative to include 20% of bio-based plastics by 2020 is also a reason behind this requirement. The packaging and technical applications in India and China is expected to boost the requirement in the regional market growth over the next six years.
- The European Commission has included bio-based production as a key priority area in order to increase the industry share in EU’s GDP from 15% to 20%. It will offer new opportunities for the market in the near future.
- The market is highly competitive with the limited presence of manufacturers such as Coca-Cola Company, Toyota Tsusho and Teijin Limited. Raw material manufacturers like Gevo, Virent and Anellotech have invested in the development of fully bio-based PTA, intended for 100% bio-based PET production.