Global Bio-Pet Packaging Market Size (2023 - 2030)

According to our research report, the global bio-PET packaging market is estimated to reach a total market valuation of USD 10.49 billion by 2030. The market is projected to grow with a CAGR of 6.8% per annum during the period of analysis (2023 - 2030).

Industry Overview:

Monoethylene glycol (MEG) and terephthalic acid (PTA) are the main components of bio-based PET, which is biodegradable. It is widely employed in the creation of numerous packaging solutions, mostly in the food and beverage industry and the automobile industry. Numerous more uses include the production of bottles, packaged goods, automobile interiors, and building materials. The development of the bio-based PET market has been greatly aided by the introduction of bioplastics that are biodegradable in the production of packaging solutions. There is a high demand for bio-based PET materials as a result of rising environmental consciousness among customers worldwide and strict environmental legislation encouraging the adoption of eco-friendly products across industries.

The report on the global bio-based PET market offers a thorough analysis of the industry's major drivers and restraints, most recent technological developments, main competitors' product lines, and regulatory environment. The research, which was created with the assistance of opinions from numerous thought leaders and industry professionals, closely monitors new and emerging trends, changes to the regulatory environment in important regions, and the effects they have on the competitive dynamics. The study analyses the tactics used by participants to diversify their product offerings to strengthen their market positions. The insights are beneficial in developing effective strategies.

One of the biggest markets for bio-PET is the United States, where the material is widely employed in the production of bottles, consumer items, and technology. Growth is anticipated to be fueled by an increase in demand for eco-friendly packaging in the food and beverage, consumer goods, and pharmaceutical industries as a result of growing concerns over the need to cut domestic greenhouse gas emissions.

The introduction of bioplastics as an alternative in the packaging and automotive industries, along with growing concerns about greenhouse gas emissions, are anticipated to have a significant impact on growth shortly. In addition, during the next nine years, it is anticipated that the growing demand for sustainable packaging, particularly in China and India, will have a favorable effect on the industry.

Impact of Covid-19 on the Industry:

The COVID-19 epidemic had a significant impact on the international economy in 2020 as a result of widespread social isolation and national lockdowns. Every aspect of the economy, including investments and production along all value chains, ceased to exist.

The bioplastic business was affected by the pandemic in the same ways as other sectors. Due to a spike in demand for single-use plastics used to manufacture face shields, personal protection equipment, and food and grocery delivery packaging during the COVID-19 epidemic, there were unavoidable unfavorable impacts. The Japanese Ministry of Finance, Trade, and Industry estimated that by April 2020, there would be a need for more than 600 million face masks.

A 40 percent increase in manufacturing capacity was also required, according to the World Health Organization, to meet the surge in demand during the peak of the COVID-19 pandemic for surgical masks, examination gloves, and goggles. Additionally, as oil prices fell in 2020, virgin plastic became more affordable than biodegradable plastics, which had a detrimental effect on the demand for bioplastics.

In the upcoming years, it is anticipated that the COVID-19 pandemic's impacts with the restart of transportation and production facilities and the loosening of social distance rules will offer bioplastics enterprises considerable growth potential. In addition, it is anticipated that demand for bioplastics would steadily rise to reduce the usage of single-use plastics.

Market Drivers:

Increasing demand for its application in various packaging solutions:

The market for bio-based PET is expanding as a result of stringent regulations aimed at reducing carbon emissions in key regions and rising demand for its use in various packaging solutions in the food and beverage industry. Additionally, the expansion of government programs in several nations to encourage the use of bio-based and biodegradable materials has boosted the demand for bio-based PET materials. Additionally, the development of novel manufacturing techniques and research into cutting-edge chemicals and materials are anticipated to stimulate the market in all key geographical areas.

Increased inclination towards green plastic will drive the market growth:

One major trend that is anticipated to drive the market's expansion is the rising propensity toward the use of green plastics. The production of bio-based PET bottles at cost-competitive levels is a project that several beverage producers take on to gain major competitive advantages and draw a sizable consumer base.

Market Restraints:

High Cost Compared to Conventional Plastics to Restrain Market Growth:

Even though biodegradability is unquestionably a benefit, the majority of grades require specialized industrial composting methods to break down, and only a small number of economies have a dense enough infrastructure to handle these items. As a result, they could contaminate the recycling feedstock or end up in landfills, hurting the environment. Therefore, a separate procedure is needed to get rid of these polymers, which raises the price of the product.

As the feedstock crops used in production are typically used to feed people worldwide, the land needed to make biodegradable polymers competes with food production. According to the Plastic Pollution Coalition, feedstock crops will need to be grown on an area of 13800 sq. km. to supply the present worldwide demand for these plastics. This region is larger than Belgium, the Netherlands, and Denmark as a point of comparison. These all contributed to the product's price being higher than with traditional plastics. The complicated procedure utilized to turn corn and sugarcane into the lactide monomers for PLA results in a cost premium of 20–50%, according to the Earth Institute at Columbia University.

BIO-PET PACKAGING MARKET REPORT COVERAGE:

This research report on the global Bio-PET Packaging market has been segmented and sub-segmented based on, and Geography & region.

Global Bio-PET Packaging Market- By Feed-Stock

• Food Crops

• By-products of Food Crops

• Non-food Crops

Since plastics are not biodegradable, it has been observed that their use in a variety of industries, including the food and beverage, automotive, and healthcare sectors, has negatively impacted environmental conditions. Many marine lives have been lost as a result. Bioplastics have taken on significant importance as a replacement for the use of plastics. They are skilled at bundling products for the automotive and food and beverage industries. These bioplastics are easily distorted, making them a better option for packaging in an eco-friendly manner.

Global Bio-PET Packaging Market- By Application

• Bottles

• Films & Sheets

• Bags

• Cosmetic Containers

• Molded Parts & Components

• Fibers

• Others

Bio-based polyethylene terephthalate packaging applications emphasize size. Expanding the consumption of food and beverages in the BRICS together with initiatives done by organizations to spur green innovation should promote combining uses that would increase the market size for bio-based PET. By 2030, the market for bio-based PET from specialized applications would grow. The assembly of outside and inner specific pieces with bio-PET requires both lightweight and high break obstruction.

The growing awareness of the need of protecting nature is a key factor driving the growth of the global bio-based materials market. It is thought that rising carbon dioxide gas emissions are negatively affecting the world by raising global temperatures. This has prompted many who care about the environment to start using products that the earth itself can degrade naturally without any help. In recent years, it has become more common for commonplace items to release chemical waste into the environment, such as unsafe results. As a result, people are gravitating toward using sustainably sourced bio-based products to reduce their exposure to such synthetic materials and minimize the release of harmful side effects.

Global Bio-PET Packaging Market- By End-Use

• Food & Beverage

• Cosmetics & Pharmaceuticals

• Automotive & Transportation

• Electrical & Electronics

• Textile

• Packaging

• Others

Traditional bio-PET is composed of 70% petroleum-based resins and 30% bio-based MEG, although research is being done to raise the proportion of bio-based feedstocks. The bio-based feedstock sources for acquiring and producing monomers, oligomers, polymers, and bio fibers include several plants, animals, microbes, and fungus. Even though bio-based feedstocks still make up a very small portion of the feedstocks used by the polymer sector, their use is expanding considerably more quickly than the use of petrochemical feedstocks, therefore they are certain to become more significant over time. The market is divided into three categories based on feedstock: food crops, by-products of food crops, and non-food crops.

Global Bio-PET Packaging Market- By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• The Middle East and Africa

The Asia Pacific region, Europe, North America, Latin America, the Middle East, and Africa make up the five regions that make up the global market for bio-based PET. Because PET jugs, consumer goods, and other items are primarily assembled in the United States, North America is the key region for the global bio-based PET industry. The growth of the global bio-based PET market is attributed to the U.S. and Canada's popularity of automotive components.

Due to the availability of raw materials, the low cost of production, and the region's rapid modernization, the Asia Pacific region held the bulk of the market share in 2019 and is the fastest-growing region in the global bio-based PET market. The expansion of the market in the Asia Pacific area has been accelerated by the production and export of consumer and automotive goods in developing nations like China and India.

Because of the increasing demand for the product from automakers in western European countries like Germany, the U.K., France, and others, the European market is expanding. The growing health concerns and rapid industrialization in the Middle East and Africa region have a substantial impact on the need for a bio-based PET.

Global Bio-PET Packaging Market- By Companies

• Toray Industries, Inc.

• Toyota Tsusho Corporation

• Braskem Inc.

• Virent Inc

• The Coca-Cola Company

NOTABLE HAPPENINGS IN THE GLOBAL BIO-PET PACKAGING MARKET IN THE RECENT PAST:

• Merger & Acquisition: - In 2021, The global coatings division of Bayer, including facilities in Mereville, France, and tolling activities in Brazil and the United States, was acquired by Solvay. The company's selection of bio-based and sustainable solutions for agricultural consumers will grow as a result of this purchase. All product lines, worldwide tolling operations, and R&D initiatives from the Mereville site have now been transferred entirely to Solvay.

• Merger & Acquisition: - In 2021, The BioBag Group, a Norwegian business that creates minimal impact packaging solutions, was purchased by Novamont. With this acquisition, Novamont will be able to diversify its distribution network and reach new markets. Additionally, by forming deeper connections with the key stakeholders, from major retailers to local governments, the two businesses are now able to provide the market with a more suitable and comprehensive choice of options.

• Business Partnership: - In 2021, The three-year collaboration between Novamont and Iren in the field of integrated trash collecting systems is intended to eliminate non-recyclable garbage at the source and implement the goals of a circular economy. In order to improve the management of compostable goods and packaging, their augmentation, and recovery along with the organic component of solid waste in the Iren treatment plants, both businesses are committed to developing targeted projects.