Global PCR PET Market - Forecast(2024 - 2030)

Global PCR PET Market Overview

Report Coverage

The report " Global PCR PET Market Report – Forecast (2022-2027)" by IndustryARC covers an in-depth analysis of the following segments of the global PCR PET industry.

By Type: Mechanical PCR, Chemical PCR, and Biological PCR
By Grade: Textile Grade, Bottle Grade, and Film Grade
By Application: Fiber, Sheet and Film, Bottles, Thermoforming Trays, Nonwoven, and Others
By End-Use Industry: Packaging (Food & Beverages, Pharma Products, Personal Care Products, and Others) and Non-packaging (Sportswear, Shoes, Home Textiles, Industrial Textiles, Strapping, and Others)
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia and New Zealand, Taiwan, Indonesia, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

• The Asia-Pacific region dominates the PCR PET market due to the rising growth and investments in the retail activities. For instance, according to the India Brand Equity Foundation, between 2019 and 2023, India estimates to invest US$1.4 trillion in infrastructure projects.
• Rising usage of PCR PET for packaging products in the food and pharmaceutical sector, is further anticipated to drive the demand for global PCR PET in the forecast period (2022-2027).
• Moreover, in the year 2021 packaging for groceries, healthcare products, and e-commerce transportation saw a significant increase in demand. Thus, which positively impacted the growth of the global PCR PET market.

Figure: Asia-Pacific PCR PET Market Revenue, 2021-2027 (US$ Billion)

Global PCR PET Market Segment Analysis – By Application

Bottles held the largest share in the global PCR PET market and is expected to continue its dominance over the period 2022-2027. Bottles and jars made from Post-Consumer Resin (PCR) are becoming increasingly popular in the packaging sector, with PET containers in the forefront. PET (Polyethylene Terephthalate) is one of the most widely used plastics in the world, and it is also one of the easiest to recycle. Since PET is made mostly from fossil fuels, manufacturers of polyethylene terephthalate (PET) with PCR content have a high priority as a result of this. These bottles can be made with anything from 10% to 100% PCR content, though incremental content percentages do necessitate Brand Owners' willingness to sacrifice clarity and color aesthetic. Thus, the increasing usage of global PCR PET in applications such as bottles is further estimated to incline the market growth.

Global PCR PET Market Segment Analysis – By End-Use Industry

The packaging sector dominated the global PCR PET market with 53% in 2021 and is projected to grow at a CAGR of 6.2% during 2022-2027. With the rising growth of the packaging sector, the market for global PCR PET is further estimated to rise. For instance, as per Invest India, the Indian packaging market was valued at US$ 50.5 billion in 2019, and it is predicted to reach US$ 204.81 billion by 2025, growing at a CAGR of 26.7% between 2020 and 2025. In recent years, rising growth of the food and beverage, pharmaceutical, and personal care and cosmetic sectors has raised the need for e-commerce sales, thus has positively impacted the growth of the packaging sector and also raised the growth of the PCR PET industry.

Global PCR PET Market Segment Analysis – By Geography

Asia-Pacific region dominated the global PCR PET market with a share of 42.5% in 2021. The market in the region is witnessing expansions with the rising growth of the packaging sector in the emerging economies such as China, India, and Japan. For instance, in the midst of the e-commerce boom, the packaging business is seeing rapid expansion which is also considered as one of the major reasons behind the driving growth of the global PCR PET industry. For instance, the e-commerce segment of the packaging industry was valued at US$ 451.4 million in 2019 and is expected to grow at a 13.8% annual rate to US$ 975.4 million by 2025 as per the India Brand Equity Foundation. Thus, with the growth of the packaging sector, the demand for PCR PET is estimated to rise in the APAC region over the forecast period.

Global PCR PET Market Drivers

Advantages associated with PCR PET

The reliance on fossil fuels can be lessened while improving the environmental impact of packaging by minimizing the amount of garbage that ends up in landfills by employing PCR. PCR (post-consumer recycled plastic) is the most sensible option. It is less expensive, more readily available, and has a bigger positive impact than other options. For instance, making 100% PCR Polyethylene Terephthalate (PET), such as in a water bottle, has a carbon footprint that is 60% lower than virgin PET - and that includes the energy used to collect, recycle, and remanufacture the plastic. It also reduces landfill dumping and can be recycled again for new manufacturing. Thus, due to such advantageous properties the demand for PCR PET is estimated to rise over the projected period.

Growing recycling programs will drive the PCR polyethylene terephthalate market

Owing to several recycling programs, there will be a growth in the supply of PCR polyethylene terephthalate. For instance, the United States Environmental Protection Agency (EPA) came up with EPA Recycling and Litter Prevention Program 2021 program which helps support businesses and academic institutions to initiate recycling programs, encourage sustainable practices, and support litter prevention efforts. The U.S. recycling infrastructure and programs will influence the amount of PET that is available to facilities to help them produce rPET made out of these plastic resins. According to an article by the International bottled water association, the association has approved an innovative framework for a material recovery program that helps in developing new, comprehensive solutions which to increase recycling processes throughout the United States. Thus, due to which the global PCR polyethylene terephthalate market will rise over the forecast period.

Global PCR PET Market Challenges

Drawbacks Associated with PCR PET

One of the major challenges faced by the PCR PET market is its drawbacks. The required reheating process changes the color and clarity of the bottle when recycled; as the concentration of PCR increases, the appearance darkens gradually. This can be mitigated by the use of colorants, but these bottles are generally more appropriate for products that do not require crystal clear packaging – especially after the 25% ratio. Currently, as the brand owners who use virgin PET demand higher PCR content, the market for global PCR PET is estimated to expand – which is especially important given the current low recycling rates (PET recycling rate in the US is 24%, NAPCOR). Thus, due to such factors the global PCR PET market is anticipated to face challenges in the upcoming years.

Global PCR PET Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the global PCR PET market. Global PCR PET top 10 companies include:

1. Amcor plc
2. Bemis Company Inc.
3. Tetra Laval International SA.
4. Mondi
5. WestRock Company
6. Smurfit Kappa
7. Sealed Air
8. Indorama Corporation
9. Gerresheimer AG
10. Crown Holdings and others

Recent Developments:

• In February 2019, Indorama Corporation announced the acquisition of M&G Fibras Brazil, which is one of Brazil's largest PET producers. This acquisition will be extremely beneficial not only to both companies, but also to the Brazilian economy.

Relevant Reports:

PSF from PET Recycled Bottles Market - Forecast(2022 - 2027)

Report Code: CMR 1071

Bio-Pet Market - Forecast(2022 - 2027)

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Crystalline Polyethylene Terephthalate Market - Forecast(2022 - 2027)

Report Code: CMR 0313