Global Bio-Pet Packaging Market Size (2024 - 2030)

As per the latest research findings, the global bio-PET packaging sector is anticipated to attain a cumulative market worth of USD 10.49 billion by the year 2030. Throughout the analysis period spanning from 2024 to 2030, the market is expected to register a compound annual growth rate (CAGR) of 6.8%.

Industry Overview:

Bio-based PET, comprising monoethylene glycol (MEG) and terephthalic acid (PTA), emerges as a biodegradable alternative. It finds extensive applications in various packaging solutions, primarily within the food and beverage sector and automotive industry. Apart from bottles and packaged goods, bio-PET is utilized in automobile interiors and construction materials. The advent of biodegradable bioplastics in packaging production has significantly propelled the bio-based PET market. Heightened environmental awareness globally, coupled with stringent environmental regulations advocating for eco-friendly products, has spurred the demand for bio-based PET materials.

A comprehensive assessment of the global bio-based PET market is outlined in the report, encompassing key drivers, challenges, recent technological advancements, competitor analyses, and regulatory landscapes. Drawing insights from industry experts and thought leaders, the research diligently tracks emerging trends, regulatory shifts in pivotal regions, and their impacts on competitive dynamics. Furthermore, the study delves into strategies adopted by market players to diversify product portfolios and fortify market positions, thereby providing valuable insights for strategizing.

The United States stands out as a prominent market for bio-PET, extensively utilized in bottle production, consumer goods, and technology sectors. Anticipated growth stems from escalating demand for eco-friendly packaging across food and beverage, consumer goods, and pharmaceutical domains, driven by heightened concerns to mitigate domestic greenhouse gas emissions.

The impending influence of bioplastics introduction in packaging and automotive sectors, alongside escalating apprehensions regarding greenhouse gas emissions, is poised to significantly shape forthcoming growth trajectories. Additionally, the escalating demand for sustainable packaging, notably in China and India, is expected to positively impact the industry over the next nine years.

Impact of Covid-19 on the Industry:

The COVID-19 pandemic wrought substantial ramifications on the global economy in 2020, precipitated by widespread social distancing measures and national lockdowns, resulting in halts across all economic facets including investments and production across value chains.

The bioplastic sector mirrored similar impacts as other industries, grappling with surging demand for single-use plastics requisite for fabricating face shields, personal protective equipment, and packaging for food and grocery deliveries during the pandemic. Notably, Japan's Ministry of Finance, Trade, and Industry projected a demand surge exceeding 600 million face masks by April 2020.

Addressing the exigencies of the pandemic necessitated a 40% upsurge in manufacturing capacity, as per the World Health Organization, to meet burgeoning demands for surgical masks, examination gloves, and goggles during the peak of the COVID-19 crisis. Moreover, the plummeting oil prices in 2020 rendered virgin plastic more economically viable than biodegradable plastics, adversely impacting the demand for bioplastics.

In the ensuing years, with the resumption of transportation and production activities and relaxation of social distancing measures, the COVID-19 pandemic's impacts are poised to offer substantial growth prospects for bioplastics enterprises. Furthermore, a steady uptick in demand for bioplastics is anticipated, aiming to curtail the usage of single-use plastics.

Market Drivers:

Escalating Demand across Diverse Packaging Solutions:

Stringent regulations aimed at curbing carbon emissions in pivotal regions, coupled with growing demand for bio-based PET in various packaging solutions within the food and beverage sector, propel market expansion. Additionally, government initiatives in multiple countries to incentivize the utilization of bio-based and biodegradable materials augment demand for bio-based PET. Furthermore, advancements in manufacturing methodologies and research endeavors exploring cutting-edge chemicals and materials are anticipated to catalyze market growth across key geographical domains.

Rising Adoption of Green Plastics:

A notable trend anticipated to fuel market expansion is the burgeoning inclination toward green plastics adoption. Several beverage producers embark on projects to produce bio-based PET bottles at cost-competitive levels, leveraging substantial competitive advantages to attract a sizable consumer base.

Market Restraints:

High Cost Relative to Conventional Plastics Hindering Market Growth:

Despite the unequivocal benefits of biodegradability, most grades necessitate specialized industrial composting methods for breakdown, with only a few economies possessing the requisite infrastructure to handle such items. Consequently, these polymers risk contaminating recycling feedstock or ending up in landfills, posing environmental hazards. Thus, a distinct disposal process is imperative, elevating product costs.

Furthermore, as feedstock crops allocated for production often compete with global food production, the land required for manufacturing biodegradable polymers presents a challenge. According to the Plastic Pollution Coalition, meeting current global demand for these plastics necessitates cultivating feedstock crops over an area exceeding 13,800 square kilometers, surpassing the combined landmass of Belgium, the Netherlands, and Denmark. These factors collectively contribute to the premium pricing of the product. Additionally, the intricate process involved in converting corn and sugarcane into lactide monomers for PLA incurs a cost premium ranging from 20% to 50%, as per the Earth Institute at Columbia University.

The Global Bio-PET Packaging Market Segmented by Feedstock

• Food Crops
• By-products of Food Crops
• Non-food Crops

Given the non-biodegradable nature of plastics and their detrimental impact on various industries such as food and beverage, automotive, and healthcare, environmental conditions have suffered significantly, leading to the loss of marine life. In response, bioplastics have emerged as a viable alternative, particularly in packaging applications for industries like automotive and food and beverage. These bioplastics offer greater flexibility and represent a more environmentally friendly packaging option.

The Global Bio-PET Packaging Market Segmented by Application

• Bottles
• Films & Sheets
• Bags
• Cosmetic Containers
• Molded Parts & Components
• Fibers
• Others

Bio-based polyethylene terephthalate (PET) packaging applications prioritize scalability. Increased consumption of food and beverages in BRICS nations, coupled with initiatives aimed at fostering green innovation, is expected to drive the adoption of combined uses, thereby expanding the market for bio-based PET. By 2030, specialized applications are projected to witness significant growth in the bio-based PET market. The assembly of exterior and interior components using bio-PET necessitates lightweight properties and high fracture resistance.

The growing awareness of environmental conservation is a primary catalyst for the expansion of the global bio-based materials market. Concerns over rising carbon dioxide emissions and their impact on global temperatures have prompted a shift towards products that can naturally degrade without harming the environment. With the increasing prevalence of chemical waste from conventional items, there's a growing preference for sustainably sourced bio-based products to mitigate exposure to synthetic materials and minimize adverse environmental effects.

The Global Bio-PET Packaging Market Segmented by End-Use

• Food & Beverage
• Cosmetics & Pharmaceuticals
• Automotive & Transportation
• Electrical & Electronics
• Textile
• Packaging
• Others

Traditional bio-PET typically comprises 70% petroleum-based resins and 30% bio-based MEG, with ongoing research aimed at increasing the proportion of bio-based feedstocks. These feedstocks, derived from various plants, animals, microbes, and fungi, are utilized to obtain monomers, oligomers, polymers, and biofibers. While still a small portion of the polymer sector's feedstocks, the use of bio-based feedstocks is growing rapidly compared to petrochemical feedstocks, indicating their increasing significance over time.

The Global Bio-PET Packaging Market Segmented by Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

The global bio-based PET market comprises five key regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America holds a pivotal position in the global bio-based PET industry, primarily due to its dominance in the assembly of PET bottles, consumer goods, and other products. In the Asia-Pacific region, rapid modernization, low production costs, and abundant raw materials have contributed to its significant market share and status as the fastest-growing region. Expansion in this region is further driven by the manufacturing and export of consumer and automotive goods in countries like China and India. In Europe, increasing demand from automakers, especially in countries like Germany, the U.K., and France, is fueling market growth. Additionally, health concerns and industrialization in the Middle East and Africa are bolstering the demand for bio-based PET.

The Global Bio-PET Packaging Market Key Players

1. Toray Industries, Inc.
2. Toyota Tsusho Corporation
3. Braskem Inc.
4. Virent Inc.
5. The Coca-Cola Company

Recent Developments in the Global Bio-PET Packaging Market:

• Merger & Acquisition: In 2021, Solvay acquired Bayer's global coatings division, expanding its range of bio-based and sustainable solutions for agricultural consumers.
• Merger & Acquisition: In 2021, Novamont acquired The BioBag Group, enhancing its distribution network and market reach in providing eco-friendly packaging solutions.
• Business Partnership: In 2021, Novamont and Iren embarked on a three-year collaboration to implement integrated waste collection systems aimed at achieving the goals of a circular economy. Their joint efforts focus on enhancing the management, recovery, and composting of organic waste and packaging materials.