The PET industry emerges stronger from the pandemic

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The demand for packaging materials for home services, the increase in e-commerce and the demand for hygiene products caused the PET packaging market to skyrocket during the pandemic. Additionally, the disruption of local supply chains strengthened local supply. The closure of the cycle will further promote the development of new packaging.

The pandemic was undoubtedly a period of great opportunities for the rigid packaging industry. PET in particular, which had a difficult first few months as a result of the drop in the consumption of personal packaging, rebounded thanks to the migration to other formats, and above all thanks to the increase in demand for cleaning and hygiene products.

The global demand for PET has been increasing in the last ten years. In 2010, it was 17 million metric tons. In 2020 this figure rose to 27 million and in 2030 it is expected to rise to 42 million, according to figures from the consulting firm Statista. In value for 2020, the PET packaging market totaled USD 55.52 billion and by 2026 it is expected to reach USD 74.2 billion, with an annual growth of 5% in the period from 2021 to 2026, according to the consulting firm Research and markets.

In the future, the demand for food and beverages will drive growth. In this regard, it is important to point out that the consumer will seek increasingly healthy alternatives, but also alternatives that appeal to their emotions and to which they feel attracted. In this sense, the availability to change format for short production runs will be fundamental in meeting demand, particularly in our Latin American region.

THE WORLD MARKET

Currently, PET is in exceptionally high demand. And due to supply problems from Asia, localized supply chains are getting stronger. The price of PET from Asia has more than doubled since the end of 2020; at that time, a ton fob of PET from China cost $500 less than in February 2022, when it cost $1,150, according to Orbichem data.

There is certainly a global overcapacity for PET production, but this is not a relief for Western markets, due to general supply problems.

The Asia-Pacific region is forecast to dominate the market. Demand in this region is driven by factors such as population growth, rising disposable income, urbanization in developing economies, and growing demand for fast-moving consumer goods, according to a study by Research and markets. "China is a major producer of PET resins, with PetroChina Group and Jiangsu Sangfangxiang among the world's largest manufacturers in terms of volume, with capacities of more than 2 million tons," says the consultancy in an April 2022 study.

The study also points out that the use of engineering plastic products in the packaging sector (PET containers, bottles, etc.) is increasing at a dizzying rate due to its advantages over conventional plastics used. Demand for packaging materials from industries such as food and beverage, consumer goods and others is increasing in China, due to rising exports and domestic consumption.

"China's food and beverage consumption has evolved dramatically in the past 40 years and gradually transformed from an industry-driven market to a consumer-driven market," the consultancy says.

Regarding packaging for other markets, it is worth highlighting the expected growth in thermoformed and clamshell-type packaging for the electronics industry. "China is a strong and favorable market for electronics producers due to the country's low labor cost and flexible policies."

 
Written by: Dr.-Ing. Laura Florez