U.S. Polyethylene Terephthalate (PET) Market Size, Share & COVID-19 Impact Analysis, By Type (Virgin and Recycled), By Application (Rigid Packaging, Film, Sheets & Straps, and Others), and Country Forecast, 2023-2030

The U.S. Polyethylene Terephthalate (PET) market size was worth USD 7.30 billion in 2022 and is projected to grow at a CAGR of 9.2% during the forecast period.

Polyethylene Terephthalate (PET) is a thermoplastic polymer with high density, strength, and rigidity that makes it suitable for several applications ranging from food packing containers to electronic and automotive components. Owing to its excellent water and moisture resistance, PET is widely used to make plastic bottles that are further used to store mineral water or carbonated drinks. As polyethylene terephthalate is widely used in various kinds of packaging, growth in the e-commerce sector will fuel the packaging industry.

The COVID-19 outbreak forced governments to implement lockdown measures to control the spread of the virus. As a result, production plants were closed across many sectors, lowering the utilization of PET materials. However, due to its wide range of applications, the U.S. PET market experienced a fast recovery after the ease of lockdown restrictions.

U.S. Polyethylene Terephthalate (PET) Market Trends

Rising Use of Recycled Polyethylene Terephthalate Will Emerge as New Market Trend

A million plastic bottles are purchased across the globe every minute of the day, and this purchase rate will increase by 20% by 2023. 90% of the plastic bottles are thrown away, ending up either in landfills or oceans which is a concerning factor. In response, many manufacturers and consumers have come together to expand their recycling capabilities for polyethylene terephthalate bottles. Companies, such as Coca-Cola, in partnership with Indian company Zepto, have initiated a “Return and Recycle” program to promote this trend. This initiative will allow consumers to return the polyethylene terephthalate bottles that Zepto will collect to take them to the recycling facilities. Recycling plastic is the need of the hour, and companies investing in recycling facilities will shape the market's future.

U.S. Polyethylene Terephthalate (PET) Market Growth Factors

Polyethylene Terephthalate Has Emerged as Ideal Packaging Material among Other Polymers

Polyethylene terephthalate is a polyester material that is clear, durable, lightweight, and chemically inert, which makes it an ideal packaging material. Its properties allow manufacturers to make large containers with less weight. Along with its many unique properties, it is the most recycled plastic in the world. This material can be recycled over and over without losing its intrinsic properties. For instance, in 2019, Norway achieved a 97% recycling rate of the plastic bottles collected in the country and achieved 12 times recycling. Owing to the aforementioned advantages, it is highly used in packaging several products, including baked goods, cosmetics & personal care, electronics, gift packs, household items, toys, and other consumer goods. Its significant advantages over other polymers and 100% recyclable nature will increase its demand during the forecast period. These factors are anticipated to stifle the U.S. market growth.

RESTRAINING FACTORS

Threat Posed by PET to Environment to Hinder Market Growth

Polyethylene Terephthalate is the most common type of polymer that can be found in a plethora of products. However, its production is an energy-intensive process and when it is used in the form of textile fibers, it consumes far more energy than any other conventional fibers. However, being less expensive than conventional fibers, such as hemp or cotton, it is gaining notable momentum in the textile industry. In addition, every bottle ending up in landfills or out in the environment releases harmful chemicals, posing a threat to every life form. To limit this, many governments are taking steps to restrict the consumption of PET and pressuring companies to find sustainable ways to meet the demand for this product. For instance, as per the European Union’s directive, new PET bottles produced from 2025 should contain at least 25% recycled materials. This will decrease the production of virgin polymers, which will force companies to establish recycling plants. As a result, it will increase their investments and lower their profit margins.

U.S. Polyethylene Terephthalate (PET) Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into virgin and recycled. The virgin segment held the largest U.S. Polyethylene Terephthalate (PET) market share in 2022 and is poised to remain the dominant segment in the market during the forecast period.  This segment is leading owing to the high demand for rigid Polyethylene Terephthalate (PET) bottles from beverage manufacturing companies. However, recycled PET is projected to gain a significant market share by the end of the forecast period.

• For instance, as per the National Association for PET Container Resources (NAPCOR), the recycling rate of PET products increased to 28.6% in 2021, up from 27.1% in 2020.

By Application Analysis

Based on application, the market is segmented into rigid packaging, film, sheets & straps, and others. The rigid packaging segment has been identified as a leading segment during the historical period. Its high quality and other exceptional properties have made it an ideal raw material for producing plastic and other food packaging products.

• The presence of leading beverage companies, such as Coca Cola, Pepsico, Monster Beverage Corporation, and others, will drive the demand for PET in rigid packaging applications.

List of Key Companies in U.S. Polyethylene Terephthalate (PET) Market

In terms of the competitive landscape, the market depicts the presence of established and emerging companies. ALPEK, DAK Americas LLC, DuPont, Far Eastern New Century, Indorama Ventures, and Lotte Chemical Corporation are a few manufacturers leading the U.S. market with a considerable share. It is observed that many leading manufacturers are switching to recycled PET, which will shape the U.S. market during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• ALPEK (Mexico)


• DuPont Teijin Films (U.K.)


• Far Eastern New Century (Taiwan)


• Indorama Ventures (Thailand)


• Primex Plastics Corporation (U.S.)


• Lotte Chemical Corporation (South Korea)


• Nan Ya Plastics Corporation (Taiwan)


• SABIC (Saudi Arabia)

KEY INDUSTRY DEVELOPMENTS:

• May 2023: U.S. based leading beverage company Coca Cola initiated the “Return and Recycle” initiative in India to decrease its contribution to the overall plastic waste generation.


• February 2022: Indorama Ventures Public Company Limited bought 85% of an equity stake in the Czech Republic-based Polyethylene Terephthalate plastic recycler, UCY Polymers CZ s.r.o. With this stake, the company increased its production capacity for recycled PET.

REPORT COVERAGE

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The report thoroughly examines key factors, such as leading companies, grades, and applications. It also provides the latest market trends and highlights significant industry developments. The report includes different variables that have contributed to the market's growth in recent years. It examines the market’s newest dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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