Recycled Polyethylene Terephthalate (rPET) Market

Recycled Polyethylene Terephthalate (rPET) Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Recycled Polyethylene Terephthalate (rPET) Market grew at a CAGR of 9.0% between 2017-2021 and is estimated to be US$ 6,220.4Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 9.6% and is expected to reach a valuation of US$ 15,556.9Mn by 2032 end.

Demand for recycled polyethylene terephthalate (rPET) is anticipated to increase throughout the forecast period due to growing environmental concerns, decreased plastic waste, and measures to strengthen North America’s and Europe’s circular economy.

Market Dynamic

RISING CONSUMER AWARENESS TOWARD SUSTAINABILITY

Consumer views toward plastic trash are changing, and this increased awareness fuels the consumer movement. Recycling rates are rising as society grows more aware of and aggressive in its attempts to eliminate plastic waste. Additionally, as consumers become more conscious of sustainability, there is a growing demand for recyclable packaging to promote a circular economy focused on recycling and reuse.

Making items from recycled PET is an energy-efficient technique that lowers CO2 emissions while using almost half the energy. Recycled PET is 75% more environmentally benign than virgin PET, which has a better ecological balance, claims a Swiss Climate report. Major businesses, such as Evian and PepsiCo, have started prioritizing the circular economy, which aims to use 100% recycled plastic by 2025.

LACK OF PROPER FRAMEWORK FOR PLASTIC WASTE MANAGEMENT

The quantity of municipal solid waste (MSW) has significantly expanded due to economic growth and fast industrialization. There is currently no adequate framework for managing plastic trash due to ineffective waste policy implementation and a lack of options, which are key obstacles for governments trying to develop a sustainable solid waste management system. Due to a shortage of recycling facilities, approximately 11.4 billion USD worth of recyclable materials is thrown away in the United States each year. According to the UN Environment Programme, 330 million tonnes of plastic trash are created each year globally. Still, only 9% of that waste is recycled, and only 14% is currently collected for recycling.

Market Segments Covered in Report

By Product:

• Clear
• Colored

By End-Use:

• Fiber
• Sheet and Film
• Strapping
• Food & Beverage Containers and Bottles
• Non-food Containers and Bottles
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Which end-use industry is dominating Recycled Polyethylene Terephthalate (rPET) consumption?

Since they help prevent leaks and protect buildings from extremely high and low temperatures, sheets and films for roof flooring are becoming increasingly popular. Additionally, they provide the roof with a smooth texture and require less paint and cement to finish the project with a better aesthetic appeal.

In industrialized nations like North America and Europe, rPET sheets are used more frequently. As major cities are on the verge of drowning in construction activity, mall owners will likely focus on developing cities for continued development. It is anticipated that these factors will increase demand for recycled PET.

Which Recycled Polyethylene Terephthalate (rPET) product will gain traction in the coming years?

The clear segment had the highest revenue share—more than 75.06%. Over the projected period, the clear recycled PET market is anticipated to be driven by low energy requirements and straightforward bottle-to-bottle recycling. Due to its strength, lightweight, non-reactive, and shatterproof qualities, the clear rPET market is anticipated to rise rapidly throughout the forecast period.

Because it is widely used in food and non-food applications and has a cheap processing cost, clear type rPET is the most popular type. Instead of using opaque or colored PET, most producers use transparent granules or flakes to make containers and bottles. Additionally, fine rPET goods quickly identify internal product differences, such as a change in color, fungal growth, and chemical reaction due to inadequate storage conditions.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• Due to major F&B firms’ sustainable packaging goals, which are increasing expenditures in recycling infrastructure in nations in this area, especially in China, Japan, South Korea, and India, the Asia Pacific market accounted for the greatest revenue share of 44.3%. The number of PET sheet production lines in China has increased dramatically in the previous two years.
• Due to the increased demand for recycled PET in various end-use sectors, primarily in the food and beverage sector, particularly in the U.S. and Canada, the North American market is anticipated to grow steadily over the forecast period.

Competition Analysis

Companies that operate in the global market place a lot of focus on broadening their global reach to boost sales and gain market share. To meet the growing demand for sustainable products, businesses are growing their service offerings in Asia Pacific and Europe.

Throughout the projection period, the Chinese government’s restriction on importing plastic trash from other countries is anticipated to open up profitable prospects for market players in Southeast Asian nations like Malaysia, Thailand, and Indonesia. Because so many manufacturers are operating worldwide, the global market is determined to be highly fragmented.

The key developments in the Global Recycled Polyethylene Terephthalate (rPET) Market:

• In September 2022, Phoenix Technologies International LLC announced that by investing in new extrusion equipment to make pellets in its factory in Bowling Green, it would be able to produce more food-grade recycled polyethylene terephthalate (rPET). After Phoenix’s expansion is complete by mid-2023, the business asserts that it anticipates doubling its ability to make rPET resin to 140 million pounds annually, or the equivalent of processing 5 billion bottles annually.
• In July 2022, the development of a new production plant in Clyde, Ohio, was completed by Evergreen, a U.S.-based producer of recycled PET. The project, which cost USD 22 million and had three lines when it started in August 2021, expanded due to growing consumer demand for recycled PET plastic. A total of 113 million pounds of food-grade PET may be processed locally annually on the five-hundred-thousand-square-foot addition’s four extrusion lines, which have room to grow to six. This expansion processes 8 billion bottles annually. The American Beverage Association, Ohio Beverage Association, and Closed Loop Partners worked together to make this development feasible in part.

A list of some of the key suppliers present in the market are:

• PLACON
• Clear Path Recycling LLC
• Verdeco Recycling, Inc.
• Indorama Ventures Public Ltd.
• Zhejiang Anshun Pettechs Fibre Co., Ltd.
• PolyQuest
• Evergreen Plastics, Inc.
• Phoenix Technologies
• Libolon
• Biffa

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.