Surging Demand for Bioplastics Accelerating Bio-Based PET Market Progress
The increasing use of bio-based polyethylene terephthalate (PET) in different industries, such as automotive and packaging, and the environmental degradation caused by synthetic variants are some of the key factors driving the growth of the bio-based PET market. In 2017, the market generated a revenue of $3,917.4 million, and it is expected to progress at a 14.7% CAGR during the forecast period (2018–2023). Bio-based PET refers to a fully biodegradable, recyclable, renewable, and compostable material, which is 70.0% fossil-derived terephthalic acid (TPA) and 30.0% plant-derived ethanol glycol.
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Based on application, the bio-based PET market is categorized into bags, bottles, cosmetic containers, and 3D printing. Out of these, in 2017, the bottles category held the largest share in terms of value, of over 70.0%, and more than 75.0% in terms of sales volume, and it is predicted to continue dominating the market during the 2018–2023 period. This is ascribed to the heavy use of such materials for the packaging of bottles. These bottles are biodegradable, convenient, lightweight, and recyclable, and have a long shelf life.
On the basis of industry, the bio-based PET market is classified into automotive, electronics, packaging, and textile. Among these, during the historical period (2013–2017), the automotive classification led the market in terms of value and volume both, and it is anticipated to witness the fastest growth at more than 16.5% value CAGR and over 16.0% volume CAGR during the forecast period. This is attributed to the growing need for eco-friendly automotive dashboard components, seat and vehicle covers, and battery cases, owing to the rising concerns on decomposability and greenhouse gas emissions.
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In order to meet the increasing demand for sustainable packaging items, many key players in the bio-based PET market are entering into strategic alliances. For instance, in March 2017, Nestle Waters (water division of Nestle SA), and Danone formed the NaturALL Bottle Alliance with Origin (a U.S.-based start-up), aimed at commercializing and developing a PET plastic bottle (produced from 100% sustainable and renewable biomass material) at a substantial scale.
Similarly, in November 2017, Titan Hemp reached a joint venture with Green Growers Technology Alliance, called Titan BioPlastics, to manufacture plant-based products for a diverse range of applications, including construction, packaging, and coating. Bioplastics such as bio-based PET are derived from plants and can be disintegrated by microorganisms into water, biomass, and naturally occurring gases. These bioplastics offer various advantages, such as a longer shelf life, better composability and renewability, and higher breathability over fossil-based plastics, which are making these popular across the globe.
Furthermore, various manufacturers in the bio-based PET market have endowed in the research and development and even extended their production capacity. For instance, in 2015, the production capacity of biodegradable and bio-based plastics was calculated at around 1.0% of the overall global plastic production. In addition, as per the Wageningen Food & Biobased Research data, it is predicted that by 2020, the share of biodegradable and bio-based plastics will rise up to 2.5% of fossil plastic production. Hence, this increasing production of bioplastics is expected to boost the market growth.\
Thus, the increasing consumption of bio-based PET in various industries and rising concerns for the environment are anticipated to drive the market progress.