Global PET Functional Film Market - 2024-2031

Overview

Global PET Functional Film Market reached US$ 8.1 billion in 2023 and is expected to reach US$ 13.3 billion by 2031, growing with a CAGR of 6.4% during the forecast period 2024-2031.

The PET functional film market is expected to grow significantly, driven by ongoing technological advances and advancements, notably in the areas of digital and information revolution. Polyester films' unique traits and properties make them important actors in the ever-changing field of innovative films and packaging solutions. The films play an important role in stimulating technological innovations, distinguishing themselves as preferred solutions for a variety of innovative uses.

Significant developments were made in the PET films industry in 2022, as evidenced by notable breakthroughs. Frugalpac, for example, developed an environmentally conscious packaging solution by mixing recycled paper-based materials with a metalized PET pouch, resulting in a lighter and more eco-friendly container. Sidel created PressureSAF, a unique PET aerosol container design that promote sustainable dispensing spray packaging.

In 2023, Europe is expected to be hold about 1/4th of the global PET functional film market. As people become more conscious of plastic pollution and its environmental impact, there is a greater need for alternatives to traditional plastic. Environmental friendly PET materials, such as bio-PET, are more beneficial since they incorporate renewable, non-fossil materials. In accordance with European Bioplastics e.V., Europe is the second-largest marketplace for bioplastics in terms of production, accounting for approximately 26.5% of global bioplastic production capacity.

Dynamics

Rising Demand for Bio-based PET

The growing awareness of the usage of bio-based PET has boosted the market for PET functional film material. In accordance to the European Bioplastics, bioplastic manufacturing will reach 2.8 million metric Tons in 2025. Furthermore, 885 metric Tons of bio-based and non-biodegradable bioplastics were created in 2020 due to increased demand for bio-PET and other types.

The Japanese government has implemented regulations to increase the use of plant-based plastics in order to reduce marine plastic waste. The Japan Clean Ocean Material Alliance implements regulations to enhance the usage of recycled or biodegradable plastics. The demand for bio-PET products is rising, resulting in greater use of PET by end-users and boosting the PET functional film market.

A Shift in Bioplastics

With rising consumer awareness and concerns about environmental sustainability, there is a greater need for eco-friendly packaging solutions in the food and beverage industry. PET films are recyclable and lightweight, helping to minimise shipping costs and carbon emissions. Furthermore, improvements in bio-based PET films derived from renewable sources help to promote sustainability.

Top corporations such as Coca-Cola have increased their use of bio-based or plant-based plastics, increasing demand for bioplastics and bio-PET film. Coca-Cola has teamed with Ford, Nike, Heinz and Procter & Gamble to begin using bio-PET on its bottles and packaging. The use of bio-polyethylene terephthalate for bio-based and completely plant-based bottle manufacture and packaging has increased the growth prospects for PET functional film material.

Environmental Concerns and Price Volatility

PET is a form of plastic and its wide acceptance in packaging has caused concerns about the environmental impact, particularly in terms of recycling and waste management. Despite being recyclable, PET films frequently end up in landfills or as litter, adding to plastic pollution. Raising awareness of environmental issues and implementing rules to reduce single-use plastics may hamper the growth of the PET functional film market.

The price of raw materials used for PET film production, like PET resin and additives, is volatile and fluctuate with the global market. Changes in crude oil prices, which affect the cost of PET resin production, together with other factors such as supply-demand dynamics and currency fluctuations, can effect the profitability of PET film manufacturers.

Segment Analysis

The global PET functional film market is segmented based on type, end-user and region.

Rising for Convenience Food and Packaging drives the Segment Growth

Food and beverages are expected to be the dominant segment with about 1/3rd of the market during the forecast period 2024-2031. PET functional films are often used in food and beverage packaging because of their superior barrier qualities, clarity and light weight. The films help to increase the shelf life of perishable items by insulating them from moisture, oxygen and other external contaminants, ensuring product freshness and quality.

The growing need for convenience foods and ready-to-eat meals, fueled by changing consumer lifestyles and urbanization, has increased the demand for PET functional films in food packaging. In accordance to the Indian Institute of Packaging, Indian packaging consumption has increased by more than 200% over the last decade, rising from 4.3 kgs per person per year to approximately 8.7 kgs per person per year.

Geographical Penetration

Growing Food & Beverages Sector in Asia-Pacific

Asia-Pacific is the dominant region in the global PET functional film market covering more than 30% of the market. The food industry in the region drives demand for PET functional film material packaging solutions. In a country like India, the need for online meal ordering is growing, which is driving the use of packaged food boxes. For example, in February 2022, Zomato stated that the average monthly engaged food delivery restaurants have expanded by 6 times and the average monthly transactional clients have grown by 13 times on Zomato over the previous 5 years.

As the scenario of the food packaging sector evolves, there is an increase in demand for new PET packaging options. According to the Packaging Industry Association of India, the Indian packaging industry is expected to reach US$ 204.81 billion by 2025, growing at a CAGR of 26.7% between 2020 and 2025. Packaging is one of India's fastest-growing companies, rising at a rate of 22-25% per year. The country is gradually becoming a favoured hub for the packaging industry, driving market demand.

Competitive Landscape

The major global players in the market include Toray Industry, SKC Films, Dupont Teijin Films, Mitsubishi Chemical, TOYOBO, Uflex, Polyplex, JBF, Kolon and Jindal.

COVID-19 Impact Analysis

The pandemic changed consumer behavior and preferences, resulting in changes in demand for PET functional film materials. As people stocked up on necessities and online shopping rose, demand for packaging materials increased, notably in the food and healthcare sectors. On the other hand, sectors including automotive and construction, which are important consumers of PET films, suffered a decrease in demand due to lockdown measures and economic uncertainty.

The medical industry also came to a halt during the initial phase of COVID-19. In 2020, a 17% decrease was noted over the previous year. The World Health Organization estimated that more than 89 million masks, 1.6 million goggles and 75 million gloves were needed. The significant gap in demand and supply chain for medical packaging, low healthcare forces and suspended manufacturing of healthcare units impacted the PET film industry.

Russia-Ukraine War Impact

Russia began a huge invasion of Ukraine, which is harming several businesses. Any disruption in the supply of certain basic materials, such as PET resin, might cause shortages and price volatility in the globally marketplace. It impacted PET film makers globally, causing production delays and increased prices.

The conflict disrupts energy supplies, particularly natural gas and crude oil, which are utilized to produce PET resin and as energy sources in manufacturing processes. Energy price fluctuations had an impact on PET film producers' manufacturing costs globally. The packaging, automotive and construction industries, which are key consumers of PET films, saw shifts in demand patterns due to economic uncertainties and changes in consumer behavior.

By Type

• Ultra-Thin (Less than 20 Microns)
• Thin (20 to 50 Microns)
• Thick (More than 50 Microns)

By End-User

• Packaging
  • Food & Beverage
  • Pharmaceuticals
  • Electrical & Electronics
  • Agriculture
  • Others
• Building & Construction
• Industrial
• Medical
• Automotive
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, ITC Savlon, a well-known FMCG company, created sustainable packaging for its soap products. The company disclosed that its soap wrapper is now made using PET film that contains 70% recyclable material.
• In June 2023, Indorama Ventures Public company Limited, a globally sustainable chemical producer and Carbios, a biotech business that develops biological solutions for plastic and textile recycling, have signed a non-binding Memorandum of Understanding to form a joint venture. The goal of this collaboration is to establish the world's first PET bio-recycling factory in France.

Why Purchase the Report?

• To visualize the global PET functional film market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of PET functional film market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global PET functional film market report would provide approximately 54 tables, 45 figures and 183 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies