Recycled PET Market: Current Analysis and Forecast (2021-2027)

According to Organisation for Economic Co-operation and Development, the global production of secondary plastics from recycling has more than quadrupled in the last two decades, still, they are only 6% of the total plastic feedstock. However, among this 6%, the contribution of recycled PET is among the largest. Owing to its thermoplastic nature, it can be melted and reformed into a wide range of products, without significantly losing its properties. Even though many of the popularly used plastics are also thermoplastics, and hence are recyclable, PET remains one of the most widely recycled plastics worldwide. However, to increase the recycled plastic including the PET market there is an increasing need for more favorable policies like combining push and pull policies. Some countries have successfully strengthened their markets by "pushing" secondary plastics supply - for example, through extended producer responsibility schemes - as well as "pulling" demand via recycled content targets. For instance, the recent decoupling of prices for primary and secondary PET in Europe and increasing innovation in recycling technologies are positive signs that the combination of these policies is working.
Based on the source, the market is categorized into bottles & containers, films & sheets, and others. Among these, bottles & containers captured a dominating position in the market owing to the wide usage of PET-based packaging materials in the food & beverage and non-food industries. This can be attributed to the fact that it is food safe, strong, lightweight, transparent, shatter-resistant, and provides additional properties like desired barrier properties. Moreover, from the consumer perspective, PET packaging offers convenience, lightweight, and shatter-resistant (when compared to glass, ceramic and such options) thus making it a popular choice among consumers as well. Therefore, due to its high demand in packaging applications such as bottles & containers, it is working as a major source of recycled PET.
Based on application, the market is categorized into fibers, sheets & film, strapping, bottles & containers, and others. Among these, fibers accounted for a significant market share and is expected to maintain its position during the forecast period. This can be ascribed to the wide adoption of recycled fibers as a filling material for cushions and pillows and converted to fabrics for use in clothing, upholstery, etc. Moreover, in several countries recycled PET is not allowed to use for food & beverage packaging thus limiting the application area.
For a better understanding of the market adoption of recycled PET, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia-Pacific accounted for a significant share of the market and is expected to showcase substantial growth during the forecast period owing to the high consumption of PET-based products in the regional country and high recycling rates in countries like China, India, and Japan. Further, several western countries dump their PET waste in the regional countries for recycling purposes, thereby propelling the recycled PET market in the region.
Some of the major players operating in the market include Indorama Ventures Public Company Limited, Biffa plc, Far Eastern New Century Corporation, Plastipak Packaging Inc., Alpek S.A.B. de C.V., PolyQuest Inc., Loop Industries Inc., Evergreen Placon Corporation, and Reliance Industries Ltd. These companies are taking various strategic decisions to increase their market presence and share.