Recycled Polyethylene Terephthalate (rPET) Market Outlook
The recycled polyethene terephthalate market size is estimated at US$ 10.1 billion in 2022 and is projected to grow at 7.4% CAGR during the forecast period. The market is likely to reach a valuation of US$ 20.61 Bn by 2032.
As consumers become more aware of environmental issues and demand for sustainable packaging, the global rPET market is growing. As a result of rPET's broad application scope in several key industries such as FMCG, consumer goods, clothing, textiles, and automobile, its demand in the region is primarily driven by its broad application scope. Several government initiatives aimed at recycling plastics, coupled with high investments, have led to decent market growth.
Over the forecast period, the market is expected to grow due to an increase in bottle-to-bottle production and the beverage market's growth. Due to its low production costs, recycled PET packaging proves to be cost-effective and provides thermal insulation and environmental impact resistance for food and beverages.
In the forecast period, the market is also expected to benefit from an increase in demand for rPET in non-food sectors. Over the forecast, the need for the product is predicted to intensify due to heightened concerns regarding the sustainability of natural resources. This is primarily due to emerging countries in North America and Europe.
Latin America is experiencing an increase in demand for food and non-food bottles due to a growing number of end-use businesses and improving financial conditions. The growing per capita income in the region, coupled with the growing FMCG market, is fostering the growth of the industry.
The Asia Pacific is composed to be the largest regional industry and is characterized by obtaining a significant amount of skilled labour at low cost and ease of access to land. During the estimated period, a shift in the production landscape towards developing economies, mainly India and China, is expected to have an optimistic impact on the market.
The recycled polyethylene terephthalate (rPET) market is projected to grow over the forecast period as bottle-to-bottle production and the beverage industry flourish in the Asia Pacific. Food and beverage packaging made from PET is environmentally friendly and thermally insulated.
As a result of the low costs involved in its production, the packaging also appears to be pocket friendly. Growing populations in developing countries of Latin America and the Asia Pacific could increase the demand for bottles and containers made of recycled polyethylene terephthalate (rPET).
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Virgin Plastic gives Tough Competition to rPET
Recycled polyethylene terephthalate (rPET) refers to the packaging formats which are made from recycled polyethylene terephthalate (PET). rPET packaging is expected to gain traction due to increasing efforts to use recycled plastic packaging solutions, across the globe. One of the key factors for more companies moving towards rPET packaging solutions is retention of strength of quality of rPET.
rPET packaging provides the same strength as any other packaging solutions made from virgin PET. This gives rPET packaging significant edge over alternative solutions. The increasing adoption of rPET packaging reduces dependency on using petroleum as a raw material and helps divert plastic from landfills. The rPET packaging market is witnessing a good scale of innovation with key focus on consumer convenience and reducing carbon footprint.
The key hurdle to the growth of the rPET packaging market is the dominance of virgin plastic in the market. However, with governments of both developed and developing countries making persistent efforts to encourage plastic recycling, that may soon change. The outlook for growth of the global rPET packaging market is expected to be largely positive during the forecast period.
Global rPET Packaging Market: Dynamics
The global rPET packaging market is expected to grow on the backdrop of the ongoing shift towards recyclable plastic packaging and other environment-friendly solutions.
There have been several instances where local supermarket chains have vowed to use rPET packaging for several items sold in their stores. Manufacturers have been modifying their production facilities to enhance their cleaning and PET waste purifying capabilities to produce rPET rollstock.
This is converted into rPET packaging formats further down the value chain. Generally, rPET packaging is composed of more than 30% recycled post-consumer waste material, and is an ideal solution for any company looking to go eco-friendly. Also strengthening the chances of increased adoption of rPET packaging is the high printability of rPET. A variety of printing techniques can be used for high-quality printing on rPET Packaging.
rPET packaging is expected to gain more traction as the plastic packaging market comes under more scrutiny. Furthermore, emerging packaging technologies such as modified atmosphere packaging (MAP) require excellent barrier properties which help prevent gas ingress and egress. Here, rPET packaging has an advantage over alternative packaging solutions such as polypropylene and high-impact polystyrene (HIPS) as rPET is superior.
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Global rPET Packaging Market: Regional Outlook
The Asia Pacific region is expected to emerge as the leading contributor to the growth of the global rPET packaging market during the forecast period. This is attributed to the growing population of environment-conscious consumers in countries such as China, India, and those in the ASEAN region.
rPET packaging market in North America and Europe currently spearhead the growth of the global rPET packaging market, with the shift towards recycled plastic packaging happening on a much larger scale in those regions. Germany is anticipated to play the leading role in growth of the Western Europe rPET packaging market. The U.S. rPET packaging market accounts for the lion’s share of the North America rPET packaging market.
The MEA region has witnessed efforts by governments to adopt eco-friendly packaging solutions. For instance, the governments of Saudi Arabia and the United Arab Emirates have declared that all the plastic, whether manufactured locally, or imported, must exclusively be oxo-biodegradable. Therefore, the rPET packaging market in MEA region is poised to witness moderate growth during the forecast period.
Global rPET Packaging Market: Key players
Some of the key players operating in the global rPET packaging market are –
Uflex Ltd
Plastipak Holdings, Inc.
Snelcore B.V.
CKF, Inc.
Advanced Extrusion, Inc.
Farber Plastics, Inc.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts, and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macroeconomic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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Regional analysis includes
North America
Latin America
Western Europe
Eastern Europe
Asia Pacific excluding Japan (APEJ)
Japan
Middle East & Africa (MEA)
Global rPET Packaging Market: Segmentation
On the basis of product type, the global rPET packaging market is segmented into –
Bottles
Containers
Trays
Films and Laminates
On the basis of end use, the global rPET packaging market is segmented into –
