Polyethylene Naphthalate Market Size, Share & Trends Analysis Report By Application (Beverage Bottling, Electronics, Packaging, Rubber Tires), By Region, And Segment Forecasts, 2015 - 2022

Industry Insights

The global polyethylene naphthalate market size was valued at USD 827.0 million in 2014 and is expected to expand at a CAGR of 7.5% over the forecast period. Polyethylene Naphthalate (PEN) is mainly used in packaging applications owing to its improved thermal and barrier properties, such as resistance to oxidation. Growing demand for high strength photographic films is expected to fuel market growth over the forecast period.

PEN films are a key component of food packaging applications on account of their higher stiffness modulus, which is responsible for providing enhanced barrier capabilities and increasing strength of the material. Furthermore, these films are used in producing pressure sensitive tapes and thermal sheets. They are also involved in solar cell protection.

The polyethylene naphthalate market is characterized by forward integration of raw material suppliers in manufacturing of PEN. These companies actively consume raw materials to manufacture the product. Integration across numerous stages of the value chain results in continuous raw material supply as well as low manufacturing cost.

Polyethylene naphthalate films have a higher shrink temperature as compared to polyethylene tetrapthalate, thereby making them suitable for long term electrical use at above 130°C. In addition, PEN films have superior UV resistance and offer high resistance to hydrolysis in hot aqueous or alkaline conditions, thereby increasing their use in electrical and electronic applications.

Tight supply of 2,6-NDC feedstock over the past few years owing to production complexity has caused lack of availability of the feedstock, resulting in high raw material prices. Furthermore, high manufacturing cost is a major concern for PEN manufacturers, which has caused capacity contractions and reduced margins for suppliers and manufacturers.

Constrained supply of the product, along with high manufacturing cost, has impacted the commercialization of PEN, which is a major challenge for manufacturers to compete in a market dominated by polyethylene terephthalate (PET). However, recent development of low-cost monomers for producing PEN is changing the market dynamics. As a result, prices are expected to decline significantly over the next few years, which is expected to have a positive impact on growth.

Supportive regulations on the use of PEN in beverage bottling owing to enhanced resistance to oxidation is expected to have a positive impact on growth. In addition, it is extensively used in the manufacturing of high-performance tires. PEN when added to the rubber mix during tire manufacturing enhances rigidity, thus offering improved performance and longer product life.

Application Insights

The packaging application segment dominated the industry in 2014, accounting for 39.2% share of the global volume. Increasing demand for polyethylene naphthalate in the packaging application owing to higher shrinkage resistance, dimensional stability, superior barrier properties, and high-temperature stability is expected to propel the demand for the product over the next few years.

The electronics segment was valued at USD 185.7 million in 2014 and is expected to witness significant growth over the forecast period due to increasing demand for the product in manufacturing semiconductors, PCB’s, and supercapacitors. PEN exhibits superior properties including low oligomer extraction, dimensional stability, anti-hydrolysis, heat resistance, and strength. As a result, it is used in manufacturing a wide range of products including batteries, electric insulation, capacitors, printed circuit boards, magnetic storage tapes, and optical devices.

Rising use of PEN as a blending material in polyethylene terephthalate to improve its gas barrier and UV absorption properties is projected to augment the demand for polyethylene naphthalate over the forecast period. Moreover, the product is expected to witness a rise in application in manufacturing of components, which requires transparency and high chemical resistance.

Use of composite materials is increasing in the railway industry due to several performance enhancements and notable cost reductions. Moreover, weight saving as a result of the use of composite materials has led to reduced power consumption and improved speed.

Regional Insights

The demand for polyethylene naphthalate in North America was 58.9 kilotons in 2014. North America is the second-largest consumer and producer of polyethylene naphthalate owing to presence of a large number of manufacturers in the U.S. The polyethylene naphthalate market is expected to witness growth owing to emergence of end-use sectors including automotive and electronics, wherein the demand for PEN film is on the rise. Increasing use of high-performance rubber tires in the automobile industry due to enhanced performance and higher fuel economy is expected to fuel growth.

Asia Pacific was valued at USD 333.0 million in 2014 and is expected to expand at a CAGR of 7.2% over the forecast period. Growing demand for the product from end-use industries including packaging, automotive, and electronics is expected to be a key factor influencing growth over the forecast period. In addition, manufacturers are shifting their bases from Europe to Asia Pacific including India and China, which is expected to propel regional market growth.

Chinese raw material suppliers have improved on production technology, leading to lower raw material cost, which is expected to reduce the overall cost of PEN products over the next few years. As a result, the product is expected to compete with PET in similar application segments on account of improved physical properties.

Rising production of automobiles and electronics in India owing to favorable government policies is expected to be a key factor influencing the demand for polyethylene naphthalate in the country. In addition, exponential growth of the e-commerce sector in the country is expected to enhance the demand for PEN products in packaging applications.

Polyethylene Naphthalate Market Share Insights

Key players in the market include Teijin DuPont Films; Toray Monofilament Co., Ltd.; Sumitomo Chemical Co., Ltd.; DuraFiber Technologies, Inc.; SKC Inc.; SASA Polyester Sanayi A.S; DuPont; and Seiwa Inc.

The polyethylene naphthalate market is concentrated in nature and dominated by large multinational corporations. It is primarily characterized by forward integration of raw material manufacturers in manufacturing polyethylene naphthalate. Finished products are supplied to end-use industries through various distribution channels including vendors, direct supply agreements, and third party supply agreements. In certain cases, manufacturers form direct alliances and strategic partnerships with end-use industries.

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