GVR Report cover Polyethylene Terephthalate Compounding Market Size, Share & Trends Report

Polyethylene Terephthalate Compounding Market Size, Share & Trends Analysis Report By Application (Packaging, Electrical & Electronics, Industrial Machinery, Automotive, Construction, Material Handling), By Region, And Segment Forecasts, 2016 - 2024

  • Report ID: GVR-1-68038-037-8
  • Number of Pages: 78
  • Format: Electronic (PDF)

Industry Insights

The global polyethylene terephthalate compounding market size was USD 3.95 billion in 2015. Increasing consumption across end-use industries such as packaging, automotive, electrical & electronics, and construction is expected to drive growth.

Increasing demand for water bottles is expected to remain a key driver for the market growth. Polyethylene terephthalate (PET) bottles are easier to handle, lightweight, non-breakable, and can be resealed. The compound can be recycled into many products such as winter coats, door panels, industrial strapping, sheet, fibers, and car bumpers.

ET compounds are increasingly used as an alternative to glass & acrylic materials owing to their superior impact resistance. The recent trend of substituting the above stated conventional materials in transportation applications such as windshields & windows is touted to provide lucrative opportunities.

U.S. Polyethylene Terephthalate (PET) compounding market

Regulatory intervention regarding usage of conventional plastics in medical devices and food packaging applications has led key manufacturers to develop bio-based alternatives with better biocompatibility. The trend has been a key factor in the development of bio-PET and related compounds.

Global crude oil prices have been witnessing severe fluctuations over the recent past. Social unrest in major crude oil producing regions such as Nigeria, Venezuela, Iraq, Iran, and Libya have adversely affected crude oil supply, thus creating inelasticity in demand and supply balance.

Raw materials used in PET compounding include polymers, plastic additives, lubricants, and solvents. Majority raw materials utilized are produced through downstream processes of petrochemicals and are likely to affect overall production cost. The aforementioned factors are anticipated to hinder growth and challenge industry participants over the forecast period.

Opportunities for recycled plastics in packaging are positioned in the form of traditional applications, such as bottling and non-food product wrapping. Improving logistics networks such as better waste collection and post-recycling supply is expected to positively influence industry growth.

Packaging and electrical & electronics industries are expected to drive global PET compounds demand over the forecast period. Increasing electrical & electronics demand as a result of recovery from recession is expected to drive PET compounding market growth. Furthermore, increasing federal spending in the U.S. to improve public infrastructure is expected to further complement plastic compounding market growth over the forecast period.

The overall industry’s growth rate depends upon high potential regions such as Latin America and Asia, where industrial output is above global average. Due to a considerable rise in consumerism that is driven by economic growth, favorable credit landscape, and increased disposable income, countries in Asia particularly China and India have witnessed an exponential rise in manufacturing activities. Plastics that are consumed in the manufacturing of almost every tangible goods are slated to gain traction in terms of demand over the future, thus impacting the compounding industry.

Application Insights

Packaging emerged as the dominant application segment where PET compounds are utilized in large quantities for the production of bottles, particularly carbonated beverages and nutritional drinks.

Advancements in packaging technologies and subsequent development in specifications for plastics in packaging applications are expected to emerge as a crucial determinant for shaping market dynamics over the forecast period. The packaging segment was leading application segment in 2014 and is expected to grow at an estimated CAGR of over 7% from 2016 to 2024.

It is extensively used in the electrical & electronics industry owing to superior characteristics such as flexibility, easy processing, and transparency along with barrier properties. Electrical & electronic housing, sockets, wiring components, enclosures, and switches are few of the products generating significant demand for PET compounds.

Industrial machinery components such as processing equipment, heavy-duty machinery, and the related tools mostly contain plastic which is used in conjunction with metals. The favorable environment in Asia Pacific in terms of tax incentives for foreign companies is expected to result in an increasing number of manufacturing utilities in the region, thereby prompting the need for industrial machinery.

Regional Insights

Asia Pacific market accounted for over 35% of the global volume share in 2015. Growing consumer interest in recyclable and sustainable products coupled with the growth of key end-use industries including packaging, automotive, and electrical & electronics is anticipated to drive regional market growth.

Polyethylene Terephthalate (PET) compounding market

Expanding food & beverage processing industry, along with an increasing consumer preference toward processed and convenience food is anticipated to boost the Latin America market. Developing countries such as Mexico and Brazil are witnessing strong industrial growth along with the surge in demand for polymers. Huge investments in the construction and automotive sectors in aforementioned countries are anticipated to augment growth.

North America and Europe market are highly regulated by numerous legislations from environmental agencies such as REACH (Registration, Evaluation, Authorization, and Restriction) and EPA (Environment Protection Agency) have compelled manufacturers to shift focus toward bio-based polymers.

Recovery of the automotive and construction industries in Europe is another recent development expected to fuel demand in the region. Technological advancements have paved the way for innovative packaging options in processed foods across various categories, thus driving growth in the region.

Polyethylene Terephthalate (PET) Compounding Market Insights

The Polyethylene Terephthalate (PET) compounding market is highly fragmented with the presence of huge number of small and large-scale companies. Major industry participants include Dow Chemical Company, RTP Company, SABIC, LyondellBasell, BASF SE, DuPont, SRP Plastics. Other prominent players operating in the global market include A. Schulman, Polyvisions, Washington Penn Plastics, Covestro, and PET Processors LLC.

Report Scope 



Base year for estimation


Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2024

Market representation

Volume in Kilotons; Revenue in USD Million & CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

Country Scope

U.S., Canada, Germany, France, UK, China, India, Japan, Mexico, Brazil, Saudi Arabia, UAE

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