PET CHIPS Market

The global PET CHIPS Market size was US$ 1069.77 million in 2022 and is forecast to a readjusted size of US$ 1498.71 million by 2031 with a CAGR of 5.8% during the forecast period.

PET chips, or Polyethylene Terephthalate chips, are small plastic pellets that serve as the raw material for the production of PET (Polyethylene Terephthalate) resin. PET is a polyester or type of polyester that is used as various applications, which includes packaging, textiles, and engineering plastics.

PET Chips or Polyethylene Terephthalate chips, are small plastic. These are used to serve as the raw material for the production of PET resin. Polyethylene resin is a type of thermoplastic polymer that is widely used in various applications due to its versatility, durability, and relatively low cost. It is produced through the polymerization of ethylene monomers, which are derived from petroleum or natural gas feedstocks. There are various types of Polyethylene Resins for example, High Density Polythene resin, Low-density Polythene resin, medium density polythene resins.

The process to manufacture PET chips is through a polymerisation process, where ethylene glycol and terephthalic acid are reacted together to form long chains of PET polymers. The melted small pellets, are the FILM GRADE PET CHIPS. There will be the categories of these chips which will be used for specific production. The characterisation of these chips will be clarity, strength, thermal stability and printability.

PET Products are high in demand due to which PET chips are crucial for the production. The products are PET bottles, containers, packaging films and others. Through melting and processing they convert it into sheets, which are further processed to final products with the use of technique that includes holding, blow moulding, or thermoforming. PET is a versatile thermoplastic polymer that is commonly used in various industries due to its excellent properties, including clarity, strength, lightweight, and recyclability.

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The PET chips industry depends in complex global supply chains for raw material, manufacturing equipment and distribution network. COVID-19 has created various unfavourable situations for industry who are dependable in the distribution system. The pandemic created lockdown situation which caused travel restriction, and this led to closures in supply chain which further created delay in raw material procurement and production challenges. This has created the bottleneck scenario for manufacturers. Pandemic created fluctuating situation where the basic need which includes bottles and packaging for essential goods such as food, beverages, and pharmaceuticals remained relatively stable where as other non-essential products were not in the market such as automotive, textiles, and electronics. This was affecting the availability of Film Grade PET Chips.

"Growing Demand for Sustainable Packaging in PET Chips market to Propel Market Growth"

Consumer preferences are changing towards environmental health and on their own too. The sustainable and recycled packaging is changing the game. There are regulatory pressure regarding environmental sustainability, is driving demand for eco-friendly packaging materials. The recycling technologies and adopting close-loop supply chain models to meet the growing demand for eco-friendly packaging materials by manufacturers are changing the game of investing as well. The shift towards lightweight packaging is also driving popularity towards PET Chips Market.

The global film grade PET chips market is experiencing steady growth, driven by the increasing demand for PET films in various end-use industries such as packaging, labelling, and industrial laminates. The customisation and specialty films, requires specific properties such as heat resistance, and optical clarity, leading development of Film Grade PET chips.

The flexible and lightweight packaging solutions, influencing the market and consumer to be shifted towards PET chips market. Industries such as food and beverage, personal care, and pharmaceuticals are following these standard be in the trendy market.

By Type

Based on type the market can be categorized into Bright Polyester Chips, Film Master-batch Polyester Chips.

• Bright Polyester Chips: This type of PET chips have no any additives or colorants and they have bright and clear appearance. The main usage of this type of polyester chips is for producing clear or transparent PET films, which are used in applications such as packaging, labelling and lamination. The trendy Glossy look making this type popular in the market. The consumer is intrigued towards visual appeal, the bright packaging is becoming the preference. This type provides all the trendy options consumer wants in their products.
• Film Master-batch Polyester Chips: These PET chips have been compounded with additives pigments or colorants to give particular properties or colour features to the PET films. The production of Colored PET films is done by this type chips. Producers can create PET films with improved functionality and a broad colour spectrum to satisfy the demands of various end-use applications. The major features like colour, opacity, UV resistance, or barrier qualities can customised.

By Application

Based on application the market can be categorized into Packaging Material, Film, & others.

• Packaging Material: It is made from thin sheets or films of polymer materials(PET). It has Sealing Capabilities, Flexibility, Recyclability, Printability.
• Films: PET films have features such as Clarity, strength, barrier properties, thermal stability and recyclability. Which is suitable for multiple product for packaging.

"Flexible Packaging and Food industry to Drive the Market Advancement"

Consumers preferences are shifting towards attractive and lightweight packaging. The trend of flexible bags, small pouches and beautiful wraps, are driving the industry. Being beautiful and strong in nature this bag production is driving factor for the PET market. Not just these products but the features which includes barrier protection, extended shelf life, and enhanced product visibility, highly valued by the consumers and manufactures.

The non-stop consumer of the packaging materials is FOOD INDUSTRY. The packaging materials the food industry use are made from FILM GRADE PET CHIPS. The portable and lightweight bags are huge plus for the food industry. On the Go bags, packets, small bags for take aways are some preferable products for the food industry and its customers. It also meet the guidelines and food safety measures of the industry.

"Environmental Sustainability and Pharmaceutical to Expand the Market"

The healthcare sector is very sensitive in nature and we all are aware of that. This sector requires to follow maximum regulatory standards. Film Grade PET chips enable the production of products which are used to produce Pharmaceutical blister packs, sachets and medical device packaging. This is contributing huge to the PET market as it is clear this sector requires huge amount of production and care.

The Environmental care is responsibility of every citizen and the awareness being created daily. Now, consumer wants to be their product environment friendly, sustainable and recyclable. All these features are provided by the PET market. 

"Competition from Alternative Materials and Fluctuating Raw Material Prices Pose Potential Impediments to the Market Growth"

The packaging industry has huge market and consumption, this led to huge competition as well. The biodegradable plastics and paper-based packaging are high on trend. The poses threat to one of the main feature of the product that is environmental safety. The innovation is the only way to beat the competition and to maintain the customer sustainability. Instability in raw material prices may hinder market growth and investment in the industry.The fluctuation arises due to unpredictable demand of different materials.

DISTRIBUTION SYSTEM MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"JAPAN to Dominate the Market due to Favourable government policies, and a large consumer base"

Japan is a developed country with high economic growth and rapid industrialisation. Japan has 50% of the market share in the PET industry. The region gain it’s benefit from manufacturing infrastructure, favourable government policies and one if the largest consumer based. It magnifies the demand of consumption. Japan has most innovative ideas in terms of every product. The sustainable and flexible living is driving the key feature of the PET market. The government has favourable policies towards the manufacturing unit which is helping to produce more for the rising demand. The consumer are shifted towards flexible trends, small investments on products, recycling, environmental health. The PET market is also keeping up with these factors with more innovation.

"Key Players Transforming the GLOBAL FILM GRADE PET Market through Innovation and Global Strategy"

Major industry players are pivotal in shaping the distribution system market, driving change through a dual strategy of continuous innovation and a well-thought-out global presence. By consistently introducing inventive solutions and staying at the forefront of technological progress, these key players redefine the industry's standards. Simultaneously, their expansive global reach enables effective market penetration, addressing diverse needs across borders. The seamless blend of groundbreaking innovation and a strategic international footprint positions these players as not only market leaders but also as architects of transformative shifts within the dynamic domain of distribution system.

• Mitsubishi (Japan)
• Jindal (India)
• SRF (India)
• Terphane(Brazil)
• Coveme (Italy)
• Polinas (Turkey)

OCT, 2023: Jindal Films has unveiled its PET market in India and globally. Jindal Films has two headquarters in Luxembourg and Georgia. Jindal has operating plants on USA and Europe as well. Jindal Steel and Power (JSP) is planning to make its Angul unit India's largest single-location steel manufacturing facility, and it is planning to scale up the capacities by 50 million by growth rate of 8-10%.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.