Rising Investments in US Bio Economy Would Propel Bio PET Industry

Product Overview:

Bio PET or Bio Polyethylene Terephthalate is a biological alternative to the conventional PET which is produced using petroleum feedstocks. The Bio PET is an environment friendly and recyclable plant based product which finds extensive applications in industries including automotive, consumer goods, electronics, pharmaceutical and many more. The primary driving force for the Global Bio Polyethylene Terephthalate (Bio PET) Market is the food & beverage industry as the increasing adoption and acceptance of Bio PET for the production of green PET bottles & food containers is anticipated to propel the industry over the coming years.

The growing realization of potential benefits from Bio PET is driving private investments in the sector, for instance, in 2017, the south African chemicals company called AECI Limited has joined hands with the US based startup organization, Origin Materials and is going to invest USD5 Million to assist the commercialization of technology manufacturing 100% bio-based polyethylene terephthalate (PET) plastic bottles, by 2018.

Country Insights:

As per the Plastic Industry Trade Association, the bio-based economy accounts for an annual contribution of USD369 Billion to the US economy and the nation is successfully engaged in the marketing of more than 20 bioplastic polymers. With the emerging awareness and concerns related to impact of non-biodegradable plastic on the environment health, the United States has adopted Montreal Protocol to curb greenhouse gas emissions, which is expected to augment the demand for Bio PET in the nation.

• Plummeting Trade Balance of Plastic Resins in US:

The US plastic industry is showcasing a declining trend for plastic resin trade surplus, in value terms. The resin manufacturers in the United States are losing competitive edge in the industry due to the entry of cost-effective renewable products. Moreover, the demand for PET packaging resins in US for PET fibers, food & beverage containers is also soft on account of rising trend for recovered or recyclable PET along with Bio PET.

United States Resin Trade Industry Surplus, 2014 & 2015 (USD Billion)

• Ever Increasing Demand for Biological Polymers across Multiple Industries:   

The nation is exhibiting positive growth prospects for bio PET as the demand from various end user industries is increasing. For instance, the US automotive industry is growing at a rapid rate and is promoting the consumption of bioplastic such green PET polyester fibers to manufacture headrests, seat cushion foams etc. as it leads to the reduction in overall weight of a vehicle, thereby reducing the carbon emissions.

United States Automobile Production, By Vehicle Type, 2016 (Million Units)

• Rising Efforts by Private Companies to Boost Bio-PET Production in US:

Several US based leading private organizations such as the Ford Motor Company, H.J. Heinz Company, NIKE Inc., Coca-Cola Company, Procter & Gamble are a part of plant PET Technology Collaborative (PTC) and are focused on utilization of biologically derived PET material for their respective product lines. Such private companies are sourcing essential raw material which is Bio Mono Ethylene Glycol (Bio MEG) from Asian countries to meet increasing demand for green PET products in the United States of America.

Conclusion:

In conclusion, the Global Bio Based Polyethylene Terephthalate (Bio PET) market is forecast to surpass the USD7 billion mark by the end of 2026, showcasing robust growth at a CAGR of more than 20% during the forecast period. Stringent government regulations defined under Kyoto Protocol and Montreal Protocol to control greenhouse gas emissions are propelling the demand for sustainable packaging solutions worldwide. Demand for Bio PET is rising in downstream industries such as FMCG, electronics and automotive on account of weight reducing and shatterproof properties exhibited by bio PET bottles, containers, sheets, etc. Moreover, constructive government initiatives and policies by central agencies are promoting research and innovations in the field of bioplastic products, which would positively influence the Global Bio PET market.

Request for Sample Report Today!