April 24, 2024

PET Preforms Market Is Driven By Increasing Trend For 100% Recyclable Packaging Solutions

The PET Preforms Market comprises lightweight, cost-effective and durable preforms that can be blown into PET bottles through reheat stretch blow molding. PET preforms offer product protection along with ease of transportation and storage due to their compact size. The increasing preference for PET packaging across food & beverage, personal care and pharmaceutical industries owing to properties like transparency, durability and barrier against moisture, gases and UV light is driving the demand for PET preforms.

The Global PET Preforms Market is estimated to be valued at US$ 18.2 Mn in 2024 and is expected to exhibit a CAGR of 6.8% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the PET Preforms Market are Cyanotech Corporation, Dic Corporation, Corbion N.V, Valagro SpA, Far East Microalgae Industries Co. Ltd., Beijing Gingko Group, Heliae Development Llc, Pond Technologies Holdings Inc., Algaetech International Sdn Bhd, Fuqing King Dnarmsa Spirulina Co. Ltd., Sun Chlorella Corporation, and Ecoduna Ag.

The rising demand for PET bottles from industries like carbonated soft drinks and bottled water is fueling the growth of PET preforms market. The desirable properties of PET like lightweight, rigidity and barrier against gases are increasing its adoption over traditional packaging alternatives.

The global PET preforms market is witnessing expansion into emerging economies of Asia Pacific and Latin America. North America and Europe dominate the global market currently due to strong packaging industry and high per capita consumption of bottled beverages.

Market Key Trends

A key trend gaining traction in the PET Preforms Market Size is the increasing demand for 100% recyclable packaging solutions. Consumers and regulators are putting pressure on packaging manufacturers to improve sustainability of plastic packaging. PET preforms and bottles allow endless recycling and can be converted into new packaging products or other plastic products, thus satisfying the demand for circular economy. PET also allows downgauging of plastic content through lightweight preform designs, thereby reducing the environmental footprint of packaged products. Major players are investing in research to develop innovative recycling technologies and establish effective collection infrastructure to increase rates of PET recycling globally. This will help advance the development of closed loop recycling systems and realization of a waste-free economy.

Porter’s Analysis

Threat of new entrants: High capital investment needed to set up production facilities pose as entry barrier.

Bargaining power of buyers: Large buyers can negotiate for better prices and terms due to their strong purchasing power.

Bargaining power of suppliers: Suppliers of raw materials have strong influence due to limited availability of raw materials.

Threat of new substitutes: Some PET bottles are substituting PET preforms but preforms still dominate the market.

Competitive rivalry: Intense competition exists among key established players.

Geographically, the PET preforms market in North America accounts for the largest share in terms of value. Factors such as high consumption of packaged drinks and food products along with growth of bottled water industry drive the demand for PET preforms in the region.

The Asia Pacific region is expected to witness the fastest growth in the PET preforms market during the forecast period. Rapid urbanization, rising disposable incomes, changing lifestyles and growth in FMCG industry in countries such as India, China, Indonesia are fueling the demand for PET preforms in Asia Pacific. Additionally, increasing investments by regional and global PET preform manufacturers in the emerging nations to tap the market potential will further accelerate the growth.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it