India PET Resins Market By Type (Bottled Beverages, Films & Sheets, CSD, Food, Others), By Application (Transportation, Automotive, Electrical & Electronics, Household Appliances, Packaging, Textile), By Region, Competition, Forecast & Opportunities, 2020-2030F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia PET Resins Market By Type (Bottled Beverages, Films & Sheets, CSD, Food, Others), By Application (Transportation, Automotive, Electrical & Electronics, Household Appliances, Packaging, Textile), By Region, Competition, Forecast & Opportunities, 2020-2030F
| Forecast Period | 2026-2030 |
| Market Size (2024) | 1.23 Million Tonnes |
| CAGR (2025-2030) | 6.20% |
| Fastest Growing Segment | Packaging |
| Largest Market | West India |
| Market Size (2030) | 1.74 Million Tonnes |
Market Overview
India PET Resins Market was valued at 1.23 Million Tonnes by 2024
Given the projected robust expansion of the healthcare and pharmaceutical sectors, driven by the increasing need for medical equipment and medications post-pandemic, the demand for PET bottles for medical packaging is anticipated to witness an incredible surge in the coming years.
In India, the manufacturing of Polyethylene Terephthalate is dominated by Reliance Industries, followed by three other companies. As a result, the majority of the PET demand in India is catered to by domestic production. However, cheap imports from other countries have caused a significant impact on the Indian production in recent years, resulting in abrupt material injury. Nevertheless, the immense production capacity of PET in the country is also sufficient to meet the export requirements from countries such as Algeria, Bangladesh, Egypt, and others. The sudden spike in demand for PET from the food and beverages as well as healthcare industries is anticipated to compel manufacturers to operate at over 60 percent efficiency in order to meet the domestic as well as international demand more effectively.
Key Market Drivers
Growing Demand of PET Resins in Automotive Industry
PET resins, also known as polyethylene terephthalate resins, are a type of versatile thermoplastic polymer that possesses a wide range of desirable properties. These properties include exceptional strength, durability, and resistance to wear and tear. It is these attributes that make PET resins highly sought after for various applications within the automotive industry.
One of the key areas where PET resins find extensive use is in the production of auto parts. These resins are utilized in the manufacturing of crucial components like bumpers, interior panels, and under-the-bonnet parts. Their exceptional strength and durability make them an ideal choice for these applications. Additionally, PET resins also play a pivotal role in creating lightweight and fuel-efficient vehicles.
With the global emphasis on reducing carbon emissions and creating sustainable transportation solutions, the automotive industry is actively pursuing the development of lightweight vehicles. By utilizing PET resins, automakers are able to reduce the weight of vehicles without compromising on safety or performance. This reduction in weight translates to lower fuel consumption and a reduced carbon footprint.
The significance of PET resins in the automotive industry cannot be overstated. As the industry continues its commitment to sustainability, the demand for lightweight materials like PET resins is expected to witness a significant increase. This growing demand is anticipated to drive the overall growth and expansion of the PET resin market in the coming years.
In India, the automotive industry has been experiencing remarkable growth, positioning the country as one of the largest car markets in the world. This upward trajectory is contributing to the rising demand for PET resins, as the production of more vehicles necessitates a greater need for the materials used in their manufacturing processes.
Furthermore, the Indian government has taken proactive measures to promote the growth of the automotive industry, such as the Automotive Mission Plan 2016-2026. These initiatives are expected to further stimulate the demand for PET resins, resulting in a positive impact on the market.
Growing Demand of PET Resins in Packaging Industry
PET resin's intrinsic properties have rendered it an indispensable component in modern packaging solutions. Its exceptional clarity, coupled with its inherent strength and durability, has made it the material of choice for a vast array of products. From the crystal-clear allure of beverage bottles to the protective casing for personal care items, PET's adaptability is unparalleled. Furthermore, its lightweight characteristic offers significant advantages in terms of transportation and logistics, contributing to reduced carbon footprints.
The Indian food and beverage industry has experienced phenomenal growth, driven by rising disposable incomes, urbanization, and changing consumer preferences. PET's role in this expansion has been pivotal. The material's ability to preserve product freshness, coupled with its aesthetic appeal, has made it the preferred choice for packaging an extensive range of products, from carbonated beverages and juices to dairy products and edible oils.
The rapid growth of e-commerce in India has created a surge in demand for robust and protective packaging materials. PET's impact resistance and ability to withstand the rigors of transportation have made it a preferred option for online retailers. Moreover, the increasing focus on sustainable packaging solutions has led to a preference for recyclable materials like PET.
The Indian pharmaceutical industry has witnessed significant growth, driven by both domestic and international demand. PET's barrier properties and inert nature make it an ideal material for packaging pharmaceuticals, ensuring product integrity and safety. Additionally, the convenience and portability offered by PET packaging have contributed to its widespread adoption in this sector.
The Indian Standards Bureau (BIS) has initiated a public consultation process for a revised standard governing polyethylene terephthalate (PET) bottles used in edible oil packaging. PET, a widely used plastic resin for food contact materials (FCMs), is the subject of this regulatory update. India's FCM regulatory framework is anchored in the Food Safety and Standards Act of 2006 and its subsequent regulations, including those pertaining to labeling, display, and packaging. The government also leverages BIS standards to address specific materials in direct contact with food.
India has implemented anti-dumping duties on bottle-grade polyethylene terephthalate (PET) resin imported from China. This protective measure aims to safeguard the domestic industry from harm caused by unfairly priced imports.
Key Market Challenges
Volatility in Prices of Raw Materials
The Polyethylene Terephthalate (PET) resin market in India has experienced significant growth in recent years, driven by increasing demand from various industries such as packaging and automotive. This growth can be attributed to the excellent properties of PET resins, including their durability, transparency, and lightweight nature, which make them suitable for a wide range of applications.
However, like any other industry, the PET resin market faces its unique set of challenges. One of the most pressing issues is the volatility in the prices of raw materials. PET resins are derived from petroleum-based products, mainly Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG). The prices of these raw materials are heavily dependent on global crude oil prices, which are known to be highly volatile.
When crude oil prices rise, the cost of producing PET resins also increases. This adds significant pressure on manufacturers to either absorb the extra costs, thereby reducing their profit margins, or pass them onto consumers. However, passing on the increased costs to consumers could potentially result in decreased demand for PET resin products, as price-sensitive customers may turn to alternative materials.
To navigate these challenges, PET resin manufacturers in India are adopting various strategies. Some are investing in research and development to find alternative raw materials or develop more efficient production processes. Others are exploring long-term contracts with suppliers to stabilize the prices of raw materials. Additionally, manufacturers are also focusing on improving their operational efficiency to mitigate the impact of volatile raw material prices on their overall costs.
Despite the challenges, the PET resin market in India continues to thrive due to its strong demand and the adaptability of manufacturers to changing market conditions. With the increasing emphasis on sustainability and the growing demand for eco-friendly packaging solutions, PET resins are expected to play a vital role in the future of the packaging industry.
Key Market Trends
Growing Preference for Hot-Fill PET
India's Polyethylene Terephthalate (PET) resin market has been witnessing a significant growth trajectory, largely attributed to its extensive applications across diverse industries. However, the market is also evolving in response to emerging trends and consumer preferences. One such trend making waves in the industry is the growing predilection for hot-fill PET.
Hot-fill PET, a type of PET packaging that can withstand high temperatures during the filling process, has been gaining popularity rapidly. This technology allows food and beverage products to have an extended shelf life without the need for refrigeration or preservatives, making it a preferred choice among manufacturers and consumers alike.
The increasing preference for hot-fill PET is making a noticeable impact on India's PET resin market. According to a recent market analysis, PET has become the primary preference in the packaging sector in India due to its rigidity, eco-friendly attributes, and recyclable nature. Moreover, the unique properties of hot-fill PET, such as its ability to withstand high temperatures, are driving its adoption in the market.
However, it is important to note that the production process of hot-fill PET requires specialized machinery and higher energy consumption compared to regular PET. This means that as more manufacturers move towards hot-fill PET, the demand for standard PET resins could potentially decrease, causing a shift in the market dynamics.
Segmental Insights
Type Insights
Based on Type, Bottled Beverages have emerged as the dominating segment in
Interestingly, the expansion of the food and beverage industry in India has emerged as another influential element propelling the growth of the PET resin market. As this industry continues to flourish, the demand for PET resins has soared, as they are extensively utilized for manufacturing bottles catering to a wide range of liquids, including water, carbonated drinks, oils, and more.
The appeal of PET bottles lies in their exceptional versatility, lightweight nature, and shatter-resistant properties, making them the perfect choice for packaging various types of beverages. Moreover, these bottles offer excellent chemical resistance, ensuring that the integrity and taste of the beverages are impeccably maintained throughout their shelf life.
Furthermore, the rising popularity of single-serve beverages in the ready-to-drink (RTD) market has emerged as another prominent trend driving the growth of the PET resin market. PET bottles, due to their convenience and portability, are highly preferred by consumers for on-the-go consumption, further boosting their demand and market presence.
Application Insights
Based on Application, Packaging have emerged as the fastest growing segment in the
In India, the packaging sector has witnessed remarkable growth, largely fueled by the thriving food and beverage industry. This industry's robust expansion has significantly contributed to the dominance of PET resin packaging in the market. PET is extensively utilized in packaging various beverages, including water, carbonated drinks, and juices, primarily due to its exceptional barrier properties and chemical resistance, which safeguard the quality and freshness of the contents.
The undisputed predominance of packaging in the PET resin market in India can be attributed to the sustainable nature of PET, its remarkable versatility, exceptional durability, and the continuous growth of the food and beverage industry. As these trends persist, packaging's dominance in the PET resin market is expected to remain unchallenged, securing its position as a key player in the industry.
Regional Insights
Based on Region, West India have emerged as the dominating region in the India PET Resins Market in 2024, holding the largest market share in terms of value. Firstly, West India, comprising states like Maharashtra, Gujarat, and Goa, is home to some of the major players in the PET resin industry. For instance, Reliance Industries Limited (RIL), one of the largest contributors to the PET resin market, is headquartered in Mumbai, Maharashtra. The strategic presence of such significant players in this region not only bolsters its market dominance but also fosters a collaborative ecosystem for innovation and growth in the PET resin sector.
West India boasts advanced infrastructure and well-developed industrial areas, making it an ideal hub for large-scale manufacturing units. The seamless connectivity and availability of resources further attract industries to this region, contributing to its continued dominance in the PET resin market. The well-established transport network, including ports like Mundra and Pipavav, facilitates efficient import and export of raw materials and finished products, further strengthening the region's position in the market.
Although not located in West India, the Bongaigaon Refinery in Assam plays a vital role in the Indian PET market. This state-of-the-art refinery is engaged in the production of PET from captive DMT and purchased ethylene glycol for the manufacturing of polyester fibers. The Bongaigaon Refinery's significant production capacity and high-quality PET resin contribute substantially to the overall PET resin market in India.
Finally, the high demand for PET resins in West India, particularly from the packaging sector, is another key factor driving the region's domination. With the ever-growing food and beverage industry in this region, there is an increasing need for sustainable and recyclable packaging solutions. PET resin, known for its excellent properties in terms of strength, transparency, and recyclability, meets this demand perfectly. The packaging sector's preference for PET resin further propels the region's growth trajectory in the PET resin market.
Recent Developments
- In a significant sustainability milestone, Coca-Cola India introduced the nation's first 100% recycled PET (rPET) water bottle in August 2023. Produced by Srichakra Polyplast utilizing Starlinger's advanced PET bottle-to-bottle recycling technology, the food-grade rPET material is incorporated into Kinley water bottles. Srichakra Polyplast's Hyderabad facility houses India's inaugural Starlinger recycling line, equipped to process post-consumer PET bottles and produce food-safe rPET pellets. This achievement underscores the company's commitment to circular economy principles and sustainable packaging solutions. The successful implementation of this technology in India marks a pivotal step towards reducing plastic waste and promoting environmentally responsible practices within the beverage industry.
- Indo Rama Synthetics (India) Ltd, a Mumbai-listed company, initiated commercial operations at its 230,000-ton-per-annum polyethylene terephthalate (PET) plant in western Maharashtra during June 2023. The facility, located in Butibori, Nagpur district, is managed by Indorama Yarns Pvt Ltd, a wholly-owned subsidiary. The company announced the commencement of plant operations on June 3rd in a regulatory filing to the Bombay Stock Exchange (BSE). A major polyester producer in India, Indo Rama Synthetics boasts an integrated production site in Butibori and is a 32% subsidiary of Thailand's Indorama Ventures Ltd.
- In March 2024, TOPPAN Inc., a subsidiary of TOPPAN Holdings Inc. under the TOPPAN Group, collaborated with India-based TOPPAN Speciality Films Private Limited (TSF) to develop GL-SP, a BOPP (biaxially oriented polypropylene) substrate-based barrier film. This innovative product signifies a significant addition to the TOPPAN Group's GL BARRIER series, a globally renowned range of transparent vapor-deposited barrier films. Production and sales of GL-SP are set to commence shortly, targeting dry product packaging markets in the Americas, Europe, India, and the ASEAN region. This launch aligns with the growing demand for sustainable solutions in the packaging industry.
Key Market Players
- Reliance Industries Limited
- JBF Industries Limited
- Indorama Ventures Public Company Limited
- BASF SE
- Toray Industries (India) Private Limited
- Eastman Chemical India Pvt. Ltd.
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