Global PET Resin Production Capacity Overview:
Global PET resin production capacity was 27.8 million tons in 2015. China is the leading producer with 27% of the market share followed by Europe (17%) & North America (17%). China is not only the largest producer of PET resin but also the largest consumer of PET bottles. In terms of region, Asia is the leading region in the production of Polyethylene Terephthalate (PET) resin with a market share of approximately 50% in 2015.
The other leading regions are Europe (17%) & North America (17%). In 2015 Asia region was a net exporter of PET resin. The top importer of PET resin among Asia region was Japan. In the last five year from 2010 – 2015, the export of PET resin grew by approximately 60% for the leading supplying countries of Asia region.
Global PET Resin Market
PET resin production is primarily driven by lower crude oil prices and demand from the use of PET resin in packaging food and beverages with increasing demand from soft drinks, juices, and water. With the growth in population, urbanization in developing countries and increasing disposable income tends to drive the demand for bottled beverages. The largest end use demand for PET resin in bottle application which tends to makes bottle beverages occupy more than 70% of the market share. China is the largest consumer of bottled beverages.
Asian region had strong demand for bottled beverages while there was growth in North American market also. So market growth in 2015 was increasing for Asian region while stable for North American region. The demand of PET Resin in Western Europe showed a slight positive trend. While in Eastern Europe has a negative trend because of unstable currency impact. The leading PET resin production countries in South America are Brazil and Argentina. They had weaker demand for PET resin because of economic conditions.
Key PET Resin Market Players and New Plants in 2015
Asian region tends to be most active in production and consumption of PET resin. The leading manufacturers of PET resin are Indorama Ventures (Thailand), M&G Chemicals (Luxembourg), Sanfangxiang Group (China), Far Eastern New Century (Taiwan), Alpex (Mexico), Lotte chemical (U.K.), Reliance Industries(India), and others. In 2015 Indorama Ventures was the largest PET resin producer in the world. Its aggregate installed production capacity of 4.4 million tonnes per annum of PET.
In 2015 due to performance pressure there were restructuring in the industry with numbers of merger and acquisitions and capacity expansions. The leading regions to see capacity expansions were India and South America. The important expansion in India was of 650 KTA PET plant (Polyethylene Terephthalate) from Reliance Industries Limited. The PET resin plant is one of the largest bottle grade PET resin capacity at a single location globally, making Reliance a leading PET resin producer globally.
The leading acquisition during this period was from Indorama Ventures buying plants in India (Micro Polypet), Spain (Cepsa) and Turkey (polypex). The installed capacity of PET resin production was Micro Polypet (216k tons), Cepsa (175k tons) and Polypex (252k tons)
Key Drivers and Constraints
There is increasing demand for packaging of foods and beverages . Along with that PET resin has more useful functional properties such as less atmospheric emissions. The PET have high durability, strength, transparency and is reusable.This has led to increased PET resin production to meet the growing demand. While low-profit margins, price fluctuations and at times oversupply is hindrance to the market