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Price Fall of VPET Affects Demand for Recycled PET during COVID-19

The coronavirus pandemic has sent a shockwave through the plastic recycling industry. Even after a year of the pandemic, frequent curfews, lockdowns, industry closures, and sudden shifts in product demand are influencing the growth of the recycled PET market. Moreover, the price fall of virgin plastic or VPET (Polyethylene Terephthalate) is predicted to lower the demand for RPET (recycled PET). This has altered production activities catering to sheet or thermoform for manufacturers in the U.S., South America, and Europe switching to VPET instead of RPET.

The temporary shutdown of apparel stores and automotive companies has compelled manufacturers in the recycled PET market to acquire a bright spot in the personal protective equipment (PPE) with increase in the demand for facemasks and visors. As such, the production of fibers and RPET is expected to decline, since plastic collection activities are taking place in a staggered manner.

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Shedding of Tiny Microplastics from RPET-induced Synthetic Garments Create Environmental Issues

The recycled PET market is projected to expand at a favorable CAGR of ~7% during the forecast period. Although RPET is gaining popularity as a sustainable alternative to VPET, the former poses a risk of containing synthetic materials that can shed tiny microplastics, which are potentially harmful to the environment, oceans, and humans. This issue is evident in many synthetic garments. Hence, manufacturers are introducing washing bags such as the brand GuppyFriend, which prevents shedding of tiny microplastics from synthetic garments made of RPET.

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Innovative PET Monomer Recycling Process Helps Manufacture Fibers, Food-grade Resins

Companies in the recycled PET market are setting their collaboration wheels in motion to innovate in recycling processes. Axens, IFPEN, and JEPLAN have signed a joint development and commercialization agreement in order to develop, demonstrate, and commercialize an innovative PET monomer recycling process for all types of waste PET materials. Used bottles, films, trays, and textile are being used in new recycling processes.

Manufacturers in the recycled PET market are increasing their R&D in new recycling processes involving glycolysis-based PET depolymerization combined with specific purification steps aiming at removal of organic and inorganic compounds present in waste PET. This transformation leads to the production of purified BHET (Bis [2-HydroxyEthyl] Terephthalate) monomer that can be used to manufacture fibers and food-grade resins.

Beverage Brands Aim for 100% RPET Bottles for Circular Plastic Packaging Solutions

Reusable PET bottles are creating stable revenue streams for companies in the recycled PET market. The innovative ALPHA reusable PET bottle is gaining popularity for its lightweight attributes, which result in decline in transportation cost, carbon dioxide (CO2) emissions, and material consumption.

Danone’s bottled water brand evian and PepsiCo smoothie brand Naked are being highly publicized for utilizing 100% RPET bottles. In order to boost credibility credentials, beverage companies in the recycled PET market are aiming to make all their bottle units 100% RPET by 2025 to march toward a completely circular approach to plastic packaging. The growing consciousness about recycled PET among consumers is one of the driving factors of the market.

100% RPET Popes Mimic Properties of Conventional Ropes to Support Heavy Loads

The recycled PET market is slated to cross the revenue of US$ 11.9 Bn by 2031. Manufacturers are diversifying their production in recycled PET ropes to expand their business streams. Vivens is gaining recognition for developing first-of-its-kind 100% recycled PET ropes that are being crafted in Dubai and Addis Ababa. Stakeholders are anticipated to take cues from such companies to develop 100% RPET ropes that support heavy load, enhanced pressure, and extended UV (ultraviolet) exposure.

Manufacturers in the recycled PET market are gaining a strong research base to develop premium recycled ropes that prevent loose braiding. These ropes are durable with elongation attributes and capable of complimenting the properties of conventional polyester ropes.

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Analysts’ Viewpoint

The COVID-19 outbreak has changed collection rates of waste plastic and led to recycling shortage of bottles in the U.S., South America, and Europe. As such, a steady demand for PPE in various end-use industries is creating a bright place to keep economies running during the pandemic. However, RPET is not a perfect solution as a sustainable alternative to synthetic materials. Hence, companies should increase awareness about textile-friendly washing bags that prevent microfibers of synthetic RPET materials from entering rivers, and are captured inside the bag during and after washing is completed. Manufacturers in the recycled PET market are increasing their production capabilities in 100% RPET bottles and ropes.

Recycled PET Market: Overview

  • Recycled polyethylene terephthalate (PET) is manufactured from plastic, which has been already used for packaging, post-consumer waste, post-industrial waste, etc. Waste PET is then sorted, cleaned, crushed, and processed into small pellets or flacks. These pellets or flacks can be further reused to manufacture various other products.
  • In 2016, of 3.15 million tons of PET bottles and containers in the market in Europe, approximately 59.8% of PET bottles, totaling 1.88 million tons, were collected and 1.77 million tons were mechanically recycled. This statistic was provided by PCI Wood Mackenzie PET recycle survey for West Europe in 2016, which was commissioned by Petcore Europe.
  • According to Transparency Market Research’s latest research report on the global recycled PET market for the actual year 2020, and the forecast period 2021 to 2031, rise in usage of recycled PET in various end-use industries is a key factor that is expected to boost the global recycled PET market during the forecast period
  • In terms of revenue, the global recycled PET market is expected to cross US$ 11.9 Bn by 2031, expanding at a CAGR of ~7% during the forecast period

Increase in Focus on Recycling of PET by Major Brands: Key Driver of Recycled PET Market

  • Coca-Cola is investing significantly to help people understand what, where, and how to recycle. It has decided to support collection of all types of packaging, including PET bottles and cans, from other companies too. It is also working to make packaging 100% recyclable globally. Coca-Cola is recycling and making new bottles with recycled content; it also aims to make bottles with 50% recycled content in an average bottle. This is estimated to fuel the demand for recycled PET in the near future, thereby driving the global recycled PET market.
  • In 2018, PepsiCo Inc. announced plans to use 25% of recycled content in plastic packaging by 2023. The company is expected to collaborate with suppliers and partners to educate people about the benefits of recycling. PepsiCo. Inc. is investing in recycling infrastructure and technology to boost the usage of recycled content in packaging.

Post-consumer Resin Grade Dominates Recycled PET Market

  • In terms of grade, the post-consumer resin segment held major share of the global recycled PET market in 2020. Its share is anticipated to increase during the forecast period. Growth in trend of waste collection, plastic recovery, domestic plastic recycling, export of plastic waste, as well as implementation of regulations on usage of single use plastic have been driving the post-consumer resin segment. Rise of the post-consumer resin segment can also be ascribed to the surge in demand for plastic waste management. Enactment of strict laws for waste management and disposal; and increase in awareness about the impact of plastic waste accumulation are also driving the post-consumer resin segment.

Fiber to be Key Application Area

  • In terms of application, the fiber segment held prominent share of the global recycled PET market in 2020. Its share is anticipated to increase by the end of the forecast period.
  • Benefits of recycled PET fibers include lightness of weight. These materials are also stable and biologically inert. Furthermore, they offer excellent resistance to moisture, microorganisms, etc.
  • Recycled PET is used in the manufacture of beverage bottles and food trays. According to a study carried out by a Swiss-German joint research project ‘EUROENVIRON-DIMO,’ about 50% of waste food-grade PET bottles are used for recycling in food packaging applications.

Recycled PET Market: Competition Landscape

  • Detailed profiles of providers of recycled PET have been included in the report to evaluate their financials, key product offerings, recent developments, and strategies
  • Key players operating in the global recycled PET market are
    • Phoenix Technologies International, LLC
    • Indorama Ventures Public Company Limited
    • UltrePET, LLC
    • ALPLA
    • CarbonLITE Industries LLC
    • JP Recycling Ltd
    • PETCO
    • Extrupet Group (Pty) Ltd
    • Evergreen Plastics, Inc.
    • Verdeco Recycling, Inc.
    • Seiu Japan Co., Ltd.
    • Custom Polymers Inc.
    • Marglen Industries
    • PolyQuest

Recycled PET Market: Key Developments

  • Major manufacturers operating in the recycled PET market include Phoenix Technologies International, LLC, Indorama Ventures Public Company Limited, UltrePET, LLC, and ALPLA. These companies offer various types of recycled PET for industry-specific applications. Additionally, these companies are prominently engaged in increasing their production line by expansion and mergers & acquisitions across the globe in order to gain higher share of the market. Major developments in the global recycled PET market are highlighted below:
    • On April 29, 2019, Suntory Beverage & Food Europe, Nestlé Waters, and PepsiCo, joined a consortium to support the circular plastic economy by implementing Carbios’ enzyme-based enhanced recycling technology. Carbios, (Paris: ALCRB), a pioneer company in bio-industrial solutions, has reinvented the plastic recycling technology. It has recently developed its enzymatic technology to manufacture PET bottles from 100% recycled plastics.
    • In 2019, Alpek acquired a PET recycling plant in Richmond, Indiana, the U.S., with capacity of 45,000 mt/year. Through the acquisition, the company aims to expand its fiber PET recycling operation in North Carolina as well as a food-grade PET recycling plant in Argentina.
    • On May 14, 2019, Indorama Ventures Public Company Limited launched new recycled PET brand called ‘DEJA,’ which is manufactured by recycling 140 kilo tons of plastic bottles annually
  • In the global recycled PET market report, we have discussed individual strategies, followed by company profiles of providers of recycled PET. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global recycled PET market.

Recycled PET Market – Scope of the Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global recycled PET market in order to accurately gauge its future growth. The study presents detailed information about the important growth factors, restraints, and trends that are creating a landscape for the growth of the global recycled PET market so as to identify growth opportunities for market stakeholders. The report also provides insightful information about how the global recycled PET market would expand during the forecast period of 2021 to 2031.

The report offers intricate dynamics about different aspects of the global recycled PET market, which aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on significant changes that are highly anticipated to configure growth of the global recycled PET market during the forecast period. It also includes a key indicator assessment that highlights growth prospects of the global recycled PET market and estimates statistics related to growth of the market in terms of volume (kilo tons) and value (US$ Mn).

This study covers a detailed segmentation of the global recycled PET market, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global recycled PET market, wherein various development, expansion, and winning strategies practiced and implemented by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Recycled PET Market

The report provides detailed information about the global recycled PET market on the basis of a comprehensive research on various factors that are playing a key role in accelerating the growth potential of the global market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative methods to create a unique benchmark in the global recycled PET market, so as to help them design successful strategies and make target-driven decisions.

  • Which application segment of the global recycled PET market would emerge as major revenue generator during the forecast period?
  • How are key market players successfully earning revenue out of advantages of recycled PET?
  • What would be the Y-o-Y growth trend of the global recycled PET market between 2021 and 2031?
  • What are the winning imperatives of leading players operating in the global recycled PET market?
  • Which grade segment is expected to create lucrative opportunities for the global recycled PET market during the forecast period?
  • Which are the leading companies operating in the global recycled PET market?

Research Methodology – Recycled PET Market

The research methodology adopted by analysts for compiling the global recycled PET market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible sources, analysts have offered riveting observations and authentic forecasts for the global recycled PET market.

During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine sources, analysts have emphasized the changing scenario of the global recycled PET market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global recycled PET market.

Recycled PET Market – Segmentation

TMR’s research study assesses the global recycled PET market in terms of color, grade, application, and region. This report presents extensive market dynamics and trends associated with different segments of the market and how they are influencing growth prospects of the global recycled PET market.

Color
  • Clear
  • Colored
Grade
  • Post-consumer Resin
  • Post-commercial Resin
  • Post-industrial Resin
Application
  • Food & Beverage Bottles
  • Non-food Bottles
  • Fiber
  • Sheets & Films
  • Strapping
  • Others (including Rope and Automotive Parts)
Region
  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

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Recycled Pet Market