India’s PET Demand to Outshine and Register a CAGR of 6.75% by 2030
by Chem Analyst Chemical Database PriceAccording to
ChemAnalyst report, “India Polyethylene Terephthalate (PET) Resin
Market: Plant Capacity, Production, Technology, Operating Efficiency, Demand
& Supply, End Use, Type, Distribution Channel, Region, Competition, Trade,
Customer & Price Intelligence Market Analysis, 2015-2030”. India PET demand is anticipated to grow at a
healthy CAGR of over 6.75% in the forecast period highly influenced by the
enormous demand for PET packaging bottles in medical and healthcare industry.
PET is a thermoplastic resin, belonging to the polyester family, utilizing Mono
Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA) as feedstocks. In
India, PET has turned out to be the profound preference in the packaging
industry owing to its eco-friendly and recyclable along with the strength it
offers. In addition, increasing preference for PET in pharmaceutical industry
over aluminum and glass packaging due to the superior hygiene and quality
standard is further anticipated to bolster the demand for PET resin in the
coming years.
Browse the Complete Report: India Polyethylene Terephthalate (PET) Resin
Pricing
Food and
Beverages industry constitutes over 50 per cent of the total demand for PET
manufactured in India. As PET is one of the highly recyclable plastic products,
government initiatives to push out the use of single-use plastics by 2022 amid
concerns of perverse environmental outcomes has indirectly shifted the
industries to engage in the use of recyclable plastic such as PET, hence,
contributing widely to uptrend its demand.
Chemical-Pricing:
https://www.chemanalyst.com/ChemicalPricing/ChecmPriceYearlyChart?Customer=False
Outbreak of Coronavirus
in Q4 of FY 20 has slowed down the business in various industrial sectors as an
outcome of lockdown and other preventive measures imposed by the government to
contain the spread of the virus. However, Plastic, Pharmaceutical and Specialty
Chemicals are among the few leveraged sectors witnessing an outshine in tough
times of the crises. Rising awareness over hygiene and cleanliness has led to
increased demand for packaged food and beverages as to avoid any chances of infection
by contagion. Moreover, astonishing stress on the expansion of the Indian
healthcare sector after Coronavirus Outbreak has also propelled the demand for
PET bottles for storage of critical drugs and fluids, owing to the safety
offered in handling coupled with its hygienic properties. Although the
beginning of the final quarter witnessed a gradual slump in the production of
PET due to halt in industrial activities put up in compliance to the preventive
measures of Coronavirus. The demand witnessed appreciable recovery after mid-April
2020 affected by the ease in lockdown measures offered by the government in
hopes of restoring the persistent sunk in economy. As the country is still
struggling to bounce back from the devastating industrial downturn, domestic
manufactures of PET are currently operating PET plants at less than 30 per cent
efficiency owing to the reduced demand from automotive and electronic industry.
However, the dilemma over complete abatement of Coronavirus in the country is
likely to boost the demand for PET in the coming years as a result of shift in
demand from aluminum and glass to plastic products. Government initiative of
self-reliant India is also anticipated to play a major role in bracing the
domestic PET market as the manufacturers will not be compelled to mark the
prices of the product in line with the import prices in order to avoid material
injury.
According to ChemAnalyst report, “India Polyethylene Terephthalate
(PET) Resin Market: Plant Capacity, Production, Technology, Operating
Efficiency, Demand & Supply, End Use, Type, Distribution Channel, Region,
Competition, Trade, Customer & Price Intelligence Market Analysis,
2015-2030”.
Major players
operating in the India PET market include Reliance
Industries Limited, Dhunseri Petrochem & Tea Limited, JBF Industries
Limited and Indorama Ventures Public Company Limited. As imports catering to a
significant share of the total demand of PET in India, other companies
satisfying the demand for PET in the country are , Toray Industries, Jiangsu
Sanfangxiang Group, Eastman Chemical Company, Nan Ya Plastic Corporation,
SABIC, BASF SE ,Far Eastern New Century Corporation etc. Reliance Industry is
the largest domestic player with the maximum installed capacity 1000KTPA for
PET production. As India already comprises of abundant installed capacity of
PET, there are no proposed plans by any company to further expand the capacity
in the next five years. With massive production of PET in India, the country
also serves to fulfill the export demand from countries like Algeria, Egypt, Bangladesh, etc. With the current scenario of
Coronavirus, domestic manufactures are anticipated to operate over 60%
efficiency on negligible import and robust demand from packaging industry in
the coming years.
“The recent initiative of Indian government
for self-reliant India, has raised strong concerns over the chemical sector of
India as it is highly dependent on imports of various feedstocks from European
and Gulf Countries. However, plastic industry is expected to be one the most
leveraged industries as majority of its products and feedstock account for
appreciable production in the country. As MEG and PTA are produced in abundance
within the country, the production of PET in India will not be hindered and
will remain out of the risk even in the forecast period. This initiative can be
a silver lining for the domestic manufacturers eyeing to widen their profit
margins by catering to a high scale demand. As people across the globe are
improvising their hygiene practices, they are keener to rely on packaged
products to reduce risk of infection. In India, since PET is majorly consumed
in the packaging industry, the demand for PET will continue to boom at a
significant rate in the next five years .In addition to this, the increasing
requirement for PET bottles from pharmaceutical and healthcare industry for
storage of drugs and sanitizers is likely to drive the market growth in the
forecast period. However, demand from other major industries like electronics
and automotive will remain weak on slow economic growth and decline in per
capita income of people as companies have been struck by strong financial slump
as a ripple effect of Covid-19.” said Mr. Karan Chechi, Research
Director with TechSci Research, a research based global management consulting
firm promoting ChemAnalyst.
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Created on May 21st 2020 05:22. Viewed 328 times.