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”. 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.
Source: ChemAnalyst
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