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 and Competition, Forecast & Opportunities, 2020-2030F

Market Overview

India PET Resins Market was valued at 1.23 Million Tonnes by 2024 and is expected to reach 1.74 Million Tonnes by 2030 with a CAGR of 6.20% during the forecast period. PET, also known as Polyethylene Terephthalate, is a thermoplastic polymer resin that belongs to the polyester family. In India, PET has emerged as the top choice in the packaging sector due to its exceptional rigidity, eco-friendly attributes, and recyclable nature. The demand for PET in the packaging of food and beverages has seen a significant rise, especially after the sudden outbreak of the Coronavirus in the final quarter of FY 20. This surge in demand can be attributed to the increasing awareness of hygiene, leading to a greater procurement of disposable and packaged items in order to minimize the risk of infection. Furthermore, in the rapidly expanding Indian pharmaceutical sector, PET bottles have gained preference over aluminum and glass packaging due to their high-quality standards and safety measures. This trend is expected to further boost the demand for PET in the forecast period.

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. PET resin is a critical component in the manufacturing of bottles and jars used for packaging various products, including mineral water, carbonated beverages, and pharmaceuticals. Following a year-long investigation, the Directorate General of Trade Remedies (DGTR) recommended anti-dumping duties ranging from USD 60.92 to USD 200.66 per ton, depending on product quality. The duties were imposed to counteract the negative impact of the dumped imports on the domestic PET resin industry.