PHILIPPINES POLYETHYLENE TEREPHTHALATE (PET) MARKET

Philippines Polyethylene Terephthalate (PET) Market is forecast to witness a robust CAGR of 5.3% fueled by the growing packaging industry coupled with government efforts to encourage plastic recycling.

Major Market Drivers and Emerging Trends

Rapid urbanization along with higher incomes have led to a surging demand for convenience foods and packaged products. The growing economy is fueling consumer demand for quick options which leads to an increasing need for convenience foods. Convenience foods basically have long been popular in the country because of their low cost and quick preparation. PET plastic is widely used in convenience and packaged foods to protect the product while preserving its freshness.

The food delivery sector has also grown quickly fueled by the online platforms popularity and the growing consumer preference for convenience. The industry is uniquely characterized by the widespread presence of independent and street food vendors. Even without their own delivery infrastructure, many small vendors are tapping into online delivery platforms to reach more customers and drive higher sales. This emerging trend is thereby driving the need for PET packaging to ensure food is securely packaged for delivery while maintaining safety and quality.

The thriving online shopping is also contributing to market growth. The country is emerging as among the most rapidly developing ecommerce markets in Southeast Asia with a thriving economy and a digitally literate population. Better connectivity and growing infrastructure help a larger population to gain access to the internet. The growing ecommerce retail is thereby set to drive a rise in the need for PET packaging. The supply chain’s complexity in the ecommerce makes PET’s lightweight and durable characteristics especially appealing to the industry.

Another significant driver behind the Philippines PET market size growth is the growing automotive sector. As the 9th largest automotive market in Asia Pacific, most vehicles sold and produced in the Philippines come from foreign companies. This booming industry is contributing to the rising demand for PET materials in the manufacturing process. The dedication within this sector to sustainability will likely lead to an increasing need for lightweight materials particularly PET resins. This growing demand is projected to accelerate PET market growth in the near future.

Market growth has been further propelled by increased government efforts to support plastic recycling. The aquaculture industry in the Philippines is facing a serious threat from plastic pollution in the seas as over 30,000 tons of plastic mostly packaging enter the ocean each year from coastal areas or settlements around Manila Bay. To address this issue, the country has recently implemented an EPR law which requires companies to manage the plastic packaging used in their products. This shift has led some companies to produce goods using recycled plastics that fuel the interest in PET materials which are fully recyclable.

The PET market is indeed crucial for packaging but it must address ongoing challenges in plastic waste handling and pollution control. PET bottles are contributors to plastic pollution which highlights the need for effective waste management strategies. Creating a circular economy and cutting down on single use plastics are critical challenges the market must address.

Based on type, the market is classified into virgin and recycled materials. The differences between recycled and virgin PET span several characteristics. Virgin PET offers superior performance but they are more expensive. Recycled PET offers environmental benefits but it may exhibit slightly lower quality and performance in comparison to virgin type. For practical use, materials are typically selected considering factors including market demand and environmental impact.

Based on application the packaging segment continues to hold a leading position in the market. Its dominant position is largely driven by its widespread use in food and beverage packaging especially for soft drinks or bottled water. PET has excellent clarity and lightweight characteristics which make it perfect for packaging products.

Top Market Players

Some major players within the market include Bestpak, Filpet, Indorama Ventures, among others. Numerous companies are forming partnerships along with collaborations to expand their distribution channels and strengthen their position in the market.

Key Developments

• • In 2022 Indorama Ventures officially launched its PETValue recycling facility in the Philippines in collaboration with Coca Cola Beverages. This facility is the newest addition to its PET recycling operations which emphasizes its status to be the global leader in recycled resin production for plastic bottles.

Segments covered in the Report:

Philippines Polyethylene Terephthalate (PET) Market has been segmented on the basis of Type and Application. Based on the Type, the market is segmented into Virgin and Recycled. Based on the Application, the market is segmented into Packaging, Automotive, Construction, Medical, and Others.

Market Segmentation

Philippines Polyethylene Terephthalate (PET) Market by Type

• • Virgin
  • Recycled

Philippines Polyethylene Terephthalate (PET) Market by Application

• • Packaging
  • Automotive
  • Construction
  • Medical
  • Others

Philippines Polyethylene Terephthalate (PET) Market Leading players

• • Bestpak
  • Filpet
  • Indorama Ventures