(MENAFN- GlobeNewsWire - Nasdaq) New York, Feb. 21, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Recyclate PET Market - Growth, Trends, and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05865837/?utm_source=GNW
On the flip side, lower profit margins in the industry are expected to hamper the growth of the market.
- The industrial yarn segment dominated the market. It is expected to grow during the forecast period, with increasing production of industrial yarn made from recycled PET bottles.
- The innovations in recycling technologies for automatic processing and sorting of plastics and the discovery of new material sources are likely to provide opportunities for the studied market, during the forecast period.
- Asia-Pacific dominated the global market, due to the significant growth in demand coming from countries, such as China, India, and Japan.
Key Market Trends
Industrial Yarn Segment to Dominate the Market Demand
- The industrial yarn segment is the largest consumer of recyclate PET, accounting for almost 50% of the market demand.
- The material of rPET is used to spin fibers of small diameters, which are woven into "polar" fleece fabric, used for sweatshirts, jackets, and scarves.
- These fabrics contain up to 100% of the recycled material, along with waterproofing. The polar fleece jackets use up to 25 recycled PET bottles.
- The rPET yarn uses 94% less water, as compared to oil-based PET fibers. Additionally, the production process requires 60% less energy, along with a reduction of 32% in CO2 emissions.
- The demand for rPET in textile applications has seen a period of decline. However, it is expected to show a good increase, over the forecast period, in response to EU initiatives that actively promote ''circular economy'' and ''green development'' models.
- For instance, WRAP, an initiative of the European Clothing Action Plan, is working closely with governments, businesses, and communities, in order to achieve certain targets by 2020.
- These targets include a 15% reduction in carbon footprint, a 15% reduction in water footprint, and a 15% reduction in waste to landfill.
- Such initiatives are likely to drive the growth of the rPET market, during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the rPET market, which accounted for more than 50% of the market share.
- The demand for rPET is driven by factors, such as robust demand for packaging materials, increasing in the production of industrial yarn, and robust growth in construction activities, which is boosting the demand for building materials.
- Asia-Pacific is witnessing the fastest growth in the global packaging industry, with China and India leading the market. Factors, such as e-commerce, online food deliveries, and innovation and development in the packaging industry, have been driving the growth of the industry in the region.
- Growth in construction activities in the region has further been increasing the demand for building materials, where rPET finds numerous applications.
- Currently, there are numerous airport construction projects, either in the development or planning stage, in China. These include Beijing Capital International Airport, Chengdu Shuangliu International Airport, Guangzhou Baiyun International Airport, etc.
- Besides, the Chinese government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities, over the next 10 years.
- In India, the government''s target of investing USD 120.5 billion, for developing 27 industrial clusters, is expected to boost commercial construction in the country.
- In Indonesia, the government planned to invest about USD 450 billion, in the construction sector, by 2021, which is expected to boost the residential construction in the country.
- Such market trends are likely to drive the demand for recyclate PET in the region, during the forecast period.
- Besides, the increased concerns related to harmful environmental impact, due to no-degradability of plastic and growing regulations in this regard, are likely to provide huge opportunities for the rPET market in the coming years.
Competitive Landscape
The recyclate PET market is fragmented in nature. Some of the noticeable players in the market include Phoenix Technologies, Krones AG, Placon (EcoStar), PolyQuest, Lotte Chemicals, and Avery Dennison Corporation, among others.
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Read the full report: https://www.reportlinker.com/p05865837/?utm_source=GNW
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