Global polyethylene terephthalate demand is expected to reach 24 million mt by 2020 supported by recent price drops, Indorama said in a presentation on its website.
PET demand worldwide is forecast to grow from an estimated 20 million mt in 2015 to 24 million mt by 2020.
This will add just under 1 million mt/year of demand between 2015 and 2020.
The forecast shows demand doubling by 2020 from 2005 when PET consumption totalled 12 million mt.
Indorama attributes growth in PET demand to macroeconomic factors such as population growth, urbanization, rising income levels and social change.
Lifestyle changes, such as demand for more convenient and aesthetic packaging, and health awareness, which will drive bottled water consumption, were also factors highlighted in the presentation.
On the PET manufacturer’s side, brand differentiation and product innovation were factors driving PET growth up to 2020.
Indorama says that lower PET prices in recent years will underpin future growth.
“Lower prices support PET growth with material switching,” it said in the presentation.
PET prices tumbled 41% in the two years since January 2014, according to Indorama.
This compares with a drop of 2% for paper, 14% for aluminium, 32% for HDPE and 42% for PP.
“Other materials created additional space for PET to grow,” it said, adding that PET was “the most cost effective alternative.”
Global PET prices have plummeted as a result of falling crude oil prices.
In Europe, the NWE PET spot price sunk to a seven-year low of Eur840/mt Wednesday.
Thai Indorama is a leading petrochemical producer and the world’s largest PET producer.
Indorama has PET production units across Asia, Europe, North America and Africa.
