CHINA SPECIAL & CHINAPLAS 2022 PETplanet Insider Vol. 23 No. 03/22 www.petpla.net 32 Outlook clear but overcast China is a main player in the PET market. This applies not only to production but also to demand. A circumstance that, in the current situation with rising energy and raw material prices, is raising worry lines on the foreheads of many processors from abroad: supplies from the Far East are not forthcoming or are only available at a significant price premium. At least for 2021, machinery and plant manufacturers in China however, including foreign companies, have had positive economic developments to report. However, just before this issue went to press, the head of government Li Keqiang issued a target of 5.5% economic growth for this year, which is the lowest figure since 1991. And at this point, it is not yet possible to estimate what effects the conflict in Ukraine will have additionally. Globally, the PET bottle market reached a value of US$ 39.7 billion in 2021, according to a projection of Imarc Group. Looking forward, the analysts expect the market to reach US$ 52 billion by 2027, exhibiting at a CAGR of 4.46% during 2022-2027. The Chinese market is seen as one of the global PET bottle market drivers. The rising trend of westernisation, inflating disposable incomes and altering food patterns of consumers have increased the demand for bottled beverages. Additionally, hectic lifestyles have enabled consumers to opt for on-the-go beverages. These developments result in the fact that China – which is considered the cheapest supplier of PET in the Asian region – meets high demand at home and is sold out. This also applies to the situation on the feedstock market. Changing recycled PET market The global recycled PET market size is expected to grow from USD 8.9 billion in 2021 to USD 11.7 billion by 2026, at a CAGR of 5.7% during the forecast period, according to figures provided by Markets andMarkets. Flakes are the fastest-growing type segment in the recycled PET market. Growth is attributed to the rising demand in various end-use applications such as food-grade bottles & containers, sheets, and fibre. Bottles are the largest and fastest-growing application segment in the recycled PET market. Increasing demand for rPET bottles in food & beverage packaging is driving the market. Growth of this segment is attributed to the rising demand for bottle-to-bottle recycling across the world. It accounted for a share of about 36.5% of the recycled PET market, in terms of value, in 2020, says a report by Research and Markets. Asia Pacific (APAC) is the largest and market of recycled PET, with China being the major emerging market. Czarnikow market analysts see an rPET boom coming in Asia: attempts to use food-grade rPET in Asia has been contested by many of Asia’s largest food packaging producers like China and India. Now, more Asian countries are revising their stance on the use of rPET in food contact materials: India, Thailand, and South Korea have amended food packaging standards and food-grade rPET
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