Increasing demand for bio-based products is estimated, to drive the global Polyethylene furanoate market to $xx Billion by 2024
In the current scenario, stringent government regulations on non-recyclable plastics consumption are likely to boost the market growth. Furthermore, the change in trend towards the use of environmentally friendly substitutes to conventional petroleum-based PET is probable to drive PEF market growth.
According to IndustryARC, the Polyethylene furanoate market size is expected to reach $xx billion by 2024, growing at a CAGR of xx%. The market for polyethylene furoate (PEF) is experiencing a rise in demand as PEF is a bio-based plant-based product that can replace the most commonly used polyethylene terephthalate (PET) polymer in bottle production. PEF is next-generation material and has several performance advantages over PET.
The increase in demand for sustainable packaging is one of the main market trends. The packaging industry is a major end-user segment of the global market for PEF. Government agencies, private organizations, and NGOs focus on creating sustainable packaging. Various manufacturers are moving towards sustainable packaging to reduce the environmental impacts of conventional packaging. In the Asia Pacific, Due to the increasing packaging industry in Malaysia, India, Singapore, Australia, and China, is expected to be the fastest-growing market. As a result of stringent government regulations and increasing environmental concerns, North America is also expected to develop at a substantial pace.
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· PEF is a unique 100% biobased polymer with enhanced thermal and mechanical barriers over existing packaging materials. These properties enable new packaging innovations to make lighter, thinner, smaller, and stronger bottles, to extend product shelf life and to provide supply chain benefits. Combined with the significant reduction in carbon footprint, PEF fulfills key criteria to become the next generation bio-based plastic for bottles, film, and fibers.
· The use of PEF is likely to help tackle environmental concerns in the future. PDF includes 30% of mono ethylene glycol (MEG) derived biologically from 70% of furan dicarboxylic acid (FDCA). PDF contains 30% mono ethylene glycol (MEG) with 70% furan dicarboxylic acid (FDCA) derived biologically. PEF can be recycled and incorporated into the PET recycling streams at up to 5% PEF with no effect on the recycled PET performance. Because of its relatively high biodegradability, this makes it more biodegradable and less environmentally hazardous compared to Petro-based PET, is likely to be the best alternative available for use in sustainable packaging over the forecast period.
· Cost and performance continue to be the key drivers for purchasing decisions, and green products are only considered if they provide added value commensurate with any cost premium. There has been a significant shift from a focus only on air quality to an approach that encompasses all aspects of processes and products that contribute to sustainability.
· Increasing demand for bio-based solutions in many end-user industries is expected to create enormous demand space for products based on polyethylene furanoate globally. In a developed region such as North America & Western Europe, bottles & fiber products based on polyethylene furoate are gaining traction in the presence of laws & regulations to reduce environmental pollution.
· Several initiatives taken by advanced R&D specialist firms to develop and market PEF-based products are expected to drive the country’s market over the forecast period. For instance, in the Netherlands, a BBI subsidy of $29.52 million has been granted to “preference,” a consortium consisting of 11 companies including Synvina, its two JV partners Avantium (The Netherland) and BASF (Germany) and others. The partners of the consortium will jointly work on establishing an innovative supply chain for FDCA and Polyethylene Furanoate PEF, including the planned construction of a 50,000-ton reference plant in Antwerp. Synvina will be coordinating the “PEFerence” project.
· In Asia Pacific, developing economies such as China, India, and Southeast Asia are boosting demand for polyethylene furoate by expanding food & beverage and adhesive sectors. Japan also shows the acceptance of products based on polyethylene furoate as the nation moves towards a carbon footprint reduction initiative.
Partnerships and acquisitions are the key strategies that are adopted by the key players of the Polyethylene furoate market. Major players in the Polyethylene Furanoate Market are Alpla-Werke Alwin Lehner Gmbh Co Kg, Avantium Technology B V, Danone Sa, The Coca-Cola Company, Toyobo Co, Ltd, Mitsui & Co. Ltd., Corbion NV, Swire Pacific Ltd., AVA Biochem AG, Toyo Seikan Co., Ltd. among others. For instance, Avantium established a strategic partnership with Danone, Coca-Cola, and ALPLA for developing and commercializing bio-based polymers derived from PEF. Also, in 2016, Avantum commercially started the production of FDCA and PEF through a 50,000 tons/year plant.
Bio-based plastic production is anticipated to increase exponentially in the coming years owing to several factors such as rigid government regulation and initiative to use bio-based plastics, rising consumer environmental and health concerns, and their performance advantages. The market for polyethylene furoate is therefore expected to turn into a highly profitable aspect of the broader plastic industry of the next generation. Europe and the U.S. lead the innovation in the field of biochemistry. Approximately one-fifth of the world’s manufacturing capacity for bioplastics is located in Europe, according to the European bioplastics nova institute. This share is expected to increase to 27% by 2023. Recently implemented strategies will foster the market growth in the several European Member States, such as Italy and France. In addition, growing consumer awareness is another factor driving manufacturers to develop PEF-based products, as consumers are now more environmentally conscious and health-conscious. The future of PET is therefore 100% bio-based PEF