Global Polyethylene Furanoate (PEF) Market Research Report: Forecast (2024-2030)

Market Definition

Polyethylene Furanoate (PEF), or poly(ethylene furan-2,5-dicarboxylate), is a 100% recyclable bio-based polymer made from plant sugar. This PEF is gaining wider popularity across global markets due to its enhanced properties of CO2 reduction in comparison to PET’s. Thus, these polymers are gaining wider momentum across the packaging industry, primarily to augment their introduction into the global sustainable raw material landscape.

Market Insights & Analysis: Global Polyethylene Furanoate (PEF) Market (2024-30):

The Global Polyethylene Furanoate (PEF) Market size is estimated to grow at a CAGR of around 7.86% during the forecast period, i.e., 2024-30. The market growth is attributed to the enhanced sustainability of PEFs as compared to traditional plastics like PET (Polyethylene Terephthalate). As PEF is derived from renewable sources such as plant-based feedstocks, it aligns with the growing consumer and regulatory pressure for eco-friendly alternatives to fossil fuel-based plastics. This attribute makes PEF attractive to industries striving to reduce their carbon footprint and meet sustainability targets.

Besides, PEF exhibits superior barrier properties, including gas and moisture resistance, compared to PET. This makes it particularly desirable for packaging applications, especially in sectors such as food and beverage, where maintaining product freshness and extending shelf life are critical. Additionally, PEF's higher thermal stability allows for broader applications, including hot-fill and heat-resistant packaging, widening its appeal across various end-user industries.

Furthermore, PEF's compatibility with existing PET production infrastructure facilitates its adoption without significant investment in new manufacturing processes. This factor effectively reduces the barriers to entry for PEF producers and manufacturers and ensures a smoother transition for industries looking to integrate PEF into their product lines. The global economies are witnessing a surge in consumer awareness towards sustainability and demand for greener products. The trend to adopt this sustainable polymer is driving end-user companies such as Coca-Cola, Danone, etc., to explore and invest in PEF as a viable alternative. These factors are foreseen to facilitate enormous demand for Polyethylene Furanoate (PEF) across the global market in the coming years as well.

Global Polyethylene Furanoate (PEF) Market Driver:

Growing Government Inclination Towards Sustainability in the Packaging Industry – Governments worldwide are increasingly inclined towards sustainability in the packaging industry due to rising environmental concerns such as plastic pollution, greenhouse gas emissions, and resource depletion. Thus, recognizing the urgency of transitioning to eco-friendly alternatives to traditional plastics and addressing these environmental challenges and commitments like the Paris Agreement, the traction towards sustainable polymers is on the rise. As PEF offers 100% recyclability benefits and a reduction in CO2 emissions, its use across end-user industries, specifically the packaging industry, is rising substantially. For instance,

• In 2023, Terphane, part of Tredegar Corporation, signed a multi-year capacity reservation agreement with Origin Materials, a PEF manufacturer. The agreement highlighted the purchase of advanced bio-polymer Polyethylene Furanoate (PEF) from Origin Materials for use in film applications, including food and beverage packaging and high-value industrial applications offered by Terphane.

Moreover, concerning global CO2 commitments, manufacturers across the food & beverage and packaging industries are eyeing switching to 100% recyclable materials by 2030. This inclination is paving substantial revenue growth for the global Polyethylene Furanoate (PEF) Market.

Global Polyethylene Furanoate (PEF) Market Opportunity:

The Use of Polyethylene Furanoate in the Healthcare Industry Offers New Lucrative Opportunities – With growing awareness of the environmental impact and stringent regulatory requirements, healthcare providers and manufacturers are seeking sustainable alternatives to conventional plastics. PEF, with its renewable and biodegradable properties, aligns well with these sustainability goals, owing to which its use across the healthcare domain is anticipated to emerge at a substantial rate. This is because a surge in the environmental footprint of plastic waste from the healthcare industry has been observed in recent years, specifically post-2020.

Polymers like polyethylene terephthalate (PET) are predominantly used in various applications, such as packaging for pharmaceuticals, medical devices, diagnostic equipment, and disposable medical supplies like syringes, IV tubes, and intravenous bags. As the COVID-19 pandemic led to a significant rise in trade activities and the use of these products, healthcare waste management is becoming a key concern globally. For instance, according to the World Health Organization in 2020, more than 140 million test kits have been shipped worldwide, creating a potential 2,600 tons of general rubbish, most of which will be plastic, and 731,000 liters of chemical waste.

Additionally, as per the organization, 36% of Europe's healthcare waste is reportedly made of plastic. Thus, tackling waste reduction and ensuring environmental sustainability is an emerging concern for global economies. Therefore, the growing inclination of the governments of different countries to use sustainable solutions in end-user domains, including healthcare, presents a significant opportunity for the demand for PEF. Thus, driving the size & volume of the Global Polyethylene Furanoate Market during 2024-2030.   

Global Polyethylene Furanoate (PEF) Market Challenge:

Substantial Dominance of Conventional Plastic Polymers Restraining the Market Reach – The substantial dominance of conventional plastic polymers, such as PET (Polyethylene Terephthalate), poses significant challenges for the market reach of Polyethylene Furanoate (PEF) in global end-user industries. Established infrastructure, widespread familiarity, and lower production costs associated with conventional plastics create inertia in adopting alternative materials like PEF. Manufacturers and end-users are often reluctant to invest in new technologies and processes, especially if they perceive minimal immediate benefits or anticipate potential disruptions to existing operations.

Moreover, the vast supply chains and entrenched market presence of conventional plastics make it difficult for PEF to compete effectively on price and availability. Customers often prioritize cost-effectiveness and reliability, further impeding the adoption of PEF despite its sustainability advantages. Furthermore, the limited scalability and production capacity of PEF compared to conventional plastics hinder its widespread adoption, particularly in industries with high volumes of demand. Thus posing notable challenges for the adoption of Polyethylene Furanoate (PEF) across end-user verticals globally.

Global Polyethylene Furanoate (PEF) Market Trend:

Growing Traction Towards the Use of Polyethylene Furanoate (PEF) in the Textile Industry – The trend towards sustainable polymers in the global textile industry is driven by increasing environmental awareness and consumer demand for eco-friendly products. Conventional textile production often involves the use of petroleum-based polymers, which contribute to pollution and resource depletion. Sustainable polymers offer a greener alternative with reduced environmental impact throughout the manufacturing process, including lower carbon emissions and less dependence on finite resources. This shift aligns with the industry's growing emphasis on sustainability and corporate responsibility.

As a sustainable polymer, polyethylene furanoate (PEF) presents a promising solution for textile manufacturers seeking to reduce their environmental footprint. Thus, biodegradability, renewable sourcing options, and a lower carbon footprint are positioning PEF as a viable alternative to traditional petroleum-based polymers, driving demand for sustainable options in the global textile industry. For instance,

• In 2023, Avantium N.V., a PEF manufacturer, announced a partnership agreement with PANGAIA, a purpose-driven materials science and apparel company. Under this partnership, PANGAIA will purchase Avantium’s plant-based and recyclable material, polyethylene furanoate (PEF), and use it in its apparel collection to move towards global sustainability initiatives.

Global Polyethylene Furanoate (PEF) Market (2024-30): Segmentation Analysis

The Global Polyethylene Furanoate (PEF) Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on the Application:

• Bottles
• Fibers
• Films
• Others (Construction Materials, Automotive Parts, etc.)

Among them, bottles are foreseen to hold a substantial market share in the Global Polyethylene Furanoate (PEF) Market during 2024-2030. Bottles represent a significant portion of the packaging industry, especially in the beverage sector, where there is a substantial need for sustainable packaging solutions. Companies like Coca-Cola and Danone Plant-Based Bottle Initiative have shown interest in utilizing PEF for their bottles, driving demand. Additionally, PEF's superior barrier properties compared to traditional PET make it an attractive choice for beverage packaging, prolonging shelf life and preserving product quality.

The shift towards eco-friendly alternatives further boosts PEF's demand for bottles, as seen in initiatives to replace single-use plastics with biodegradable options in various industries, aligning with global sustainability goals. Therefore, the demand for PEF is highest in bottles, driven by its increasing adoption in the beverage packaging sector globally.

Based on the End User:

• Packaging
• Fibre & Textile
• Consumer Electronics
• Automotive
• Pharmaceuticals
• Others (Cosmetics & Personal Care, Agriculture, etc.)

Packaging is emerging as the largest end-user industry for polyethylene furanoate (PEF) globally due to several factors. There is a growing global concern over plastic pollution and environmental degradation, leading to increased demand for sustainable packaging materials. As PEF offers a promising solution owing to its lower carbon footprint compared to traditional plastics like polyethylene terephthalate (PET), its adoption is emerging across end-user industries. Presently, major companies across various sectors, particularly in the food and beverage industry, are actively seeking sustainable packaging alternatives to meet consumer preferences and regulatory requirements.

For instance, companies like Danone and Nestlé have announced plans to incorporate PEF bottles into their product packaging lines as part of their sustainability initiatives. Furthermore, the improved versatility of PEF makes it suitable for various packaging applications, including bottles, films, and fibers. Additionally, its excellent barrier properties and compatibility with existing packaging machinery are further contributing to its appeal in the packaging industry. Thus, this is anticipated to drive revenue growth of the Global Polyethylene Furanoate (PEF) Market in the upcoming years as well.

Global Polyethylene Furanoate (PEF) Market (2024-30): Regional Projections

Geographically, the Global Polyethylene Furanoate (PEF) Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Among them, Asia Pacific is foreseen to hold a significant market share in the Global Polyethylene Furanoate (PEF) Market in the forecast years. The region’s booming population, rapid industrial growth, and economic development have led to increased consumption of packaged goods, including food, beverages, and personal care products. However, as awareness among government entities across the region is emerging to minimize environmental issues by switching towards greener alternatives, the need for sustainable polymers is emerging. These initiatives include government policies promoting the use of biodegradable materials, carbon reduction targets, waste management regulations, etc. For instance,

• India Swachh Bharat Mission/Abhiyan has an inter-alia mandate of 100% solid waste management, of which plastic constitutes a major portion of dry waste collected in the country.
• The Plastic Resource Circulation Strategy of Japan (2019), which includes a reduction in single-use plastic emissions by 25% by 2030, double the use of renewable materials by 2030 and maximize the introduction of bioplastic (up to 2 million tons approx.) by 2030, etc.

Apart from this, there is a continued involvement of the food and beverage manufacturers in the region, including Coca-Cola, Unilever, PepsiCo, etc., in using PEF-based packaging in their food & beverage products. The involvement includes entering into a partnership agreement with Avantium and other PEF polymer providers to initiate a drive toward environmental sustainability. This in turn is catalyzing a substantial growth rate of the Polyethylene Furanoate (PEF) Market in Asia-Pacific in the forecast years.

Global Polyethylene Furanoate (PEF) Industry Recent Development:

• In 2023: Avantium N.V. announced a partnership with Origin Materials to accelerate the mass production of furandicarboxylic acid (FDCA) and plant-based, fully recyclable plastic, polyethylene furanoate (PEF).
• In 2023: Stora Enso signed a Joint Development Agreement with Kolon Industries to develop and industrialize bio-based polyesters, including PEF and their applications, as well as renewable binder resin formulations.

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