Polyethylene Furanoate (PEF) Market Share, Size, Trends, Industry Analysis Report, By Grade; By Application (Bottles, Films, Fibers); By End-Use Industry; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 118
- Format: PDF
- Report ID: PM4432
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
Polyethylene Furanoate (PEF) Market size was valued at USD 20.33 million in 2023. The market is anticipated to grow from USD 21.85 million in 2024 to USD 39.76 million by 2032, exhibiting a global CAGR of 7.8% during the forecast period
Industry Trends
Polyethylene furoate (PEF) is a biodegradable and biobased polymer that is produced from renewable resources such as corn starch or sugarcane, which are converted into furan-2,5-dicarboxylic acid (FDCA) through a fermentation process. The FDCA is then polymerized to form PEF, which can be used as a substitute for traditional plastics such as polyethylene terephthalate (PET).
The global market worth is significantly growing, driven by shifts in industry trends such as the increasing demand for sustainable and eco-friendly packaging materials. The growing awareness of environmental concerns and the need to reduce carbon emissions are key drivers of the polyethylene furanoate (PEF) market size. In addition, PEF offers several advantages over regular plastics, including its high barrier properties, resistance to heat and chemicals, and ability to be recycled. Also, advancements in technology and economies of scale are likely to reduce the production costs of PEF, making it more competitive with traditional plastics.
- For instance, in February 2020, the Korea Research Institute of Chemical Technology has disclosed the creation of a novel technology to produce polyethylene furanoate (PEF) plastic by combining butanol with hydrotalcite-based catalysts to create a new catalyst that is chemically stable, effective, and environmentally friendly.
Nevertheless, the main restraint of the market growth is the high production cost of PEF compared to conventional plastics, which makes it less affordable for consumers. The limited availability of raw materials and the need for established supply chains can create uncertainty in the market. Despite these challenges, the outlook for market growth remains positive. Governments and companies around the world are investing heavily in developing sustainable technologies and reducing their carbon footprint.
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Key Takeaways
- North America dominated the market and contributed over 34% of the share in 2023
- The Asia Pacific region is experiencing substantial growth over the forecast period
- By grade category, the food segment held the dominating polyethylene furanoate (PEF) market share in 2023
- By application category, the bottle segment held a significant polyethylene furanoate (PEF) market size in 2023
- By end-use industry category, the packaging segment held the largest revenue share in 2023
What are the market drivers driving the demand for polyethylene furanoate market?
Government support and imposed regulations are driving the growth of the global market.
Governments around the globe are implementing policies and regulations that promote the use of sustainable materials, such as polyethylene, in various industries. For instance, many countries have banned single-use plastics, which has led to an increased demand for biodegradable alternatives like polyethylene. Further, governments are offering financial incentives and subsidies to companies that adopt sustainable practices and materials, encouraging the use of polyethylene.
Moreover, regulations regarding waste management and environmental protection are also driving the growth of the polyethylene market. For example, the European Union's Circular Economy Package sets targets for reducing waste and increasing recycling rates, which has led to an increased demand for recyclable materials like polyethylene. Similarly, China's National Development and Reform Commission has implemented policies aimed at promoting the use of biodegradable materials in packaging, leading to a surge in demand for polyethylene in the country.
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Which factor is restraining the demand for polyethylene furanoate?
The high cost of production as compared to conventional plastics hinders market growth.
PEF is a biodegradable and sustainable alternative to traditional plastics, but its production process is more complex and expensive than that of conventional plastics. The raw materials used to produce PEF, such as sugarcane or corn starch, are more costly than the fossil fuels used to produce traditional plastics. In addition, the manufacturing process requires specialized equipment and technology, which also adds to the cost. The economies of scale for PEF production still need to be established, which means that the production volumes are relatively low, leading to higher costs per unit. This makes it difficult for companies to produce it at a price that is competitive with traditional plastics, limiting its adoption in various industries.
Another factor contributing to the high cost of production is the limited availability of feedstocks. The primary feedstocks used to produce PEF are agricultural waste products such as sugarcane bagasse and corn stover, which are only sometimes readily available in sufficient quantities. This scarcity leads to fluctuations in feedstock prices, further increasing the cost of production.
Report Segmentation
The market is primarily segmented based on grade, application, end-use industry, and region.
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By Application |
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Category Wise Insights
By Application Insights
Based on application analysis, the market has been segmented on the basis of bottles, films, and fibers. The bottle application segment dominated the polyethylene furoate market in 2023 since it held the largest market share of the global PEF industry, owing to its increasing demand from various end-use industries, such as packaging in food and beverages, personal care, and pharmaceuticals. One of the factors contributing to the dominance of the bottle segment in the market is the growing awareness of sustainability and environmental concerns among consumers. Consumers are becoming more conscious and prefer products that are environmentally friendly and can reduce waste. This shift in consumer behavior has led to an increased demand for sustainable packaging solutions, particularly in the food and beverage industry, where plastic bottles are widely used.
Moreover, governments across the globe have implemented stringent regulations on the use of plastics, leading to a surge in the adoption of eco-friendly alternatives like Bio Based Polyethylene Furanoate (PEF). For instance, the European Union has imposed a ban on single-use plastic items such as straws, cutlery, and plates, which has created opportunities for manufacturers to tap into this lucrative market. Similarly, many countries have introduced deposit return schemes for plastic bottles, encouraging consumers to recycle and reducing litter. These initiatives have further fueled the demand for PEF bottles.
By End-Use Industry Insights
Based on end-use analysis, the market has been segmented on the basis of packaging, fiber and textile, electronic and electrical components, automotive components, pharmaceuticals, and others. The packaging segment dominated the end-use industry in terms of polyethylene furanoate (PEF) market size for polyethylene furanoate in 2023 due to its growing demand for sustainable and eco-friendly materials. PEF is a bio-based and biodegradable polymer that offers several advantages over PET, including its ability to degrade naturally in the environment, its low carbon footprint, and its potential to replace traditional fossil fuel-based plastics. As consumers are increasingly focusing on environmental impact, companies are turning to PEF as an alternative to regular PET plastics for packaging applications such as bottles, containers, and disposable cutlery. In addition, governments are imposing regulations and initiatives to promote the use of bio-based materials, further driving the adoption in the packaging industry.
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Regional Insights
North America
The North American region emerged as the dominant region as it held the largest polyethylene furanoate (PEF) market size in the global market in 2023 due to the significant increase in the demand for environment-friendly materials, driven by growing consumer awareness and stringent government regulations. The presence of prominent companies such as Coca-Cola, PepsiCo, and Danone, which have committed to using sustainable materials in their packaging, has further fueled the demand for PEF in the region. Moreover, the United States has abundant resources of corn stover, a key raw material used in the production of PEF, making it an attractive location for manufacturers. Also, the region's well-established infrastructure and supply chain have enabled efficient production and distribution of PEF products, thereby strengthening its position in the global market.
Asia Pacific
The Asia Pacific region is expected to witness significant growth in the market during the forecast period. In countries like China, India, and Japan, there is a growing trend toward adopting environmentally friendly packaging solutions, which is driving the demand for PEF as an alternative to conventional plastics. In addition, governments in these countries are implementing policies and regulations that encourage the use of biodegradable materials, further boosting the growth of the PEF market.
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Competitive Landscape
The market is a rapidly growing industry, with various market key players and end-users contributing to its expansion. Manufacturers such as Avantium, Toyobo, and Mitsubishi Chemical are continuously developing new production processes and technologies to increase efficiency and reduce costs. They are also investing in research and development to improve the properties of PEF, such as its strength, durability, and sustainability. On the other hand, market players like Coca-Cola, Danone, and Ford are using PEF as a more sustainable alternative to regular plastics, reducing their environmental impact and promoting the market growth.
Some of the major players operating in the global market include:
- Avantium NV
- Sulzer
- AVA Biochem
- ALPLA Group
- Swicofil
- Toyobo Co., Ltd.
- Stora Enso
Recent Developments
- In February 2021, Avantium N.V., a technology company in renewable chemistry, announced that its subsidiary, Avantium Renewable Polymers, signed a patent license agreement with Eastman Chemical Company for the right to operate under Eastman’s FDCA-related patent portfolio. This agreement is to pave the way for the commercial production of FDCA (furandicarboxylic acid) and PEF (polyethylene furanoate).
- In November 2022, Stora Enso announced the launch of a new bioplastics pilot plant in Belgium, which will enable a new bioplastics production technology. The objective is to test FuraCore, which is a technology to produce furandicarboxylic acid (FDCA), a major building block of bioplastic PEF (Polyethylene Furanoate).
- In February 2023, Albert Heijn, a supermarket chain in the Netherlands, announced that they have started using Avantium’s 100% plant-based polyethylene furanoate for various forms of packaging.
Report Coverage
The Polyethylene Furanoate (PEF) market size report emphasizes key regions across the globe to provide a better understanding of the product to the users. Also, the report provides market insights into recent developments and trends and analyzes the technologies that are gaining traction around the globe. Furthermore, the report covers an in-depth qualitative analysis pertaining to various paradigm shifts associated with the transformation of these solutions.
The report provides a detailed analysis of the market while focusing on various key aspects such as competitive analysis, grade, application, end-use industry, and their futuristic growth opportunities.
Polyethylene Furanoate (PEF) Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 21.85 million |
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Revenue Forecast in 2032 |
USD 39.76 million |
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CAGR |
7.8% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD million and CAGR from 2024 to 2032 |
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Segments Covered |
By Grade, By Application, By End-Use Industry, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, regions, and segmentation. |
FAQ's
The global polyethylene furoate market size is expected to reach USD 39.76 Million by 2032
Key players in the market are Avantium NV, Sulzer, AVA Biochem, ALPLA Group, Swicofil
North American contribute notably towards the global Polyethylene Furanoate (PEF) Market
Polyethylene Furanoate (PEF) Market exhibiting a global CAGR of 7.8% during the forecast period
The Polyethylene Furanoate (PEF) Market report covering key segments are grade, application, end-use industry, and region.
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