BOPP and BOPET Films to Keep Flourishing in Asian Market
- 26-May-2022 5:25 PM
- Journalist: Shiba Teramoto
Mumbai, India: Biaxially Oriented Polypropylene Films (BOPP) and Biaxially Oriented Polyethylene Terephthalate (BOPET) had opposing market trends in which their raw materials ruled. The demand graph for both products is continuously flourishing in the Asian market, supported by the healthy offtakes from the lamination and packaging industries.
In the Indian market, polypropylene, the raw material for Biaxially Oriented Polypropylene Films, declined. This confirmation has been affirmed by Reliance India Limited and Mangalore Petrochemicals Limited, as they reduced polypropylene prices by USD 52/MT this week. Raw material costs account for 55–60% of sales in this sector. Thus, profitability is vulnerable to fluctuations in raw material prices. Crude derivatives, the most expensive input cost for flexible packaging film, are inherently variable. Contrary to this, Polyethylene Terephthalate, the feedstock for Biaxially Oriented polyethylene terephthalate, observed firmness in its market trend, foreseeing the healthy demand from the beverage industry amidst the summer season.
Flexible packaging Film's demand mostly remains healthy. Later, rapid urbanisation and higher utilisation of Fast-Moving Consumer Goods (FMCG) products have paved the demand for Biaxially Oriented Polypropylene Films, which have replaced the traditional packaging methods such as Aluminium foil.
In addition, since the onslaught of the pandemic, consumers are now more possessive about their lifestyle and hygiene. People's shift towards online purchase of foods, medicines, groceries, etc., has supported the growth in demand. Growing e-commerce purchases have also pushed the market for the packaging industry.
Thus, it can be anticipated by ChemAnalyst that "The market for Biaxially Oriented Polypropylene Films and Biaxially Oriented polyethylene terephthalate will remain thriving aided by the soaring demand for packaging materials. Furthermore, the various initiatives taken by the FMCG companies, such as HUL, Nestle, PepsiCo, and Cadbury, to use recyclable products will boost the demand for Biaxially Oriented Polypropylene Films, as it can be reused and recycled".