Packaging industry to drive the Biaxially Oriented Polyethylene Terephthalate (BOPET) film market across the globe

The packaging sector remains the largest end-use industry of Biaxially Oriented Polyethylene Terephthalate (BOPET) film, supported by the increasing demand from food, personal care, and pharmaceutical packaging industry. Biaxially Oriented Polyethylene Terephthalate (BOPET) Films are made utilizing raw material Polyethylene Terephthalate (PET). Thus, PET market is driving the price trend of BOPET film amidst fluctuating crude oil price trend. According to ChemAnalyst, the market for BOPET Films 13µ has stabilized in China and settled at USD 1949 Ex-Shanghai on 15th April.

Biaxially Oriented Polyethylene Terephthalate films are mainly utilized as the next-generation recyclable packaging for the flexible packaging of products such as food & beverages, cosmetics, personal care products, pharmaceuticals, etc. BOPET is a polyester film made by stretching Polyethylene Terephthalate, which is the derivative of crude oil.

China, being the leading producer as well as consumer of BOPET film, has expanded its production capacities to cope with the rising demand from downstream industries. Disruption in the supply of the product due to the extension of lockdown in the regional market has significantly impacted the end-use industries, mainly the food, beverages & cosmetic industry.

Meanwhile, Indian manufacturer Jindal Poly Films, the eighth largest manufacturer of BOPET films in the world, has signed an agreement with Canadian investor Brookfield by selling the crucial stake from its packaging film business in return for Rs 2000 Cr. This deal diversified the packaging sector, which is booming in India. E-commerce and logistics packaging further supports the BOPET market in India.

Whereas, in Europe, transportation costs have risen, causing the price of European BOPET films to escalate. The rising demand for flexible packaging, combined with the port congestion, has impacted both the US and European packaging industries.

As per ChemAnalyst Analysis, “The BOPET film market is expected to grow with higher demands from the packaging industry. Inline, major companies are also expanding their BOPET sector to meet the global demand leading to the stability in the demand-supply chain.”