Polyethylene Terephthalate (PET) Procurement Intelligence Report 2025-2030

Polyethylene Terephthalate (PET) Supply-Demand Overview

Key drivers of demand include the growing use of PET in producing materials, equipment and components for the automotive and construction industries. In the Asia-Pacific region, particularly in China and India, rapid urbanisation, rising disposable incomes, and an expanding middle class are driving demand for automobiles, new residential buildings, and packaged goods, all of which extensively use PET sourcing. According to the polyethylene terephthalate (PET) procurement market report, the top automotive-producing countries in Asia Pacific in 2023 were China (over 30 million vehicles), Japan (9 million vehicles), India (5.9 million vehicles), South Korea (over 4 million vehicles), and Thailand (1.9 million vehicles). The region leads in both PET procurement, production and consumption, with China being the largest contributor, supported by its extensive manufacturing, cost modeling, and export activities.    

Polyethylene Terephthalate (PET) Cost Structure

According to the polyethylene terephthalate (PET) procurement report, the cost modeling of PET is impacted by several factors. Raw materials, mainly terephthalic acid (PTA) and ethylene glycol (EG), are sourced from petroleum products, making their prices sensitive to fluctuations in global crude oil prices for buyers.

According to procurement research, energy costs are a significant factor in PET production due to its energy-intensive nature. Labour costs differ by region, with developing countries generally having lower costs. Capital and maintenance expenses for equipment and facilities are considerable, and transportation costs for raw materials and finished products also affect pricing strategies.

Furthermore, compliance with environmental regulations and the implementation of recycling initiatives can increase cost modeling, particularly as sustainability efforts gain importance. These factors collectively influence the pricing and competitiveness of PET in the global market, as per the polyethylene terephthalate (PET) procurement report.

Polyethylene Terephthalate (PET) Pricing Trends

According to the polyethylene terephthalate (PET) procurement report, pricing models are affected by changes in raw material costs, energy prices, and supply-demand factors. The cost of key raw materials like terephthalic acid (PTA) and ethylene glycol (MEG), which are sensitive to fluctuations in oil and gas prices, largely determines PET price. Demand from industries such as packaging, textiles, and beverage bottles also influences pricing strategies, with seasonal patterns and production capacity playing crucial roles in category management.

Energy prices, logistics expenses, and currency exchange rates can also influence PET costs, particularly in global markets. Over the long term, PET price stability could be supported by a shift towards sustainable and renewable raw materials like bio-based PTA and MEG, reducing PET's reliance on fluctuating oil and gas prices, according to the polyethylene terephthalate (PET) procurement report. Enhanced recycling systems, technological improvements in production, energy-efficient methods, and a more resilient global supply chain would also play a key role in shaping negotiation strategies.

Polyethylene Terephthalate (PET) Procurement Best Practices

According to the polyethylene terephthalate (PET) procurement report, procurement research in the PET industry emphasizes sourcing materials efficiently and sustainably. Companies generally choose suppliers based on factors like price, reliability, and quality, often opting for bulk purchasing to secure lower costs, better negotiation strategies, and a stable long-term supply.

As per market research for procurement professionals, the sourcing teams perform cost analyses and negotiate beneficial terms, like volume discounts or fixed-price contracts, to reduce price fluctuations. As sustainability concerns grow, many companies focus on recycled PET (rPET) or eco-friendly alternatives, with some choosing suppliers who provide bio-based PET.

Efficient supply chain management, which involves inventory control and monitoring global disruptions, is essential for ensuring a consistent supply. Additionally, procurement teams track market pricing trends and raw material costs to adjust pricing strategies and maintain cost-effective sourcing, as stated in the polyethylene terephthalate (PET) procurement report.

Key Players in the Polyethylene Terephthalate (PET) Industry

Recent Developments in the Polyethylene Terephthalate (PET) Procurement Report

• In February 2024, Rumpke Waste & Recycling formed a partnership with Eastman to supply PET feedstock for Eastman's new chemical recycling facility in Kingsport, Tennessee. 
• In November 2024, Indorama Ventures, Suntory, Neste, ENEOS, Mitsubishi Corporation, and Iwatani launched the ‘world’s first’ bio-PET bottle, derived from used cooking oil and believed to reduce CO2 emissions in Japan.
• In June 2023, Coca-Cola India, with ALPLA's support, launched India’s first 100% recycled PET (rPET) bottle for food and drinks in Andhra Pradesh. According to the polyethylene terephthalate (PET) procurement report, this initiative supports Coca-Cola's global objective of using 50% recycled materials in all packaging by 2030. Currently, 90% of Coca-Cola's packaging is recyclable, with 15% of the PET used being recycled worldwide.
• In November 2024, United States based polyester film producer Polyplex plans to begin its expansion project at the Decatur, Alabama, facility in Q1 2025. The expansion includes a new BOPET line with a 50,000-tonne annual capacity and an increase in resin capacity from 58,000 to 86,000 tonnes. According to the polyethylene terephthalate (PET) procurement market report, the facility aims to shorten lead times for PET films in the United States, which is a net importer of the material.