South America Polyethylene Terephthalate (PET) Market Size

The South America Polyethylene Terephthalate (PET) market is experiencing significant growth, driven primarily by the packaging and electrical and electronics industries. The market's expansion is attributed to a shift in consumer preferences towards convenience and sustainable packaging solutions, with PET being a popular choice due to its recyclability. Brazil stands out as the largest consumer in the region, fueled by its robust packaging and industrial sectors. Meanwhile, Argentina's demand is rising alongside its growing electronics market. Overall, the market's trajectory indicates a strong increase in market size over the forecast period, reflecting the region's increasing consumption and adoption of PET across various applications.

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Market Size of south america polyethylene terephthalate (pet) Industry

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South America Polyethylene Terephthalate (PET) Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2024) USD 2.51 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2029) USD 3.53 Billion
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by End User Industry Packaging
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2024 - 2029) 7.05 %
https://s3.mordorintelligence.com/globe/1629285706162_test~globe_globe.svg Largest Share by Country Brazil

Major Players

South America Polyethylene Terephthalate (PET) Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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South America Polyethylene Terephthalate (PET) Market Analysis

The South America Polyethylene Terephthalate (PET) Market size is estimated at 2.51 billion USD in 2024, and is expected to reach 3.53 billion USD by 2029, growing at a CAGR of 7.05% during the forecast period (2024-2029).

2.51 Billion

Market Size in 2024 (USD)

3.53 Billion

Market Size in 2029 (USD)

3.77 %

CAGR (2017-2023)

7.05 %

CAGR (2024-2029)

Largest Market by End-user Industry

98.65 %

value share, Packaging, 2023

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Due to the wide range of applications, including bottles, jars, and containers, specifically in the food and beverages industry, the packaging industry held the largest market share.

Fastest Growing Market by End-user Industry

8.43 %

Projected CAGR, Electrical and Electronics, 2024-2029

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As the demand for PET films is increasing owing to their superior insulation, mechanical, and electrical properties, the electrical and electronics industry is forecasted to witness the fastest growth.

Largest Market by Country

66.64 %

value share, Brazil, 2023

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Brazil held the largest share by value of the regional PET resin market owing to its huge share in South American plastic packaging production and electrical production, amounting to around 60.54% and 40.26%, respectively.

Fastest Growing Market by Country

7.21 %

Projected CAGR, Brazil, 2024-2029

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With its plastic packaging production likely to record a CAGR of 4.98% during the forecast period, Brazil is expected to be the fastest-growing consumer.

Leading Market Player

51.82 %

market share, Alfa S.A.B. de C.V., 2022

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In 2022, the company held the largest market share and accounted for the highest production capacity of PET resin in South America, amounting to around 640 kilotons per year. Alfa offers various grades of resin, mainly for packaging applications.

Changing lifestyles and the growth of retail-ready packaging to aid market demand

  • The South American polyethylene terephthalate market ranks fourth globally in the consumption of PET. The industry registered a growth of 8.72%, by value, in 2022 compared to 2021.
  • The packaging industry is the largest consumer of PET resin. It registered an annual growth rate of 8.75%, by value, in 2022 compared to the previous year, owing to a significant shift in consumer preferences toward convenience foods and on-the-go lifestyles, as well as the growth of retail-ready packaging. This is driving the demand for packaging materials. For instance, plastic packaging production in the region increased to 6,069 kilotons in 2022 compared to 5,816 kilotons in 2021.
  • The market is expected to register a CAGR of 7.08%, by value, during the forecast period (2023-2029), with the electrical and electronics industry reporting the highest CAGR of 8.44%, by value, during the forecast period. Trends like using advanced materials, organic electronics, miniaturization, and disruptive technologies like 5G, artificial intelligence (AI), and the Internet of Things (IoT), are expected to enable smart manufacturing practices and act as growth drivers for the industry.
  • The packaging industry is the second-fastest-growing industry. It is projected to register a CAGR of 7.07%, by value, during the forecast period owing to governments implementing plastic-free legislation, forcing retailers and consumer brands to move toward sustainable packaging choices like PET polymer as it is a fully recyclable material. Packaging production volume is expected to reach 8,553 kilotons by 2029 from 6,069 kilotons in 2022. Thus, the growth in plastic packaging production is expected to drive the market during the forecast period.
South America Polyethylene Terephthalate (PET) Market

Brazil to remain dominant during the forecast period

  • PET has a wide range of applications in packaging and electrical and electronics, such as packaging foods and beverages, convenience-sized soft drinks, water, coil forms, electrical encapsulations, electrical devices, and smart meters. South America accounted for 9.17% of the global PET resin consumption in 2022 by value.
  • Brazil is the region's largest and fastest-growing consumer of PET resin, with the highest share of 66.63% and a CAGR of 7.21% in terms of value and volume during the forecast period. This growth is due to its growing packaging, electrical and electronics, and industrial machinery industries. The demand for flexible plastic packaging is increasing due to the usage of lightweight products, e-commerce growth, emphasis on sustainability, and higher adoption rates among major consumer product manufacturers in the region. The country's e-commerce market is projected to reach a revenue of USD 94.63 billion in 2027 from USD 53.86 billion in 2023. The growing packaging market is projected to drive the demand for PET resins during the forecast period.
  • The demand for PET resin in Argentina is increasing significantly due to the growing packaging and electrical and electronics industries. The surging demand for technologically advanced consumer electronics and appliances, such as smartphones, laptops, computers, cameras, and televisions, is expected to boost the demand for consumer electronics in the coming years. The sales of consumer electronics in the country are projected to reach a revenue of USD 3.4 billion in 2027 from USD 2.0 billion in 2023. As a result, the growing electrical and electronics market in the country is projected to drive the demand for PET resin in the future.

South America Polyethylene Terephthalate (PET) Industry Segmentation

Automotive, Building and Construction, Electrical and Electronics, Industrial and Machinery, Packaging are covered as segments by End User Industry. Argentina, Brazil are covered as segments by Country.

  • The South American polyethylene terephthalate market ranks fourth globally in the consumption of PET. The industry registered a growth of 8.72%, by value, in 2022 compared to 2021.
  • The packaging industry is the largest consumer of PET resin. It registered an annual growth rate of 8.75%, by value, in 2022 compared to the previous year, owing to a significant shift in consumer preferences toward convenience foods and on-the-go lifestyles, as well as the growth of retail-ready packaging. This is driving the demand for packaging materials. For instance, plastic packaging production in the region increased to 6,069 kilotons in 2022 compared to 5,816 kilotons in 2021.
  • The market is expected to register a CAGR of 7.08%, by value, during the forecast period (2023-2029), with the electrical and electronics industry reporting the highest CAGR of 8.44%, by value, during the forecast period. Trends like using advanced materials, organic electronics, miniaturization, and disruptive technologies like 5G, artificial intelligence (AI), and the Internet of Things (IoT), are expected to enable smart manufacturing practices and act as growth drivers for the industry.
  • The packaging industry is the second-fastest-growing industry. It is projected to register a CAGR of 7.07%, by value, during the forecast period owing to governments implementing plastic-free legislation, forcing retailers and consumer brands to move toward sustainable packaging choices like PET polymer as it is a fully recyclable material. Packaging production volume is expected to reach 8,553 kilotons by 2029 from 6,069 kilotons in 2022. Thus, the growth in plastic packaging production is expected to drive the market during the forecast period.
End User Industry
Automotive
Building and Construction
Electrical and Electronics
Industrial and Machinery
Packaging
Other End-user Industries
Country
Argentina
Brazil
Rest of South America
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South America Polyethylene Terephthalate (PET) Market Size Summary

The South America Polyethylene Terephthalate (PET) market is a significant player in the global landscape, ranking fourth in PET consumption worldwide. The industry is experiencing robust growth, driven primarily by the packaging sector, which is the largest consumer of PET resin. This growth is attributed to shifting consumer preferences towards convenience and on-the-go lifestyles, alongside the expansion of retail-ready packaging. The packaging industry is also adapting to regulatory pressures for sustainable solutions, leading to increased adoption of recyclable materials like PET. Additionally, the electrical and electronics sector is emerging as a key growth area, propelled by advancements in technology and the rise of smart manufacturing practices. These trends are expected to sustain the market's expansion over the forecast period.

Brazil stands out as the region's largest and fastest-growing consumer of PET resin, fueled by its burgeoning packaging, electrical, and electronics industries. The country's e-commerce growth and emphasis on sustainability are driving demand for flexible plastic packaging. Similarly, Argentina is witnessing a surge in PET resin demand due to its expanding packaging and electronics sectors. The region's market is characterized by a high level of consolidation, with major players like Alfa S.A.B. de C.V., China Petroleum & Chemical Corporation, Enka, Indorama Ventures Public Company Limited, and Reliance Industries Limited dominating the landscape. These companies are well-positioned to leverage the growing demand across various applications, ensuring continued market growth in the coming years.

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South America Polyethylene Terephthalate (PET) Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Automotive

      2. 1.1.2 Building and Construction

      3. 1.1.3 Electrical and Electronics

      4. 1.1.4 Industrial and Machinery

      5. 1.1.5 Packaging

      6. 1.1.6 Other End-user Industries

    2. 1.2 Country

      1. 1.2.1 Argentina

      2. 1.2.2 Brazil

      3. 1.2.3 Rest of South America

South America Polyethylene Terephthalate (PET) Market Size FAQs

The South America Polyethylene Terephthalate (PET) Market size is expected to reach USD 2.51 billion in 2024 and grow at a CAGR of 7.05% to reach USD 3.53 billion by 2029.

In 2024, the South America Polyethylene Terephthalate (PET) Market size is expected to reach USD 2.51 billion.

South America Polyethylene Terephthalate (PET) Market Report Snapshots

South America Polyethylene Terephthalate (PET) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029