Report details optimism for BOPET film despite oversupply and destocking

The biaxially oriented polyethylene terephthalate (BOPET) film market continues its positive growth trajectory with global demand growing by almost two million tonnes over the last five years, according to a new report from AMI Consulting. Both existing and new players are investing in production capacity to capitalize on this growth with BOPET film demand reaching over 7 million tonnes in 2022.

Of the new capacity coming on-stream since 2017, AMI said, nearly 70 per cent is accounted for by China which has been the driving force behind the growth in both global capacity and production. “China’s expansion has been wide-ranging comprising both packaging lines and investments contributing to the country’s focus on high tech and new energy manufacturing. Other world regions have also invested, such as the Indian Sub-Continent and South East Asia, but to date much of this has focused on packaging growth specifically,” AMI said.

Over the past five years, BOPET demand, production and capacity have been aligned, but global production now currently exceeds demand and the growth in BOPET capacity is significantly higher, threatening the short-term stability of the market. “BOPET film producers are affected by declining prices for their films and falling utilisation rates because of the surge in capacity continuing to come on-stream coupled with reduced demand, as customers focus on reducing stock levels built up over recent years,” AMI said. “The difficult situation will be further prolonged with several film producers delaying commissioning of their new BOPET lines in recognition of current global market conditions.”

Graphic Credit: AMI Consulting

But in spite of the current global overcapacity, AMI said, producers of BOPET film remain positive about the film’s future. “The film’s strong properties provide a range of growth opportunities particularly in regions where packaged food and modern retail penetration is low, and in developed regions, where demand is growing strongly in applications such as lidding and labels, with BOPET contributing to mono-material solutions,” the report said. “In the industrial sector, producers are poised to take advantage of a new growth cycle in end uses such as high value electronics manufacturing and new energy boosted by favourable government policies. Electrical applications are also expected to show ongoing healthy growth, thanks to new battery applications, and the growth in flexible electronics and energy related segments.”

AMI noted that every world region’s BOPET market forecast is markedly different and depends on a range of different variables which are examined in the report. “Globally, in the longer term, the market remains attractive both for existing players who continue to invest in broadening their product ranges for new applications, and for new BOPET producers who aim to benefit from the growth of both packaging films and industrial BOPET markets,” AMI said. “Both markets are anticipated to exceed global GDP growth to 2027, with converters and end-users optimistic about continued growth in demand for BOPET across both packaging and industrial markets in the future.”