Date of publication: August 2016
This report provides a comprehensive analysis of the global BOPET film market including supply/demand dynamics and a detailed segmentation by end use applications for 2005-2020 to help understand trends, developments and assess future growth potential.
Supported by a wide range of data and insights, this newly published report provides industry participants at all levels of the supply chain and investors with insightful and actionable information to help make strategic and tactical decisions.
BOPET film is one of the fastest growing polymer substrates driven by its extensive use in both packaging and technical applications thanks to its combination of properties, excellent processability and adhesion to coatings and adhesives.
Strong growth in demand allied to high prices and material shortages in 2010 has driven an explosion in new capacity in recent years which is particularly evident in China and the Middle East. This has subsequently led to oversupply, weak pricing and poor margins, especially in China, which has become the largest producer and consumer of BOPET films.
While traditionally much of Chinese production was for local consumption, with recent investments in large scale direct film casting plants Chinese producers are increasingly looking to export with the power to disrupt regional markets. This imperative is likely to grow given the level of overcapacity and a slowdown in China’s economic growth. It will also drive significant restructuring and corporate realignments as those with older assets mothball or shutdown production and the less successful new investors face potential bankruptcy or look to exit the business.
Middle East suppliers, which are largely Indian-owned, are benefiting from the region's low energy costs and increasing availability of resin adopting a strategy to become low cost global suppliers further pressurising heritage businesses with older assets in Europe, North America and North East Asia.
The increasingly competitive and commodity nature of traditional packaging film markets is driving producers to seek added value opportunities through either diversification into thick films, technical applications or investment in secondary processing.
Given the changing demand patterns and supply dynamics it has never been more important for companies active in the industry to have comprehensive information in order to fully understand their competitive strengths and weaknesses, develop successful strategies and benefit from market opportunities as they arise.