India Recycling PET Market is likely to reach INR 205 billion by FY’2019: Ken Research

October 2014  

Recycling Polyester staple Fiber (RPSF) has been the largest segment in India’s recycling PET market and it has been estimated that the RPSF is going to be the fiber of the future in the entire textile industry. Currently, the market encompasses more than 90% of the recycled polyester used for the manufacturing of PET staple fiber. There is a growing optimism for the recycled polyester staple fiber market due to increasing use of RPSF by several global brands, as a result of growing environment responsibility.

Globally, the total man-made fiber consumption mounted at 52 million tons in 2000, which is envisaged to reach at 100 million tons by 2020, where the strongest growth is expected to be derived from India, China and Indonesia. Moreover, there is a growing appetite for downstream textile products in India. For instance, the Indian textile and apparel sector is expected to grow 11% annually and reach USD ~ billion by 2020. These trends are going to escalate the demand for recycled polyester staple fiber in the coming years. To cater to this growing demand, several major companies such as Reliance is planning to install additional capacity of ~ tons during FY’2015, which is estimated to propel the RPSF industry output.

Recycled PSF is a cost effective substitute of virgin polyester fiber and hence, the product is being highly preferred. It has to be recognized that the recycling of PET waste would not only act as a solution to municipal solid waste disposal problem, but also helps to conserve the petrochemical resources for various industrial uses.

The consumption of PET bottle waste in the production of recycled Polyester staple fiber has been highest since the last two decades. It has been observed that about 95% of the recycled PET waste is used in order to produce polyester staple fiber. This is mainly due to the fact that the production of PSF from PET waste results in energy savings by 50-60%, as compared to the same products produced from virgin polyester. This has led to a rising demand of PET waste for the production of PSF. However, the availability of PET waste for producing PSF is highly instable since the industry needs to be highly dependent upon rag pickers.

 “Plastic consumption in India is forecast to reach 18.9 million tons in 2015, half of which is anticipated to be in the form of packaging and bottles. Recycling as waste management practice in India is also pushed by statutory compulsions, ecological requirements and economic considerations as well. The exceptional growth in the future is likely to be supported by growth in youth population that marked an increase in the availability of post consumer recycled PET waste bottles ‘’ according to the Research Analyst, Ken Research.

 

India Recycling PET Market Outlook to 2019 - Growth Led by Inclining PET Bottle Availability and Production Capacity