Earlier, GlobalData predicted that the PET market in the Middle East would experience the fastest growth over a five-year period starting in 2019, with an average annual growth rate of 6.8%. Against this backdrop, let’s focus on the analysis of how end demand stimulates the growth of intermediate demand and the developing trends of the PET industry.

1. Driving Factors: End Demand Boosts Intermediate Demand

1.1 Surging liquid Food Industry

The increased consumer demand on liquid food in the Middle East has led to the expansion of the water or beverage manufacturing industry, which in turn has driven the growth in demand for PET packaging materials.

PET materials are lightweight, transparent, and pressure-resistant, effectively maintaining the freshness and safety of beverages.

The unique climate conditions in the Middle East, such as arid and semi-arid climates, make it one of the highest markets for bottled water demand globally. 

Additionally, the local residents' preference for soft drinks like juices has boosted the use of PET packaging materials. With the development of tourism, increased international trade, and continuous population growth in the Middle East, the demand for bottled water and soft drinks keeps rising, further promoting the growth of the PET packaging market.

1.2 Development of Cosmetics Market

With the burgeoning beauty industry in the Middle East, the demand for cosmetics has surged, and the need for packaging materials such as PET is expected to continue growing.

In Saudi Arabia, the "Vision 2030" initiative's focus on increasing women's employment has spurred rapid growth in the cosmetics market. Mordor Intelligence reports that the market is projected to expand from $5.21 billion in 2023 to $5.64 billion by 2028, with a compound annual growth rate of 1.60%. This trajectory underscores the industry's robustness and points to substantial growth opportunities in the cosmetics packaging sector.

In the selection of cosmetic packaging materials, based on the practical use, PET is an ideal choice due to its superior properties:

Safety Advantage: PET has good chemical stability, effectively protecting the quality and safety of cosmetics. There are less safety risk to consumers from broken packaging containers because of its impact resistance compared to glass.

Brand Image Building: With its excellent transparency and gloss, the  containers made from PET can perfectly present the appearance and color of cosmetics, enhancing the visual appeal of products. Additionally, PET packaging can be customized with printed designs, increasing brand recognition and impression. 

Sustainability Advantage: PET packaging is recyclable and has a high recycling rate, facilitating the circular use of cosmetic packaging and reducing the environmental burden. 

Lightweight Design: Compared to traditional glass or metal, PET packaging is more lightweight, offering significant advantages in terms of reducing transportation costs and carbon emissions.

1.3 Promising Prospects of Photovoltaic Energy

Tackling the climate crisis and carbon emissions reduction are crucial, with the Middle East's high solar radiation levels offering a significant opportunity for photovoltaic energy development, which has led to the development of photovoltaic system-related components such as PET films for solar panels.

During the World Future Energy Summit, the UAE emphasized its commitment to investing in clean and renewable energy, aiming to increase solar power generation to 14.2 billion watts by 2030. Saudi Arabia has already built the world's largest single-block photovoltaic power station, "Sakaka," demonstrating the emphasis of these countries on the development of photovoltaic energy.

However, the development of photovoltaic energy cannot be separated from the support of related accessories. PET film is a key component of photovoltaic backsheet, playing a significant role in improving the long-term stability and lifespan of photovoltaic modules. 

It possesses excellent physical and chemical stability, including good mechanical properties, weather resistance, and insulation. These properties enable PET film to effectively protect photovoltaic cells from external environmental influences such as humidity, ultraviolet rays, temperature changes, and mechanical shocks. Meanwhile, the insulating property of PET film prevents current leakage, ensuring the safe operation of photovoltaic modules.

As the photovoltaic industry in the Middle East rapidly grows, the demand for raw materials to produce PET-based films is also continuously increasing. 

To meet this demand, many companies have intensified their research and development efforts on these polyester materials. Wankai New Materials Co., Ltd. has taken practical actions to strengthen the research and development of related polyester materials and provided reliable raw material support for the photovoltaic industry.

2. Industry Development Trends

Analyzing market development trends necessitates a global outlook to understand the comprehensive direction of the industry:

2.1 Safer PET

The industry’s focus on PET material safety is critical due to its direct implications for consumer health. 

Producers of PET raw materials must adhere to international and regional food contact material regulations, such as the EU’s Regulation (EU) No 10/2011, the US FDA’s 21 CFR 177.1630, and Halal certification, among others, to obtain official safety recognition. 

Furthermore, ongoing R&D efforts are dedicated to minimizing potential risks associated with PET use. This includes refining production processes to decrease the production of hazardous substances, developing low-migration PET materials with reduced chemical release properties, and utilizing non-toxic additives that do not emit harmful substances during food contact, thereby protecting consumer health.

2.2 Sustainable PET

Despite previous controversies concerning the sustainability of PET as a plastic material, its extensive applications and the enduring challenges of prohibiting plastic use continue to position PET as a vital component in the packaging industry. 

For example, the lighter weight of PET bottles compared to glass bottles means that transporting the same quantity of PET bottles consumes less fuel and indirectly lowers carbon emissions related to transportation. 

Presently, the evolution of PET packaging is advancing towards a circular economy, encompassing the development of bio-based PET and biodegradable PET, which foster environmental sustainability from the outset. 

Additionally, the enhancement of PET recycling systems and the development of more efficient recycling technologies provide a viable route for the high-quality and efficient circular utilization of PET, diminishing resource consumption and environmental pollution, and propelling the sustainable transformation of the PET packaging industry.

2.3 Broader Applications of PET 

a. Aerospace Industry：The lightweight and robust properties of PET materials make them highly suitable for aerospace applications, particularly in the fabrication of aircraft interior panels, insulation, and other structural components. The Boeing 787 Dreamliner is a notable example, incorporating PET-based composites for the manufacture of key interior elements such as decorative panels, flooring, and luggage compartments. The integration of these innovative materials has resulted in the 787 being approximately 20% lighter than comparable aircraft, significantly enhancing fuel efficiency and overall flight performance.

b．3D Printing：PET is a thermoplastic material sought after for its strength, flexibility, and durability in the realm of 3D printing. It is presented in the form of thermoplastic filament, capable of being melted through a heated nozzle in a 3D printer and deposited layer by layer to construct complex 3D structures, thus offering new creative possibilities for design and engineering.

c．Energy Storage: PET films are renowned for their outstanding electrochemical stability, robust mechanical strength, and excellent ionic conductivity within the energy storage sector, particularly in the context of separators for lithium-ion batteries. These attributes are instrumental in preserving battery performance, prolonging lifespan, and guaranteeing the structural integrity and safety of the battery, thereby facilitating efficient energy conversion.

3. Conclusion

Solar wealth and industry growth in the Middle East are driving up PET demand, with manufacturers prioritizing safer, sustainable materials and exploring new applications, indicating a bright future for the PET industry.