Is the Cold Winter Arriving in the Recycled PET Industry? The Path to Breakthrough under the Policy Favorable Wind
1. The Capacity Dilemma Behind the Price Plunge
Recently, the recycled PET market has remained continuously sluggish. The mainstream quoted price has dropped from 5,150 yuan per ton at the beginning of March to 5,125 yuan per ton. Behind this price war lies the harsh reality of a serious imbalance in the industry's production capacity — the national recycled PET cleaning production capacity has reached 30 million tons, while the actual recycling volume is only 5 million tons. More than 80% of the production capacity is lying idle. Small and medium-sized enterprises are facing the dilemma of "losing money on every ton sold". Some enterprises have chosen to shut down for maintenance, and in more extreme cases, some have even initiated the bankruptcy liquidation procedure.
2. Three major directions for technological breakthroughs
In this round of industry reshuffle, enterprises that possess core technologies are opening up new market segments:
Biological Enzyme-based Recycling: Yuantian Biotechnology has increased the purity of recycled PET to 99.9% through enzymatic hydrolysis technology. After its Pre-A round of financing, its production capacity will be tripled. Upgrading of Chemical Methods: The furan polyester technology developed by Wankai New Materials enables recycled PET to be directly applied in the field of food packaging. Intelligent Sorting System: The AI sorting equipment introduced by GEM has increased the accuracy rate of impurity identification to 99.2% and improved the sorting efficiency by 40%.
3. The Market Opportunities Brought by the Favorable Policy Wind
The EU's mandate that the utilization rate of recycled PET should reach 25% by 2025 has opened up a new window for domestic enterprises to access the international market. At the same time, China's "14th Five-Year Plan" Action Plan for Plastic Pollution Control clearly stipulates that by the end of 2025, the "bottle-to-bottle" recycling rate of beverage bottles should reach 30%. Driven by these dual policies, the market demand for food-grade recycled PET is growing at a compound annual growth rate of 18%.
4. The Industry Transformation Triggered by the Entry of State-owned Enterprises
The powerful entry of central enterprises such as China Recycling Resources Group and Sinochem Group is reshaping the industry landscape. Driven by the dual engines of "technology + capital", these enterprises are constructing a full industrial chain layout that ranges from recycling outlets to high-end products. If traditional enterprises fail to complete their intelligent transformation within the next 12 months, they may face the fate of being merged and acquired.
5. The Way to Break the Dilemma: From Scale Expansion to Value Creation
Industry experts point out that the core competitiveness of recycled PET enterprises in the future will be reflected in three dimensions: Technical Barriers: Enterprises that master food-grade recycling technology will obtain premium space. Resource Integration: Enterprises that establish stable recycling channels will have the pricing power. Environmental Protection and Compliance: Products that have passed the carbon footprint certification will be given priority in obtaining policy support.
Summary
When the industry's cold winter arrives, only enterprises that can grasp technological innovation and policy dividends can survive. The 2025 Greater Bay Area International Plastics Industry Expo specially sets up a "Plastic Recycling and Regeneration Theme Exhibition Area", gathering top global technological solutions to help enterprises gain the upper hand in this transformation. Contact the project manager below and sign up for the exhibition immediately to witness the rebirth of the recycled PET industry together!
