Polyethylene Furanoate Market

Market Definition

The polyethylene furanoate (PEF) market refers to the industry focused on the production and use of polyethylene furanoate. It is a bio-based polymer derived from renewable resources such as sugarcane, corn, and other plant-based feedstocks.

PEF is often considered an alternative to polyethylene terephthalate (PET) a widely used petroleum-based plastic known for its applications in  packaging, textiles, and consumer goods. Unlike PET, PEF It is made from bio-based raw materials like sugars or plant-based feedstocks, making it more sustainable compared to conventional plastics.

Polyethylene Furanoate Market Overview

The global polyethylene furanoate market size was valued at USD 20.1 million in 2023, and is estimated to grow from USD 22.0 million in 2024 to USD 44.4 million by 2031, at a CAGR of 10.56% from 2024 to 2031.

Sustainability is a key growth driver for the polyethylene furanoate market. Industries are increasingly prioritizing renewable, eco-friendly materials to address climate change, lower carbon footprints, and comply with rising consumer and regulatory demands for sustainable products.

Major companies operating in the global polyethylene furanoate industry are Avantium, ALPLA, Origin Materials, TOYOBO CO., LTD., Sulzer Ltd , Swicofil AG , AVA Biochem AG, Toray, Tereos Group, and BASF (Synvina).

The market is evolving as industries seek sustainable alternatives to traditional plastics. PEF is gaining traction across various sectors such as packaging and textiles due to its enhanced heat resistance and superior barrier properties.

As a bio-based polymer, it presents a viable solution for reducing environmental impact. The market continues to expand as manufacturers increasingly adopt PEF, recognizing its potential as a more sustainable and efficient alternative to conventional petroleum-based plastics.

• In November 2024,  Avantium N.V. and Kirin Holdings expanded their collaboration to explore Avantium's plant-based, recyclable PEF in Kirin’s product packaging. This partnership aims to enhance the sustainability of Kirin's packaging solutions and support the integration of PEF into existing PET recycling streams in Japan. 

Key Highlights

1. The global polyethylene furanoate market size was recorded at USD 20.1 million in 2023.
2. The market is projected to grow at a CAGR of 10.56% from 2024 to 2031.
3. North America held a market share of 33.09% in 2023, with a valuation of USD 6.7 million.
4. The plant-based segment garnered USD 17.5 million in revenue in 2023.
5. The food-grade segment is expected to reach USD 27.8 million by 2031.
6. The packaging segment is anticipated to have a CAGR of 12.65% during the forecast period.
7. The food & beverage segment is expected to have a market share of 53.74% in 2031.
8. Asia Pacific is anticipated to grow at a CAGR of 11.67% during the forecast period.

Market Driver

"Rising Environmental Concerns Fueling PEF Adoption"

Sustainability is a key driver in the polyethylene furanoate (PEF) market, as industries increasingly prioritize renewable and eco-friendly materials to address climate change and environmental degradation.

Rising concerns over plastic pollution and carbon emissions are prompting manufacturers to adopt bio-based alternatives like PEF, which reduces the relience on fossil fuels and minimizes environmental impact.

This shift is further propelled by the growing consumer demand for sustainable products and the implementation of stricter environmental regulations, positioning PEF as a viable solution for a more sustainable future across various industries.

According to the United Nation, 19 to 23 million tonnes of plastic waste enter aquatic ecosystems annually, polluting lakes, rivers, and oceans. In response, the PEF is gaining traction as a sustainable alternative, offering a potential solution to mitigate plastic pollution.

Market Challenge

"High Production Costs"

One of the significant challenges faced by the polyethylene furanoate (PEF) market is its high production cost. This is primarily due to the expensive bio-based feedstocks and the complex manufacturing process.

Unlike traditional petroleum-based plastics like polyethylene terephthalate (PET), PEF relies on plant-derived sugars and advanced processing techniques, which drive up production expenses and limit cost competitiveness.

However, as demand for PEF increases and production methods evolve, costs are expected to decline. Scaling up manufacturing, improving process efficiencies, and enhancing supply chain infrastructure can help lower expenses.

Additionally, continued investment in research and development (R&D) is crucial for optimizing production techniques, making PEF more cost-effective and accessible for widespread commercial use. 

Market Trend

"Growing Integration of PEF in the Circular Economy"

A significant trend in the polyethylene furanoate (PEF) market is its increasing integration into circular economy models, where materials are continuously recycled and reused. 

As sustainability becomes a top priority, industries are focusing on developing closed-loop systems that enable PEF products to be repurposed, reducing plastic waste and minimizing reliance on fossil fuels.

Additionally, Key players in the PEF market, such as Avantium, ALPLA Group, and EPC Engineering & Technologies, are actively exploring innovative recycling technologies to enhance PEF’s role in circular economies, ensuring its long-term viability as a sustainable alternative to conventional plastics.

• In February 2025, Avantium N.V. partnered with EPC Engineering & Technologies GmbH and POLYMETRIX AG to scale up production of PEF. This collaboration aims to develop continuous PEF polyester production technology with capacities exceeding 100,000 tonnes per annum, integrating Avantium's proprietary YXY Technology for producing furandicarboxylic acid (FDCA), the building block for PEF. This initiative positions Avantium to meet the growing demand for sustainable plastics and accelerates the transition to a bio-based, circular economy.

Polyethylene Furanoate Market Report Snapshot

Segmentation	Details
By Source	Plant-Based, Cellulose-Based, Others
By Grade	Food-Grade, Industrial-Grade
By Application	Packaging, Textiles, Electronics, Automotive, Others
By End-Use Industry	Food & Beverage, Pharmaceuticals, Consumer Goods, Automotive & Transportation, Electronics
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Source (Plant-Based, Cellulose-Based, Others): The plant-based segment earned USD 17.5 million in 2023, due to growing demand for sustainable alternatives in packaging and eco-friendly solutions.
• By Grade (Food-Grade, Industrial-Grade): The food-grade segment held 62.35% of the market in 2023, due to increasing consumer preference for biodegradable packaging and food safety standards.
• By Application (Packaging, Textiles, Electronics, Automotive, Others): The packaging segment is projected to reach USD 17.1 million by 2031, owing to increased consumer preference for eco-friendly, recyclable, and biodegradable materials in packaging.
• By End-Use Industry (Food & Beverage, Pharmaceuticals, Consumer Goods, Automotive & Transportation, Electronics): The automotive & transportation segment is anticipated to have a CAGR of 14.76% during the forecast period, driven by sustainable material adoption in vehicle manufacturing.

Polyethylene Furanoate Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

Asia Pacific polyethylene furanoate market share stood around 33.09% in 2023 in the global market, with a valuation of USD 6.7 million. North America is expected to dominate the market due to its strong focus on sustainability and eco-friendly packaging solutions.

The region has a well-established infrastructure for the production and adoption of biodegradable materials, which is driving the demand for PEF. Additionally, North America’s regulatory environment encourages the use of renewable resources, further fueling the growth of plant-based alternatives in packaging, automotive, and textile industry.

The region's significant investments in research and development also contributes to its dominance in the PEF market.

• In August 2023, Sustainea Bioglycols, a joint venture between Braskem and Sojitz Corporation, entered a strategic partnership with Origin Materials to develop 100% bio-based PET and polyesters. This collaboration leverages Sustainea's bio-based monoethylene glycol (bioMEG) and Origin's bio-based purified terephthalic acid (PTA) and furandicarboxylic acid (FDCA), aiming to produce fully recyclable biopolymers. 

The polyethylene furanoate industry in Asia-Pacific is poised for significant growth at a robust CAGR of 11.67% over the forecast period. Asia Pacific is projected to be the fast-growing region in the market, driven by rapid industrialization and increasing environmental concerns.

Countries like China, India, and Japan are focusing on adopting sustainable alternatives to traditional plastics, especially in packaging of consumer goods. Government initiatives, coupled with rising consumer demand for eco-friendly products, are propelling the market growth in this region.

Furthermore, Asia Pacific's burgeoning manufacturing sector and growing awareness of environmental issues are expected to foster significant expansion in the PEF market.

Regulatory Frameworks

• In the U.S., the Food and Drug Administration (FDA) is responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, medical devices, the country's food supply, cosmetics, and products that emit radiation.
• The European Food Safety Authority (EFSA) is an public agency that provides scientific advice and technical support for EU legislation in all fields that have a direct or indirect impact on food and feed safety.

Competitive Landscape

Partnerships in the polyethylene furanoate (PEF) market are becoming increasingly common as companies collaborate to develop sustainable, bio-based alternatives to traditional plastics.

These alliances typically focus on advancing production technologies, improving material properties, and scaling up manufacturing capabilities. By pooling resources and expertise, industry players aim to accelerate the adoption of PEF in various applications, contributing to a circular economy.

• In February 2025, Avantium and Amcor Rigid Packaging partnered to advance sustainable packaging solutions using Avantium’s plant-based polymer Releaf (PEF). This collaboration demonstrates a commitment to circular economy principles, leveraging innovative packaging materials to reduce environmental impact and support Amcor’s net-zero goals by 2050.

List of Key Companies in Polyethylene Furanoate Market:

• Avantium
• ALPLA
• Origin Materials
• TOYOBO CO., LTD.
• Sulzer Ltd
• Swicofil AG
• AVA Biochem AG
• Toray
• Tereos Group
• BASF (Synvina)

Recent Developments (Agreement/Approval)

• In October 2024, Avantium and Plastipak signed an offtake agreement to use PEF in food and beverage packaging. This collaboration aims to advance sustainable, recyclable packaging solutions, leveraging PEF’s superior properties to enhance shelf life, reduce energy consumption, and lower carbon footprint.
• In October 2024, Avantium received FDA approval for its PEF to be used in food contact applications in the U.S. This approval covers packaging for all food types, enhancing the sustainability of food packaging materials and marking a significant milestone for Avantium’s market expansion.