The demand for polyester film, used in packaging, electronics and other industries, is expected to grow by 10 per cent in India in the next five years, according to a report.
Global demand for polyester film, known as BOPET film, would grow at 5.6 per cent in the next five years driven by electrical and electronics sector, high-end display screens (OLED) and photovoltic cells, the research report by Wood Mackenzie Chemicals said.
"Forecast growth in Asia is expected to be significantly higher, particularly in China and India, where we expect to see growth of 6.6 per cent and nearly 10 per cent respectively," Robert Gilfillan, Wood Mackenzie Chemicals Head of Films and Flexibles, said.
BOPET (biaxially-oriented polyethylene terephthalate) is a polyester film made from stretched polyethylene terephthalate (PET) and is used for its high tensile strength, chemical and dimensional stability, transparency, reflectivity, gas and aroma barrier properties, and electrical insulation.
The global market is currently balanced but supplies from China and the growing influence of Indian-owned producers, as they continue to expand their operations globally, will continue to dominate, the report said.
The industry has announced a significant new capacity to be installed in the market over the next five years. Despite this investment, new capacity will be required to meet the forecast demand growth rate, it pointed put.
With China and India set to remain central in driving the next investment cycle, further new capacity from these two global powerhouses will impact production utilisation of local producers, it added.
The electrical and electronics sector will offer growth opportunities and will continue to offer avenues for growth, with healthy demand for high-end display screens (OLED) and photovoltaic (PV) cells to remain.
The key end use sector for BOPET film continues to be flexible packaging, which accounts for nearly 60 per cent of global consumption, the report said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)