2026 PET Plastics Outlook
Food and Beverage Packaging
Commentary by Andrew Woods
Throughout the global polyethylene terephthalate (PET) market, weak demand remains a key concern for players throughout the supply chain.
Sources anticipate macroeconomic headwinds and lower consumer demand to continue to drive the PET market during Q4 2025. Aside from possible seasonal demand increase from heightened cooking oil packaging demand in China, participants see little to change the market fundamentals in the short term.
Market players continue to monitor dynamics within key raw material markets, namely paraxylene.
Additionally, crude oil prices will be a key driver in H1 2026, sources said. As such, geopolitical drivers will remain strongly in focus according to participants. The PET market will therefore be driven by ongoing conflicts between Russia and Ukraine, and Israel and Hamas.
A ceasefire in the latter conflict has lowered concerns about the transport of crude oil and, therefore, supply. However, the rapidly changing nature of conflicts means that several participants in the plastics market believe that a significant shift in relations, either conflict escalation or peace deals, will be the key driver for PET in Q1 and H1 2026.
Players believe that current fundamentals, namely ample supply and weak demand, will continue to drive PET prices downwards.
However, they also note that escalations in key conflicts in energy-sensitive regions, like the Middle East, could increase worry on the availability of crude oil and paraxylene, which they say could result in higher production costs and, consequently, product prices.
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