Polyester Prices Explained

Polyester prices registered declining trends across global markets. In the U.S. and Germany, prices fell by 1.7% due to high inventory levels of lower-priced polyester staple fiber.

On the supply side, polyester production remained favorable, the critical feedstock costs showed a balanced trend, and marine logistics freight charges decreased. These all translate to a crowded global supply chain and tepid polyester prices.

Why are polyester prices fluctuating?

1. Versatility

Polyester’s ability to be blended with natural and synthetic fibers like cotton, wool, and acrylic makes the commodity important in the clothing industry. Its properties offer designers and manufacturers flexibility in fabric construction. 

Additionally, the commodity has good washing durability, moisture, resistance, and affordability compared to natural fibers. Sports apparel brands use polyester in their activewear due to its wicking properties.

2. Virgin Polyester

The increasing application of virgin polyester is expected to contribute 50.3% of its market segment.

The commodity’s superior quality and purity appeal to manufacturers due to its undiluted performance and lack of impurities compared to recycled variants. In swimwear applications, virgin polyester offers chemical composition, color, and material properties consistency. This contributes to its marketability.

3. Polyethylene Terephthalate (PET) Polyester Segment

Another rising segmented market in polyester will contribute 58.3% of the industry. 

Mostly this commodity is utilized in the textile industry but due to its excellent tensile strength, thermal stability, moisture resistance, and dimensional stability, it finds applications in various industries.

Bottling, packaging, engineering plastics, and fiber industries rely on PET for demanding applications as it can maintain its properties over various temperatures without significant strength loss.

4. Recycled Polyester

The increasing use of recycled polyester influences the commodity market and prices. It is made by melting PET bottles and other plastic waste, reducing reliance on virgin petroleum-based polyester. 

Both environmental concerns and cost advantages drive this shift towards recycled materials. As more companies adopt this practice, the demand for virgin polyester decreases. However, the production costs for recycled PET are expensive due to the recycling process. 

Patagonia, Adidas, and Thought are leading the way by incorporating recycled polyester in their products, promoting sustainability and reducing their environmental footprint.

Which variables impact the price of polyester?

• Versatility
• Virgin Polyester
• Polyethylene Terephthalate (PET) Polyester Segment
• Recycled Polyester
• Production Process

Where does polyester come from?

Polyester comes from a chemical process called polymerization. The polymerization process involves heating the raw materials to create a molten polymer. 

Then, it is extruded through spinnerets to form long, continuous filaments. These filaments are cooled, stretched, and solidified to increase their strength and flexibility. The polyester fibers are spun into yarns and woven or knitted into fabrics for various applications.

Advances in technology and production methods allowed the creation of recycled polyester. It is made from post-consumer plastic bottles and other recycled materials. This innovation contributed to a more sustainable approach to polyester production, reducing reliance on petroleum and decreasing environmental impact.

What are the uses of polyester?

These applications highlight the versatility and importance of polyester in various industries, making it a key material for everyday and specialized products.

1. Clothing – Polyester is important in the clothing industry due to its durability, wrinkle resistance, and quick-drying properties. It is used in manufacturing shirts, pants, jackets, and sportswear. Nike and Adidas incorporate polyester in their activewear lines to provide comfort and performance.

2. Home Textiles – It is a popular choice for home furnishings, including bedspreads, blankets, carpets, cushions, and pillows. Its resistance to shrinking and stretching makes it ideal for items that require frequent use and washing.

3. Industrial Textiles – Conveyor belts, safety belts, and coated fabrics for industrial applications use polyester. Its strength and durability make it suitable for heavy-duty use in manufacturing and construction. Goodyear and 3M are examples of companies that use polyester in their industrial products.

4. Automotive – Polyester is used in the automotive industry for seat belts, tire reinforcements, and interior components. Its high tensile strength and resistance to wear and tear make it an excellent material for safety and durability. Ford and Toyota incorporate polyester in their vehicle interiors and safety systems.

5. Packaging – Its lightweight and recyclable nature make it an environmentally friendly option for packaging. Coca-Cola and Nestlé use polyester bottles to package their beverages and food products.

What is the future price of polyester?

The shifting consumer preferences towards sustainability and environmental concerns influence polyester demand and prices. Customers choose products made from recycled or eco-friendly materials, leading to a decrease in virgin polyester. 

This trend is driven by a growing awareness of environmental issues and a desire for more sustainable products. As a result, companies are investing in research and development to create more eco-friendly polyester variants (which often come with higher production costs). 

H&M and Nike are incorporating recycled polyester into their products contributing to a potential rise in overall product prices due to the higher costs of sustainable materials.

On a segmented market, polyethylene terephthalate (PET) is another profitable market within the polyester industry. Due to its versatility and cost-effectiveness, it is used in producing bottles, packaging materials, and textiles. 

Amcor and Coca-Cola heavily rely on PET for their products. However, the increasing use of recycled polyester is restraining the market growth for virgin polyester. Recycled polyester (made from post-consumer plastic bottles and other PET products) helps reduce waste and environmental impact. 

This shift is exemplified by companies like Patagonia and Adidas, which continuously innovate their clothing apparel to reduce their ecological footprint. 

Overall, the global polyester market is projected to reach $150 million in 2029, with a price tag of $4.16 per yard.