A plasticized terephthalate-based polyester blend comprising a terephthalate-based polyester (e.g., polyethylene terephthalate, i.e., PET) homogeneously blended with a fatty acid or ester thereof, wherein said fatty acid or ester thereof is present in said polyester blend in an amount of 1-50 wt %. Also described herein is a method for producing a plasticized terephthalate-based polyester blend, the method comprising melt mixing a terephthalate-based polyester with a fatty acid or ester thereof at a temperature in a range of 230-250° C. to produce said polyester blend, wherein said fatty acid or ester thereof is present in said polyester blend in an amount of 1-50 wt % and is homogeneously blended with said terephthalate-based polyester.