Market Trends of PET Beverage Packaging Industry
Bottles to Hold Major Market Share
- The growing demand for packaged water and carbonated drinks has led to a spike in demand for PET bottles. In addition, increasing environmental awareness and demand for eco-friendly packaging solutions have led consumers to prefer PET bottles over other packaging materials.
- PET offers superior stiffness compared to other plastics. It also maintains a robust protective structure and has moisture resistance. It is used in the production of PET bottles for beverages and liquids. PET is well known because it provides a superior oil barrier that helps resist chemicals that can damage plastics.
- Beverage companies are focused on innovating new solutions. For instance, in line with its goal to transition to 100% recycled and plant-based PET bottles by 2030, the Suntory Group unveiled a prototype PET bottle made from a 100% plant-based materials partnership. The bottle was developed in collaboration with US-based Anellotech for Suntory's Orangina and Tennensui soft drinks brands in the European and Japanese markets.
- PET is widely favored for plastic bottles (and other uses) because it is 100% recyclable and highly sustainable. It can be recovered and recycled many times into new products, reducing the number of wasted resources. Over the projected period, bio-based plastics, particularly 100% bio-based PET bottles, are anticipated to increase market share.
- As bottled water sales have demonstrated an uptick in recent years, so has per capita consumption in the United States. In the past ten years, annual bottled water purchase has increased by nearly 40%, reaching a total of nearly 47 gallons per person by 2021. Bottled water was the most consumed beverage by Americans a year earlier, followed by soft drinks in second place.
- According to Beverage Marketing Corporation and International Bottled Water Association, the Sales volume of bottled water in the United States has witnessed a steady growth trend. The sale volume shot up to 15.90 gallons in 2022, starting from 13.20 gallons just five years back in 2017. Notably, according to Agriculture and Agri-Food Canada, the retail sales value of flavored bottled water in the United States also increased from USD 3.63 billion in 2015 to USD 7.29 billion in 2022. This growth is expected to be witnessed in the forecast period, also attributing to a substantial push to the market demand for PET water bottles.
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Asia Pacific Expected to Witness Significant Growth
- China's packaging industry is growing steadily due to the nation's expanding economy and growing middle class with increased purchasing power. Beverage packaging demand is rising because China's beverage market has grown significantly over the last few years. Each beverage category will face its own set of challenges and opportunities.
- The growing consumption of non-alcoholic drinks in urban regions has propelled the growth of beverages. Such potential has attracted foreign companies like Coca-Cola to continue to invest heavily in the Chinese market. Recently, Coca-Cola China and its bottling partners have announced plans to inaugurate new production lines and a factory, following an estimated total investment of CNY 520 million (USD 75.3 million). Additionally, in 2023, the company invested in its plant to boost its performance and enhance its presence on online and offline channels and marketing innovations. These factors are projected to fuel market growth and attract foreign companies to the Chinese market.
- In India, beverage packaging has witnessed significant growth in recent years. The key factors that drive the market growth include the rapid changes in beverage packaging trends across the country. There has been significant adoption of novel techniques for packaging. New beverage packaging trends focus on the structure modification of packaging materials and the development of new active systems that can interact with the product or its environment, customer acceptability, security, and improving the conservation of several beverages.
- Glass and PET bottles are used extensively in Japan. PET bottles are still chosen over conventional glass bottles because of technical improvements that allow them to perform additional functions besides only retaining liquids. The market for beverage packaging in Japan is driven by the growing consumption of ready-to-drink (RTD) beverages due to busy consumer work schedules and sedentary lifestyles. These bottles help to improve the shelf life and preservation of the products and are available in cost-effective formats.
- The beverage packaging market is expanding significantly due to the growing consumer concerns about the negative health impact of synthetic additives, preservatives, etc., which augment the demand for organic beverages. Additionally, the elevating levels of urbanization and enhanced consumer living standards have propelled the country's per capita expenditures on high-quality, organic drinks.
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