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Global PET Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Global Pet Packaging Market by Product Type (Bottles and Jars, Bags and Pouches, Trays, Lids/Caps, and Closures) , by Packaging (Rigid, Flexible), by End-User Industry (Food and Beverage, Pharmaceutical, Personal Care and Cosmetic Industry, Industrial Goods, Household Products) and Geography.

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Market Snapshot

PET packaging Market
Study Period: 2019- 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 5 %

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Market Overview

The PET Packaging market was valued at USD 55.52 billion in 2020 and is expected to reach USD 74.2 billion by 2026, at a CAGR of 5% over the forecast period 2021 - 2026. Packaging is moving from rigid to flexible packaging, as there have been many exciting new product developments, which have helped to demonstrate to consumers the true potential of flexible packaging.

  • The adoption of PET can lead to weight reduction by up to 90%, compared to glass, allowing a more economical transportation process. Currently, plastic bottles made from PET have been widely replacing heavy and fragile glass bottles, as they offer reusable packaging for mineral water and other beverages.​
  • The focus on PET and its market share growth has been reflected by several developments and trends in how brands and products use PET. With its clarity and natural CO2 barrier properties, PET has wide applications and is easily blown into a bottle or formed into a sheet. To develop a bottle to match a brand's specific needs, PET properties can be improved with colorants, UV blockers, oxygen barriers/scavengers, and other additives.
  • Furthermore, end-users are also exploring options for packaging. For instance, in January 2021, the indulgent ice cream brand Magnum announced the use of recycled plastic, with the material sourced from mixed plastic waste converted to plastic resin feedstock through advanced recycling. Chemical producer SABIC creates plastic resin using pyrolysis oil made from mixed plastic waste. Magnum then uses the resulting resin for its packaging, which can be recycled after use, creating a circular system for single-use plastics. While not necessarily a proxy for other resins, PET provides a good bellwether because it is a core packaging substrate for many Global Commitment signatories, and it is already widely collected, with a relatively mature supporting infrastructure.
  • Plastic has been one of the major pollutants resulting in environmental degradation. Several types of research had been stating the adverse effects of plastic on the environment. Owing to this, the European region has been implementing regulations in order to reduce the usage of plastics.

Scope of the Report

PET, also known as polyethylene terephthalate, is a type of polyester. It is expelled or shaped into plastic jugs and boxes for the packaging of food and refreshments, personal care items, and several other consumer products. PET is an ethylene glycol polymer and terephthalic corrosive. Pellets of PET pitch are warmed to form a fluid, which can be effortlessly expelled into any shape. The Global Pet Packaging Market by Product Type (Bottles and Jars, Bags and Pouches, Trays, Lids/Caps, and Closures), by Packaging (Rigid, Flexible), By End-User Industry (Food and Beverage, Pharmaceutical, Personal Care and Cosmetic Industry, Industrial Goods, Household Products) and Geography.

By Product Types
Bottles and Jars
Bags and Pouches
Trays
Lids/Caps and Closures
Other Product Types
By Packaging
Rigid
Flexible
By End-user Industry
Food & Beverage
Pharmaceuticals
Personal care and cosmetic industry
Industrial goods
Household Products
Other End-user industries
By Geography
North America
United States
Canada
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Rest of Asia Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of Middle East and Africa

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Key Market Trends

Bottle are Observing a Significant Increase

  • Polyethylene terephthalate (PET) is often used in food packaging due to its strong barrier properties against water vapor, gases, dilute acids, oils, and alcohols. PET is also shatter-resistant, moderately flexible, and easy to recycle. According to Earth Day organizers, 1 million plastic bottles are purchased in the US every minute. An average American consumes 167 plastic bottles of water per year; owing to the demand for packaged drinking water in the region, there is a rising demand for plastic caps and enclosures, especially PET.
  • Derived from PE, PET offers excellent rigidity compared to other forms of plastic. It also maintains a firm protective structure and exhibits excellent moisture-resistant properties. It is used for the manufacturing of plastic bottles for beverages or liquids. PET is used in the production of disposable plastic containers that are also used for ready-made or frozen foods. PET is popular as it offers a good oil barrier, which helps resist the chemicals that may damage the plastic. ​
  • The adoption of PET can lead to weight reduction by up to 90%, compared to glass, allowing a more economical transportation process. Currently, plastic bottles made from PET have been widely replacing heavy and fragile glass bottles, as they offer reusable packaging for mineral water and other beverages.​
  • The focus on PET and its market share growth has been reflected by several developments and trends in how brands and products use PET. With its clarity and natural CO2 barrier properties, PET has wide applications and is easily blown into a bottle or formed into a sheet. To develop a bottle to match a brand's specific needs, PET properties can be improved with colorants, UV blockers, oxygen barriers/scavengers, and other additives.
  • The European market has been witnessing increasing PET recycling infrastructure capacity. For instance, in November 2020, Indorama Ventures invested in recycling plants in France and Poland. This investment targeted recycling 10 billion PET bottles in Europe by 2023.
Global PET Packaging Market

United States Region to Hold Significant Share

  • The most recycled plastic in the United States is PET. According to PET Resin Association (PETRA), approximately 1.5 billion pounds of used PET bottles and containers are collected in the US each year for recycling. According to National Association for PET Container Resources (NAPCOR), the US recycling rate for polyethylene terephthalate (PET) bottles dipped slightly in 2019 to 27.9%. Higher recycling rates in Canada pushed the total North American PET recovery to 35%.
  • The increase in the demand for PET caps and closures is also a consequence of the rise in PET packaging, such as containers, bottles, tubes, cans, etc. According to International Bottled Water Association (IBWA), the volume of bottled water packaged in Polyethylene terephthalate (PET) plastic grew by 4.76% in the year 2020. It is now at 10.6 billion gallons. However, the home and office delivery volume experienced a decrease of 3.41 % (now at 1.4 billion Gallons), likely due to office closures during the COVID-19 Pandemic.​
  • In July 2020, Nestlé Waters North America (NWNA) announced that three more of its US domestic water brands have started converting their packaging to 100% recycled plastic. Ozarka Brand 100% Natural Spring Water, Deer Park Brand 100% Natural Spring Water, and Zephyrhills Brand 100% Natural Spring Water packaging, which has long been 100% recyclable, will now be both 100% recyclable and made from 100% recycled plastic. With the expansion of recycled plastic (rPET) to these brands, nearly 60% of all households in the US will have access to regionally distributed spring water brands in bottles made entirely with recycled plastic.
  • This industry is heavily dependent on inputs for manufacturing. PET, which is used as raw material, has highly fluctuating costs in the market. As the production cost depends on these raw material costs, manufacturers are finding it difficult to maintain constant output. Owing to its barrier properties against carbon dioxide (CO2) and oxygen (O2), PET can also be used for food packaging. It is microwave-resistant and is largely used in several food chains.​Some of the trends in PET packaging include technological advancements in lightweight solutions and a growing emphasis on sustainability and recycling. Compression technology for PET performs production is another emerging development. With the growing trend of recyclability, many food and drink companies are focusing on increasing recycled PET content for all their products between 2020 and 2025. Thus, the potential adoption of recycled PET among other companies is poised to impact the demand for plastic caps and closures.
  • Some of the trends in PET packaging include technological advancements in lightweight solutions and a growing emphasis on sustainability and recycling. Compression technology for PET performs production is another emerging development. With the growing trend of recyclability, many food and drink companies are focusing on increasing recycled PET content for all their products between 2020 and 2025. Thus, the potential adoption of recycled PET among other companies is poised to impact the demand for plastic caps and closures.
Global PET Packaging Market

Competitive Landscape

The PET packaging market is highly competitive and consists of several major players. In terms of market share, few of the major players currently dominate the market. These major players with prominent shares in the market are focusing on expanding their customer base across foreign countries. These companies are leveraging on strategic collaborative initiatives to increase their market share and profitability.

  • August 2021 - Elif, a flexible packaging supplier, has been purchased by Huhtamaki for GBP 350 million. Huhtamaki strengthens its position as one of the leading flexible packaging providers in emerging regions and expands its existing flexible packaging business in appealing consumer product categories with this purchase. The acquisition offers scale in critical geographies and supports Huhtamaki's progress toward its high sustainability aspirations, according to Huhtamaki's 2030 growth strategy. According to the firm, the acquisition also improves its technology capabilities and product portfolio, allowing it to serve its clients better.
  • November 2020 - Amcor has developed the lightest 900-ml polyethylene terephthalate (PET) bottle for edible oil in Brazil, using advanced technology and design technology. Bunge, an agribusiness and food company, based in So Paulo, has developed a custom-designed container that is 22 % lighter than comparable bottles while giving higher productivity and sustainability benefits.
Global PET Packaging Market

Recent Developments

  • September 2021 - Gateway Plastics has acquired by Silgan Holdings Inc., one of the significant providers of sustainable rigid packaging solutions for consumer goods items. This company makes and sells dispensing closures and integrated distributing packaging solutions to consumer products firms, primarily for the food and beverage industry, such as a combined container and closure or 100 % certified recyclable dispensing beverage pods. It has a vast, state-of-the-art production facility in Mequon, Wisconsin, where it expects to earn around USD150 million in sales and USD 46 million in adjusted EBITDA in 2021.
  • February 2021 - Berry Global Inc. launched a polyethylene terephthalate (PET) spirit bottle specifically designed for e-commerce businesses. The 50ml PET bottle aimed to address the increasing demand of online spirit sales, especially gin.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Outstanding Properties of PET

      2. 4.3.2 Rising Demand for Environment-friendly Packaging

    4. 4.4 Market Restraints

      1. 4.4.1 Regulations Against the Use of Plastics In Some Regions

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Types

      1. 5.1.1 Bottles and Jars

      2. 5.1.2 Bags and Pouches

      3. 5.1.3 Trays

      4. 5.1.4 Lids/Caps and Closures

      5. 5.1.5 Other Product Types

    2. 5.2 By Packaging

      1. 5.2.1 Rigid

      2. 5.2.2 Flexible

    3. 5.3 By End-user Industry

      1. 5.3.1 Food & Beverage

      2. 5.3.2 Pharmaceuticals

      3. 5.3.3 Personal care and cosmetic industry

      4. 5.3.4 Industrial goods

      5. 5.3.5 Household Products

      6. 5.3.6 Other End-user industries

    4. 5.4 By Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Rest of Asia Pacific

      4. 5.4.4 Latin America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of Latin America

      5. 5.4.5 Middle East and Africa

        1. 5.4.5.1 United Arab Emirates

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Amcor Ltd.

      2. 6.1.2 Resilux NV

      3. 6.1.3 Gerresheimer AG

      4. 6.1.4 Berry Global Group Inc.

      5. 6.1.5 Silgan Holdings Inc.

      6. 6.1.6 Graham Packaging Company

      7. 6.1.7 GTX Hanex Plastic Sp. z o.o.

      8. 6.1.8 Dunmore Corporation

      9. 6.1.9 Comar LLC

      10. 6.1.10 Sonoco Products Company

      11. 6.1.11 Huhtamaki OYJ

      12. 6.1.12 Nampak Limited

      2. *List Not Exhaustive

  7. 7. INVESTMENT ANALYSIS

  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Global PET Packaging Market market is studied from 2019 - 2026.

The Global PET Packaging Market is growing at a CAGR of 5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Amcor Ltd., Resilux NV, Gerresheimer AG, Berry Global Group Inc., Silgan Holdings Inc. are the major companies operating in Global PET Packaging Market.

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