Global PET Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The PET Packaging market is expected to reach USD 74.2 billion by 2026, at a CAGR of 4.93% 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.
• The packaging industry continues to make notable progress in environment-friendly innovations meeting consumer demand for a more sustainable community. There is a noticeable rise in awareness among customers that high-performance packaging may increase the shelf life of a product, creating an extensive need for sustainable end-of-life packaging options, especially in PET (polyethylene terephthalate) packaging solutions.
• 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.
• Also, due to the COVID-19 pandemic, a sudden spike in demand for PET healthcare industries has made the manufacturers for operating over 60% efficiently to fulfill the domestic demand profoundly, and this has led to the high bargaining power from the supplier side, which ultimately leads to the high price (source: Organisation for Economic Co-operation and Development (OECD)).
• Plastic has been one of the major pollutants resulting in environmental degradation. Several types of research have been stating the adverse effects of plastic on the environment. Owing to this, the European region has been implementing regulations 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.

Report scope can be customized per your requirements. Click here.

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. ​
• Moreover, the emerging e-commerce industry across the globe is also contributing significantly to the market's growth. As transporting PET bottles and jars is easy from a logistics point of view, various brands are increasingly using PET for their packaging needs. Additionally, as PET bottles are lightweight and do not require extreme care, the transportation cost is significantly reduced. Therefore, the growing inclination of people towards e-commerce is anticipated to bolster the market demand over the forecast period.
• The increasing demand for food & beverage products across the globe is expected to provide a significant boost to the demand for PET for making bottles and jars. Furthermore, the healthcare industry also witnessed a heightened demand for PET bottles for the packaging of hand sanitizers. Furthermore, as the impact of COVID-19 remains with several regions still witnessing a rise in coronavirus cases, the demand for hand sanitizer bottles is expected to remain high, which will subsequently augment the growth of PET bottles for hand sanitizer packaging.
• 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.

To understand key trends, Download Sample Report