Market Trends of Global Single Use Plastic Packaging Industry
This section covers the major market trends shaping the Single Use Plastic Packaging Market according to our research experts:
PET is Expected to Witness Significant Growth
- PET, among the raw material resin, is the dominant material capturing a market segment of more than 80% due to the easiness with which the physical property is altered to suit a wide variety of customer's needs while maintaining low costs.
- Polyethylene terephthalate (PET) is used for carbonated drinks packaging due to its high impact-resistant nature and improved moisture and gas barrier properties. They have a rigid structure with high strength. Moreover, compared to high-density polyethylene (HDPE) packaging, the glossy appearance of PET bottles with ultraviolet barriers often stand out for extending the shelf life of products, making the glass-like transparency a standard for a variety of packaging.
- For instance, in February 2021, Coca-Cola’s trademark brands, which include Coke, Diet Coke, Coke Zero Sugar, and Coca-Cola Flavors, introduced a 13.2-oz. bottle made from 100% recycled PET (rPET) plastic in California, Florida, and select states in the Northeast, with other sparkling beverage brands following this summer.
- The rate of recycling of PET packaging highly depends on the availability and accessibility of recycling infrastructure and therefore serves as a significant factor impacting the growth of the market in a particular region. For instance, currently, 94 percent of U.S. residents living in communities with a population of more than 125,000 have recycling programs available to them.
- The vendors in the market are focusing on increasing the recyclability of PET single use packaging in order to adhere to the regulations as well as create a closed loop cycle in terms of recycling. The increasing emphasis on recycling of these materials is expected to provide growth prospects to PET single use packaging.
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North America to Witness Moderate Growth
- The food service industry is one of the prominent end-user industries that hold a significant share in the cups and lids market. The growth of online food delivery services augmented the demand for food cups. Among regions, the United States is the second-largest food market across the world. The volume of plastic allocated to food packaging amounts to approximately 40% of plastics. Moreover, according to the US Census Bureau, the total foodservice sales in the United States amounted to USD 6.02 million.
- The government enforcements also harm the market. However, due to the ongoing pandemic New York State's ban on single-use plastic bags, which went into effect on March 1, 2020, it was postponed to May 15, 2020. Such a spike in plastic demand would likely lead to a temporary change in the short-term initiatives and goals of transitioning to a circular economy. Apart from this, it is likely to put pressure on the plastic manufacturing chain.
- Moreover, in October 2020, the US Department of Energy (DOE) announced over USD 27 million in funding for 12 projects that will support the development of advanced plastics recycling technologies and new plastics that are recyclable-by-design.
- As part of DOE’s Plastics Innovation Challenge, these projects will also help improve existing recycling processes that break plastics into chemical building blocks, which can then be used to make new products. Such initiatives might support the single-use plastic packaging market
- In spite ofthe regulatory measures that have been on the table for the last few years in the region, the COVID-19 pandemic has stalled the imposition of such legislation and has provided the market with a much-needed lifer for the time. The pandemic has effectively postponed the legislative process of the European Union for the transposition of the EU Single-Use Plastic Directive (SUPD) into domestic law. For instance, Italy’s Plastic tax has been postponed from 2020 to 2021, with Marevivo, the maritime protection agency of the country, encouraging a complete ban on plastic cups.
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