United States Rigid PET Packaging Market Size

US Rigid PET Packaging Market Analysis

The United States rigid pet packaging market is expected to witness a CAGR of 4.35% over the forecast period (2022-2027). PET packaging was considered an essential service in the United States due to its applications in bottled water and pharmaceuticals packaging. Beverage, food, healthcare, and other end-user industries have been considered essential services in the region. This end-user witnessed significant demand for bottled water, hand sanitizer bottles, household cleaning, and detergent. According to a convenience store news 2020 survey report, purchasing behavior of consumers at convenience stores due to the pandemic for products such as bottled water(single), bottled water(multipack), and milk accounted for 49%, 38%, and 46%, respectively.

The International Bottled Water Association reports that Americans consumed 15.6 billion gallons of bottled water in 2021, up 4.5% from 2020 (compared to a 4.2% increase the previous year). That means that each American consumed 46.9 gallons of bottled water on average in 2020, up 3.8% from the prior year. Furthermore, retail dollar sales of bottled water increased by 4.4% in 2021, reaching USD 37.9 billion. With this rising trend likely to continue, it is set to propel the demand for Rigid PET in bottled water packaging.

Clamshell packaging remains popular with retailers among rigid plastic packaging because the product is visible on both sides. It can be hung or freestanding, and it's harder to shoplift since the package is bigger than the product inside. It's much lighter than cardboard or other alternatives, saving energy during transport, cheaper to make, and more durable.

Manufacturers prefer PET over other plastic packaging goods because it minimizes the loss of raw material throughout the manufacturing process. Its recyclability and ability to customize it with numerous colors and designs make it a popular choice. Refillable items have risen in popularity as consumer knowledge of environmental issues has grown, increasing demand for the product. For instance, in February 2022, Evergreen is one of the prominent producers of food-grade rPET in North America, having its USD 200 million investment and multiple acquisitions.

For decades, pharma packaging has likely migrated away from plastic, the industry's main design and manufacturing material. However, the industry will continue to use polyethylene terephthalate (PET) because of its capacity to break down to PET at the molecular level.

In April 2022, Klockner Pentaplast, a manufacturer of recycled content products and high-barrier protective packaging, decided to expand its multi-million dollar production facility in Beaver, West Virginia, to add post-consumer recycled content (PCR) PET capacity in North America. Installing an extrusion line and two thermos formers will increase the company's sustainable innovation in the consumer health, pharmaceutical, and food packaging markets, producing 15,000 metric tonnes of new rPET/PET capacity. Over 20% of Klockner Pentaplast volumes are currently made with PCR material.