Bottles and other
rigid plastic packaging made from polyethylene terephthalate (PET) are
continuing to grow in demand despite pressure over their environmental impact a
recent Smithers study reveals. While Covid-19 is the immediate challenge, new
recycling technologies and alternative feedstocks will be increasingly
important over the five years to 2025.
Data from the Smithers market report The Future of PET Packaging to
2025 shows global demand will reach 22.65 million tonnes, with a value
of $44.1 billion in 2020. The impact of Covid-19 is still unclear, and while
volume consumption will increase this year, overall value could shrink by as
much as 17% compared to 2019. As it recovers, future growth in this segment is
forecast at a compound annual growth rate (CAGR) of 3.7% pushing consumption to
27.13 million tonnes in 2025.
Smithers’ expert analysis subdivides this market across all key industry
segments:
- End-use application: CSDs; Water; Fruit juice; Beer; Other drinks; Food; Household cleaning products; Cosmetics & personal care; Pharmaceutical & medical; and Thermoforming
- Geographic markets: Six world regions and 19 leading national markets
- Company profiles for over twenty leading PET packaging producers worldwide.
While a few of the
major companies dominate the global PET packaging market it does remain
somewhat fragmented, despite the industry consolidation that has happened in
recent years. Several major PET packaging producers are now acquiring PET
recycling capabilities and growing their use of post-consumer PET packaging
material to meet sustainability goals. Brand owners are increasingly taking
bottle-blowing in-house, rather than buying from specialist bottle producers.
Bottled water and carbonated soft drinks (CSDs) are the dominant markets for
PET packaging. In 2019, bottled water was the largest end-use market,
accounting for 34.6% of global PET packaging consumption, with CSDs
representing 27.1%.
Bottled water is forecast to display continued strong growth for PET packaging.
Demand for CSDs will be slower, due largely to European and North American
consumers switching to healthier drinks. Other growing sectors include sports
& energy drinks and ready-to-drink teas. For jars, technological advances
in barrier solutions and hot-fill are allowing PET to be used for more
sensitive products, such as juices, jams, and other preserved foods.
Asia-Pacific is the largest regional PET packaging consumer, accounting for 36.7% of global PET packaging consumption in 2019. North America is the second largest regional market with a share of 20.5%, followed by Western Europe with 17.9%. For 2020-2025, PET packaging consumption in Asia-Pacific is forecast to grow at the fastest rate, along with the Middle East and Africa. Rising standards of living, growing urbanisation, a developing retail infrastructure, and the replacement of traditional pack types will drive this.
Global PET packaging consumption by end-use sector, percentage share, 2019
Consumer advocacy is pushing brand owners and
national governments to restrict plastic in packaging. This negative sentiment
is seeing retailers and brand owners look for polymer packaging that is
recyclable and can incorporate higher levels of recycled content. While
recycled PET demand is growing, collection rates for post-consumer PET bottles
will have to grow faster to meet European Union targets for recycled content in
packaging.
Simultaneously resin producers are evolving
improved formulations of PET for packaging. Bio-based plastics, including 100%
bio-based PET bottles, are set to gain market share over the forecast period.
More recent developments to commercialise chemical recycling of mixed plastics
waste have the potential to be a game changing innovation for sustainable PET
feedstock supply.
The Future of PET Packaging to 2025 provides
a comprehensive business strategy guide to the current and future state of the
PET packaging industry. This includes critical analysis of all market and
technology trends, and an exclusive dataset presented in over 110 tables and figures.
