The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The PET Packaging market was valued at USD 49.8 billion in 2019?and is expected to reach USD 66.42 billion by 2025, at a CAGR of 5% over the forecast period 2020?- 2025. 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.
PET possesses packaging properties that make it preferable over other packaging technologies. Certain beneficial properties of PET packaging are high transparency, shiny surface, good stability, high-pressure resistance, good barrier properties, and light weight.
The greater transparency and the shiny surface of PET packages offer a special appearance and give it a sophisticated image. New labeling solutions with double-sided printed labels can give to the bottle an aesthetically pleasing appearance. Moreover, the flexible production process permits a nearly unlimited diversity of design. In particular, the machine and mold technology offer a universal design with minimal mold costs.
Further, because of the outstanding material qualities, PET-containers are virtually unbreakable. This results from no fractures while filling, transporting, and use. Even with the damage, no injuries can be caused by splinter parts. PET gives optimal protection to all consumers. Owing to these properties, PET packaging is advantageous over other packaging materials.
Plastics have been mass-produced since the 1940s. The lifespan of the average plastic bag, bottle, or picnic fork may be 1,000 years or more. Human use of plastic has become so commonplace that scientists have estimated that by 2050 there will be more plastic than fish in the sea. Because of these adverse environmental impacts, plastics are being banned in certain countries. For instance, France has passed a new law to ensure that all plastic cups, cutleries, and plates can be composted and are made of biologically-sourced materials.
The new law is set to be implemented from 2020 and will be a part of France’s Energy Transition for Green Growth Act, an ambitious plan that aims to allow France to make a more effective contribution in tackling climate change. The country has already set a ban on disposable plastic bags. The restrictions on plastic products follow the global climate agreement reached in Paris in 2015, which aims to strengthen the ability of countries to deal with the impacts of climate change.
Moreover, the European Parliament has overwhelmingly approved a ban on single-use plastics, such as straws, plates, cutleries, and cotton-swab sticks in Europe by 2021, joining a global shift, as environmentalists emphasize the urgency of halting the use of materials that are detrimental to the environment.
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 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.
Key Market Trends
Rigid Packaging Segment Expected to Register a Significant Growth
The rigid packaging segment occupied the largest share of the market due to their extensive use in bottles, jars, containers, trays, and clamp shells. With plastic bottles continuing to witness a strong growth over the forecast period, the rigid PET packaging is expected to continue to dominate the market studied, during that time.
The trend of sustainability, which includes recycling and the use of bio-degradable forms of PET, is expected to rise over the forecast period. In some regards, it will always face sustainability issues due to the nature of its production. However, it is the recycling streams and the development of these that will help neutralize such sustainability issues.
Augmenting this trend, Unilever, in January 2017, announced that it is committed to ensuring that all of its plastic packagings are fully reusable, recyclable, or compostable by 2025.The Unilever company had already committed to reducing the weight of its packaging this decade by one-third by 2020 and increase its use of recycled plastic content in its packaging to at least 25% by 2025.
However, the introduction of flexible packaging uses lesser resources and energy than rigid polymers, compared to rigid packaging, which makes it an attractive choice. This may hamper the growth of rigid packaging in certain segments.
United States Region to Hold Significant Share
The demand for plastic bottles and containers in the United States is estimated to increase at a steady rate, owing to the increasing consumption and industrial applications of plastic-made containers. According to the Plastics Industry Association (PLASTICS), the demand for plastic bottles continues to expand in the United States. Plastic bottles and jars represented, approximately, 75% of all plastic containers, by weight, in 2017.
Plastic usage continued to increase across products and sectors, including food and beverage, household, pharmaceutical, and automotive chemicals and fluids. In the United States, about 50 billion plastic water bottles were purchased in 2017, an increase from the previous year. Though recycling rate was set for 23%, only 7% of the plastic collected was recycled and used to produce new bottles. The country is also growing its patent in plastic bottles and containers. For instance, in 2018, Graham Packaging Company was granted a patent for its new innovative plastic containers.
Rising awareness and consumer preferences for eco-friendly solutions are the primary factors for the rapid adoption of PET packaging. According to the PET Resin Association, virtually, all single-serving and 2-liter bottles of sodas and water sold in the country are made from PET plastic. The environmental impact of PET is very favorable as compared to glass, aluminum, and other recyclable container materials
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.
The companies operating in the market are also acquiring start-ups Comar LLC announced the acquisition of Shore Plastic Technologies Inc. This acquisition is the latest in the series of recent investments by the company to improve the design and engineering capabilities, and to better serve customers in medical devices, pharmaceutical, diagnostic, and CPG market segments. Returnable transport packaging technologies to strengthen their product capabilities. In November 2017,
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client’s requirements
- 3 months of analyst support