PET PACKAGING MARKET ANALYSIS

The global PET packaging market was valued at US$ 61.9 Mn in 2023 exhibiting a CAGR of 7.7% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 104.1 Mn by 2030. PET packaging offers a a large number of advantages. For starters, it can be entirely recycled. The production process of PET packaging uses significantly less energy than other materials. Its low melting point also makes it less harmful for the environment. Additionally, it has an excellent capacity-to-weight ratio, meaning that it is able to accommodate a wide variety of products and packaging designs.

Covid-19 Impact on Global PET Packaging Market

The COVID-19 pandemic offered significant relief to single-use packaging vendors. Although many countries were slowly banning these types of packaging and promoting reusable packaging, the outbreak changed consumers and governments behavior. Due to the COVID-19 outbreak, the demand for nutritional drinks and healthy food increased exponentially. The majority of these products are packaged in single-use plastic, such as PET. The orders were so huge on a global level that the manufacturing and packaging companies in the field even expanded their facilities, which most governments also supported. Moreover, several suppliers of PET packaging raw materials have been declared essential business operations in some places. As a result, other countries are campaigning for the same recognition to keep their goods in demand. The market demand for PET pharmaceutical packaging manufacturers grown. 

Global PET Packaging Market- Drivers

• Excellent properties of PET: Excellent properties of PET, such as high transparency, good stability, a shiny surface, high-pressure resistance, lightweightness, and good barrier properties, are driving growth of the PET packaging market. Moreover, this material is biologically inert, does not react with foods or beverages, and is also resistant to attack by microorganisms. Furthermore, it has been thoroughly reviewed and approved as safe for contact with foods and drinks by the U.S. FDA, Health Canada, the European Food Safety Authority, and other health-safety agencies. 

• Growing demand for environmental friendly packaging solution: Growing demand for environmentally friendly packaging solutions is again augmenting growth of the market. According to Bleher Folientechnik, PET leads to 60% energy savings compared to the energy requirements for producing new plastics. Moreover, it is recycle-friendly as its polymer chains break down at a low temperature, creating minimal polymer chain degradation during the recycling process. According to the Food Packaging Forum Foundation, 822,363 tons of PET bottles are collected in the U.S. for recycling annually.

Global PET Packaging Market- Restraints

• Increasing regulations regarding the usage of plastic: Increasing regulations regarding the use of plastic in some regions are projected to hamper market growth. For instance, the EU Commission is considering a general ban on plastic packaging, which is expected to constrain market growth. In March 2020, the UK Chancellor of the Exchequer declared that the plastic packaging tax (created to encourage the use of more recycled plastic from April 2022) would be levied on packaging made of less than 30% recycled plastic. The chancellor anticipates that the law would collect EUR 200 per ton.

However, more practices towards Enviroment Friendly Packaging can Help market to grow.

Global PET Packaging Market- Segmentation

Figure 1: Global PET Packaging Market, By Packaging, 2023

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On the basis of Packaging in 2023, the rigid  segment has accounted for the largest market share of 77% in terms of value.

Global PET Packaging Market- Opportunities

• Increasing merger and acquisition in the PET packaging market is projected: Increasing mergers and acquisitions in the PET packaging market are projected to provide lucrative growth opportunities for the key players in the market. For instance, in June 2022, Ara Partners ("Ara"), a private equity firm that specializes in industrial decarbonization investments, announced that it had acquired Petainer Ltd. ("Petainer" or the "Company"), a UK-based, global producer of sustainability-focused beverage packaging solutions. Petainer was acquired by Ara in partnership with Petainer management and affiliates of Next Wave Partners LLP.

Global PET Packaging Market- Trends

• Worldwide, the recycling trend of PET is increasing with government mandates and industry initiatives: Worldwide, the recycling trend for PET is increasing with government mandates and industry initiatives. The United States PET recycling rate increased To 29%, as per NAPCOR (National Association for PET Container Resources) and APR (Association of Plastic Recyclers) in 2022. Toronto also recycles around 3,600 metric tons of single-use PET bottles every year, of which 30% are water bottles. .

Global PET Packaging Market- Regional Insights

The global PET packaging market is largely dominated by Asia Pacific. The region is home to a large consumer base, and a high percentage of packaged foods and beverages are sold in PET packaging. The rising e-commerce sector in the region offers significant growth opportunities for the market. Moreover, the market for these products is expected to expand at a steady pace over the forecast period. Additionally, according to the Directorate General of Commercial Intelligence and Statistics (DGCIS) of India, the Indian plastics industry hosts more than 2,000 exporters.

Figure 2: Global PET Packaging Market, By Region, 2023

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Global PET Packaging Market- Key Developments

• In December 2020, Amcor launched a new hot-fill polyethylene terephthalate (PET) bottle for Colombia's Nutrea/Frudelca's Frupro protein juice. PET heat-set technology from Amcor enables beverages to be filled at temperatures as high as 185°F (85°C), ensuring product quality and shelf life.
• In November 2020, Amcor launched a lightweight 900-ml polyethylene terephthalate (PET) bottle for edible oil in Brazil. It is a custom-designed container for agribusiness and food producer Bunge in São Paulo, which is 22% lighter than competitive bottles while providing greater productivity and increased sustainability benefits.
• In April 2020, Amcor launched a family of stock polyethylene terephthalate (PET) bottles that help co-packers meet the demanding requirements for e-commerce-ready packaging. The bottles increase capacity and reduce downtime as they have the same diameter and finish. However, the height changes to accommodate the varying fill volumes.
• In February 2020, Amcor partnered with British start-up Garçon Wines to make sustainable PET flat wine bottles available to the US market.
• In April 2021, Resilux announced a major new technology investment that will result in them doubling their bottle-to-bottle PET recycling capacity. Using state-of-the art equipment from Erema, it is Resilux’s latest step in their drive to create a truly circular economy in PET. The equipment is expected to be installed at the company’s Bilten location in Switzerland, where the Resilux Group Recycling competence center is based.

Global PET Packaging Market- Key Players

Major players operating in the global PET packaging market include Amcor Ltd, Resilux NV, Gerresheimer AG, Berry Global Group Inc., Silgan Holdings Inc., Graham Packaging Company, and GTX Hanex Plastic Sp. z o.o., Dunmore Corporation, Comar LLC, Sonoco Products Company, Huhtamaki OYJ, and Nampak Limited

*Definition: Polyethylene terephthalate (PET) is a popular material for packaging. Its high performance and low cost make it ideal for many applications. Some of these applications include water bottles, juice bottles, and carbonated soft drinks. This material is also a great option for a replacement for glass and metal containers. PET is a fully recyclable plastic.