Asia Pacific, South America and Middle East and Africa will see the strongest growth in PET packaging consumption to 2015 according to new research from Pira International. Asia Pacific is expected to see a CAGR of 7.4percent over the period whilst mature markets such as North America and Western Europe top-out at only 1 or 2 percent.
Pira expects the global average growth rate for the period 2010-2015 to be 4.8 percent, reaching 14.5 million tonnes.
Based on primary research and expert analysis, The Future of PET Packaging to 2015: Global Market Forecasts analyses the key opportunities and future trends shaping the industry, providing raw material suppliers, processors and equipment suppliers with 5-year forecasts. The report identifies 20 leading PET packaging company profiles, and presents technology and market forecasts to 2015 for bioplastic packaging by technology, end-use sector, and geographic region.
Growth in the PET packaging market has been curtailed since 2008 as a result of the world economic recession. Consumers have reduced their discretionary spending, including the purchase of some packaged beverage products. PET packaging market growth in tonnage terms has also been adversely affected by the trend to light-weight PET bottles. For example, the average weight of a single-serve PET mineral water bottle reduced by around one-third during the period 2003-08. Pira expects the trend to light-weight PET bottles will continue.
The slowdown in consumer demand for CSDs and mineral water in developed countries, and the market maturity of these key end-use sectors, is also holding back the growth of PET packaging. The growing use of recycled PET content in beverage bottles is displacing virgin PET material for packaging. While from 2010 to 2015 PET packaging is unlikely to register growth rates similar to those seen between 2000 and 2007, growth opportunities still remain. Barrier PET bottles and jars for juice, milk, tea, beer, wine and food are forecast to register strong growth over the period 2010-15 according to Pira. The developing countries of Asia Pacific, South America and eastern Europe will also show higher growth for PET packaging as a result of growing real incomes and the replacement of traditional pack formats by PET bottles.
PET is widely used for the production of beverage bottles for carbonated soft drinks (CSDs), mineral water, ready-to-drink tea, juices and energy drinks. It is also used in the manufacture of containers for food, detergents, cosmetics and pharmaceuticals, and in thermoforming applications.
According to Pira, CSDs are the largest end-use sector for PET packaging, accounting for a projected 35.9% share of consumption in 2010. Bottled water is the second-largest end-use sector for PET packaging with a projected 2010 share of 33.8%.
All other end-use sectors command a relatively minor share of PET packaging consumption, as the joint third-largest sectors, thermoforming and food bottles, each represent 7.1% of total consumption.
Bottled water is forecast to overtake CSDs as the largest end-use sector for PET packaging over the forecast period 2010-15. Other soft drinks, such as functional drinks, dairy drinks and ready-to-drink tea and coffee, are also forecast to grow at a rate higher than that of PET packaging consumption as a whole. Pira estimates that there are also good growth opportunities for barrier food bottles and jars and thermoforming.
The development of PET bottles with enhanced gas-barrier properties presents a major market opportunity for PET preform and bottle producers over the period to 2015. According to Pira, barrier PET bottles are predicted to grow at a significantly higher rate than PET packaging as a whole. Beer, wine, juices, dairy products and food all present growth opportunities for barrier PET bottles and jars.
Pira also attributes development of the PET packaging market to continuous improvements in technology. Technological development is providing better barrier solutions, improved resin formulations, faster and more efficient PET processing machinery, and solutions for hot-filling and aseptic filling of PET packaging.
According to Pira, rising real incomes in the emerging and developing markets of Asia Pacific, eastern Europe and South America will be the main driver of growth for PET packaging over the five years to 2015. Key demographic influences on global PET packaging growth include the faster-growing populations in Asia Pacific, eastern Europe and South America.
Asia Pacific overtook North America and western Europe as the largest regional consumer of PET packaging during the period 2005-10, Pira therefore estimates that Asia Pacific will be the fastest-growing world region for PET packaging, accounting for almost half of total consumption growth for the period 2010-15.
In South America, eastern Europe, the Middle East and Africa, Pira anticipates that consumption of PET packaging will grow at above average market rates during the forecast period. In the more mature western European and North American markets consumption of PET packaging is forecast to grow at much slower rates.
The Future of PET Packaging to 2015: Global Market Forecasts is available now. For more information, contact e-mail [email protected]