PET stands for polyethylene terephthalate, which is a thermoplastic organic compound used to make plastic bottles. Bottles made from polyethylene terephthalate (PET) plastic material are gaining traction globally, owing to various advantages offered by PET bottles such as lightweight, flexibility, and unbreakable. Factors such as rising applications of PET bottles in the beverage industry in packaged water, juices, flavored water, functional water, carbonated drinks, and others are boosting the growth of the global PET bottles market. Furthermore, they are environmentally benign and can be recycled multiple times, therefore lowering their manufacturing costs significantly.
The global PET bottles market was valued at US$ 565.93 Bn in 2020 and is expected to reach US$ 781.90 Bn by 2028, exhibiting a CAGR of 3.87% during the forecast period (2021-2028).
A rise in the demand for polyethylene terephthalate (PET) plastic bottles for the packaging of bottled water, juices, soft drinks, medicines, salad dressing, oil, household cleaners, and personal care products is a major factor driving the growth of the global PET bottles market. This is attributed to the advantages of PET materials, including high transparency, shiny surface, good stability, high-pressure resistance, good barrier properties, and lightweight.
The global emergence of the e-commerce industry is also contributing significantly to the market growth. As transporting PET bottles and jars is simple from a logistics standpoint, a growing number of brands are turning to PET for their packaging needs. Furthermore, since PET bottles are lightweight and do not require special handling, the cost of transportation is significantly reduced. As a result, the demand is expected to increase significantly over the forecast period as people's preference for e-commerce services grows.
Among regions, Asia Pacific held a dominant position in the global PET bottles market in 2020, accounting for 35.00% market revenue share, followed by North America and Europe. Growing various industries such as food and beverages and personal care from China, India, and Japan is driving the market growth in this region are expected to drive the demand for PET bottles growth.
Figure 1. Global PET Bottles Market Revenue Share (%), By Region, 2020
Regulations imposed on using PET bottles are one of the major factors hindering the PET bottles market growth. For instance, in 2019, the European Union issued Directive 2019/904 on the reduction of the environmental impact of certain plastic products, which will require States Members to adopt national legislation prohibiting the use of certain single-use plastics and improving the management of others to reduce their impact on the marine environment.
|Base Year:||2020||Market Size in 2020:||US$ 565.93 Bn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||3.87%||2028 Value Projection:||US$ 781.90 Bn|
Berry Plastics Group Inc., GTX Hanex Plastic Sp. Z O.O., Gerresheimer AG, Graham Packaging Company, RPC Group, Rexam PLC, Silgan Holdings, WestRock, Exo Packaging, Alpha Group, and Crown Holdings
|Restraints & Challenges:||
Due to growing environmental concerns, several beverage firms are improving their packaging solutions by utilizing the most up-to-date PET bottle production technology. PET bottles are used for carbonated soft drinks (CSDs), food bottles and jars, non-food bottles and jars, fruit juice, and beer these are some factors which increase the demand of PET bottle market. For instance, in 2019, Lucozade Ribena Suntory (LRS), parent company Suntory, announced its intention to become the first global drinks company to use 100% sustainable plastic bottles, with fully recycled or plant-based materials across its entire portfolio by 2030.
Among applications, the Beverages segment held a dominant position in the global PET bottles market in 2020, accounting for 65% of the market share. PET is a popular choice of packaging for beverages such as soft drinks and bottled water, owing to its advantages including ease of molding into desired shapes. PET is commonly used in beverage packaging, owing to its excellent barrier properties against water vapor, gases, dilute acids, oils, and alcohols. PET is also shatter-resistant, moderately flexible, and easy to recycle.
Figure 2. Global PET Bottles Market Revenue Share (%), By Application, 2020
Global PET Bottles Market - Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 outbreak was first reported in December 2019 in Wuhan, China. Due to lockdowns, travel bans, and business closures, the outbreak has affected economies and industries in a number of countries. The PET bottles industry is one of the world's most important industries which has been hit hard by supply chain failures, technology event cancellations, and the shutdown of production plants during the COVID-19 pandemic. The operating capacity had to be reduced due to labor shortages and disruptions in the supply of raw material. Due to reasons such as supply chain disruption, which has slowed the demand for PET resins, and the imposition of lockdown in different countries, the PET bottles market has seen a major reduction in sales since the emergence of COVID-19.
Major players operating in the global PET bottles market include Berry Plastics Group Inc., GTX Hanex Plastic Sp. Z O.O., Gerresheimer AG, Graham Packaging Company, RPC Group, Rexam PLC, Silgan Holdings, WestRock, Exo Packaging, Alpha Group, and Crown Holdings.
Polyethylene terephthalate (PET) plastic is widely used for manufacturing packaging materials such as bottles. PET bottles are more durable, transparent, lightweight, non-reactive, cost-effective, and thermally stable than polypropylene (PP), high-density polyethylene (HDPE), and polyvinyl chloride (PVC) bottles.
The demand for PET bottles for bottled water packaging is being driven by the growing demand for packaged drinking water among consumers around the world, as they offer a long shelf life, ease of use, and enhanced protection against potential deterioration agents, as well as are less expensive than other packaging options.
PET is also preferred by manufacturers over other plastic packaging products, as it allows for the least amount of raw material loss during the manufacturing process. Its highly recyclable nature, as well as the ability to add multiple colors and designs, has elevated it as a preferred option. Refillable products have also emerged as a result of growing consumer awareness of environmental issues, resulting in increased demand for the PET bottles.
Consumers are increasingly gravitating toward alternative packaging materials that are more environmentally friendly. Owing to their environmentally friendly nature and great recyclability, aluminum and glass have seen strong acceptance rates. As a result, consumers are increasingly turning away from plastic. Therefore, this factor is hampering the growth of the global PET bottles market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.