PET bottles market is estimated to be valued at USD 45.60 billion in 2024, growing at a CAGR of 3.4% over the forecast period (2024-2031). The polyethylene terephthalate (PET) bottle demand is growing rapidly across the globe due to the increasing consumption of packaged beverages such as carbonated drinks, bottled water, juices, and other packaged food & beverage products. Furthermore, PET bottles are highly recyclable and can be recycled into new bottles with just one step melting process making them economical and eco-friendly packaging solutions.
The global PET bottles market is expected to grow at a significant rate owing to two key drivers - growing consumption of packaged beverages and one step recyclability of PET bottles. Firstly, the consumption of packaged beverages especially bottled water and carbonated soft drinks is increasing rapidly across both developing and developed countries. This is attributed to rising disposable incomes, urbanization, and changing lifestyles. Secondly, PET bottles can be recycled into new bottles with just one step melting process unlike other plastics that require additional processing. This makes PET bottles economical and encourages their reuse, thereby driving the market growth over the forecast period.
Growing demand for lightweight and affordable packaging solutions
The PET bottles market is seeing significant growth due to the growing demand for lightweight and affordable packaging solutions from various end-use industries such as food and beverages, personal care, pharmaceuticals, and household care. PET bottles are highly preferred over traditional packaging materials like glass and metals due to their lightweight and low-cost nature. PET is durable, shatterproof, and takes up lesser storage space as compared to glass bottles, thereby reducing the logistical and transportation costs. Their recyclable property also reduces waste generation, contributing to sustainability. Wide acceptance of on-the-go lifestyles and busy schedules have increased the demand for packaged foods and drinks, propelling the PET bottles market growth.
Stringent regulations promoting the usage of recycled PET
Governments across the world are implementing stringent regulations promoting the usage of recycled PET to reduce plastic waste. Recycled PET (rPET) reduces the environmental footprint of plastic packaging. It utilizes recycled plastic from post-consumer waste to manufacture new PET bottles. This is driving bottle manufacturers to use higher proportions of rPET in their products. For example, the European Union has set a target of recycling 75% of plastic bottles by 2025 through its Plastics Strategy. Such initiatives are encouraging beverage producers to adopt recycled content targets. As regulations tighten, the PET Bottle market and the demand for PET bottles with recycled content will witness considerable growth in the coming years.
Volatility in crude oil prices
PET is manufactured from crude oil or natural gas. Therefore, fluctuations in crude oil prices pose a major restraint to the PET bottles market. With crude oil historically exhibiting unstable and rising price trends, it increases uncertainty around raw material costs for PET bottle producers. Any increase in crude oil costs is often passed on to consumers via higher product pricing, which can negatively impact the market growth. This price volatility poses challenges for manufacturers to maintain stable margins.
Perception of single-use plastic as an environmental pollutant
Rising global concerns about plastic waste and its adverse environmental impact poses a key restraint. Single-use plastics like PET bottles are frowned upon due to beliefs that they contribute significantly to plastic pollution and clog landfills. NGO campaigns against single-use plastics have increased consumer awareness about plastic sustainability issues. This has resulted in negative perception around PET bottles. While the PET industry is working towards recycling solutions, the stigma around single-use plastics remains a major demand deterrent. Switching to alternate green packaging or reusable containers is also limiting the PET bottles sales.
Innovations in bottle design
Bottle manufacturers are tapping growth opportunities by introducing innovative PET bottle designs. Lightweighting techniques help reduce plastic consumption while maintaining performance. The focus on designing bottles for improved recyclability is also driving innovations. Developments such as PET bottles with wider necks for easy emptying and improved labels for separation during recycling present opportunities. New designs optimized for specialized applications such as personal care, households, or sports also expand the market growth.
Increasing use of PET preforms and bottles in developing nations
Developing economies in Asia Pacific and Latin America offer sizeable opportunities for the PET bottles market due to rapidly growing middle-class populations, increasing per capita incomes, and expanding consumer lifestyles. Fast urbanization and industrialization are propelling demand for PET bottles in these regions as bottled water, beverages, and household products gain widespread popularity. Manufacturers are tapping opportunities from these emerging markets by setting up new production facilities, offering price-competitive products, and leveraging the trend towards branded packaged goods.
*Link: https://www.coherentmarketinsights.com/market-insight/pet-bottles-market-2284
Key Developments
- In 2023, Sidel launched new a PET bottle
- In October 2023, Coca-Cola India launched 100% recycled PET bottles for its flagship brand, Coca-Cola, in 250 ml and 750 ml pack sizes
- In October 2022, Indorama Ventures announced the opening of its PET value bottle-to-bottle recycling plant in the Philippines in partnership with Coca-Cola Beverages Philippines
- In May 2022 SABIC, one of the leaders in the chemical industry, introduced the LNP ELCRIN WF0061BiQ resin. This material utilizes ocean-bound polyethylene terephthalate (PET) bottles as a feed stream for chemical upcycling into polybutylene terephthalate (PBT) resin.
Key Players
Amcor Limited, Cospack America Corporation, BERICAP GmbH & Co. KG, Rexam, Inc., Berry Global, Inc, Graham Packaging Company Inc., Container Corporation of Canada, Ontario Plastic Container Producers Ltd., Constar Internationals, Inc., Alpha Packaging, Alpack Plastics, Plastipak Holdings, Inc., Resilux NV, Livia, TEKNOBYTE INDIA, Sunshine Polypet Private Limited , Singh Enterprises, Kamala Plastics, GBC Packaging Private Limited, and Teknobyte India Pvt. Ltd