Market Trends of Asia-Pacific Plastic Bottles And Containers Industry
Polyethylene Terephthalate (PET) Segment Holds Major Market Share
- Plastic bottles made from PET are widely replacing heavy and fragile glass bottles since they offer reusable packaging for mineral water and other beverages, allowing a more economical transportation process.
- With its clarity and natural CO2 barrier properties, PET has wide applications and is easily blown into a bottle or molded into any other shape. PET properties can be improved with colorants, UV blockers, oxygen barriers/scavengers, and other additives to develop a bottle to match a brand's specific needs.
- PET has become one of the vital packaging materials among bottle manufacturers across the region. PET's versatility in accommodating different shapes and sizes has provided unparalleled alternatives to conventional glass and metal containers, making it a highly desirable choice in the packaging industry.
- Polyethylene terephthalate (PET) bottles are gaining a presence in various product areas. Low cost, low weight, and ongoing developments in printing technology have led to PET bottles gaining popularity among premium consumers.
- As per the report of Indorama Ventures, a sustainable chemical company, the demand for recycled polyethylene terephthalate (RPET) in Asia is expected to increase constantly from 0.6 million metric tons in 2018 to approximately 1 million metric tons in 2023.
- Further, in September 2023, Indorama Ventures Public Company Limited notified that it had recycled 100 billion post-consumer PET bottles. This has diverted 2.1 million tons of waste, preserved 2.9 million tons of carbon footprint, and helped in establishing a circular economy for PET. Indorama Ventures spent more than USD 1 billion on the waste collection of used PET bottles.
- The future of PET recycling closely revolves around technological advancements that make the process more efficient, cost-effective, as well as environmentally friendly. The ability to collect, process, and transform used PET products into new packaging materials provides an immense opportunity to reduce dependency on virgin resources, therefore mitigating environmental waste.
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China Expected to Hold Significant Market Share
- China is one of the major producers and consumers of plastic globally. According to the OECD, China's plastics use is projected to grow considerably over the next four decades, reaching more than 203.12 million metric tons by 2060. The growing dependence on plastic bottles and containers made using PET (Polyethylene Terephthalate), HDPE (High-Density Polyethylene), and other polymers for food & beverage, pharmaceutical, and personal care industries has increased the focus on the production and export of plastics from China.
- According to data from the International Trade Center (ITC), China's largest export of plastic products is to the United States of America. China exported 292.6 million tons of plastic products to the USA in 2023, which was 8.00% higher than the previous year. The high potential growth opportunity in plastic trade is expected to increase the country's demand for plastic in the coming years.
- China is witnessing a shift in its focus on sustainable and eco-friendly practices to promote recycled plastic. This has resulted in beverage manufacturers such as Coca-Cola using recycled plastic as part of their strategy to reduce their environmental footprint.
- In April 2024, Coca-Cola Company, a United States-based beverage company, launched Coca-Cola Original, Coca-Cola No Sugar, and Coca-Cola Plus bottles made from recycled polyethylene terephthalate (rPET) in Hong Kong.
- China has been prompting merchants and delivery companies to reduce "unreasonable" plastic wrapping and increase garbage incineration rates in cities to about 800,000 tons per day by 2025, up from 580,000 tons currently. Such developments are expected to increase the country's recyclable plastic packaging demand.
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