Market Trends of Asia Pacific Plastic Bottles Industry
Polyethylene Terephthalate (PET) To Witness Growth
- PET plastic bottles are increasingly supplanting traditional glass bottles, thanks to their lightweight nature and durability. This shift enhances the reusability of packaging for mineral water and other beverages and streamlines the transportation process, making it more cost-effective.
- With its clarity and natural CO2 barrier properties, PET has wide applications and can be easily blown into a bottle or molded into any other shape. PET's 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 a vital packaging material among bottle manufacturers across the region. Its 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. PET bottles' low cost and low weight and ongoing developments in printing technology have led to their popularity among premium consumers. According to the National Bureau of Statistics of China, the production of plastic products in China was 6.3 million metric tons in May 2023. It increased to 6.82 million metric tons in September 2023. The rise in the production of plastics in China is expected to enhance the market for PET products.
- Closed-loop recycling refers to a process where plastic is recycled and utilized to manufacture a new product within the same category. This approach is commonly embraced by PET bottles, enabling businesses to prioritize it over alternative resin materials. Consequently, the recycling of plastic bottles is expected to have a favorable influence on the market. 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.
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The Beverage Sector is Expected to Drive Market Growth
- PET bottles are more prevalent in the water packaging market than glass and plastic bottles due to their durability and recyclability. The trend shows that lightweight, durable, and cost-effective PET is becoming the default packaging medium for water. Moreover, PET bottles can be molded in different shapes according to the packaging trend and the labels to be applied to the body.
- According to the UN University Institute for Water, Environment, and Health, more than 14 lakh tons of PET plastic, commonly used for bottled water, are consumed annually in India. Further, the region is also one of the fastest-growing mineral water markets. According to a report by the International Bottled Water Association, about 97% of bottled water bottles are plastic, and nearly 80% of that is from polyethylene terephthalate (PET).
- Companies also innovate different formats of bottled water. This provides opportunities for the companies to promote the bottles with unique strategies to create a market buzz. For instance, India introduced ISI-certified bottled water in December 2023, which can be branded by advertisers at the lowest cost, leveraging 80% of the branding space. Advertisers can set up an account for their brand, upload their design, and link it to the label template to tailor their marketing strategies for their target audience.
- Governments across the region are focusing on the recycling of single-use plastic bottles by incorporating various schemes, such as refilling a reusable plastic bottle from the consumer side, using biodegradable or recycled PET bottles for the manufacturing of plastic bottles, innovating eco-friendly designs, and setting up a different council to recycle plastic bottles generated by various end users. Manufacturers across the region innovate to introduce water bottles that fulfill the recyclability criteria under government laws and company guidelines to become sustainable manufacturers in the sector.
- India is one of the strongest markets in the region and has the highest population. There has been a significant increase in the consumption of bottled water in the country. The Indian Railway Catering and Tourism Corporation Limited launched a PET bottled water brand, "Rail Neer," which is majorly sold on trains and railway stations. With the rising consumption of water bottles and the growing railway sector, the corporation increased the production of bottles from 75.30 million bottles in 2021 to 357.70 million bottles in 2023.
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