Market Trends of China Plastic Bottles Industry
Polyethylene Terephthalate (PET) to Witness Growth
- Polyethylene terephthalate (PET) bottles are increasingly being adopted across diverse product categories. Their affordability, lightweight nature, and advancements in printing technology have made PET bottles a favored choice among premium consumers. Furthermore, PET bottles are becoming the preferred alternative to heavy and fragile glass bottles, especially for packaging water and other beverages, facilitating more cost-effective transportation.
- China is a global player in both producing and consuming plastics. The rising reliance on PET (polyethylene terephthalate) and other polymer-based bottles and containers in the food, beverage, pharmaceutical, and personal care industries has intensified China's focus on plastic production and exports.
- Data from the International Trade Center (ITC) reveals that the United States is the top destination for China's plastic exports. In 2023, China shipped 292.6 million tons of plastic products to the United States, marking an 8.00% increase from the prior year. Given the promising growth prospects in the plastic trade, China's demand for plastics will rise in the forthcoming years.
- According to a study by Czarnikow Sugar Futures Limited, a global supply chain management company specializing in food and beverage, Chinese bottle-grade PET exports surged in March 2023. However, exports rebounded and set new records, surpassing 515 thousand tonnes. This surge can be attributed to significant capacity expansions in 2023, complemented by additional boosts in early 2024. Also, in Q1 2024, Indonesia, India, and the United Arab Emirates emerged as the leading destinations, receiving approximately 82 thousand tonnes, 66 thousand tonnes, and 65 thousand tonnes, respectively.
- According to the National Bureau of Statistics of China, the production volume of plastic products in the country in 2018 was 60.42 million metric tons, and it reached 74.89 million metric tons in 2023. Therefore, in China, the surging demand from the food and beverage industries is rapidly boosting the need for rigid plastic packaging products. The rising use of PET plastic bottles for packaging bottled water, juices, soft drinks, medicines, household cleaners, and personal care items plays a pivotal role in propelling the growth of the plastic bottles market.
Understand The Key Trends Shaping This Market
Download PDF
The Beverage Industry is Poised to Propel Market Growth
- Plastic bottles made of polyethylene terephthalate, polypropylene, polyethylene, etc., are widely used in the packaging industry as they are lightweight and unbreakable, making handling easier. Even manufacturers prefer to use plastic packaging, owing to the lower cost of production. Westwood Sourcing reports that China is intensifying its PET bottle recycling initiatives, converting them into recycled PET (rPET) and paving the way for a range of innovative, eco-friendly products. PET bottle recycling in China is vital in reducing environmental pollution and conserving natural resources.
- According to SMI Group, the Chinese bottled water market has witnessed significant growth in production volume and consumer base. In the first quarter of 2023, the market saw a 10.9% increase in bottled water volumes, primarily attributed to a surge in retail sales. Increasing household consumption, especially in more extensive packaging, has further bolstered this demand.
- Major Chinese beverage brands have invested in modern, efficient production lines to respond to this expanding market. For instance, in Tianjin, HuihuangUnited Food, a prominent bottler for brands like Coca-Cola and C'estbon, collaborated with SMI, a long-term partner, to adopt the first-in-China integrated blowing-filling-capping system, EcoblocErgon, specifically for bottling C'estbon's 4.5 L PET containers.
- According to the National Bureau of Statistics of China, the production of non-alcoholic beverages in the country in March 2024 was 17.87 million metric tons, reaching 19.54 million metric tons in June 2024. Rising consumer demand for bottled water in Asian nations, particularly China, is propelling market growth.
- Data from the United Nations University Institute for Water, Environment and Health, a UN agency, highlights that Asia-Pacific countries lead in bottled water consumption. Notably, China ranks as the second-largest bottled water market globally, trailing only the United States, further fueling the growth of the PET plastics market.
