Market Trends of Germany Plastic Caps And Closures Industry
Polyethylene Terephthalate (PET) To Witness Growth
- Polyethylene terephthalate (PET) is widely used in food packaging. It is levered for its robust barrier properties against water vapor, gases, dilute acids, oils, and alcohol. Beyond its barrier strength, PET boasts shatter resistance and flexibility and is notably easy to recycle.
- These attributes have cemented PET's dominance in food and beverage packaging, where its enduring resistance to various elements and recyclability stand out. Its durability and steadfastness further underscore its suitability for food-grade items, including individual drink containers and closures.
- According to a study by Dutch PET Recycling, Germany recycled approximately 438,000 tonnes of PET beverage bottles, including imports. The majority, 190,500 tonnes (44.7%), was channeled into producing new bottles. Also, about 33,600 tonnes of PET were incinerated from bottle sorting and reprocessing or mistakenly directed to residual waste.
- Further, in January 2023, Revalyu Resources GmbH, headquartered in Kleinostheim, Germany, is set to invest USD 50 million in its U.S. expansion, beginning with constructing a plant in Statesboro, Georgia. The groundbreaking ceremony for the 43-acre Statesboro site is slated for the first half of 2023, with commissioning scheduled for 2024. Upon completion of the initial phase, the plant can process over 225,000 pounds per day of polyethylene terephthalate (PET) into PET polymers and recycled PET (rPET) flakes.
- According to Statistisches Bundesamt, the revenue of the manufacture of plastic products in Germany in 2020 for the manufacture of plastic products was valued at USD 17.89 billion, and the manufacture of other plastic products was valued at USD 37.23 billion in the same year. In 2023. the manufacture of plastic packaging goods has reached 18.24 billion, while the manufacture of other plastic products has reached USD 43.86 billion. Such a rise in plastic product manufacturing would push the need for caps and closures nationwide.
Understand The Key Trends Shaping This Market
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Beverage Segment is Expected to Drive the Market Growth
- The industries where plastic caps and closures are mainly used include food and beverage, cosmetics, and personal care. The beverage sector’s need for caps and closures is expected to increase due to the demand for bottled water and non-alcoholic drinks.
- Polyethylene terephthalate (PET) bottles are gaining a presence in various product areas. Their low cost, low weight, and ongoing developments in printing technology have led to their popularity among premium consumers. PET bottles are mainly used for water bottles. Moreover, they are also used for packaging sodas, beverages, juices, cooking oil, shampoo, liquid hand soap, pharmaceuticals, and many more.
- Moreover, using recycled material in beverage bottles has exhibited substantial growth. According to research conducted by the Gesellschaft für Verpackungsmarktforschung (GVM) in April 2023, the average percentage of PET recyclate employed in manufacturing beverage bottles in Germany was 44.8% in 2021. In contrast, the previous survey for 2019 showcased the usage of 34.4% PET recyclate.
- According to German Trade and Invest, the beverage industry, opportunities abound in various segments, including functional drinks, smoothies, enhanced waters, organic beverages, and sugar-free soft drinks. New entrants can achieve success, even on a smaller scale, by emphasizing health benefits or unique production methods. Within the alcoholic beverages sector, craft beer, spanning pale ale, wheat, or lager variations and alcohol-free options, are witnessing notable growth.
- Furthermore, the demand for non-alcoholic beer is rising, with the market volume projected to reach EUR 1.8 billion by 2025. Shifting consumer preferences are also fueling increased consumption of organic wines, beers, and spirits. According to Statistisches Bundesamt, the revenue of the beverage industry in Germany in 2020 was EUR 21.29 billion (USD 23.04 billion), and it will reach EUR 24.99 billion (USD 27.04 billion) in 2023. Such a rise in the beverage industry would push the market for caps and closures in the country.
