Market Trends of North America Plastic Bottles Industry
Demand for Bottled Beverages is Expected to Increase
- With the rising demand for bottled water and non-alcoholic beverages, the beverage segment in the plastic bottle market is expected to expand. The demand for bottled water is attributed to customers' predisposition to want high-quality drinking water, specifically, their concern about contracting diseases after drinking tainted tap water and the portability and convenience of bottled water.
- The market for plastic bottles for bottled water packaging is driven by the rising demand for packaged drinking water among consumers across the world because they are more cost-effective than other packaging options, have a longer shelf life, and are easy to use.
- Most bottled water companies package their products using plastic containers. According to the International Bottled Water Association (IBWA), plastic containers comprise 97.3% of the bottled water market. According to a report published by the Beverage Marketing Corporation in May 2023, the sale value of bottled water in the United States grew in the last few years, from USD 13.85 billion in 2018 to USD 15.90 billion in 2023. This demand for bottled water is expected to increase during the forecast period, bolstering the demand for plastic bottles.
- PET plastic bottles are a commonly selected option for soft drinks because of their many advantages to producers and customers. PET plastic bottles are the preferred packaging choice for approximately 70% of soft drinks, including carbonated beverages, still and dilutable drinks, fruit juices, and bottled water. With the growth of carbonated soft drink sales across the region, the demand for plastic caps and closures would also rise.
- The “on-the-go” lifestyle of today’s consumers demands lightweight and user-friendly packaging. Also, the growing market for energy drinks is driving the market’s growth.
- According to a report by Monster Beverage (January 2024), the unit sales of energy drinks in the United States amounted to USD 1,599 million in 2023, up from USD 1,101.05 million in 2017. The rising unit sales would automatically positively impact the market's growth.
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Canada is Expected to Witness Stable Demand
- Sustainable packaging solutions have gained traction in recent years owing to rising consumer awareness regarding the environmental benefits of eco-friendly packaging. PET has emerged as an integral resin in the pursuit of eco-friendly packaging materials due to its recyclability and potential for circularity. More than 40 Canadian manufacturers have recently announced the “Canada Plastics Pact,” which is a commitment to recycling or composting 50% of Canada’s plastic packaging by the end of 2025.
- The pharmaceutical sector is one of the most innovative industries in Canada. Over the past decade, it has experienced significant growth. According to Statcan, there was an 11.3% annual change in sales of pharmaceuticals in Canada during 2023, up from 8.5% in 2022. With such growth, plastic pharma bottles equipped with tamper-resistant features resonate with the preference for cost-efficient yet dependable packaging solutions that would witness robust demand.
- Furthermore, beauty and personal care manufacturers are focusing on launching new products in the Canadian cosmetics and personal care market to cater to the rising consumer demand for natural cosmetic products. For instance, in 2023, Taro Pharmaceutical Inc. launched Bee RX, a new clean-label, natural cosmetic skincare bottle. Constant innovations like this are expected to create several avenues for plastic bottles in the upcoming period.
- Plastic bottles offer a cost-effective packaging solution for soft drinks, primarily due to their lightweight nature, reducing storage and shipping costs. The resins in these bottles, specifically designed for carbonated beverages, are of superior quality.
- According to the USDA Foreign Agricultural Service, the Canadian market witnessed a 14% growth in sales of soft drinks in Canada between 2018 and 2023. With the same or increasing growth rate during the forecast period, the market is expected to witness demand for plastic bottles.
- Several manufacturers across the region are launching eco-friendly plastic bottles for soft drinks and other beverages. For instance, from the start of 2024, all 500 ml sparkling beverage bottles sold by the Coca‑Cola Company in Canada were announced to be made with 100% recycled plastic. The company is among the first to launch multiple sparkling beverages in 100% recycled plastic bottles across Canada. Bottles made with 100% recycled plastic create and sustain a circular economy for plastic packaging.
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